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Low-Cost Alcohol Products Account for a Disproportionate Share of Privatized Off-Premises Alcohol Sales Across 42
Doris G Gammon1, Mary Catharine McKeithen1, Jennifer Gaber1
1Center for Program and Policy Evaluation to Advance Community Health, RTI International, Durham, North Carolina.
Objective:
We assessed alcohol product availability, sales, and prices among privatized off-premises alcohol sales in 42 U.S. states and quantified sales among lower-priced products.
Method:
We used NielsenIQ weekly retail scanner data from 28 license states (where alcohol sales are privatized) and 14 control states (where alcohol sales are partially privatized and partially government controlled, e.g., for distilled spirits)-collectively representing privatized off-premises alcohol sales in 42 U.S. states from November 11, 2018, to November 4, 2023. We descriptively analyzed the latest year (November 2022-November 2023) of alcohol product availability (number of unique products), standard drink price, and standard drink sales, and compared these with estimates from the earliest year (November 2018-November 2019). We quantified the sales market share of products priced at or below $0.50, $0.75, and $1.00 per standard drink.
Results:
Overall, product availability increased from 2018-2019 to 2022-2023 among all alcohol types, ranging from +7.4% (beer) to +67.0% (ready-to-drink beverages [RTDs]), whereas sales decreased for beer (-8.0%) and wine (-10.7%) and increased for spirits (+7.4% [license states only]) and RTDs (+68.6%). The average price paid for a standard drink remained less than $2.00 through 2023. During 2022-2023, in license states, 57.4% of spirits sales were $1.00 or less per standard drink; across all states, 23.3% of beer sales (13.0% of beer products), 28.7% of wine sales (7.4% of wine products), and 18.4% of RTDs sales (24.0% of RTDs products) were $1.00 or less per standard drink.
Conclusions:
Among 42 U.S. states, a substantial share of alcohol sales was from lower-priced products.
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