More drinking at home means slump for bars - Euroslot - the independent voice of the amusement and gambling industry

More drinking at home means slump for bars

Published: 12 February, 2009

A study released in December revealed that the international liquor industry has not experienced a decline in sales. However, the study also claims that, due to the downturn in the general economy, consumers are doing their drinking at home rather than at bars, taverns and restaurants. Part of the shift reflects an unwillingness to pay premium prices for alcoholic beverages and rising gas prices.

The research also shows that an "aging population" in the U.S. has developed new spending and drinking habits. Beer sales have dropped, but a younger population has developed a taste for wine and other spirits.

Currently, state governments are considering various options that could benefit or hurt alcohol sales in bars and taverns. By eliminating "blue laws" in 12 states, which bans Sunday sales of adult beverages, sales could increase. However, imposing higher taxes on alcohol sales, like the nickel per drink proposal from California governor Arnold Schwarzenegger, will just drive up the prices, which could further depress the market.

These factors, plus the increasingly sophisticated technology of home entertainment and more restrictive smoking bans, will all impact the American amusement industry that relies on bar business for a significant percentage of its revenues, particularly in the league and tournament category.

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