Low-cost alcohol products account for a disproportionate share of privatized off-premises alcohol sales across 42 U.S. States

Abstract

OBJECTIVE: We assessed alcohol product availability, sales, and prices among privatized off-premises alcohol sales in 42 US 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 US states from November 11, 2018-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 it to estimates in 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]), while 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 standard drink price paid remained <$2.00 through 2023. During 2022-2023, in license states, 57.4% of sales were ≤$1.00 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 per standard drink.

CONCLUSIONS: Among 42 US states, a substantial portion of alcohol sales were among lower priced products.