UK drinkers trade up when out

Published: 05 May, 2010

UK drinkers are going for quality not quantity, when drinking out, but are trading down at home, according to recent research.

Trade analyst, Datamonitor has found that consumers are refusing to let economic worries influence their favourite tipple when out with family and friends in pubs and restaurants.

In fact the research shows, they'd prefer to drink less of a premium branded drink than risk being seen to trade down. Yet once they're back at home, they're happier to drink lower cost alcohol.

Richard Parker, senior consumer insights analyst at Datamonitor said: "It's typical keeping up with the Jones' behaviour just exaggerated during the recession. In a significant number of cases people are actually trading-up, so rather than drinking two or three bottles of house wine with a meal, they're splurging on one top-end bottle."

As a result, Parker said people will start to trade-up to new products and experiment and the market will see those products that have spent money on innovation do well.

"Although people are sticking with quality, they're drinking less impacting on the bottom-line of the industry. Companies that have introduced offers and cut their prices will struggle to maintain a reputation for being a premium product. As a result people will start to trade-up to new products and experiment. So we can expect to see those products that have spent money on innovation do well."

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