Retail sales of spirits, wine, and beer remain strong as consumers continue to purchase their favorite libations, regardless of Covid-19. Consumers are turning to the off-premise arena as many bars and restaurants across the U.S. remain shuttered in the face of the pandemic. In other words, the industry’s retail tier is on a legendary run. “I didn’t realize how often people went to bars and restaurants—business has been crazy,” says Beth Freyvogel, general manager and co-owner of Arrow Wine & Spirits, in Dayton, Ohio. “Overall sales are up about 30% over the last eight weeks.”
Customers at Arrow’s two stores in Dayton are buying in quantity. And a third Arrow store that opened in Mason, Ohio on May 20 is poised to capitalize on the crisis. “People are just drinking more—more of everything is selling,” Freyvogel says. “We’re selling tons of 1.75-liters, especially Tito’s ($36), Svedka ($21), Jack Daniel’s ($49), Jim Beam ($35), Captain Morgan ($30), and Johnnie Walker Black ($78).”
Continued Acceleration
Retail beverage alcohol sales increased 34% year-on-year through May 8, according to Nielsen. Spirits are leading the charge with 49% growth during the first week of May, compared to last year. And some retailers say that mid-May is seeing even more growth. “On Tuesday and Friday deliveries, we’re re-supplying everything on the shelves,” says Jennifer Williams, owner of Weiland’s Market in Columbus, Ohio. “Wine case sales are way up.”
All beverage alcohol at Weiland’s is selling, with the store’s beer and spirits sales increasing 72% and wine sales growing 35% so far in May, outpacing double-digit trends in March and April. Mixed beer 12-packs and craft hard seltzers like Nocterra ($11 a 6-pack of 12-ounce cans) are also seeing success. “People have been trying to make their own bars at home,” says Williams. “A big thing local breweries are doing is putting draft exclusives in cans or bottles, and that’s flying out of here.”
Arrow’s customers are also working to bring the bar home; sales of barware and accessories are making gains. “I only have three cocktail shakers left, as people are buying more tools to make their drinks at home,” Freyvogel says. “They’re buying glassware and every wine tool possible. Everything is disappearing.”
And at Weiland’s, cost isn’t prohibitive; consumers are shopping across the price range, including premium products. “Everything in wine is selling, including high-end sparkling wine,” Williams says. “They’re making stay-at-home dinners more special. Red blends are very popular; people are buying wines for cocktails, including Sherry and Madeira.”
Chateau Wine & Spirits, in Columbus and Dublin, Ohio is also seeing the high-end success, having recently sold all of its Dom Perignon ($189 a 750-ml.). “We haven’t seen a difference in customers cutting down the price,” says owner Sunny Patel. “I was surprised we sold out of Dom Perignon. People are buying what they like and more of it.”
High-Quantity Orders
Since early March, beverage alcohol sales at Patel’s stores are up 20%-25%. Sales of 1.75-liters of spirits are surging, including Jack Daniel’s ($49), Tito’s ($36), and Beefeater ($36). “The main change we’ve seen is people buying larger sizes in high quantity,” Patel says. “They stock up. We have fewer customers, but each customer is buying half-gallons.”
With preventative measures becoming the new normal as coronavirus continues to affect the nation, online and telephone orders for curbside pickup and delivery are rising in popularity. Chateau Wine & Spirits originally introduced online sales last year, and now has 300 online orders a month and 25-30 curbside orders daily.
In Dayton, Arrow does upwards of 45 curbside orders daily, particularly on Fridays. “It’s been booming,” says Freyvogel, who conducts the curbside orders over the phone. “Most of the staff working on these orders has been here for 20-plus years, so they do a quick job. Everyone wants to drink—I can’t blame them.”