Distilled Spirits Council

Montgomery County Task Force

July 14, 2016

Overview
Per capita sales volumes compared to
Maryland, U.S., D.C.
Missing sales estimate
Importance of off-premise sales
Outlet density analysis
Opportunity

Per Capita Sale of Spirits

Per Capita Spirits Sales (21+)

4.5

4.5
4.0
3.5
3.0

Gallons Sold Per Adult

2.4

2.2

2.5
2.0
1.4
1.5
1.0
0.5
0.0

Montgomery

Sources: Comptroller of Maryland, National

Institute of Alcoholism and Alcohol Abuse, U.S.
Census.

U.S.

Maryland

D.C.

Per Capita Sale of Beer

Per Capita Beer Sales (21+)
28.5

27.5

30.0

21.2

25.0
20.0

Gallons Sold Per Adult

12.7
15.0
10.0
5.0
0.0

Montgomery

Sources: Comptroller of Maryland, National

Institute of Alcoholism and Alcohol Abuse, U.S.
Census.

U.S.

Maryland

D.C.

Per Capita Sale of Wine

Per Capita W ine Sales (21+)
8.7
9.0
8.0
7.0
6.0

Gallons Sold Per Adult

3.7

5.0

3.3

3.4

4.0
3.0
2.0
1.0
0.0

Montgomery

Sources: Comptroller of Maryland, National

Institute of Alcoholism and Alcohol Abuse, U.S.
Census.

U.S.

Maryland

D.C.

Wine Consumers Are Concentrated in

Households Having Income Over $75k
60%

49.1%

50%
40%
30%

Percentage of Wine Consumers

20%
10%

10.1%

8.2%

7.5%0%

7.9%

7.3%

10.1%

Household Income

Source: Wine Handbook 2015/Simmons

Market Research Bureau, Fall 2014

Income Is the Primary Driver Behind

Wine Consumption
55%
50%
45%
40%
Percent of HH Within Income Over $75K

35%
30%
25%
20%
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Per Capita Consumption (Gal.)

Sources: NIAAA Surveillance Report #102: Apparent Per
Capita Alcohol Consumption, U.S. Census Bureau,
American Community Survey 2013

Montgomery County Wine Sales

Substantially Lower than Expected
In areas with high income we would expect
higher wine sales
$75k+ households are key
Average household income in Montgomery
County is $132k
We would expect Montgomery County sales to
substantially exceed U.S. average
Howard County, with similar income has per
capita wine sales of 4.2 gallons
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Missing Sales

Consumers Crave Convenience

Price, product selection and service important
Consumers crave convenience
Success of Sunday sales in Control States
Have you ever seen a Starbucks go out of business?
Synergies between beverages
70-75% of spirits drinkers also drink beer/wine
Consumers prefer to purchase all three in single
location
If you lose a spirit sale to a neighboring jurisdiction, you
will also lose a percentage wine/beer sales
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Off-Premise Sales Key

County Success
Nationwide, 75-80% of spirits, wine and
beer are purchased for off-premise
consumption
Even in tourist destinations like Nevada,
off-premise sales account for around 60%
of volume
To realize Montgomery countys potential,
it is important that enough retail outlets be
conveniently placed
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Spirits Off-Premise Outlet

Density
Off-Premise Spirits Outlets/10k Adults
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

3.02

4.52

3.34

1.84

0.34

Sources: NABCA, Beverage Information Group and

state licensing web-sites.

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Outlet Density: Significant Gains from

Moving Montgomery Up the Curve
3.5

3.0

Sales Per Adult (Gal.)

2.5

2.0

1.5

1.0
0

10

11 12 13 14 15 16 17 18 19 20

Spirits Outlets Per 10k Adults

Sources: DISCUS, NABCA, Census

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Summary
Montgomery County per capita sales are
well below expected levels 24 to 41%
High income county means that residents
are likely purchasing elsewhere spirits
and wine are easy to stock-up
Consumers crave convenience and would
like to purchase all-three beverages at
same location
Big opportunity for county in adding more
outlets!

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