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.

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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.
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Today the Associated Press reports that liquor laws, especially those which prohibit sale of spirits on Sundays, may be repealed in an effort to boost individual state economies.

AP writer Brock Vergakis writes, “In Utah, and across the country, governors and lawmakers faced with budget deficits are advocating loosening laws that restrict alcohol consumption in the hopes of boosting tax revenues.” Alabama, Connecticut, Georgia, Indiana, Minnesota and Texas all plan to end present bans on Sunday liquor sales with hopes of boosting revenue with the day’s worth of sales added to weekly figures.

State governments choosing to capitalize on alcohol sales may never have picked a better time, in spite of the recession, as liquor sales are on the rise just about everywhere. Across the US during the year of 2008, the Distilled Spirits Council of the United States (DISCUS) reports that sales rose 2.8 percent from 2007 to $18.7 billion in 2008, according to revenues reported by liquor suppliers. For instance, in Perham, Minnesota, the local municipal liquor store saw an increase in sales by nearly a half million dollars during this period; nearly a 33% gain.

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