State liquor sales up 6%

Published: Thursday, Dec. 18, 2008 12:10 a.m. MST
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Amid the darkening skies of state economic forecasts, one Utah enterprise's star is burning brighter than ever — liquor.

The Utah Department of Alcoholic Beverage Control Commission heard a cheery sales report from financial officer Leonard Langford Wednesday indicating that retail sales are up more than 6 percent over last year, the distribution warehouse is receiving 20-30 semitrailer loads a day and, in that same day, sending out 13,000-14,000 cases of alcohol to the government-controlled retail outlets throughout the state.

But even though the overall numbers are up, consumers are being more price conscious in their purchases. One aspect of sales this year is a drop in "case volume" versus retail sales, Langford said, which is an indication that consumers are opting for lesser-priced "items" than in previous years.

Kevin Hagerg, who manages the Avenues store, said that reflects what he's seeing at that location.

"People are definitely looking for deals," Hagerg said. "Sale items are doing very well."

Their increased sales are not slowing, even in the increasingly dire economic times. Of note, Langford said, were their sales on one of their busiest days every year.

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"Just another highlight," Langford said. "The day before Thanksgiving last year we sold $2 million ... this year we sold $2.14 million."

As Langford completed his report, one commission member quipped, "Keep those numbers rolling."

And rolling those numbers are. DABC accountant David Higley said year-to-date (July through December) sales are $105.9 million, up from $99.8 million last year and $84.5 million two years ago. The agency operates 41 retail stores and 100 package agencies (outlets operated privately, but under state license) and a single outlet can generate a surprising amount of revenue. The No. 1 store, located in Cottonwood Heights, did $18 million in sales last year.

One family of products new to state liquor store shelves was last year's red-hot legislative topic — "alcopops." The flavored malt beverages (i.e., Mike's Hard Lemonade, Smirnoff Ice, etc.) have just been re-introduced to the Utah market after lawmakers banned their sale at grocery stores and required manufacturers to adopt new labeling. In a strange twist on the new rule, the products characterized by some state legislators as especially attractive to teenagers are now no longer beholden to the 3.2 percent law imposed on alcohol sold at grocery stores and will be available in their production standard of 4 percent to 6 percent at state stores.

Recent comments

I agree with Justin...i stock up on alcohol when i am out of this...

John | Dec. 18, 2008 at 8:11 p.m.

It's good to see the economy being stimulated!

burp | Dec. 18, 2008 at 5:27 p.m.

It's no surprise to see a decrease in "case volume" sales. With...

Justin | Dec. 18, 2008 at 2:52 p.m.

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