Rahul Jacob: Alcohol isn't what it used to be but maybe that's alright
Next Story
Rahul Jacob Younger folk aren't drinking much in the rich world, a trend that could catch on elsewhere too, but that doesn't mean this industry is staring at doom. As volumes fall, prices are going premium. Young people seem to be discovering cocktails and are not part of the developed world's shift away from alcohol. Gift this article
On few subjects is there a greater generational divide in the developed world than on the merits of having a cocktail. 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.
On few subjects is there a greater generational divide in the developed world than on the merits of having a cocktail. 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 on developed-world stock markets have been pummelled because it 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 an article last month by the Financial Times, which quoted its chief executive officer Debra Crew as saying that 'people want to drink better, not more."
This push towards the premium end of the scale is working to an extent. Notwithstanding 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%.
Younger people drinking less alcohol or switching to alcohol-free drinks implies that this strategy of raising prices leaves the industry dependent on wealthy but ageing baby boomers. While the industry has not been forced to use anything in the league of health warnings about smoking that tobacco companies must place on cigarette packs, health concerns may be catching up with it.
Also Read: Why classic cocktails will never go out of style
At the beginning of this year, outgoing US surgeon general Vivek Murthy called for the labelling of cancer risks from alcohol consumption on alcohol cans and bottles. This gave a whole new meaning to 'Dry January,' the annual month for resolutions to abstain from alcohol. The World Health Organization, meanwhile, is ramping up warnings that there is no 'safe level' of alcohol consumption.
'Alcohol is the third leading preventable cause of cancer behind tobacco and obesity," Dr Murthy told a medical columnist of USA Today, adding that it causes 20,000 cancer deaths in the US alone. 'We now know there are seven cancers that are caused by alcohol consumption—breast cancer, colorectal cancer, mouth cancer, throat cancer, voice box (larynx) cancer, oesophageal cancer and liver cancer."
Dr Murthy's declaration sparked several articles on the subject. Last month, one in the New York Times quoted Timothy Stockwell, an alcohol researcher at the University of Victoria in Canada, as saying that 'when you have a drink, your body turns the ethanol that's present in the alcoholic beverage into a really nasty substance" called acetaldehyde, which can damage your DNA.
Given the increasing frequency of these warnings, it will be no surprise if we all—and not just young people—start drinking less. And yet, there is a case for moderation and being a social drinker.
The Economist, in a contrarian column this May, issued some warnings of its own. It argued that the restaurant industry would be devastated if people drastically reduced drinking. Further, the publication claimed that alcohol has a positive impact on creativity and sometimes helps get couples together, dubiously or jokingly linking an observed drop in productivity growth to greater abstinence from alcohol.
The chief executive officer of Asahi has blamed excessive screen time and gaming for reduced alcohol consumption, but it may simply be that people entertain differently and that health warnings are being taken more seriously.
Alcohol's global giants are looking to markets such as China, India and Brazil to boost sales. But even in the developing world, consumption growth is not as bubbly as it used to be.
While the compound annual growth rate of the per capita consumption of pure alcohol was about 15% for India and China between 2005 and 2010, according to an analysis by Technopak, a consulting company, it is expected to grow just 1.2% annually between 2023 and 2028 for India. Alcohol consumption is declining even faster in China than in the West.
Also Read: Sip on Bengaluru: Cocktails inspired by the city's scents
But the regulatory framework in India is also a dampener on sales. Hardly a month or two goes by before a major state levies additional excise duties or raises the cost of liquor licences for restaurants and bars or booze outlets. But India at least offers a demographic dividend of a different kind. Young people seem to be discovering cocktails and are not part of the developed world's shift away from alcohol.
In Bengaluru, synonymous with pubs, cocktail bars are opening all the time, reports Rohil Kalita, head bartender of Bar Spirit Forward in the city. He adds that about 60% of Spirit Forward's customers are aged between 25 and 40.
I am a good bit older than that, but part of the trend. Having been disciplined during the first covid lockdown, during the second, I re-watched Mad Men, the television series about an American advertising agency set in the 1960s, in which cocktails have a central role.
Don't take my word for it, but in the annus horribilis that is 2025, a cocktail or three a week with friends seems preferable to doom scrolling.
The author is a Mint columnist and a former Financial Times foreign correspondent. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 hours ago
- Time of India
As Indians choose premium spirits, cork makers pop the champagne
Mumbai: From Indian single malts and scotch to sparkling wines and cognac, the country's spirits premiumisation drive has a strong connection with the province of Ribatejo, around 80 km east of Lisbon, Portugal. After all, Portugal produces two-thirds of all processed cork products in the world and is also the home to Corticeira Amorim , the world's largest cork manufacturer. While most global companies, including Diageo and Pernod Ricard, have been using wooden stoppers-made from the bark of cork oak trees-for their scotch and premium brands, the Indian market really uncorked after the rise in Indian single malt as well as focus on premium gin and vodka. Numbers bear witness: Corticeira Amorim, which accounts for 70% of the global market share for cork stoppers, said India is among the top 3 priority markets for them after its sales in the country nearly tripled to 10 million cork stoppers in 2025 compared to three million in the pandemic year. "India is one of the largest spirits markets in the world and there is clearly a market potential of premiumisation, which means India can do very well even on the international scene. We will have a role to play in a very important and fast growing spirit market," Antonio Rios de Amorim, chairman of the over 150-year old firm Corticeira Amorim, told ET in an exclusive interaction. "When you start getting the confidence that you are producing quality spirits at world-class level, we see the usage of cork for a premium image." It takes each cork oak bark 25 years before it can be stripped for the first time and an average of over 40 years before the tree starts producing cork that can be used commercially. As a result, it will be a long way for India to use locally produced corks despite the country selling over 400 million cases of spirits every year and is the world's biggest whiskey market, said Amorim, who partnered Spiritual Luxury Living for its India marketing and distribution a decade ago. "The companies in India need everything to be cost-effective in order and we need to be innovative to service the local brand. A lot of requirements and a lot of ideas on innovation from the Indian market can be very very fruitful for us not only for Indians but also for the market worldwide. So this is inspiring because the market is very dynamic and we as a global player cannot be missing out," Amorim added. Post the Covid-19 pandemic, between 2020 and 2024, Indians hit a new high with top-shelf brands such as Johnnie Walker, Glenfiddich and Dewar's. Scotch sales doubled while Irish whiskey grew five times, Japanese whisky six-fold and American whiskey three times. Several home-grown single malts and other spirits have also entered the market to cash in on a premiumisation trend among Indian tipplers. Companies said cork is the preferred stopper, from premium through to super-premium spirits, especially as single malt Scotch whiskies from Glenlivet, Macallan, Glenfiddich and Laphroaig - consistently use cork capsulated stoppers. "Historically, luxury and imported whiskey and wines have used wooden cork stoppers creating a perception that any product with cork is premium. When Indian manufacturers started creating high-end and quality products, the packaging needed to match the liquid inside the bottle. And wooden cork can clearly create the perception of premium and is a differentiator from products using cheaper plastic, synthetic or metal caps," said Amar Sinha, chief operating officer at Radico Khaitan that uses cork for brands such as Jaisalmer gin, Sangam and Ranthambore whiskey. Amrut was among the first Indian single malt brand to use the wooden cork stoppers way back in early 200s, but the market recently saw malts by Piccadily Agro that sells Indri and international players including Pernod Ricard and Diageo adding Indian brands such as Longitude 77 and Godawan, helping growth the segment.
Time of India
a day ago
- Time of India
Rise of 'MAGA Mark'? Why Meta employees 'horrified' as CEO Mark Zuckerberg ditches his T-shirts for luxury jackets, $900K watch
Meta employees are reportedly 'horrified' by CEO Mark Zuckerberg's support for the Trump administration and his new, more conservative avatar. As per a Financial Times report, the billionaire has reportedly undergone a political transformation that has left employees 'grieving' and feeling 'horror and betrayal.' An Unsettling Shift in Workplace Culture More than 40 current and former Meta employees, most of whom requested anonymity, reportedly shared their concerns with FT , painting a grim picture of the internal environment. The culture at Meta, once shaped by Zuckerberg's image as a casual, innovation-driven tech leader, is now seen as shifting toward a space that some insiders feel is more aggressive and ideologically rigid. These employees described the atmosphere as emotionally chaotic, with many staffers feeling alienated by the company's perceived new direction. From Geek Icon to Conservative Symbol Zuckerberg, once known for his low-profile fashion and engineering-centric public persona, is now being linked with far-right media figures and hyper-masculine influencers. He has built friendships with prominent names associated with the "manosphere"—a network of online voices that critique progressive values and emphasize traditional masculinity. UFC president Dana White and podcaster Joe Rogan are reportedly among Zuckerberg's close associates in this ideological space. The CEO's evolving personality has even earned him a satirical nickname among employees: 'MAGA Mark.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 40세 넘고 PC만 있으면? 이 게임 완전 내 거임! Hero Wars 플레이하기 Undo Recently, a video of Zuckerberg calling corporate culture in the US, "culturally neutered" and clamouring for more "masculine energy," in Rogan's podcast has gone viral. Internal Pushback and Tense Exchanges The unease reached a peak during a meeting where Zuckerberg's comments on a Rogan podcast were brought up. In the interview, he called for a boost in 'masculine energy' at the workplace—statements that drew criticism and jokes, including a comedian dubbing him the 'emperor of the Broman Empire.' When employees questioned this ideological turn, Zuckerberg allegedly responded with a brusque dismissal, indicating that dissenting opinions wouldn't be entertained. A Dramatic Image Makeover The Financial Times notes that Zuckerberg's outer transformation has mirrored his political one. He's reportedly traded his trademark plain grey T-shirts for flashier attire—luxurious shearling jackets, gold accessories, and even a high-end $900,000 Greubel Forsey timepiece. The tech mogul has also altered his appearance, reportedly replacing his clean-cut look with a vibrant, styled ginger mullet—an image widely circulated and commented upon in media outlets like The Daily Beast. Possible Role in Trump's Inner Circle Sources also revealed that there have been behind-the-scenes conversations about Zuckerberg potentially joining Trump's advisory panel on science and technology. A political insider told FT that at various functions, former President Donald Trump enjoys showcasing Zuckerberg, suggesting a deepening rapport. Driven by Comparison with Elon Musk? Some Meta staff believe the CEO's transformation may stem from professional rivalry. As Elon Musk continues to be celebrated as an audacious visionary in the tech community, Zuckerberg is reportedly striving to revamp his image to gain similar admiration. According to one insider, the social media magnate has long desired broader public approval—a need that may be influencing his current trajectory.
Time of India
a day ago
- Time of India
Microsoft and OpenAI may call off their partnership: What is the biggest reason of dispute between the two companies
Microsoft is prepared to abandon high-stakes negotiations with OpenAI over their multibillion-dollar partnership as the ChatGPT maker pursues conversion to a for-profit company, according to sources familiar with the discussions. Tired of too many ads? go ad free now The software giant has considered halting complex talks with the $300 billion AI startup if critical issues, including Microsoft's future stake size, remain unresolved. The two companies had issued a joint statement emphasizing their "long-term, productive partnership" and expressing optimism about continuing to "build together for years to come." However, the Financial Times reports that Microsoft would rely on its existing commercial contract through 2030 if negotiations fail, unless offered terms equal to or better than current arrangements. Revenue-sharing deal at center of dispute Under their current agreement established in 2019, Microsoft holds exclusive rights to sell OpenAI's models and receives 20% of revenues up to $92 billion. The companies have battled over Microsoft's equity stake in a restructured OpenAI, with discussions ranging from 20% to 49% ownership in exchange for Microsoft's $13 billion investment. OpenAI faces a year-end deadline to complete its corporate conversion or risk losing billions in investor funding, including a potential $10 billion reduction from SoftBank's $30 billion commitment. The transformation requires Microsoft's approval and faces legal challenges from Elon Musk and former OpenAI employees. Diversification strategy emerges Microsoft has begun diversifying beyond OpenAI models, reflecting CEO Satya Nadella's belief that leading AI models will become commoditized. The company recently made Musk's xAI model Grok available to cloud customers, signaling reduced dependence on OpenAI technology. The partnership strain extends to computing infrastructure, with former Microsoft executives noting significant friction over OpenAI CEO Sam Altman's demands for faster access to more powerful systems. Tired of too many ads? go ad free now OpenAI has since signed deals with CoreWeave and Oracle for additional capacity, reducing its exclusive reliance on Microsoft's Azure platform. One Microsoft-adjacent source suggested the company views the "status quo" as acceptable, questioning what Microsoft gains by surrendering revenue rights for equity ownership.
