Sign In | Create an Account | Welcome, . My Account | Logout | Subscribe | Submit News | Facebook | Twitter | Home RSS
 
 
 

Consumption

Beer sales continue despite economic slump

July 12, 2009
By NATALEE SEELY, nseely@newsandsentinel.com

PARKERSBURG -Despite the recent economic downturn, many consumers in the Parkersburg area are still buying brewski. But even though people are purchasing alcohol, the recession has caused many to make smarter spending choices.

"People are still buying beer and liquor, they're just buying cheaper," said Kelly Grant, store manager of Traffic Circle Drive Thru in Parkersburg. "Our customers seem to be switching to lower-end beers like Old Milwaukee, and our Absolute Vodka customers are switching to Smirnoff."

Beer has remained relatively recession-resistant in the past.

During the recession of early 2000, beer sales remained steady. But statistics from the U.S. Department of Commerce show a 9.3 percent decrease in beer revenue in late 2008, suggesting beer may be more sensitive to economic crisis this time around. This change, however, could be the result of consumers taking advantage of store discounts or simply switching to more affordable brands of brew.

Greg Delemeester, professor of economics at Marietta College, said beer drinkers are usually less sensitive to income changes than wine and liquor drinkers.

"You generally don't see a whole lot of change in beer consumption during a recession," Delemeester said. "Beer is generally cheaper, and consumers normally substitute cheaper drinks in place of more expensive ones."

People may also be eating in more when money is tight. According to consumer reports from The Nielsen Company, 56 percent of consumers eat dinner at home more often than before the recession. If restaurants and bars see a slight decrease in beer sales, it may be because people are opting for a quiet night in with their favorite six-pack, bought from the local carry-out or grocery store.

The North End Tavern, a popular local brewery, reported no significant change in beer sales over the past year. Joe Roedersheimer, who has owned the establishment for 31 years, said business has been steady.

"Rumor is, when the economy is down people actually drink more than usual. I don't know if that's true, but when the economy gets rough, one thing that helps a business like us is that people here like to taste the local flavor and support local businesses," Roedersheimer said.

The North End Tavern is unique in the state of West Virginia as one of only six breweries in the state. When the price of imported or distributed beers goes up, the price of brews made on-site generally remain the same.

Roedersheimer said many of his customers prefer beers made at the brewery rather than more costly, imported brands. His observations mirror another recent Nielsen Company survey, showing 25 percent more people are buying locally made products.

"We've had generations of customers coming here for so long," he said. "One of the local favorites is a brew called 'Roadies Red,' but our number one seller on draft is still Bud Light."

To save a few bucks, some drinkers are switching from bottled beer to draft and taking advantage of happy hour specials.

Christin Meadows has been the bar manager at River City Tavern and Grill in Parkersburg for eight years. She said more people are choosing beer on tap since prices of bottled beer and liquor went up in October.

"I've noticed our customers drinking more beer than liquor because it's cheaper, so our specialty drink sales have decreased somewhat. But in general, our alcohol sales haven't dropped off as much as we expected," she said. "And more people are coming in for happy hour."

Delemeester said consumers tend to shop around more when people are tightening their belts.

So while beer revenues may be down across the U.S., many Parkersburg residents are still frequenting their favorite bars and taverns.

They are just watching their dollars.

 
 

 

I am looking for:
in:
News, Blogs & Events Web