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  Home Page » News » In Tough Times The Tough Go Drinking

In tough times, the tough go drinking

by Ted Holteen
Herald Staff Writer Chris Manfredonia hopes 2009 is better than 2008. He works in construction in Durango, and there's been a glitch in the economy, but that that doesn't mean he's not celebrating the holidays in style.

"I haven't curtailed my booze spending," Manfredonia said, clutching a six-pack of Corona as he left Wagon Wheel Liquors on Christmas Eve.

Manfredonia apparently is not alone. The year-end sales-tax receipts for the city of Durango reflect the local impact of the downturn in the national economy, but liquor stores have not felt the pinch. While furniture, clothing, hardware, restaurant and department store tax revenues are down for the year between 1 and 14 percent, liquor-store receipts boast a double-digit increase in 2008.

The year-to-date sales at local liquor stores have pumped more than $470,000 in tax revenue into the city coffers, 11 percent higher than 2007.

"It's like they say: When times are tough, people keep drinking, and sometimes they drink more," said Eric Allen, co-owner of The Wine Merchant.

Allen said his results reflect the citywide trend even though he moved his store next to the new Nature's Oasis and adjacent to the highway construction in front of Bodo Industrial Park.

"All I can say is business is good," he said.

Carey Vicenti, chairman of the Sociology Department at Fort Lewis College, said he was not surprised.

"Studies show that liquor and cigarette sales remain steady in any economy," Vicenti said. "My guess, off the cuff, is that people view those as high comforts that are typically the last to be sacrificed. By my estimate, they look at those as absolutely necessary."

Vicenti pointed to the Great Depression and nearly every American war as proof that seeming luxuries like alcohol and cigarettes become nearly indispensable when times are hard.

"There's an old saying from the '70s: 'It's better to have pot and no money than money and no pot.' It's the same with liquor, as your statistics would seem to support," Vicenti said.

The data also suggest it's not just drinking liquor that remains popular, but where it is consumed - primarily, at home. Tax revenue from bars is up for the year, but by only 3 percent. James Allred, who works at East by Southwest, said he's seen evidence of that trend in his professional and personal life. He said volume at the College Drive restaurant hasn't dropped, but he's noticed a dip in his liquor sales.

"We don't go out to eat as much, but the people are still coming in," Allred said.

"I think people feel more comfortable making drinks at home, and every time I'm at the (liquor) store, it seems a little busier. I'm doing my best - what else can you do? You live life, go skiing when you can, but no, I definitely don't think my liquor-buying habits have changed."

Although 2008 marked the debut of Sunday liquor sales in Colorado, store owners said the overall impact has been less than anticipated, and they don't believe it's a factor in their industry's strong sales.

Joe Leder, owner of Durango Liquor in the Wal-Mart shopping center, said a more likely explanation is the strength of foreign currencies and rising overseas prices, which includes imported wine, beer and liquor. Higher prices, he said, translate into higher tax receipts, although the bump may not necessarily be reflected in the profit margin.

In his store, people are spending less money but trying to buy the same volume, he said. "They'll buy a $10 bottle instead of a $30 bottle, but even the prices for the cheaper items are higher than they were last year, so that's reflected in the total receipts," Leder said.

"I really think the biggest factor is location - most of our stores are next to grocery stores or they're on major roads. When people go shopping, we're part of that. We're a food group," he said.

ted@durangoherald.com