Archive for the ‘recession’ Category
Monday, September 7th, 2009
It’s more likely than you think! According to a recent article at The Telegraph, there will be severely discounted prices on French Champagne come the end of the year. This stems from a 30%-45% decrease in sales from Europe to Asia through the first half of this year, creating a major supply glut. One must figure that this is due to the Global Recession that has been playing out over the past year, diminishing the number of people with disposable income.
Experts in England are predicting that by Christmas time, there will be such a discrepency in supply and demand, a bottle of lesser-known brand Champagne will drop in price to £10(GBP). For us American folk, that equates to about $16.35. It is yet to be said if the price drop will also make its way into American markets, but since we here at Culture of Spirits have had Mimosas and Poinsettias on the brain for the past several days, we’re hoping that it does. While we’re not likely to see Dom Perignon take a major price dip, it will be nice to grab up a couple of discounted bottles of the French royal beverage, and pop the corks on New Year’s Eve.
If this does indeed come to pass, expect to see me crossing the French 75 and Death in the Afternoon of my list. Speaking of which, Milk Punch has been crossed off. That now leaves 82.
Wednesday, July 1st, 2009
The Raleigh News and Observer reported yesterday that top-shelf liquor prices in North Carolina will begin to fall drastically as of August 1, 2009, as the depression crunch continues forcing consumers to opt against buying high-quality liquors. In order to boost sales, brands like Grey Goose are slashing prices competitively as incentives for buyers.
“High-end booze has been taking a sales hit as consumers have increasingly turned to bargain-priced liquor,” wrote journalist Mark Johnson. “Distillers of the good stuff are chopping their prices to hang on to recession-weary customers.”
In reality, “free market in action” may not be the best way to describe this instance of sudden price drops, since the prices of the various available brands themselves aren’t the only factors working against consumers of quality spirits. With economic constraints greatly limiting expendable income, regular consumers and frequent buyers are literally being forced to trade quality for quantity. Therefore, long term effects resulting from prices falling, especially in this case, may not look so good in terms of state revenue.
Monday, March 2nd, 2009
Australian news sources are reporting a perceived decline in alcohol purchases, with experts now urging politicians to support the Australian federal Government’s “Alcopops tax”. This tax, part of a strategy which adds a 70 percent tax hike on ready-to-drink products, was intended to curb binge-drinking by young drinkers.
Bacardi Breezers, Tropical Lime and Ruby Red Grapefruit flavors, are considered "Alcopops"
After being implemented, the tax does appear to have caused pre-mixed drink sales to fall as much as 26 percent; but could the information be skewed?
Alcopop refers to bottled mixed-drink malt or wine beverages, and is a general term which describes a variety of brands and beverages. However, the spirits industry does not condone the use of the term, fearing that obvious associations between “alcohol” and “(soda) pop” may bring negative press for being attractive to individuals below the legal drinking age.
Friday, February 27th, 2009
According area news sources, the Pennsylvania House Appropriation Committee heard yesterday that sales of wine and spirits in the state are projected to outdo last year’s fiscal earnings of $1.77 billion.
“At the halfway point of fiscal 2008-2009, which was December 31st, state store sales were $1.02 billion. If sales continue on that same path through June 30th they will total over $2 billion for the full year. That compares with the total for the entire fiscal year of 2007-2008 which was $1.77 billion,” reported Newsroom Solutions yesterday.
Sunday, February 22nd, 2009
Look out, ya’ll: it appears that Kid Rock is hoping to stimulate the poor economy with a Michigan-based beer brand of his own design. Conrad Doucette of Maxim Magazine tells us “The beer will be ‘an American lager’ and will be suitable for parties, Pistons games, and BBQs all summer long. Snobby sots need not apply!” What this translates to is “Kid Rock plans to bottle a Budweiser-clone in the center of the failing auto industry capital of the world.”
There are both good and bad elements here. The good has to do with the help this may provide in the way of jobs in the Michigan area. The down side: it’s questionable whether any amount of rejoicing that dozens of Michiganders will be getting these jobs will outweigh the tears many of us will cry in our craft brews at the notion of a “Kid Rock brand beer.”
Sunday, February 15th, 2009
Yet again, we see that another portion of the United States is reporting liquor sales on the rise, in spite of the looming recession:
Liquor Sales up in Idaho
According to Idaho resident and restaurant owner Dan Willie, “In a recession or in a so-called recession people tend to drink more, and that’s been historically true in the great depression… I don’t know if they are drinking to drown their sorrows or just spending more time in bars and restaurants.” Willie says the bar in his restaurant picked up sales in December, and has maintained steadily ever since.
Yet again, it appears that the business of wine, beer, and spirits may be the ultimate “recession-proof” industry.