Liquor Sales Continue Upward Trend

Des Moines, Iowa (January 3, 2001) – The Iowa Alcoholic Beverages Division announced today that liquor sales for the current fiscal year are ahead of last years record pace by approximately 7%. The state liquor department, which exclusively wholesales liquor in Iowa, operates on a fiscal year that runs from July 1, 2000 through June 30, 2001.

Midway through the fiscal year, Fiscal Year 2001, sales receipts have totaled $59,120,434. That figure represents an increase of $3,443,162, compared to last year’s mid-year mark of $55,677,272.

Lynn Walding, ABD Administrator, acknowledged that, “Liquor sales continue to be robust. If sales continue at the current rate, total annual revenues could approach $112,000,000.” Last year was the first time spirit sales exceeded $100 million dollars since the state liquor stores were closed in 1987.

Strong spirit sales continue a six-year upward trend in the industry (FY 1996 through FY 2001), reversing 15 straight years of declining sales (FY 1981 through FY 1995). The increase is credited to strong holiday sales, the cold weather and continued consumer confidence in the economy.

“Holiday sales during the months of November and December, traditionally the year’s heaviest sales period, were particularly strong with total sales of $20,574,000 for the period.” Walding noted. “On a single day last week, in fact, the Iowa Alcoholic Beverages Division did a million dollars of business and, for the week between Christmas and New Years, sold $3,234,000 of liquor despite the holiday-shortened work week,” he added.

Tom Duax, owner of Central City Liquors in Des Moines, agreed that spirit sales continue to be strong. “For the year, consumers are buying more and better product and I enjoyed very brisk sales during the holiday season”.

Walding also credited the sales increase, in part, on the winter weather. “Iowa’s recent below average frigid temperatures have contributed to the brisk sales. As the thermometer has dropped, sales have heated up. People are confined to indoor recreation activities and, of course, spirits warm the spirit,” he stated.

Finally, Walding explained, “As a luxury item, consumers tend to purchase higher-end products when the economy is sound. Traditionally, alcohol sales mirror the state of the economy and this period is no exception.”

Dennis Mitcham, ABD Products Chief noted that, “Black Velvet continues to be the favorite among Iowa consumers with sales of 47,398 cases for the six-month period.” Other top sellers, in rank order, include Hawkeye Vodka (22,338 cases), Barton Vodka (20,270 cases) and Captain Morgan Spiced Rum (19,422 cases). Categorically, vodka sets the pace at 165,986 cases with Canadian whiskey, rum and schnapps following in rank order.

Finally, revenue generated by the Division is distributed among various state and municipal programs. “Last year, the Iowa Alcoholic Beverages Division generated net revenue of $62 million that was transferred to the state general fund, from which $13 million was redistributed to local governments, $10 million to substance abuse treatment programs and the balance for general state use. “Of course, if sales continue at the current rate, more funds will be transferred to the state’s coffers and available for societal needs.” Walding concluded.