Mintel Expects Strong "Sin Stock" Markets During Economic Downturn

Americans still reach for small pleasures despite shrinking
pocketbooks
CHICAGO--(Business Wire)--
A five-star restaurant might be out of the question, but a nice
bottle of wine at home? Definitely. In spite of--or maybe because
of--tough economic times, many Americans are clinging to their
smallest, most indulgent pleasures.

New research from Mintel shows market sales for chocolate,
cigarettes and alcohol strong and steady. Historically, these "sin
stocks" have performed well during times of economic recession.

"Chocolate, cigarettes and alcohol again seem relatively
recession-proof," comments Marcia Mogelonsky, senior analyst at
Mintel. "People might be cutting back or switching to store-brands,
but they definitely aren't giving up their small daily indulgences."

Mogelonsky points out that most Americans can still afford
chocolate, cigarettes and alcohol, no matter how much their finances
have been cut. "Because people are being so cautious with their
spending, they feel they are entitled to small rewards and they won't
give them up easily."

Chocolate

The sweet tooth does not seem to be connected to the finance bone.
Mintel shows the chocolate market growing quickly, with retail sales
rising 22% from 2002 to 2007 (to $16.3 billion). Innovative, dark and
premium chocolates are extremely popular, so Mintel expects Americans
to continue indulging in this favorite treat. The market research firm
predicts 4% annual sales increases each year for the next six years.

Cigarettes

A common vice, many smokers aren't kicking the habit, even as
prices continue to rise and health warnings abound. Cigarette and
tobacco product sales increased 44% from 2003 to 2007 (to $103
billion), according to Mintel. As price and tax increases continue to
take hold, Mintel projects that the cigarette and tobacco market will
grow 28% through 2011 (to $132 billion).

Alcohol

Motivated by high gas prices and expensive bar tabs, more
Americans are opting to drink at home. But that doesn't mean they're
drinking less. New research from Mintel reveals the market for at-home
alcohol is expected to reach $77.8 billion in 2008, a 32% increase
from 2003. Mintel expects both in-home and out-of-home alcohol sales
to rise steadily in coming years.

History seems to be repeating itself, as the "sinful" chocolate,
cigarette and alcohol markets remain steady and robust. Mintel notes a
sharp contrast to other food, beverage and leisure categories, which
struggle as gas prices rise and the economy stumbles.

About Mintel

Mintel is a leading global supplier of consumer, product and media
intelligence. For more than 35 years, Mintel has provided insight into
key worldwide trends, offering unique data that directly impacts
client success. With offices in Chicago, London, Belfast, Sydney,
Shanghai and Tokyo, Mintel has forged a unique reputation as a
world-renowned business brand. For more information on Mintel, please
visit www.mintel.com.

Mintel International
Joanna Peot
312-628-7946
jpeot@mintel.com

Copyright Business Wire 2008