Stanford GSB

Stanford GSB

Tuesday, February 16, 2016

Brand and Type Loyalty among Alcohol Choices... plus TV ads

There is a WSJ article today called "Cocktails Sip Away at Beer's Market Share."

According to the article, despite the craft beer craze, beer lost a portion of its share of U.S. alcohol revenue in 2015 to liquor for the sixth consecutive year and the 12th time in the past 15 years, according to the Distilled Spirits Council of the US. Beer’s market share fell to 48% last year from 56% in 2000. Liquor has risen to 35% from 29% and wine to 17% from 16%.


The article attributes the liquor industry's steady gains in popularity to a major cocktail renaissance, a return to television advertising, and because of fickle young drinkers whose generation switches between beer, whiskey and wine more frequently than ever before.

I agree about being a fickle young drinker. In any given week, I consumer roughly the same proportion of wine (with dinner, weeknights), beer (sports, day drinking) and alcohol (Friday and Saturday nights). And while I really enjoy Grey Goose vodka, I am equally as likely to ask for Tito's, Kettle, or when I'm going to have a lot, the "house" variety.

While I have preferences (vodka over all over liquors), I do not really have loyalty among the vodka choices. I also prefer hefeweizen and wheat beers over IPA's, but any German hefeweizen, Blue Moon, or Hoegaarden will do. And for wine, while I frequently purchase and order Pinot Nori and Gewurtraminer, I truly have no loyalty to one brand.

Does anyone in the class feel like they have alcohol brand or type loyalty?

There is also another interesting question that comes to mind from this article. With some of the growth in liquor being attributed to television advertising, why don't we see more wine television ads? The only one that comes to mind is that overly played (and somewhat tacky) Santa Margherita Pinot Grigio commercial. 



2 comments:

  1. Truthfully I don't think I've ever thought about this before, but now that you mention the data I'm definitely more of a 'fickle' consumer as well. I tend to have the same split as you (1/3 for all three), although with this class I've been venturing more into wine territory than usual. I tend to go for certain varietals over others, however am not brand loyal to any specific bottle (unless it's for value, then I have a $4 Beringer that wins the day).

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  2. Interesting question on brand loyalty, Kaitlyn. I find that I'm not loyal to any particular brand. However, I have found that if I find a wine that I like, I will readily return to that particular brand because it's an easy heuristic for me as a consumer. It also reduces some of the risk of purchasing a bottle and not liking it, or worse, purchasing a bottle and bringing it to a dinner only to find that it's not what I expected.

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