Alcohol Consumption Trends In Arkansas

Since 2008, alcohol consumption in Arkansas has lost -3.7% in volume.

This decrease in consumption hides a much more fundamental trend taking place. When breaking down consumption into the three key categories (Beer, Liquor, Wine), we can note an important shift of consumption in Arkansas with consumers purchasing more wine and consuming less beer volume. Therefore, less gallons of alcohol overall.

While over the same period in Arkansas, wine consumption has gained +33% and spirits +10%, beer has lost 10%.

This is an example of how the power of data analytics allows us to see beyond the numbers to what’s really going on.

The market is slowly demanding more diversity in wines and requesting a different sales approach. Consumers are shifting their behavior from convenience to experience. Some customers are driving a little further than the 1 mile convenience ring in order to buy their wine & spirits from a store where they will meet more knowledgeable staff and enjoy a higher level of customer experience.

Source: NIAAA

Steps to take to get ahead of the trend:

Train your team continuously
Restructure your product mix (balance core and innovative brands)
Track your data to improve individual SKU growth profit margin
Focus on customer service

ARKANSAS WINE INDUSTRY IS NOT A ZERO SUM GAME.

Arkansas wine and spirits industry is not a zero sum game like a lot wish to pretend it to be. Arkansas is the 45th state in consumption per capita and therefore offers a lot of room for growth to catch up with national averages (11 liters per year per capita). It is our belief that the wine consumption will continue to increase as liquor stores provide transfer of knowledge to consumers on how to appreciate wine as a culinary experience rather than a party vehicle.