LIQUOR SALES CLIMB DESPITE PANDEMIC

By Tucker Dow

JRN100 Stonehill News Staff Writer

Taking the edge off at home with a bottle of wine or a glass of Johnnie Walker Blue may be slowing the spread of COVID-19 while also keeping liquor sales high.

With the outbreak of COVID-19 coming just a couple months ago, the World Health Organization declared it a pandemic on March 11. In Massachusetts, there have been over 50 thousand cases and over 3 thousand deaths at the end of April. With self-distancing orders and advisories by federal and state governments, people are staying home unless they are considered essential workers, going outdoors, or purchasing food or alcohol.

Restaurants, except for take-out, have been closed as non-essential, and the restaurant industry has taken an economic hit during the crisis. Liquor stores and distributors, however, were designated as essential businesses and have been doing a brisk business.

“Liquor is doing surprisingly well,” said Forrest Dow, a sales representative for Martignetti Companies in Taunton.

Martignetti is one of the leading liquor and wine distributors in New England and is currently the seventh-largest in the United States. Their products can be found in stadiums, restaurants, and liquor stores all over the region.

Along with grocery shopping, local liquor stores have been busy during the COVID-19 crisis. Companies like Martignetti can deal with this crisis by focusing on their off-premise locations such as liquor and grocery stores.

“Our delivery drivers are not allowed to interact with clients as they normally would,” said Dow. “They drop the product at the loading dock or in the backroom and then leave.”

These new protocols ensure the safety of employees of both the distributor and the stores by minimizing their interactions. Normally, a delivery driver would bring the product inside and help restock, but under these circumstances, the drivers will only put it in the storage room if necessary.

Kevin F. O’Connor, a sales manager at L. Knife & Son in Kingston, is continuing with business as usual with some changes to communications between clients and his employees. As a beer distributor, he said the reopening of beer sales in restaurants is crucial.

He said his employees are now allowed to do most distributing transactions over the phone and internet.

“If they’re comfortable working, okay, but we’re not forcing them to work directly with store owners,” said O’Connor.

The liquor industry is trying to help those in the restaurant business who are suffering because of revenue losses. The pandemic means people are out of jobs and business is at a standstill, but companies are stepping to the plate to support bars and restaurants.

Diageo, one of the largest producers of spirits and beers, issued a statement pledging $1 million to the USBG Bartender Emergency Assistance Fund to give back to bartenders and restaurant employees. This will allow people who rely heavily on tips to get the money they need during this uncertain time.

With the United States surpassing all other countries in the number of COVID-19 cases, companies in the liquor industry are supporting those who are continuing to work.

Pernod Ricard, a French alcoholic beverage producer, pledged $500,000 and has also promised to match every dollar donated by the public, up to $100,000 to the Bartender Emergency Assistance Program.

Along with Diageo and Pernod Ricard, many companies are making it their mission to work with the United States Bartenders Guild to support those who are usually serving everyone else.

“We never expected anything like this,” said O’Connor.

For O’Connor, business is strong for the time being, but as a beer distributor, there is the fear that their draft business will take a major hit. With draft beer being a large part of the revenue stream for beer distributors, bars, and restaurants, any long-term closing measures will lead to useless and expired inventory.

The Alcoholic Beverage Control Commission and state government have agreed on legislation that allows people to purchase wine and beer in sealed containers alongside their takeout from restaurants. Gov. Charlie Baker signed the bill on April 3.

Unlike wine and spirits, beer on draft has an expiration date which makes this relief bill very important to restaurants and distributors, alike. These large quantities of beer will expire in early May, so this bill gives them a chance to clear their inventory.

“This bill will help with our inventory problems,” said O’Connor.

With the crisis reaching its peak, many people, including employees, fear going grocery stores and liquor stores because these locations are among the highest in foot traffic and have the potential to spread the virus.

As a result, many employees are taking time off or refusing to work, which gives store owners more responsibility and makes restocking the shelves to keep up with demand that much more difficult.

The pandemic is causing sports, entertainment, businesses, parks, clubs, and social gatherings to be put on hold, which brings people to stores to stock up at home. This puts greater stress on companies that are not large enough to survive – if closed – for long periods, while also putting the stores’ employees at risk if they are still open.

“Retailers are going through a very stressful time right now and the best thing we can do is use our different lines of communication, so we can continue to conduct business in the most efficient way possible,” said Dow.