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Tuesday 23 July 2013

Restaurants Charging More For Alcohol And Spending Increased

By Cornelius Nunev


Dining places and bars charge a markup on alcoholic beverages, but individuals have been spending more to them there than in shops. However, it has every little thing to do with higher costs, instead of consumption.

Markup schmark-up

When looking at changes in the 30-year period from 1982 to today, NPR found that Americans are beginning to spend a lot more on alcohol in bars and restaurants, according to the "What America Spends On" series.

Americans had a lot of things taken away during the Cold War in 1982. At that time, consumers only spent 24 percent of the alcohol budget in restaurants and bars. About 76 percent of it went to alcohol from shops.

Today, spandex is rarely seen and yuppies still drive BMWs. However, we are spending more in restaurants and bars, as 40 percent of alcohol spending takes place in those places, compared to 60 percent in stores. However, much of it is to do with a 79 percent increase in bar and diner prices; store prices dropped 39 percent. If anything, that suggests more volume is purchased in stores.

More wine spending

in 1982, only 16.2 percent of alcohol costs were for wine while 48.9 percent was on beer and 34.6 percent was on wine. That has changed a lot in 2012 when wine spending has increased to 39.7 percent. Spending on spirits decreased to 12.6 percent. That was the biggest change seen in the country.

Wine in America is all any person seems to want. In 2011, France only shipped 320.6 million cases of wine while there were 329.7 million cases shipped in America, according to the San Francisco chronicle. Certainly more Americans are drinking American wine now.

In the U.S., Millennials are really drinking more than the previous generation and have more costly tastes. That is why the American wine industry saw massive increases in 2010 to become a $30 billion industry. Of the 241.8 million cases sent out from vineyards that year, 61 percent came from California, making it the best state for wine.

Fit for a king

Beer accounted for 47.7 percent of sales in 2012, which was almost no change from 2012, according to NPR. It is still the drink everybody wants in the nation. Overall, Americans are consuming less though, which is why overall beer production decreased from 1990's 204 million gallons to 2011's 192 million gallons, according to BusinessInsider.

From 2010 to 2011, there was an 11 percent increase in craft breweries. These breweries are becoming much more popular than regular beer businesses right now. In fact, in 2011, there were almost 11.5 million barrels produced making $8.7 billion in revenue. That is a 5.7 percent share of the market. In 2011, there were 1,989 craft breweries with 250 brand new breweries opening and 37 closing soon.



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