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Changes in Distilled Spirits Sales and Preferences During COVID-19
Jason Winfree1, Philip Watson1
1Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, Idaho.
Journal of Studies on Alcohol and Drugs
|December 9, 2022
Summary
The COVID-19 pandemic significantly altered alcohol sales, shifting consumers from wholesale to retail. Early pandemic purchasing favored high-ethanol spirits, with preferences later moving to more expensive, lower-ethanol options.
Area of Science:
- Epidemiology
- Public Health
- Consumer Behavior
Background:
- The COVID-19 pandemic and associated policies drastically impacted alcohol sales patterns.
- Changes in product availability and consumer preferences led to a notable shift from wholesale to retail alcohol transactions.
Purpose of the Study:
- To quantify the changes in wholesale and retail alcohol sales during the COVID-19 pandemic.
- To assess the duration and persistence of these observed sales shifts.
Main Methods:
- Analysis of detailed sales data for distilled spirits in Idaho during the COVID-19 pandemic.
- Utilized regression analysis on 810,000 unique observations across 58 distilled spirit types to identify sales determinants.
Main Results:
- March 2020 saw a 27.2% overall sales increase, driven by a 42.3% rise in retail and a 41.1% drop in wholesale sales, continuing until August 2020.
- Consumer demand varied by spirit type: initially favoring high-ethanol spirits, then shifting to more expensive, lower-ethanol options from April to July.
Conclusions:
- Consumer purchasing behavior during the pandemic was influenced by product characteristics like price and ethanol content.
- Understanding these shifts is crucial for policymakers evaluating the impact of alcohol sales restrictions.
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