Changes in Distilled Spirits Sales and Preferences During COVID-19.

ABSTRACT

OBJECTIVE: COVID-19 and the associated policies created a large shift in alcohol sales. A change in availability and consumer preferences caused a shift from wholesale to retail sales in many areas. This study estimates the magnitude of the changes in wholesale and retail sales, and the persistence of these changes. METHOD: Highly detailed sales data are used to analyze trends in distilled spirts sales during the COVID-19 pandemic in the state of Idaho. A total of 810,000 unique observations that cover 58 types of distilled spirts are used in a regression analysis to find the determinants of distilled spirts sales. RESULTS: In March 2020, there was a 27.2% increase in sales compared with the previous March because of a 42.3% increase in retail sales and a 41.1% decrease in wholesale sales. Increased sales continued until August 2020. The regression analysis shows changes in demand during 2020 varied by the type of distilled spirits; demand increased more for distilled spirts types with higher ethanol early in March 2020, but from April to July demand increased more for expensive distilled spirts with a lower ethanol level. CONCLUSIONS: Examination of the types of distilled spirts purchased during the early stages of the pandemic shows us that consumers bought different types of distilled spirts for various characteristics, such as price and ethanol level. We find that consumers initially purchased cheap distilled spirts with high alcohol content. By August, distilled spirts sales were similar to previous years. These results will be useful to policymakers in determining the effects of distilled spirts restrictions.