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Do Beverage Sales Contribute or Cannibalize?
By Brian Wansink, Glenn Cordua, Ed Blair, Collin Payne & Stephanie Geiger
Tuesday, 20th February 2007
 
A controlled field of study of wine promotions in a mid-priced chain restaurant generated three key findings: (1) selected wine recommendations increased sales by 12 percent, (2) food-wine pairing recommendations increased sales by 7.6 percent, and (3) wine tastings increases sales by 48 percent.

In general, 69 to 87 percent of the increase in sales of promoted wines comes from diners who would likely have ordered a nonpromoted wine. This means that 13 to 31 percent of the increase comes from diners who would have otherwise ordered liquor, beer, and nonalcoholic drinks.

Specific implications for responsible restaurateurs are outlined, including the caveat to non cannibalize sales by promoting a lower-margin, lower-profit wine.

www.hotelschool.cornell.edu/chr/pdf/showpdf/publications/hraq/feature/pdf/nov06.pdf

Contact:
The Center for Hospitality Research
E-mail: hosp_research@cornell.edu
Phone: 607-255-9780
Fax: 607-254-2922

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