SA not cutting back on pleasures

Restaurant and bar owners, consumers and many suppliers of these "sin" goods seem to agree that rising food, fuel and petrol costs, together with the economic slowdown - aren't going to drastically influence the social habits of many South Africans.

Pick n Pay's food merchandise director Paul Connellan says when consumers have less discretionary income per month, goods such as alcohol and tobacco are recession-resistant and perform well.

He adds that there are, however, significant shifts in consumer purchasing behaviour within such goods. "When times are tough, people spend less in pubs and bars and more in stores for consumption at home. Consumers that are feeling the pinch will also trade down from premium to mainstream brands, or from mainstream to economy brands."

The manager of Diamond's Discount Liquor's Green Point branch says their sales haven't really been influenced by recent rising inflation. "Some joy is needed in life," says Euan van Coller, "but many customers are definitely going for the cheaper option."

Yet it seems that restaurants and food establishments aren't really feeling the pinch either. Beluga, a restaurant that caters mostly for high income customers, says their numbers haven't been influenced.

A manager at the restaurant, Lourens Erasmus, says it caters for various clients such as students and business men, and it has its regular customers - and those who usually eat lobsters are still eating lobsters.

The owner of a corner shop called Somerset Snack Bar, which has been selling cigarettes and take-away food for 45 years, says their numbers aren't influenced at all. "People need to eat, and they need to smoke," says owner Ricky Camara.

British American Tobacco's communications manager, Wardah Hartley, says tobacco products aren't completely resistant to the influences of inflation. "Consumers sometimes have a tendency to marginally trade up or down depending on their personal situation, but we have not seen major shifts in demand patterns over the last 12 months as yet."

The beer market is remarkably resilient in tight economic times - as it is now, says SAB communications manager Janine van Stolk. "Beer traditionally follows the dynamics of non-durable goods and so, just like food, it has not shown a significant downturn in the current climate. What we have noticed is an upturn in mainstream beer sales (brands like Castle Lager, Hansa Pilsener, Carling Black Label), and a slowdown in the growth rate of premium brands and flavoured alcoholic beverages, most likely impacted by the current inflationary environment.

- Fin24.com