Technomic Sees A Rebound in 2010 Alcohol Sales

“Our expectations for segments like casual dining, fine dining and bars are much higher than they were six months ago”

“Our expectations for segments like casual dining, fine dining and bars are much higher than they were six months ago,” stated David Henkes, Vice President at Technomic and the director of the firm’s on-premise practice. “Consumers are returning to restaurants, and that’s good news for the sales of alcohol and related products,” says Henkes. Beer and spirits-based drinks should benefit the most, while wine sales will still lag due to consumers trading down to less-expensive wines, or ordering by the glass instead of by the bottle.

Henkes cautions, however, that alcohol sales will still slightly lag behind broader restaurant and bar sales, and notes that the industry won’t fully recover from the economic downturn for at least another year.

“While it’s good news that we’re starting to see growth after nearly two years of declines, the industry is not out of dangerous territory yet, and the recovery isn’t as robust as it has been in previous recessions," stated Henkes. He notes that alcohol should be an area of focus for operators given its higher profitability.

About Technomic

Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food and beverage industry.

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