Drinkers, smokers seek respite from gloom by trading up

[El Presidente]

Good article that shines a light on what we are seeing right now globally. Spending on luxury consumables has gone absolutely birko. 

 

By Richa Naidu

LONDON (Reuters) - Soaring inflation has made life harder for most of the world - but some people are still smoking expensive cigarettes and doing shots of fancy tequila.

From British American Tobacco to Tanqueray gin maker Diageo, cigarette and alcohol companies cited strong demand for high-end products people can't seem to shake when they reported results this week. Far from buying cheaper alcohol and tobacco, shoppers are instead trading up.

"In hard times, I think people just want that little moment to celebrate, you know, to unwind with family, with friends with colleagues," Diageo's finance chief Lavanya Chandrashekar told Reuters.

The trend contributes to a pattern of affluent consumers spending big on luxury items following the COVID-19 pandemic. Lockdowns resulted in average bank balances rising and record stock markets boosted wealthy people's investment portfolios.

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[traveller]

Wow, wouldn't have thought fine wines, champagne and spirits were only a 50-60%  bigger market then luxury tobacco products.

[MrBirdman]

40 minutes ago, traveller said:

Wow, wouldn't have thought fine wines, champagne and spirits were only a 50-60%  bigger market then luxury tobacco products.

I have to believe the vast majority of it comprises “luxury” or premium cigarettes, which probably includes a number of household names.