Paris, France. Extreme heat in Europe is challenging the assumption that hotter summers boost alcohol sales, with research showing demand rises with temperature only up to a certain point before declining. Industry figures say extreme heat can discourage consumers from going out for drinks and shift demand toward other options.
Research findings
Alcohol sales rise on average with temperature up to just over 32 degrees Celsius, after which the positive effect becomes smaller, according to a March research paper by the University of California, ETH Zurich and North Carolina State University.
The study, based on U.S. retail sales data from 2006 to 2023, found the effect varied by geography and was less pronounced in already warm regions.
Industry response
“Generally warm weather is good for consumption. But there is also an upper limit … beyond which it’s just uncomfortably hot,” said Marten Lodewijks, president of drinks market research firm IWSR, adding that this reverses the trend for some drinkers.
“There is an important difference between warm weather and extreme heat,” said Carlsberg’s CARLb.CO global director of public affairs Kristian Henningsen, adding that extreme heat can push people to stay inside rather than go out for a drink.
Henningsen told Reuters that the Danish brewer is focusing on offering more choices, including low- and no-alcohol beers and soft drinks, partly to adapt to such changes.
Heatwave impact in Europe
Europe’s summer heatwave, which began on June 20, was the most intense recorded on the continent, causing thousands of excess deaths, overwhelming healthcare systems, disrupting power generation and damaging infrastructure.
European health authorities said people should avoid alcohol because it increases dehydration and body heat. In Paris, its consumption and sales in stores were briefly banned.
Wider business implications
Other major beer and spirits makers either declined to comment or did not respond to requests for comment on the likely effects of more extreme weather on their business.
Top brewers such as Anheuser-Busch InBev ABI.BR have previously blamed unseasonably cold or wet weather for disappointing summer earnings, when consumers have normally turned to chilled, lighter drinks such as beer.
