[ad_1]
The COVID-19 pandemic forced people to adjust to staying indoors, and even though lockdown restrictions have waned, consumer spending habits have remained the same.
During the CNBC Evolve Global Summit, Jessica Spence, brands president of Beam Suntory, which produces spirits like Jim Beam, Courvoisier, and Sauza, noted that consumer spending habits shifted during lockdowns.
“All of a sudden, when you couldn’t go out to your favorite restaurant or the holidays were out of balance, spending a little bit more on that bottle of whiskey or tequila became a bigger treat,” Spence explained.
Premixed and ready-to-drink cocktails also gained popularity among those stuck at home who wanted easy access to their desired alcoholic beverage.
“There were a lot of people experimenting and had the time to have fun with cocktails, and there were a lot of people who realized they were not the greatest bartender in the world,” Spence said.
“When you want that cocktail, maybe you don’t want to do all the hard work.”
Last year, premixed cocktails became the fastest growing spirit raking in $1.6 billion, marking a 42% year-over-year revenue growth, the Distilled Spirits Council of the U.S. reported. Meanwhile, tequila and mezcal experienced a 30% growth, and Irish whiskey had a 16% growth.
Of the online alcohol shoppers in the U.S., 54% made their first purchase during the COVID-19 pandemic.
Elsewhere, the candy industry also spiked in sales from shoppers who developed snacking habits and began buying bigger packs of candies during the pandemic.
Although sales at convenience stores have returned to reaping their normal revenue since the COVID pandemic began, executives in the confections industry have continued to see growth in e-commerce and other channels.
News of the increase in spending on alcohol and candy comes after a reporter revealed inflation hit a 40-year high of 9.1% in June.
Photo: AFP / TIMOTHY A. CLARY
[ad_2]
Source link
