Bars and Restaurants See Economic Downturn Affecting Consumers' Alcoholic Beverage...

Bars and Restaurants See Economic Downturn Affecting Consumers' Alcoholic Beverage Purchases, Nielsen and Bevinco Report

SCHAUMBURG, Ill. & TORONTO--(Business Wire)--
While history would suggest consumers' alcoholic beverage
consumption does not suffer significantly when times are tough --
consumers might even be expected to drink more -- recent evidence
indicates that fewer of them are doing so in bars, restaurants and
nightclubs. New research from The Nielsen Company and Bevinco reveals
that on-premise sales of alcoholic beverages have been considerably
impacted by the declining economy.

More than 40 percent of bar managers, bar owners, and bartenders
surveyed by Nielsen and Bevinco report they have seen a decrease in
consumer traffic, while 25 percent note a decrease in the number of
drinks ordered and 22 percent say that customers are ordering less
expensive drinks. The casual dining sector appears to be the hardest
hit, as 46 percent of respondents in this area report a decline.

Consumers Going Out Less Often

Consumers say they are cutting back too. According to a recent
Nielsen consumer survey(1), two-thirds (66 percent) of fine dining
patrons admit they are going out less often compared to a year ago.
Their sentiments were echoed by 65 percent of nightclub patrons, 55
percent of bar patrons, 59 percent of casino and resort patrons and 52
percent of casual dining visitors.

"Watching their wallets, a growing number of consumers are simply
opting to stay home more often rather than go out for dinner or
drinks," said Danny Brager, vice president, Client Service, Beverage
Alcohol, The Nielsen Company. "As a result, sales of alcoholic
beverage purchases at restaurants, bars and nightclubs are suffering
as consumers seek ways to economize."

Regional Impact

Establishments on the East and West coasts report the greatest
declines, with owners and operators in California and Florida citing
significant decreases in consumer traffic -- 55 percent and 52 percent
respectively. The Lone Star State does not fare much better --
slightly more than half of operators in Texas report a decrease in
consumer traffic, while nearly one-third see patrons ordering less
expensive drinks. In addition, 43 percent of Florida operators say
they've experienced a decrease in the number of drinks ordered. Just
one-third of establishments in Florida and California claim no impact
overall.

Beer Appears to Fare Best, Wine Sales Lag

According to Nielsen and Bevinco's research, beer sales are
affected the least by the economic downturn, with wine sales showing
the most impact. Nearly half of respondents rated beer as having the
"best" sales trend of the three categories, followed by spirits at 40
percent, while only 11 percent cited wine as having the best sales
trend of the three.

"Wine is more likely to be consumed in dining establishments,
which have been more heavily impacted by the economy than bars or
nightclubs," said Brager. "At the same time, beer and spirit companies
vigorously market their product to bartenders, likely resulting in
greater 'share of mind' compared to wine among servers and
bartenders."

In addition to a severe drop in customer traffic, operators report
some minor price-related changes in consumer behavior. For example, 14
percent report customers are ordering more well or house drinks, while
13 percent report greater sales of beer "on draft" rather than in
bottles. Wine drinkers are increasingly opting for house varieties
more often than before, according to nine percent of operators
surveyed.

"Clearly, while the majority of those consumers that go out are
still indulging in their favorite alcoholic beverages, some are
seeking less expensive alternatives," said Barry Driedger, chairman
and CEO, Bevinco.

About the Nielsen/Bevinco Survey

Nielsen and Bevinco surveyed more than 500 managers, owners and
bartenders in bars, nightclubs, hotels, casual restaurants and fine
dining restaurants nationwide in May 2008. Nielsen and Bevinco are
co-operating in the development of several services for Beverage
Alcohol suppliers and wholesalers designed to enhance the
understanding of the crucial on-premise environment.

About Bevinco

Bevinco is a global company that provides independent data
services and solutions to on premise operators in the hospitality
industry. Bevinco's 21 year old established business is conducted
through a network of more than 300 franchisees operating in 23
countries. Bevinco services thousands of on-premise operators across
the dining, bar, restaurant, recreation and lodging sectors. Via
Bevinco's services, bar and restaurant operators can discover real,
fact-based opportunities to improve their profitability and revenue
streams. "Back of the napkin math suggests that if all establishments
signed on with Bevinco, they could avoid roughly $10 billion in annual
losses," Newsweek 2003. For more information, visit us at
www.bevinco.com.

About The Nielsen Company

The Nielsen Company is a global information and media company with
leading market positions in marketing information (ACNielsen), media
information (Nielsen Media Research), online intelligence (NetRatings
and BuzzMetrics), mobile measurement, trade shows and business
publications (Billboard, The Hollywood Reporter, Adweek). The
privately held company is active in more than 100 countries, with
headquarters in Haarlem, the Netherlands, and New York, USA. For more
information, please visit, www.nielsen.com.

(1) Nielsen surveyed approximately 3,500 consumers who had
purchased alcoholic beverages from a store during the last three
months in May 2008.

The Nielsen Company
Jennifer Frighetto, (847) 605-5686
jennifer.frighetto@nielsen.com
or
Ashley Glover, (847) 605-5148
ashley.glover@nielsen.com

Copyright Business Wire 2008