Even liquor industry feels recession pinch

January 31, 2009|Associated Press

MILWAUKEE - Drinking away your troubles? Possibly. But chances are you're doing less of it, and you're imbibing at home.

The alcohol industry said yesterday that its business softened last year, with revenue growth slowing and spending shifting away from bars and restaurants.

Revenue reported by liquor suppliers rose 2.8 percent from the previous year to $18.7 billion in 2008, according to the Distilled Spirits Council of the United States. That's slower than the 6 percent average annual growth rate since 2000. Volume grew 1.6 percent, also below the 2.7 percent average growth of recent years.

That there is still growth shows the spirits business is "recession resilient," said council president Peter Cressy, but not immune.

He said the quarter that ended in December was one the industry was counting on. Cressy said he expected business in restaurants and bars - called "on-premise" - and also in stores, or "off-premise" - to be down about 3 percent in the fourth quarter.

On-premise volume fell 2.2 percent last year. Off-premise volume rose 2.9 percent.