Alcohol sales up 4.3% to $18.8-billion

Sarah Boesveld

From Tuesday's Globe and Mail

Forget those watered-down domestic brews. Pour us a glass of vintage Chianti instead.

Before the country slumped into a recession, Canadians adopted a more sophisticated palate and preferred wine, beer and spirits from abroad, Statistics Canada reported yesterday.

In the fiscal year ended March 31, 2008, Canadians boosted alcohol sales by 4.3 per cent, funnelling more than $18.8-billion into the economy. Sales of red wine more than doubled and white wine experienced a 44-per-cent hike. Much of that wine came from abroad, as did the 2.4-per-cent increase in beer bought by Canadians. Vodka sales increased 9.1 per cent, the federal agency reports.

The spike in fancier swill purchases wasn't just due to more discerning taste buds. A 1.4-per-cent increase in Canadians over the age of 15, plus an average price increase of only 1.8 per cent, also had an impact.

While the recession-era booze figures are a year away, liquor stores already report softening sales.

The Liquor Control Board of Ontario crunched its sales numbers from April, 2008, to March, 2009, to find that shoppers are scrimping where they can. Sales of wine priced over $25 and liquor over $30 have slowed, LCBO spokesman Chris Layton said.

That said, more people are buying alcohol to entertain at home, Mr. Layton added. "Alcohol is not recession-proof, and we saw that back in the 1990s when the net sales did slow down with the recession," he said. "But it is somewhat what we call recession-cushioned."

Next year's federal stats could show a reversed demand for imported alcohol, Mr. Layton said. After aggressive marketing, sales of Ontario's Vintners Quality Alliance (VQA) wine jumped 17.3 per cent from last year, compared with a 3.3-per-cent increase in sales of imported wines.

Customers are also snapping up more Ontario crafted beer, Mr. Layton said. "I think one of the factors we suspect might be at work ... is that people want to support their local producers."

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