Technomic Sees Alcohol Sales Falling Further in 2010

CHICAGO--(BUSINESS WIRE)--Based on expectations of continued contraction in the restaurant and bar industry in 2010, foodservice consultancy Technomic has issued its forecast for beverage alcohol sales in those channels. Total alcohol sales in all away-from-home venues are expected to decline 2.5 percent in 2010. The biggest declines will be seen in casual full-service restaurants and high-end white tablecloth restaurants.

“The overall share of visits that include alcohol has been on a downward slide for several quarters. While next year won’t be quite as bad, we don’t think we’ll begin to see real growth in consumer spending on alcohol again until 2011.”

“Our outlook for alcohol sales is based upon continued weakness in restaurant traffic and further consumer frugality,” stated David Henkes, Vice President at Technomic and the director of the firm’s on-premise practice. “The overall share of visits that include alcohol has been on a downward slide for several quarters. While next year won’t be quite as bad, we don’t think we’ll begin to see real growth in consumer spending on alcohol again until 2011.”

2010 Forecast for Overall On-Premise Alcohol Growth
By On-Premise Segment	2010 Growth/Decline		By Type of Product	2010 Growth/Decline
Fine Dining	-10.4	%	Beer	-1.8	%
Casual Dining	-6.8		Wine	-6.7
Bars/Nightclubs	0.6		Spirits	-2.1
Lodging	-6.1		Overall On-Premise	-2.5	%
Casinos	-5.0
Concessions	-2.0
Other Recreation	-4.2
Overall On-Premise	-2.5	%

For 2009, Technomic estimates that alcohol sales will end the year down 4.9 percent. This drop in sales is further supported by current data from the Technomic/GuestMetrics partnership which shows check averages are down 6 percent through the third quarter of 2009. On top of declining traffic, overall alcohol sales levels have fallen at a much steeper rate than the decline in food.

For further information on Technomic's beverage alcohol forecast and programs for suppliers in the on-premise beverage alcohol channel, please contact David Henkes at 312-506-3927 or [e-mail].

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 industry.