Alcohol isn't what it used to be but maybe that's alright

On few subjects is there a greater generational divide in the developed world than on the merits of having a cocktail.

- RAHUL JACOB

In the past couple of decades in the US, sales of alcohol to those between 65 and 74 years of age rose by half, even after adjusting for inflation. By contrast, sales declined by 60% to those aged 25 and under.

Japan, whose work culture and push for 'total quality management' were once known for long work days and hard drinking by the 'salaryman,' has seen a decline in overall per capita consumption by more than a quarter in the past three decades. In France, of all places, wine consumption, especially of red wines, faces what an analyst calls an "existential" decline.

Alcohol stocks in developed-world markets have been pummeled because the industry is seen as a sunset industry that is also in the sights of regulators. Diageo's shares have fallen by a third since 2020, according to a Financial Times article last month that quoted its chief executive officer, Debra Crew, as saying that "people want to drink better, not more."

This push toward the premium end of the scale is working to an extent. Despite the doom and gloom surrounding the industry, data company International Wine and Spirit Research (WSR) estimated that in 2023, revenues from alcohol sales actually increased by 2%, even as volumes declined by 1%.