Meridian Star

Local News

March 9, 2010

Cheaper brands dominate liquor sales

MERIDIAN —    Even when times get tough, people keep on drinking, but in Mississippi, many of those people are reaching a little lower on the shelves. 

    Despite a downtrodden economy and jobless rates in double-digits, Mississippians continued to reach for the wine and spirits in 2009.

    While they drank more liquor last year, people turned to cheaper brands, according to a recently released report by the Distilled Spirits Council of the United States, a national trade association for the alcoholic beverage industry. The study also revealed that consumers drank more at home and less in bars and restaurants in an effort to ease the strain on the family budget.

    Diane Griffin of Meridian has been working at Edna's Super Mart Package Store, Inc. for 20 years, though her mother, Edna Moore, has been in business for 37 years here.

    "The economy has been tough on us," Griffin said, as a customer walked out the door with two $1.99 bottles of Aristocrat. Griffin revealed that same customer used to buy Smirnoff brand.

    "Customers are replacing those higher end brands with cheaper brands," Griffin said.    Consumption of distilled spirits in Mississippi was up by almost 4 percent in 2009. Nationally, 2009 sales volume growth stood at only 1.4 percent, but revenues held steady at $18.7 billion, the DSC report cited.

    Ferdie and Mary Ellen Moore are in their 28th year of operation at Ferdie's Discount Wine & Liquors. Ferdie said that while business is still good, there is still a trend forming in what customers are purchasing at he and his wife's store. 

    "There's kind of a top and bottom right now," Ferdie said. "The middle items are not selling as well as they used to.

    "A lot more people are going to the lower end of the scale than the upper end."

    The state’s Alcoholic Beverage Control (ABC), an arm of the Mississippi State Tax Commission that regulates the sale and consumption of alcohol, garnered a net profit of a little over $50 million — with alcohol and sales taxes added, the total ABC collections for FY 2009 was $91.6 million.

    "Buyers who are accustomed to buying brand-name [liquors], are still buying those expensive brands," said Ed Broome, who owns The Corkscrew Wine & Spirits on 29th Avenue along with Garry Lawyer. "But customers who used to buy those $30 bottles of wine, they're taking it down a notch."

    The Corkscrew has been open for three years and specializes in wine, though it also has a large selection of high-end liquors. Regardless of the shifting trend in purchases, Broome said, "Our business is still growing."

    But what about the sales of not-so-hard alcoholic beverages, namely beer?

    Surprisingly, beer sales were down in Mississippi last year. In 2009, there were 72 million gallons of beer purchased, compared to nearly 73 million the previous year. The actual difference was 955,587 gallons bought, according to data compiled by the ABC.

    ‘‘What we have seen is a steady progression of selling more product [wine and spirits], but the selling price is lower,’’ said Kathy Waterbury, spokesperson for the Tax Commission, which oversees ABC. ‘‘For instance, the total number of cases sold for wine increased in 2009 by 1.9 percent ... but the sales value of those cases increased by only 0.1 percent.’’

    Waterbury added that spirits cases sold were up 1.2 percent but sales value went down by a half percentage point.

    Marianne Hill, a senior economist with the State Board of Institutions of Higher Learning, said she’s not surprised that consumers are spending less on a luxury item such as alcohol.

    ‘‘When the economy is in a downturn, people will still buy items like a bottle of wine or a fifth of liquor,’’ she said. ‘‘But what they will do is simply substitute their usual brand for one that’s less expensive.’’

    Some may not be aware that their buying habits affect state revenues, she said.

    ‘‘We normally think in terms of big-ticket items like refrigerators or televisions,’’ Hill said. ‘‘However, choosing a lower-priced wine as opposed to a top-shelf brand week-to-week does have an adverse affect on annual tax revenues, when you consider the number of people who purchase wine and spirits.’’

    Distilled Spirits Council CEO Peter Cressy attributed the slower growth compared to 2008 to the trading down trend. However, he said a long-term analysis of prior recessions showed a strong leaning toward consumers purchasing high-end brands as the economy improves.

    ‘‘Our data shows that there is light at the end of the tunnel,’’ Cressy said. ‘‘The question remains, how long is the tunnel? We don’t know, but consumers will again gravitate to affordable luxuries’’ such as top-shelf alcohol brands.

    Mike Cashion, executive director for the Mississippi Hospitality & Restaurant Association, said Cressy’s assessment is accurate.

    ‘‘I’m certainly not an economist, but I don’t think we’ll see a reversal in the economy in Mississippi until the middle to the end of the year,’’ he said. ‘‘The state was a little slower to see the recession and we’ll be slower to come out of it. (Liquor sales) are a jobs driven industry and when consumer confidence returns, spending will eventually return.’’

Text Only
Local News
  • Voters face Saturday deadline

    February 10, 2012

  • Site of sub commissioning changed

    February 10, 2012

  • Dulaneys to reign over 2012 Meridian Mardi Gras Weekend

    February 10, 2012

  • Officers Local law enforcement officials honored

        State Rep. Greg Snowden said he remembered as a child looking up to those "men in blue."
        He said police officers in uniform were larger than life, riding in their patrol cars and carrying guns to protect and serve the population. Today, he said he is still in great admiration of the men and women who put their lives on the line every day so that citizens can feel safe.

    February 9, 2012 1 Photo

  • Crash MPD probes vehicle crash

        Evidence of a mother's desperate attempt to save her children from harm were spread all over a car lot — and could be seen on her as well in the form of bruises, cuts and scrapes.
        Tuesday night, a vehicle with three children inside crashed through a plate glass showroom floor window damaging four new cars and totaling the vehicle the children were in.

    February 9, 2012 1 Photo

  • Skeleton found in residence

        Members of the forensics team of the Mississippi Bureau of Investigation (MBI) were called to a dilapidated home in Chunky to probe the discovery of a skeleton.

    February 9, 2012

  • Police search for robbery suspects

        Two men who reportedly robbed a woman at gunpoint in the parking lot of a local bank are still being sought.
        Mike Vick, public information officer with the Meridian Police Department, said the two men approached a woman about 8 p.m. Tuesday at the ATM of Regions Bank on North Hills Street. Vick said one of the suspects was armed with a handgun and after taking an undetermined amount of cash and the victim's car keys, the two suspects fled on foot.

    February 9, 2012

  • City cuts payment to Watkins

        The Meridian City Council voted unanimously Tuesday to cut their monthly payment to David Watkins, project developer of Meridian's new police station, by $9,999 until work resumes on the project.
        The order, made during the Meridian City Council meeting Tuesday morning, included a mutual agreement between the councilmen and Watkins to reduce the project developer's monthly consultant fee of $10,000 to $1, effective Tuesday.

    February 8, 2012

  • Crews work on gasoline pipeline

        If you hear a loud, booming sound early today, between 4 a.m.-10 a.m., there is no cause for alarm.
        Workers with Plantation Pipeline will be performing maintenance work on their 30-foot gasoline pipeline in the Meridian area to accommodate the widening of Highway 493. The location of the work activity will be at Highway 493 North and Oak Hill Baptist Church, just inside the city limits.

    February 8, 2012

  • Team Spirit Team Spirit

    February 8, 2012 1 Photo

Facebook
Helium debate
Helium
Twitter Updates
Follow me on Twitter
AP Video
Obama Scraps Birth Control Mandate US Airmen's Killer Sentenced to Life in Germany Navy Names Ship for Gabrielle Giffords Raw Video: Deadly Blasts in Syria Romney Slams President Obama at CPAC Gingrich: Pres. Obama 'waging War on Religion' 5 Killed in Wrong-way Crash on I-10 in La. Uzbek Man Pleads Guilty in Plot to Kill Obama Denver's Largest-Ever Drug Bust Nets Dozens Marines: No Punishment for Nazi-like Flag Vets Look to Translate Military Skills Into Jobs Raw Video: School Bus Burst Into Flames LA School Reopens Amid Sex Abuse Scandal $25B Settlement Reached Over Foreclosure Abuses Pentagon: Allow Women Closer to Front Lines LA School in Sex Abuse Scandal Reopens Raw Video: Italy's Mount Etna Bursts Into Life Greeks March; Angry Despite Debt Deal Air Force Airlines: Leaders Get Polished Service Ga Girl Fights Off Kidnapper at Walmart
Community Calendar
Loading…
Events by eviesays.com
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Popular Searches
Powered by Local.com