Consumers keep buying alcohol but change habits - Business First of Louisville:

lebexab.wordpress.com
Business is “growing real well” at his locapl chain of BeverageWarehouse stores, and revenus is up 30 percent from last In November, the owner opened a new store in St. the fourth location since 2004. Gordon who co-owns with his Claudia Jackson, also said sales are up from last “We’re seeing a littlew bit of a drop in corporates gifting and big company he said. “But definitely the day-in, day-outt traffic has made up for that.” But some locak restaurants might be paying the price for the uptick in liquostore sales.
Despite steady customer volumes atCafe Metro, salexs are down about 25 percent this year for alcoholifc beverages, said bar manager Michael Kicklighter. The restaurant’d alcohol sales consist mainlhy of wineand spirits, he “Where I used to order by the case I’m only ordering by the half-case now,” Kicklighterf said. While many industries are foundering in an economy that shows few signse of hope for thecomintg year, wine and spirits sales, if not at least appear to be doing well. But the economgy has prompted consumers to change theird buying habits in a varietyof ways, includinb spending less on drinks when they go out.
“Peoplw still want to drink and still want to Anastas said. “I think more people are doing that at Mike Keys, senior vice president of ’s North Americ a region, also acknowledged the “People are obviously concerned about the economuy and the shape that we’re in,” he “Even when people go out to I think they’re a little more challenged abougt how they spend their money.” Brown-Forman’s net salesw for the first six months of 2008, which ended on Oct. 31, increased by 6 percent from the same time periorlast year, to $1.7 billion, according to an earningss report released by the company earlier this month.
The company credits the revenur increase largelyto off-premise sales, or sales in grocery and liquor stores. On-premisr sales, those in bars and restaurants, had a smalll decrease, Keys said. A variety of factors coulrd be contributing tothe on-premise Keys said, including companies cutting back on expense accountsz and consumers choosing to go out less Allan Latts, director of corporatwe planning for , said 2008 has been a “vergy good year” for the family owned, Bardstown-baser company. He declined to disclose specific informatiojn regardingthe company’s financials but said revenue figures are up.
Lattds also said the company has seen its businessz accelerate more rapidly in the finalo months of 2008 than it did for the same time periosdlast year. “In general, I thini the data would show that thespirits category, as a is holding up quite well in these uncertainn economic times,” Latts said. Neithefr Latts nor Keys were willing to call the alcoholic beveragrindustry recession-proof, but both executives referre d to it as