Cannabis. Health consciousness. Pandemic-related behavioral changes. Mindful drinking. The boom in nonalcoholic beverages.
People cite a number of reasons for the decline in drinking over the past couple of years, but one we often overlook is the economy—the very real cost pressures that can keep guests away from taprooms, bars, and restaurants. Even many who identify as drinkers are drinking less—or at least drinking for less.
What’s worse from an industry perspective is that people are tightening their belts even as we’ve raised prices to cover higher production and operation costs—from ingredients and packaging to labor, utilities, and rent—just to maintain the slim margins our businesses need to survive.
Ten-dollar pints aren’t helping anyone at the moment, especially when larger breweries and big-box retailers provide plenty of inexpensive options in RTDs, spiked seltzers, industrial lager, and even craft beer. Busch Light sales are on the upswing, and Costco is selling rebranded Deschutes helles for just over a dollar a can—incredible value for a Great American Beer Festival gold-medal winner. Meanwhile, smaller brewers, bars, and restaurants struggle to attract guests who are dead set on a deal.