This is an interesting development:
Fewer booze buyers are reaching for the top shelf.
Americans aren’t thirsting for for the high-end tequila that once flowed freely, spirits companies said, as demand for $100 spirits has dropped off. Consumers appear to be trading down—or selecting less expensive versions of their preferred beverage—said Lawson Whiting, CEO of Brown-Forman (BF.A, BF.B), on Thursday, as sales of more affordable bottles fell less.
“We are seeing some weakening, for the first time, in terms of trade down,” Whiting said on a conference call, according to a transcript made available by AlphaSense. “When you look at $100 and above or $50-to-$100 [segments], those price points have weakened considerably.”
Industrywide, the number of $100-plus bottles sold has fallen 18% in the past three months, according to the market research firm NielsenIQ.
I’m not surprised. All that high-end stuff, at the end of the day, delivers not much more in terms of taste and shall we say “knockdown power”, for a premium price. And that would be okay, in isolation.
But when you have to spend $120,000 for an “economy” car — think I’m joking? see how much you end up paying in total when you finance $45,000 over seven or ten years — and the cost of even the cheapest meal for two in a non-fast food restaurant will set you back well over $60, and your grocery bill rockets from $30 per week to $140… it doesn’t take a Nostradamus to predict that things are going to change when it comes to spending your money on what is after all an indulgence.
And the change can come with reduced consumption (as above) or simply learning to live with cheaper merchandise.
In earlier, less fucked-up times, I would now have been on my second or maybe even third car after the Tiguan; instead, I now know that barring some kind of miracle, the Tiggy is going to be my lifetime vehicle.
I can’t remember the last time I bought a bottle of single-malt — years, I suspect — and it doesn’t matter because I seldom drink the stuff unless friends show up for dins, and a single after-dinner cocktail is called for.
It’s not just me, either: the Son&Heir drinks maybe 10% of what he used to drink, booze-wise, and even my rowdy friends have cut back.
But spare me the sob stories of what this means for the manufacturers of high-end bling. If ever there’s a case study in ripping people off for the “status” of using their products, vendors like Louis Vuitton, Glenfiddich, Porsche and Swarovski are headed for bleak times; and I care not a fig for their predicament.
Regardless of what anybody else is doing, last night I finished off a bottle of Canadian Mist and there is currently no more alcohol in the house. NONE.
I will not buy any more until at least summer (June) and if I do buy it will most likely be brews.
Just getting kinda tired of all of it, and other things too.
Getting tired of the internet and all things tech.
I’m getting old (71 in a couple weeks) and thinking about what’s important, and what’s not. Streamlining and off loading unnecessary ballast.
My son-in-law, bless him, brought me a bottle of Balvenie Doublewood for Thanksgiving. I don’t remember the last time I bought it. Don’t get me wrong, I love the stuff, and if I won the lottery, it would be my staple whiskey. But I find I enjoy a Famous Grouse or a DeWars White Label almost as much, and I haven’t been buying the “good stuff” for quite a while.
The Law of Diminishing Returns hits hard with these things. The Balvenie goes for a bit more that 4X the others, and while it is delightful, it’s not 4X as delightful, at least to me. I’ll take something I enjoy 90% as much for 25% of the cost pretty much every time. I was that way even when I could afford to buy Balvenie all the time.
I guess the Economist in me just can’t bring me to spend like that. God bless my son-in-law! Lol
As I head into retirement, I’m casting a sharp eye on all expenses to see where cuts can be made. My liquor budget is off the charts and needs to reduce down to something manageable. Right now, my poison of choice is ~ $40 per fifth. If I can find something that’s almost as good and only costs $30, congratulations, I have found my new favorite Bourbon.
I’ve tried some of the pricier bottles and not noticed much of an improvement. And if there’s any noticeable difference, but the 3rd or 4th double you no longer care. So, just like when we were teens, chug the first couple of nasty drinks fast and then the rest will taste ok. Also, all the girls will suddenly get prettier.
I’m not claiming “cause and effect”, but when I quit drinking, Jameson’s sales dropped nearly 20%. Just sayin’.
I do notice a difference between the good stuff and the mid-shelf stuff. But I follow the trend as well. Part of it is age and even after only a couple of snorts, I wake up the next morning feeling like hell, and I think, “I’m spending a lot of $$$ to feel like shit.”
So I’ve largely rolled back too. The weird thing is after about 60 days of abstinence, when you do imbibe, the alcohol in any spirit/brew/wine really seems harsh.
I haven’t sworn off, I’ve just lost the overall enjoyment of the activity.
I’d roll out of bed with a hangover and think, I’m too fucking old to feel this bad. Then I’d give up drinking for a few days. Then I’d wake up, no hangover, still feeling like shit, and think I’m too sober to feel this bad. Then go back to drinking. If I’m going to feel like shit in the morning, at least let me blame it on the booze and not my age.
I may/may not be able to say the same thing happens to me.
It’s also an issue of what I drink. I’m having more gin (G&Ts and negronis) and there just isn’t any reason to ever spend more than $40 on a bottle of gin. It’s vodka (cheap by design) with some botanicals. There’s no aging, none of the other expenses, so if you are paying more than that you are just paying for a label.
I’ve never spent $100+ on a bottle of anything other than for a holiday. It’s nice to get a bottle of vintage port or a $200 single malt for having after Christmas dinner, but not on a regular old Wednesday.
My tipple is wine and I’ve outright been told by wine importers that the UK public likes to spend £10-£15 on a bottle, perhaps a little more if you take inflation into account.