Spain: Difficult economic conditions making people turn to beer - analysts

This year hasn’t been going very well for Spain. With a quarter of the population out of work, it’s hard for them to afford more expensive alcohol like whisky and brandy. The nation is turning to less costly beer instead, Quartz reported on December, 6.

That’s “clearly” what has happened, according to Morgan Stanley research analysts led by David Belaunde. Although beer remains expensive in Spain compared to the US and Germany, even the most cash-strapped consumers have been able to afford the beverage by skipping the bar and drinking ale at home.

It’s not certain that the fiesta for beer would continue if Spain’s economic conditions worsen, as analysts have suggested they will. The government could decide to impose excise taxes on beer to raise money. Morgan Stanley predicts that “’value packs’ could become even more important, or consumers might “downtrade heavily” and give up drinking altogether.

07 December, 2012