February 17, 2004

Booze business booming

By Tim Bousquet
Tidings Correspondent

The alcohol industry is enjoying a spirited increase in spirits sales of late.

People in Ashland, and throughout the state, are drinking more, and buying more expensive brands.

	Afternoon Bar patrons watch TV while having drinks at Louie's, downtown. Satsuki Doi | Ashland Daily Tidings

"December is traditionally a high month for liquor sales," says Ken Palke, a spokesperson with the Oregon Liquor Control Commission (OLCC). "But this past December was way, way high. And the increases were across the board. The numbers are for sales to citizens walking into our agency stores and buying spirits, and for sales to restaurants and bars."

State-wide liquor sales for December 2003 increased almost 10 percent over the previous December, from $31.5 million to $34.6 million. Sales for the entire year of 2003 increased 6.51 percent over those from 2002, from $261 to $268 million, and the number of bottles sold over the same years increased 5.28 percent, from 1.8 to 1.9 million.

The increases show that people are drinking higher-end spirits, says Palke, a change he attributes to marketing by the liquor companies. "The distilled spirits companies are trying a lot of new things. They've introduced different drinks, flavored vodkas and spice rums, that sort of thing. As a result, people are moving away from wine and trying something new.

"And people are just buying higher quality. If they've been having a Scotch, they're going to buy a better scotch."

Palke suggests that there may also be larger sociological effects at work. "I don't know for sure, but maybe this Christmas season people were beginning to move away from 9-11 a bit."

Advertising plays a role as well, Palke says. "Over the past year or so the spirit companies have begun advertising on cable television, and we're starting to see the effects of that."

The best selling liquor in Oregon was Jack Daniels #7 Black Label Tennessee whiskey, followed by Jose Cuervo Gold Tequila and Seagrams Crown Royal. Six of the top 20 sellers were brands of vodka, reflecting the new role of flavored drinks.

Similar favorites are sold in Ashland bars.

"We go through a lot of vodka," says Roshan Smyth, a bartender at Louie's Bar & Grill. "I mean, a lot of vodka. I agree that people are drinking more high end drinks."

"We do well with Jack Daniels and Absolut vodka," reports Ursula Bartels, a bartender at Alex's. "This time of year we sell a lot of Bailey's. Cuervo does well, but we sell more Hornito's [an even higher end tequila] because I prefer that, and I recommend it."

The OLCC doesn't compile a county-by-county breakdown of sales, says Palke, but figures for the entire southwestern district, stretching from Lane to Jackson counties, reflect those for the state as a whole.

Palke explains that 56 percent of profits from liquor sales are directed to the state budget, and the remainder goes to municipalities and counties. For December sales, the city of Ashland was awarded $26,997 and Jackson county received $85,000.