Consumer spending drives liquor demand

Consumer spending drives liquor demand
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CONSUMER spending on dining, entertainment and social gatherings continues to support demand for alcoholic beverages, prompting liquor makers to expand marketing initiatives as household consumption remains the Philippine economy’s main growth driver.

Household Final Consumption Expenditure (HFCE), the largest component of gross domestic product (GDP), grew three percent in the first quarter of 2026, according to the Philippine Statistics Authority (PSA). Household spending accounts for about three-fourths of the country’s economic output.

The biggest contributors to HFCE growth were education, which expanded 6.7 percent; restaurants and hotels, up 4.2 percent; and miscellaneous goods and services, which increased four percent. All other expenditure categories also posted growth during the quarter.

The increase in spending on restaurants and hotels points to sustained consumer demand for dining out, leisure and social gatherings despite slower economic growth, supporting businesses that

depend on discretionary household spending.

The spending trend has encouraged beverage companies to step up consumer engagement initiatives.

Ginebra San Miguel Inc. (GSMI) said it has launched a month-long nationwide campaign, dubbed “Ginuman X,” with events in Batangas, Cebu, Antipolo and Cagayan de Oro to coincide with World Gin Day.

The campaign features live performances, cocktail demonstrations and interactive activities aimed primarily at millennials and Generation Z consumers.

The PSA data underscore the role of celebrations and social gatherings in supporting domestic consumption, with spending on restaurants and hotels remaining among the fastest-growing household expenditure categories.

Household consumption has continued to underpin the Philippine economy, helping cushion growth against weaker external demand and global economic uncertainty.

Reflecting changing consumer preferences, liquor makers have increasingly shifted marketing spending toward experiential campaigns centered on events and social engagement.

GSMI marketing manager Ron Molina said the campaign aims to promote gin through activities focused on social gatherings and shared experiences.

The initiative builds on the company’s World Gin Day activities, first introduced in the Asia-Pacific region in 2014. This year’s events include music performances, cocktail demonstrations, games and product showcases.

Part of the campaign’s proceeds will be donated to the San Miguel Foundation to support community programs.

GSMI, a subsidiary of San Miguel Corp., produces Ginebra San Miguel and other spirits, including GSM Blue, Archangel Reserve Premium Dry Gin, Antonov Vodka, Primera Light Brandy, Vino Kulafu Chinese wine and Vamos Tequila Gold.

Businesses serving the consumer market are expected to remain supported by household spending, although inflation, interest rates and labor market conditions could weigh on discretionary spending in the coming quarters. / KOC

SunStar Publishing Inc.
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