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Despite ‘greedflation’ concerns, alcohol brand loyalty remains high

Published:  25 April, 2023

A majority of Britons believe companies are using inflation to mask price gouging. But despite price rises, loyalty to alcohol brands remains high, according to new findings by consumer research platform Attest.

Released on 25 April, the research found that 79% of consumers believe that businesses are involved in ‘greedflation’, with grocery price rises perceived by 65% as the most rapidly rising category, ahead of 62% for energy.

However, the same research found that alcohol and cigarettes retained the highest brand loyalty, with just 11% saying they were likely to switch brands to save money, also being the lowest ranking categories of goods when it came to switching away.

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The survey, which examined “what makes Britons break up with brands, views on how brands are acting in response to inflation and the ways high-profile controversies affect consumer behaviour”, found overall that 92% of consumers were now willing to switch from favourite brands.

Price increases and ‘having a negative experience’ were the equal top drivers of brand switching across all categories of goods, with reasons for the latter potentially of interest to alcohol brands, despite their retaining a strong following.

The report stated: “The research identifies another factor alongside inflation that is diminishing brand loyalty: public controversy.”

Brand racism headed the list, with 42% switching away from brands embroiled in any form of racially-related controversy. This was followed by poor treatment of animals, at 38%, bad treatment of employees, at 35%, discrimination against people for disabilities, religion and/or sexual orientation, at 33%, and sexism, at 24%.

A further 22% were concerned about greenwashing, while 11% would turn away from a brand perceived to have right-wing, conservative allegiances, and 9% said the same of left-wing, liberal-leaning brands.

For those brands embroiled in a controversy – including on the tinderbox that is social media – the report found “consumers value transparency the most during a controversy”, at 54%.

Attest, which is based out of New York and London, surveyed 1,000 working-age consumers based in the UK to compile its data.