New Haven Register (New Haven, CT)
One industry saw business rise in 2020
While most retailers close, cut time, spirits sellers put in hours like never before
The economic disruption unleashed by the coronavirus crisis is far from over. Businesses big and small will continue to struggle in the months ahead. Some might never get back to pre-pandemic levels of prosperity. Some will not get back at all.
Then there are the state’s wine-and-spirits stores — for whom 2020 was actually a growth year.
“I’ve been here 75 to 80 hours per week,” said Theresa “Terry” Rogers, owner of Harbor Point Wines & Spirits, at 130 Washington Blvd., in Stamford. “(I) know my customer base and know exactly how to make them each feel special. They are going through hell with this (crisis), and they want a friendly face and a place that’s going to be there for them.”
Steady demand
Hard work and customer engagement like Rogers’ is paying off industry wide. In 2020, total alcoholic beverage sales, by volume, are up by an expected 2 percent across the country, an equivalent of more than 3.5 billion nine-liter cases, according to IWSR Drinks Market Analysis, which tracks and analyzes the alcoholic-beverages market.
The pandemic and ensuing social-distancing mandates, however, have reshaped how and where customers imbibe.
Temporary shutdowns of restaurants and bars and sweeping restrictions on sit-down dining have resulted in an approximately 45 percent year-over-year decrease in U.S. “on-premise” alcohol sales, on a dollar basis, according to IWSR Drinks Market Analysis. Total alcohol sales in the U.S., on a dollar basis, are set to fall about 12 percent this year, despite the increasing volumes.
In contrast, stores have fared much better. Retail alcohol purchases in the U.S. have increased about 14 percent in the past year, on a dollar basis. E-commerce, which has supported the rising demand for curbside pickups and deliveries, has driven much of the growth.
“The beverage alcohol market in the US has remained relatively resilient through COVID-19 so far, led particularly by the popularity of the RTD (ready to drink) category, including hard seltzers,” said Brandy Rand, IWSR Drinks Market Analysis’ chief operating officer for the Americas.
In Connecticut and other states, wines-and-spirits sellers have benefited from “essential business” designations that have enabled them to keep operating. There are about 1,100 package stores in Connecticut, a number that has not changed much in the past year, according to estimates from the Connecticut Package Stores Association.
At stores such as Harbor Point Wines & Spirits, customers are in coming for a range of offerings.
“It’s across the board — it’s the bourbons, scotches, vodkas, Proseccos, champagnes,” Rogers said. “And by being here consistently, I see the trends and can say ‘Try this, I think you’re going to like it.’ And sure enough, they come back and say ‘That was great.’”
Anthony Hong, general manager of Park City Wines & Liquors at 345 Huntington Turnpike in Bridgeport, has noticed that customers now tend to stop by his establishment less frequently, but that they buy more when they visit.
“Foot traffic-wise, I think I definitely saw a little dip throughout the year,” Hong said. “When people do go out, they just prepare more for the week, instead of on a day-to-day basis.”
Retailers said, in general, they have not faced much resistance to social distancing and mask mandates.
“Everyone is pretty cautious,” said Stephen Downes, president of the Connecticut Package Stores Association. “They keep their distance in the stores. They’re in and out. If somebody puts something on the counter too close to somebody, they get the stares.”
Ready for 2021
Retailers are anticipating customer demand will hold steady in 2021, with the new federal stimulus and the rollout of vaccines raising their hopes of a sustained economic recovery.
“The economy in Connecticut seems like it’s surviving,” said Downes, who owns CT Beverage Mart, which has stores in Middletown, New Britain, Newington and Wallingford. “I remember in April and
May, there were no cars on the road. But when you drive around now, it’s pretty busy.”
Merchants are not expecting, however, a dropoff in their workloads.
“With the vaccine coming out, hopefully the world will be safer,” Hong said. “We know what we’re going against. We’re grateful that we’re an essential business, so we’re going to keep working our tails off and see where it goes from there.”
Likewise, Rogers has no plans to let up in the next year.
“I’m ready to go every day because it’s your own business and you know somebody is going to come in and they’re going to want an education on something,” Rogers said. “It’s going to be very exciting to teach them something. That’s what drives me.”