Alcohol sales up, or down, depending on who you ask

By Jason Buckland, Sympatico / MSN Finance

I’ve been sitting on this post idea for more than a month now because, well, no one can figure it out.

When the Financial Post ran a recent graphic showing alcohol sales, of all things, were shooting down at a record pace, you just had to scratch your head.

Lay-offs + Crumbling Pensions + House Foreclosures + Decimated Savings = Suckin’ Back On Grandpa’s Ol’ Cough Medicine, right? Doesn’t that math add up?

You tell me.

In the U.S. at least, sales of alcoholic beverages plummeted 9.3% in the fourth-quarter last year, a decline that arrived in convenient unison with the American recession’s one-year anniversary.

That dip, four times the plunge overall consumer spending endured, “shattered the previous record of 3.7% in the fourth quarter of 1991,” according to Bloomberg News.

Sounds pretty severe, but here’s where the flip-flop begins.

In Canada, where the beer flows like wine (Dumb and Dumber reference count: 2), alcohol sales are said to be flourishing, boasting a frothy 17.3% rise based on the most recent available figures.

Yet in Ireland, a place where drinking comes as natural as not making people laugh does to D.L. Hughley, alcohol sales have somehow flat-lined to the lowest they’ve been in a decade. Like its American counterpart, experts figure 2009 will be even worse for local sales as each country struggles to cope with its slumping economy.

So, this begs the question: what trend do we believe? Are the U.S. and Ireland the accurate models here, suggesting when times are tough any and all expenses are trimmed, no matter what the circumstance?

Or will Canada’s boost in sales prove to be the norm when newer industry numbers are released?

Alcohol’s reputation as recession-proof, the supposed tried-and-true fix-all, stands at stake.

Comments

You set up the readers for a third 'Dumb and Dumber' reference, even acknowledging the feat with a tally, but then fail to deliver? Save the awkward D.L. Hughley jokes and give us more Lloyd Christmas.

I would have to question the measurement method before saying drinking is down. Is this 9.3% decline based on volume of alcohol or on sales in dollars? There has been a swing recently towards premium brands, micro-brews, etc. In good economic times, the 10-20% (or more) premium for these brands is likely to be more "palatable" than in hard times.

Is it possible that consumers are drinking more but spending less by purchasing "bargain" beer, liquor, wine?

Hi,

Duncan Baird here from Diageo Canada - South Western Ontario (Guelph).....ahhh...

I work for Diageo Canada Inc. Diageo is the largest liquor and spirits company in the world. I've been with this wonderful, upstanding company for 10+ years and I'm never leaving....

I am able to do everything I want and get paid $80,000/year for it...drink, ogle and stare at pretty girls in a very creepy way, forget the names of people I meet in professional situations and none of the executives even know what I do on a daily basis.

Ahhh, my thoughts on alcohol in Canada, ahhh...alcohol will continue the trend unequivocally... Unequivocally, alcohol is Canada's strongest business and export, ahhhh.

I really love Guinness, and everything Diageo sells. My bonus depends on people who purchase liquor in heavy amounts. Please keep drinking...

Ahhhh, I can't remember what I was saying, ahhh...but I think Canada needs more alcohol to help with the recession.

Truly,

Duncan Baird (Diageo Sales Manager - South Western Ontario- Guelph)

By tradition, when we deal with trends of consumer spending, we are not dealing with volume of liquids as in this case, but with dollars spent by the public. Based on this, about 8% increase is last years government imposed Value !?
I personally prefer selective options rather than mass produced and over-rated TV selections.
Cheers

Good Lord, "Duncan Baird"....as someone who holds the same job description as you, in the same industry, I hope to hell your boss or coworkers never see your embarassing and childish post below.

If I ever saw members of MY team posting publicly like that, while tarnishing our corporate image, they would be out of a job in a second...

On April 8 at 6:26pm someone decided to impersonate me and posted a blog in my name.

This is the first time I have ever posted a blog on this site or on any other site.

I truly hope this person, who has taken these liberties with my name, is man (or woman) enough to come forward or at the very least post an apology.