The US has seen a massive spike in alcohol sales reminiscent of the Prohibition as people turn to drink to cope with the lockdown. Alco...
The US has seen a massive spike in alcohol sales reminiscent of the Prohibition as people turn to drink to cope with the lockdown.
Alcohol sales were up 22% in the final week of March, not as large an increase as in the two previous weeks, but a rise that is far higher than expected.
Beer, flavored malt and cider sold 17% more than in the same week in March 2019. But more staggeringly, online sales of alcohol for March increased by 291% on the previous year.
Experts have warned that among the dire impacts of the lockdown on people's health, many turn to alcohol as they become depressed by their diminished quality of life.
Lisa MacDonald shops for wine in a liquor store in Seattle. Many, if not most, liquor stores in Washington state are considered "essential businesses" and can stay open under Gov. Jay Inslee's stay-at-home order issued Monday in the midst of the coronavirus outbreak
Cory Rellas, CEO of alcohol delivery app Drizly, told Yahoo Finance: 'What we’ve seen is just a massive mix shift from drinking at bars and restaurants, to home.
'This is a supply chain that hasn't changed a whole lot in the 90 plus years since Prohibition was repealed.'
It comes as 42 states have introduced stay-at-home orders meaning the only place to drink for millions is at home.
Danny Brager, Senior Vice President of Beverage Alcohol at Nielsen, told Forbes: 'Not unexpectedly, given the stunning consumer purchasing levels we saw in the two previous weeks, while sales grew significantly versus one year ago in the week ending March 28, 2020, they also dropped significantly versus last week’s levels.
'This week was an adjustment week during which consumers moved away from the same level of stocking up we saw previously.'
In New York, Governor Andrew Cuomo has allowed permit liquor stores to remain open despite him ordering non-essential businesses to close to help slow the spread of the coronavirus.
Essential businesses include hospitals, pharmacies, grocery stores and news media.
Liquor stores were not specified in Cuomo's order, but New York's State Liquor Association quickly clarified: 'Liquor stores have been deemed an essential business and may remain open. You do not need to reduce your workforce.'
Market analytics firm Social Standards said that if social distancing measures continue into the summer, the market will notice shifts in consumption habits.
Based on their surveys they concluded that products at risk of diminished sales include: canned wine, rosé, prosecco, hard seltzer, white rum, gin, Mexican beer, pale lager and light lager.
Conversely, they anticipated that the products likely to sell well include: malbec, flavored gin, gin, low alcohol beer, wheat beer, sour IPA, flavored beer and craft cider.
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