According to a recent article in the Los Angeles Times, the distilled spirits industry is predicting the U.S. revenue from liquor sales to increase 4.6% in 2008. This is a decrease from last year's growth rate. The current weakness in the economy may force people to tighten their budgets for going out. According to The Distilled Spirits Council of the U.S. revenue rose 5.6% to $18.2 billion in 2007. They expect spirits makers to post $19 billion in revenue in 2008. This is an expected increase of 1.9% in 2008, reaching 185 million cases. In comparison, volume sales advanced 2.4% in 2007. The current economic slowdown will likely cause consumers to spend less time and money enjoying their favorite restaurants and bars. Such a decrease in consumer spending may slow things down for the industry, but predictions continue to forecast that the spirits industry may still outperform other sectors of the economy. Liquor is often considered a "luxury item" that people will enjoy in the comfort of their own homes, even if they are not going out as much.
The L.A Times article points out that in 2007 tequila was the smallest but fastest-growing segment of the liquor industry, which is dominated by Diageo, Pernod Ricard and Fortune Brands Inc. Apparently, Tequila sales, which made up 15% of the industry total, jumped 10.5% to $1.6 billion in 2007. Let's all hope that this growth will continue. If your bank account is suffering due to the current recession, that doesn't mean you can't continue to enjoy your favorite tequila in the comfort of your own home. Relax, stay at home, enjoy!
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