Asian Journal of Business Environment

Korea Distribution Science Association (한국유통과학회)
권호 표지
DOI QR코드

DOI QR Code

Analyzing the Impact of Weather Conditions on Beer Sales: Insights for Market Strategy and Inventory Management

  • Sangwoo LEE (Department of Food and Resource Economics, Korea University) ;
  • Sang Hyeon LEE (Department of Food and Resource Economics, Korea University)
  • Received : 2024.06.23
  • Accepted : 2024.06.27
  • Published : 2024.07.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose: This study analyzes the impact of weather conditions, holidays, and sporting events on beer sales, providing insights for market strategy and inventory management in the beer industry. Research design, data and methodology: Beer types were classified into Lagers and Ales, with further subcategories. The study utilized weekly retail sales data from January 2018 to August 2020, provided by Nielsen Korea. An ARMAX model was employed for time-series analysis. Results: The analysis revealed that increasing temperatures positively influence sales of Pilsners and Pale Lagers. Conversely, higher precipitation levels negatively affect overall Lager sales. Among Ales, only Stout sales showed a significant decrease with increased rainfall. Sunshine duration did not significantly impact sales for any beer type. Humidity generally had little effect on beer sales, with the exception of Amber Lagers, which showed sensitivity to humidity changes. Holidays and sporting events were found to significantly boost sales across most beer types, although the specific impacts varied by beer category. Conclusions: This study offers a detailed analysis of how weather conditions and specific events influence different beer type sales. The findings provide valuable insights for breweries, beer processors, and retailers to optimize their market strategies and inventory management based on weather forecasts and seasonal events. By understanding the consumption patterns of each beer type in relation to environmental factors, businesses can better anticipate demand fluctuations and tailor their operations accordingly.

Keywords

References

  1. Agnew, M. D., & Palutikof, J. P. (1999). "The impacts of climate on retailing in the UK with particular reference to the anomalously hot summer of 1995". International Journal of Climatology: A Journal of the Royal Meteorological Society, 19(13), 1493-1507.
  2. Bratina, D., & Faganel, A. (2008). "Forecasting the primary demand for a beer brand using time series analysis". Organizacija, 41(3), 116-124.
  3. Cao, M., & Wei, J. (2005). "Stock market returns: A note on temperature anomaly". Journal of Banking & Finance, 29(6), 1559-1573
  4. Cho, H. (2018). Comparison of beer consumption motives by consumption level: Focusing on female consumers in their 20s. Journal of Foodservice Management, 21(5), 141-168.
  5. CNBC "Super Bowl Billions: The Big Business Behind the Biggest Game of the Year" ,2017,1.23
  6. Hirche, M., Haensch, J., & Lockshin, L. (2021). "Comparing the day temperature and holiday effects on retail sales of alcoholic beverages-a time-series analysis". International Journal of Wine Business Research, 33(3), 432-455.
  7. Hong, J., Lee, H., & Na, J. (2012). The effect of weather factors on seasonal product sales in discount stores. Journal of Distribution Management, 15(6), 5-19.
  8. Jung, H., Kim, K., Cho, M., Lee, C., & Lee, Y. (2023). Consumption status of alcoholic beverages by day, season, and weather - focusing on traditional liquor, wine, spirits, soju, and beer. Journal of the East Asian Society of Dietary Life, 33(5), 434-442.
  9. Kim, C., Seo, H., Lee, H., & Kim, J. (2018). Establishing a Hanwoo supply and demand model using beef traceability data. Journal of Rural Economics, 41(3), 25-50.
  10. Kim, H., & Cho, S. (2007). The effect of consumer lifestyle on beer selection attributes. Journal of Tourism and Leisure Research, 19(3), 187-204.
  11. Kim, S. (2012). Analysis of the impact of weather and macroeconomic variables on the liquor industry. Industrial Economic Review, 25(1), 217-239.
  12. King, C., & Narayandas, D. (2000). "Coca-Cola's New Vending Machine (A): Pricing to Capture Value, or Not?". Harvard Business School.
  13. Knez, I., Thorsson, S., Eliasson, I., & Lindberg, F. (2009). "Psychological mechanisms in outdoor place and weather assessment: towards a conceptual model". International journal of biometeorology, 53, 101-111.
  14. Korea Agro-Fisheries & Food Trade Corporation. (2021). Liquor market trend report.
  15. Korea Consumer Agency. (2018). Investigation of prices and distribution status of imported processed foods.
  16. Kwak, H. J., Kim, S. K., Lee, B. S., Li, X. H., & Lee, J. H. (2018). Analysis of purine content in beer according to fermentation temperature. Korean Journal of Microbiology, 54(4), 379-383.
  17. Lee, K., Kim, S., & Kim, T. (2018). The effect of weather on consumers' purchase of agricultural products. Journal of Distribution Management, 21(4), 137-147.
  18. Lenten, L. J., & Moosa, I. A. (1999). "Modelling the trend and seasonality in the consumption of alcoholic beverages in the United Kingdom". Applied Economics, 31(7), 795-804.
  19. Li, C., Luo, X., Zhang, C., & Wang, X. (2017). "Sunny, rainy, and cloudy with a chance of mobile promotion effectiveness". Marketing Science, 36(5), 762-779.
  20. Meese, R. A., & Rogoff, K. (1983). "Empirical exchange rate models of the seventies: Do they fit out of sample?". Journal of international economics, 14(1-2), 3-24.
  21. Murray, K. B., Di Muro, F., Finn, A., & Leszczyc, P. P. (2010). "The effect of weather on consumer spending. Journal of Retailing and Consumer Services", 17(6), 512-520.
  22. Olson, K. L., Whitley, P., Velasco, J., LaRue, L., Dawson, E., & Huskey, A. (2021). "Seasonal and regional influences on alcohol consumption: an analysis of near-real-time urine drug test results in those seeking health care". Drug and alcohol dependence, 227, 108908.
  23. Park, J., Lee, S., Choi, I., Choi, H., Kim, N., Shin, D., ... & Oh, S. (2019). Quality characteristics of rice wort and rice beer according to rice processing. Journal of the Korean Society of Industrial Food Science and Technology, 23(4), 290-296.
  24. Parsons, A. G. (2001). "The association between daily weather and daily shopping patterns". Australasian Marketing Journal (AMJ), 9(2), 78-84.
  25. Puljula, J., Savola, O., Tuomivaara, V., Pribula, J., & Hillbom, M. (2007). "Weekday distribution of head traumas in patients admitted to the emergency department of a city hospital: effects of age, gender and drinking pattern". Alcohol & Alcoholism, 42(5), 474-479.
  26. Roslow, S., Li, T., Nicholls, J.A.F., 2000. "Impact of situational variables and demographic attributes in two seasons on purchase behavior". European Journal of Marketing 34 (9/10), 1167-1180.
  27. Rosman, K. (2013). "Weather Channel now also forecasts what you'll buy". The Wall Street Journal, 14(August)
  28. Statista "French people declaring an increase in their consumption of aperitifs, beer and pizza during the Football World Cup in 2018", 2021,7.5
  29. Talking Retail "62 million more pints of beer could be sold during World Cup" , 2022,10.20
  30. Tian, X., Cao, S., & Song, Y. (2021). "The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China". Journal of Retailing and Consumer Services, 62, 102583.
  31. Yoo, S., Sung, H., & Ko, J. (2015). A study on beer selection attributes using conjoint analysis. Journal of Tourism and Leisure Research, 27(7), 341-360.