As oil prices rise, beer consumption plunges... U.S. consumers tighten their belts

[Financial News]  
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U.S. beer consumption was confirmed to have fallen more sharply than expected on the 13th local time.
As oil prices soared because of the Iran war, consumers cutting back on spending started by drinking less beer.
Consumer News and Business Channel (CNBC) reported, citing data from Nielsen Holdings plc (Nielsen), that sales of beer, flavored malt beverages and cider fell 6.3% in the week through the 2nd from a year earlier. That is a steep slowdown, more than double the 3% decline seen from November last year to mid-April.
Bernstein said beer sales were expected to show some volatility because Easter fell earlier than usual this year, but the decline was far worse than expected, underscoring the heavy burden on U.S. consumers.
The drop in beer sales at convenience stores, including those at gas stations, was even more pronounced. Sales fell by about 9% year on year over the two weeks from April 26 to May 2.
That means consumers have been opening their wallets even less at convenience stores, where purchases are often impulsive.
Consumers who stopped by gas stations to refuel and were shocked by the sharply higher prices bought less beer than before.
Bernstein analyst Nadine Sarwat said, "A negative correlation has been confirmed between the absolute level of current gasoline prices in certain states and sales of beer, FMBs and cider."
According to Bernstein, beer sales decline more noticeably in states where gas prices at stations are higher.
According to the American Automobile Association (AAA), gasoline prices at U.S. gas stations have surged about 52% since the Iran war began on Feb. 28.
Since then, beer sales have been falling, especially in California and other states where fuel prices are highest.
In California, where gasoline averages about $6.16 per gallon and is the most expensive in the United States, beer sales plunged 16% over the four weeks from April 4 to the 2nd.
Arizona and Texas, where average gasoline prices are $4.82 and $4.00 respectively, also saw notable declines, with beer sales falling 10% and 7%.
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dympna@fnnews.com Song Kyung-jae Reporter