Anatomy of American Alcohol Consumption

Americans are drinking less beer, but more wine and spirits, according to data fromEuromonitor International.

The trend, according to the research firms senior alcoholic drinks analyst Spiros Malandrakis, has to do with story as much as substance. Big beer companies have remained pretty complacent in flavor and instead have focused on predictable advertising and discounts to boost sales, he said. (Craft beer, a sector that is known for its innovation in beers flavor, has seen huge growth butonly makes up 8% of the total beer market.)

The same old thing isnt doing it for millennials, who are looking for innovation in taste as well as a compelling backstory, Mr. Malandrakis says. Mr. Malandrakis sees innovation in flavored vodkas, but even more successfully in the marketingof Irish Whiskey and American Bourbon. Spirits managed to capture the zeitgeist much better, using prohibition-inspired themes and pop culture, he said.

Craft beers, spirits and, to an extent, wine have also managed to capitalize on local movements, in which people want to know where ingredients are coming from and how theyre prepared. Mr. Malandrakis dismisses the idea that the drop in big beer sales has anything to do with calories: Real people dont go out drinking to get thin, he said. They do it for indulgence.

Americans on average still drink more servings of beer than other beverages but they drink a fair amount of spirits and wine as well. The data show that Americans drink on average nearly 500 alcoholic beverages a year or about 10 a week. The number of drinks is mostly consistent over the past two decades, with a spike in drinking during the recession.

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Anatomy of American Alcohol Consumption