Added on 11/06/2020  NEPA Scene Staff  coronavirus , government , wine

COVID-19 drove record liquor sales in Pennsylvania, increasing yearly profits despite shutdown

From a press release:

This week, the Pennsylvania Liquor Control Board released its Fiscal Year 2019-2020 Annual Report, which details agency operations, sales trends, popular products, and financial results for the period of July 1, 2019 to June 30, 2020. This year’s report also details how the COVID-19 pandemic affected PLCB operations and sales.

The annual report, in its eighth year, reviews the agency’s financials and provides insight into functions including store operations, licensing, marketing and merchandising, supply chain, wholesale operations, information technology, alcohol education, and personnel. The 107-page document is filled with statistics and information shedding light on how the agency works and where the money it generates goes.

The report also showcases sales by product category, individual products, counties, e-commerce, stores, and sales periods. Standout facts include:

• E-commerce sales in fiscal year 2019-2020 totaled $26.8 million for 1.3 million units, a 436.9 percent increase in dollar sales and an 851.9 percent increase in unit sales over the prior year’s online sales of $5 million and 135,776 units.
• Box wine dollar sales in 2019-2020 of $128.4 million grew $4.5 million or 3.6 percent over 2018-19, largely because holders of wine expanded permits continued to buy box wines from the PLCB (and subsequently sell at retail) while Fine Wine & Good Spirits stores were temporarily closed in support of coronavirus mitigation efforts.
• Unflavored vodka was the top-selling spirits category in 56 counties, while American whiskey was the top category in 11 counties.
• California cabernet sauvignon was the top wine category in 30 counties, while another 30 counties had box red wine as the top wine category; California chardonnay followed in four counties, and beverage wine followed in three.
• Sales in Allegheny, Philadelphia, and Montgomery counties – the top-ranking three counties by dollar sales – accounted for almost 35 percent of statewide sales.

“While sales in fiscal year 2019-20 totaled $2.56 billion (including liquor and sales taxes), $110.9 million less than the prior year, net income for the year totaled a record $208.7 million, which was $17.7 million or 9.2 percent higher than the prior fiscal year and exceeded the PLCB’s $185.1 million contribution to the General Fund by $23.6 million. The increase in net income was due primarily to decreased operating expenses related to other post-employment benefit costs and pension expenses,” the board wrote in the report’s introduction.

“Prior to the advent and escalation of the COVID-19 public health crisis, PLCB sales were on a record pace into the first couple of months of 2020. Sales for January and February were 5.8 percent and 12.4 percent higher, respectively, than the same month the prior fiscal year, and fiscal-year-to-date-sales through February were 4.5 percent ahead of the previous year. However, by March 17, 2020, all Fine Wine & Good Spirits stores and licensee service centers were closed and e-commerce sales at finewineandgoodspirits.com had ceased in response to Governor Tom Wolf’s COVID-19 mitigation efforts promoting public health and safety.”

Additional highlights of the report include:

• A one-page summary showing distribution of PLCB funds to various recipients. More than $745.1 million was distributed to the Pennsylvania General Fund and state and local government beneficiaries in fiscal year 2019-20.
• A two-page timeline highlighting key operational impacts related to COVID-19.
• A summary of Fine Wine & Good Spirits store operations, including store renovation efforts and celebrity events.
• Information on permits issued and sales to holders of wine expanded permits, which authorize the sale of wine to go by private retailers.
• A breakdown of almost 79,000 liquor license and permit applications processed and more than 8,300 investigations completed, as well as a breakout of licenses by county.
• A summary of alcohol education efforts to reduce and prevent dangerous and underage drinking, including the agency’s award-winning Know When. Know How. campaign.

Sales information and trends by product and category, including top-selling spirits and wines by county.

• Store-by-store sales and a dedicated section on sales of Pennsylvania-made wines and spirits.
• A list of recipients of more than $2.2 million in grants that support Pennsylvania’s wine and beer industries.

Top 10 sales days at Fine Wine & Good Spirits in 2019-2020

1. 3/16/2020, Monday – COVID-19 – 1,810,128 – $29,878,404
2. 11/27/2019, Wednesday – Thanksgiving – 1,497,364 – $23,104,897
3. 12/23/2019, Monday – Christmas – 1,454,883 – $21,900,755
4. 12/31/2019, Tuesday – New Year’s Eve – 1,385,864 – $21,263,630
5. 3/17/2020, Tuesday – COVID-19 – 1,324,807 – $20,396,815
6. 12/24/2019, Tuesday – Christmas – 1,234,452 – $19,361,921
7. 12/20/2019, Friday – Christmas – 1,250,235 – $18,832,945
8. 3/13/2020, Friday – COVID-19 – 1,113,002 – $17,460,646
9. 12/21/2019, Saturday – Christmas – 1,113,865 – $17,170,148
10. 3/15/2020, Sunday – COVID-19 – 969,744 – $15,556,359

Top 10 e-commerce items sold by Fine Wine & Good Spirits in 2019-2020

1. Tito’s Handmade Vodka – 1 L – 51,858 – $1,347,680
2. Jack Daniel’s Old No. 7 Tennessee Whiskey – 750 mL – 17,023 – $400,123
3. Jameson Irish Whiskey – 750 mL – 12,944 – $374,961
4. Tito’s Handmade Vodka – 750 mL – 18,671 – $350,566
5. Maker’s Mark Straight Bourbon – 750 mL – 9,873 – $277,573
6. Woodford Reserve Distiller’s Select Straight Bourbon – 750 mL – 7,170 – $253,055
7. Tanqueray London Dry Gin – 750 mL – 9,636 – $250,418
8. Captain Morgan Spiced Rum – 750 mL – 13,804 – $246,928
9. Grey Goose Vodka – 750 mL – 7,411 – $242,864
10. Fireball Cinnamon Whisky – 750 mL – 11,210 – $206,777

Top 25 wines by unit sales in Fine Wine & Good Spirits in 2019-2020

1. Apothic Red Winemaker’s Blend – 750 mL – 627,101 – $6,670,292
2. Kendall-Jackson Vintner’s Reserve Chardonnay – 750 mL – 561,263 – $7,562,200
3. La Marca Prosecco – 750 mL – 557,856 – $8,279,711
4. Barefoot Pinot Grigio – 1.5 L – 511,713 – $5,733,309
5. Cavit Pinot Grigio delle Venezie – 1.5 L – 484,128 – $6,228,098
6. Barefoot Moscato – 1.5 L – 480,097 – $5,411,036
7. Woodbridge by Robert Mondavi Chardonnay – 1.5 L – 474,522 – $5,985,359
8. Barefoot Pink Moscato – 750 mL – 458,738 – $3,214,243
9. Barefoot Pink Moscato – 1.5 L – 441,080 – $4,967,651
10. Barefoot Moscato – 750 mL – 420,706 – $2,938,879
11. Roscato Rosso Dolce – 750 mL – 395,066 – $3,901,677
12. Cavit Pinot Grigio delle Venezie – 750 mL – 358,729 – $2,604,697
13. Barefoot Chardonnay – 1.5 L – 349,546 – $3,907,571
14. Woodbridge by Robert Mondavi Cabernet Sauvignon – 1.5 L – 348,754 – $4,342,618
15. Josh Cellars Cabernet Sauvignon – 750 mL – 321,033 – $4,817,764
16. Sutter Home Family Vineyards White Zinfandel – 1.5 L – 320,586 – $3,532,479
17. Nobilo Sauvignon Blanc Marlborough – 750 mL – 295,674 – $3,464,440
18. Josh Cellars Chardonnay – 750 mL – 284,514 – $3,670,599
19. Sutter Home Family Vineyards Chardonnay Family Vineyards (4×187 mL) – 748 mL – 271,419 – $1,966,183
20. Barefoot Riesling – 1.5 L – 270,318 – $3,054,446
21. Ecco Domani Pinot Grigio delle Venezie – 750 mL – 269,139 – $3,133,487
22. Kim Crawford Sauvignon Blanc Marlborough – 750 mL – 268,702 – $4,344,268
23. Starborough Sauvignon Blanc Marlborough – 750 mL – 266,991 – $3,200,605
24. Woodbridge by Robert Mondavi Pinot Grigio – 1.5 L – 260,285 – $3,228,955
25. Chateau Ste. Michelle Riesling Columbia Valley – 750 mL – 260,034 – $2,735,659

Top 25 spirits by unit sales in Fine Wine & Good Spirits in 2019-2020

1. Fireball Cinnamon Whisky – 50 mL – 4,679,193 – $4,626,289
2. Tito’s Handmade Vodka – 1.75 L – 1,059,156 – $35,872,180
3. Tito’s Handmade Vodka – 1 L – 965,077 – $23,598,604
4. Tito’s Handmade Vodka – 750 mL – 932,568 – $17,292,947
5. Crown Russe Vodka – 1.75 L – 787,171 – $7,729,510
6. Jack Daniel’s Old No. 7 Tennessee Whiskey – 750 mL – 732,522 – $16,642,963
7. Nikolai Vodka – 375 mL – 730,393 – $2,913,213
8. Hennessy Cognac VS – 750 mL – 626,918 – $22,883,659
9. New Amsterdam Vodka – 50 mL – 620,984 – $599,109
10. Captain Morgan Spiced Rum – 750 mL – 618,314 – $9,900,512
11. Captain Morgan Spiced Rum – 1.75 L – 616,982 – $16,020,283
12. Fireball Cinnamon Whisky – 750 mL – 568,478 – $10,187,252
13. Jameson Irish Whiskey – 750 mL – 527,051 – $15,087,249
14. Tito’s Handmade Vodka – 50 mL – 479,750 – $936,726
15. Bacardí Superior Rum – 1.75 L – 478,031 – $10,207,259
16. 99 Peaches Schnapps – 50 mL – 476,844 – $457,439
17. 99 Bananas Schnapps – 50 mL – 465,605 – $449,581
18. Jacquin’s Vodka – 375 mL – 439,058 – $2,058,427
19. Crown Royal Regal Apple Canadian Whisky – 750 mL – 427,557 – $11,310,887
20. 99 Apples Schnapps – 50 mL – 409,516 – $393,506
21. New Amsterdam Peach Vodka – 50 mL – 401,270 – $388,251
22. E&J Apple Brandy – 50 mL – 387,925 – $373,436
23. Platinum 7X Vodka – 1.75 L – 387,007 – $6,672,782
24. Bacardí Superior Rum – 750 mL – 386,503 – $5,543,530
25. Absolut Vodka – 750 mL – 385,738 – $6,917,912

Top 10 wines made in Pennsylvania sold by Fine Wine & Good Spirits in 2019-2020

1. Clover Hill Vineyards & Winery Concord – 750 mL – 52,645 units – $569,494
2. The Winery at Wilcox Clarion River Red – 1.5 L – 32,963 – $493,487
3. Mazza Vineyards Concord – 1.5 L – 26,502 – $256,988
4. Franklin Hill Vineyards Sir Walter’s Red – 750 mL – 17,897 – $222,489
5. Franklin Hill Vineyards Carnival White – 750 mL – 15,131 – $188,122
6. Clover Hill Vineyards & Winery Catawba – 750 mL – 16,922 – $183,733
7. Adams County Winery Rebel Red – 750 mL – 11,253 – $166,206
8. Nissley Grapeful Red – 750 mL – 11,154 – $153,786
9. Mazza Vineyards Niagara – 1.5 L – 11,838 – $153,260
10. Sand Castle Winery Alpine Spice – 750 mL – 8,724 – $147,872

Top 10 spirits made in Pennsylvania sold by Fine Wine & Good Spirits in 2019-2020

1. Bluecoat Gin – 750 mL – 48,233 units – $1,275,415
2. Stateside Urbancraft Vodka – 750 mL – 42,339 – $1,116,648
3. Pennsylvania Dutch Egg Nog – 750 mL – 110,720 – $993,049
4. Faber Vodka – 750 mL – 32,491 – $491,082
5. Dad’s Hat Rye Whiskey – 750 mL – 13,147 – $488,202
6. Faber Gin – 750 mL – 25,334 – $377,304
7. Original Bartenders I’m Bananas Over You Cocktail – 1.75 L – 25,074 – $317,662
8. Boyd & Blair Vodka – 750 mL – 12,815 – $303,479
9. Wigle Rye Whiskey Small Cask Series – 750 mL – 6,692 – $275,190
10. Off the Rail Vodka – 1 L – 37,299 – $260,716

Download and read the entire report here.

The PLCB regulates the distribution of beverage alcohol in Pennsylvania, operates 600 wine and spirits stores statewide, and licenses 20,000 alcohol producers, retailers, and handlers. The PLCB also works to reduce and prevent dangerous and underage drinking through partnerships with schools, community groups, and licensees.

Taxes and store profits – totaling nearly $17.9 billion since the agency’s inception – are returned to Pennsylvania’s General Fund, which finances Pennsylvania’s schools, health and human services programs, law enforcement, and public safety initiatives, among other important public services. The PLCB also provides financial support for the Pennsylvania State Police Bureau of Liquor Control Enforcement, the Department of Drug and Alcohol Programs, other state agencies, and local municipalities across the state.