Demographics, Alcoholic Beverage Purchase Patterns, and Attitudes Driving Hard Cider Expenditures

ABSTRACT

Hard ciders have enjoyed a recent resurgence in popularity in the United States, yet little is known about drivers of hard cider expenditures. This study used data from a 2019 survey of Tennessee alcoholic beverage consumers and a hurdle model to investigate drivers of hard cider expenditures. About 63% of respondents had previously purchased hard cider, and purchasers averaged $70.14 in spending on hard cider annually. Consistent with anecdotal popular press reports, Millennial and Gen X generations were the most likely to purchase hard cider and had spent the most on hard cider. Furthermore, there was a significant complementarity relationship between frequent wine cooler and malt liquor beverage purchasing and hard cider expenditures. However, neither preferences for local foods in general nor for local ciders influenced levels of hard cider purchases or expenditures. Results are informative regarding the profile of hard cider consumers.

KEYWORDS:

• Hard cider
• consumer characteristics
• expenditures

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ In a log-linear model the cider expenditures can also be expressed as: $\mathrm{E}(HardCiderExpenditure{s}_i|HardCiderExpenditure{s}_i>0,x_{1i},x_{3i})=e^{({\mathit{x}}_{\mathbf{1}i}{\mathit{\beta }}_{\mathbf{1}}+{\mathit{x}}_{\mathbf{3}i}{\mathit{\beta }}_{\mathbf{3}})}{e}^{{\sigma }^2/2}$ where ${\sigma }^2$ is the variance of the errors. An estimate of the variance of the error term for a log-linear model can be obtained using Stata’s generalized structural equation model. Then the expected value of conditional hard cider expenditures can be determined at the different values for weekly alcohol expenditures.

Additional information

Funding

This work was funded in part by a grant from the Agricultural Marketing Service-Federal State Marketing Improvement Program U.S. Department of Agriculture. .