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Demand for cheap beer and tobacco surges amid US inflation

Record levels of inflation have forced American alcohol and tobacco product consumers to switch from Budweiser and Marlboro to cheaper economy brands such as Icehouse and Eagle 20, according to the report.

Retailers report that customers are increasingly favoring more cost-effective beer brands such as Bushlight, Icehouse and Milwaukee’s Best Ice.

Economy beer retail sales increased 5.4% year-on-year in the four weeks ending July 2, according to Nielsen data commissioned by beer industry consultant Bump Williams Consulting.

the study Quoted by The Wall Street Journal..

By comparison, economy beer retail sales fell 10.9% last year.

Thirty-Nine-year-old Marvin Hamama, who lives in the Ypsilanti region of Michigan, told the journal that inflation has abandoned the usual choice of Corona or Pacifico beer in favor of the Ice House.

According to recent data, sales of economy brands such as Icehouse are increasing.
Himuro

One serving of Corona is $ 2.99 excluding tax, while Ice House is only $ 1.29.

“I don’t like cheap things, but you may still choose it,” Hamama, a marijuana cultivator, told the journal.

Smokers also avoid more expensive options like Marlboro and favor discount brands such as Eagle, Pyramid and Montego. These are all manufactured by Vector.

Producers of economy cigarette brands such as 24/7, Edgefield and Berley, Xcaliber International is reporting significant sales growth this year, shaving off Marlboro’s market power.

The price of the Xcaliber brand is about half that of Marlboro.

Tobacco smokers are also avoiding more expensive brands in favor of alternatives such as Montego.
Tobacco smokers are also avoiding more expensive brands in favor of alternatives such as Montego.
Montego

“Consumers are much smarter and more price-sensitive than they used to be,” company co-owner Lee Levinson told the journal.

“They just got smarter in spending money.”

Eagle 20s
Cigarette costs rose 8.1% in June, and tobacco consumers are now choosing the economy brand Eagle 20.
eagle

Research shows that those who have the means continue to spend money on premium imported brands such as Modelo Especial, whose sales continue to grow.

The government’s consumer price index has risen 9.1% over the past year, the largest annual rise since 1981, and almost half of the rise is due to rising energy costs.

The Bureau of Labor Statistics reported that prices for beer, ale and malt beverages in June were up 4.3% compared to a year ago.

Tobacco prices soared 8.1% in June.

Demand for cheap beer and tobacco surges amid US inflation

Source link Demand for cheap beer and tobacco surges amid US inflation

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