Goldman Sachs has downgraded the Boston Beer Company and Constellation Brands due to sluggish beer sales and the attractiveness for new generations of wine, reported American business news television CNBC.

“As we explored back in 2014, we expected a cyclical rebound in total alcohol consumption post-recession”, said Freda Zhuo, GS’s chief analyst. “The cause is younger groups shifting away from beer.”

“Goldmans not only suggests that young drinkers aren’t consuming as much alcohol as previous generations did, but they also observed that millennials are trading beer for wine and spirits”, said CNBC.

“We view the shift in penetration and consumption trends as driven by a shift in preferences in the younger cohorts”, added Freda Zhuo. “The youngest demographic (<35 years old) overall penetration rates are not increasing. The 35–44-year-old cohort shows a shift from beer to wine and spirits.”

Data shows that beer penetration across the US fell to 1% while wine and spirits are stable and millennials are not consuming as much alcohol as prior generations.

Source: CNBC.