Updated: Feb 22
The projected spending power of the Black population by 2024 is $1.8 trillion. But based on an index of 90 or less, Black consumers under index in 22 of the 38 wine and spirits categories.
Neglecting this audience now is risky for alcohol brands’ future, as the next generation of drinkers will have a higher proportion of Black consumers. Take a look at how the spending power of the Black population has grown in the last 30 years:
Below is an interesting look at the specific categories in which Black consumers under and over index:
Celebrate Our Black-Owned Brands
Even now, while wine is struggling with volume losses, few wine brands are trying to make wine accessible to a more multicultural audience. Brands have been missing the opportunity to trade-up these drinkers beyond value table wine, despite the proof in champagne that Black consumers are more likely to purchase luxury brands. If spirits brands made the time to communicate to Black America, they would find an engaged and premium-paying audience. Nearly half of the general population (and the majority of Gen Z) believe companies should support Black-Owned brands.
Communicate to Black Consumers About Our Products
Black consumers don’t often see themselves reflected in beverage alcohol brands. We can change that by celebrating Black-Owned brands across wine and spirits. The younger, highly influential Black cohort is more likely to purchase Black-owned brands frequently. We need to show them the great offerings they may not have known about. America is more multicultural today than ever before and will only grow to be more diverse. It’s time for our industry to support and connect with Black consumers like never before.
This Black History Month, let’s celebrate our Black-Owned brands and appreciate our diverse consumer audience.