Great American Group Observes Increasing Sales of Wine and Spirits

Analysts say the output represents a 10 percent increase over the 2011 harvest and a significant increase over the roughly 3.1 million tons harvested in 2010.

“The news for U.S. off-premise sales was also good, growing 7 percent from a year ago to $354 million, with sales fueled by fast growth in the category of red blends/meritage wines, and a trend toward alternative package sizes,” said Lester Friedman, CEO of Great American Group’s Advisory & Valuation Services Division.

Also, despite a disappointing 6.7 percent decline in September spirit sales, year-to-date sales volume in control states (18 states that have state monopoly over the wholesaling and/or retailing of alcoholic beverages) was up by 3.6 percent through the first nine months of 2012, according to the National Alcoholic Beverage Control Association. Margins have been and will continue to be affected by increased input costs due to the severe and extensive drought affecting U.S. agriculture.