Liquor sales remain steady in the midst of economic slowdown
September 23, 2008
Liquor distributors in DeKalb are not necessarily experiencing economic impacts on liquor sales.
A recent survey conducted by market research firm Nielsen Company found that alcoholic beverage purchases may be somewhat recession-proof, with the declining economy having only a mild impact on consumers’ alcoholic beverage purchases.
“Our business has remained stable,” said Greg Sullivan, co-owner of Sullivan’s Tavern, 722 E. Lincoln Highway. “It’s been the same as it’s been for years.”
There are several reasons which may contribute to alcohol consumption remaining stable throughout the times of an unstable economy, such as possibly more leisure time to drink.
“People aren’t working as much, generally speaking, during recessions so they work fewer hours and have more leisure time,” said Carl Campbell, associate professor and assistant chair of economics at NIU.
Consumers’ mental states during these times may also encourage them to continue purchasing alcohol.
“There is more depression during recessions,” Campbell said, adding that as a result they may turn to alcohol. “Beer is a relatively cheap solution to their problems.”
Those struggling financially are still able to find a way to continue purchasing alcohol, even if it means investing in cheaper products.
“When certain people want to drink who don’t have much money, they will buy cheaper stuff,” said Louis Schoenburg, owner of American Liquors, 159 W. Lincoln Highway.
Rather than buying wine, people might substitute lower-cost alcohols such as beer, Campbell said.
Although the survey found more than 80 percent of consumers are spending the same amount or more on beer, wine and spirits compared to a year ago, some local liquor stores are finding people are actually spending money on the more expensive products.
“A lot of expensive products are being sold even with the economy the way it is,” Schoenburg said. “The hottest thing on the market is the most expensive alcohol.”
The suffering economy may even encourage consumers to buy the more expensive alcohol.
“It’s a cheaper way to make yourself feel like you’re doing something right,” Schoenburg said. “You may have to skip a fancier car or vacation but you can buy a quality bottle of spirits that can make you feel good.”
No matter how the economy may be, people will continue to drink.
“When times are tough, people will drink; when times are good, people will drink,” Schoenburg said.