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Retail News South Africa

It‘s dop till you drop as liquor sales skyrocket

Residents and holidaymakers geared up for a New Year‘s party of a lifetime with bottle stores throughout the Eastern and Southern Cape.

Bottle stores throughout the Eastern and Southern Cape reported record liquor sales – this despite high interest rates, food and fuel prices - as locals got ready to issue in the New Year in style.

Even caution from economists warning of a financial hangover for spendthrift consumers come January has done little to abate the frenzy.

Bottle-store owners contacted by Weekend Post said they were stunned by the unexpected rush on liquor in the run-up to Christmas and the New Year.

The stores reported an average of between 15% and 20% increase in sales compared with the same time last year.

Most said they had not anticipated any increase on last year‘s sales because of the tight financial squeeze on holidaymakers.

An emerging trend contributing to the higher sales was the tendency of party-goers to stay home and ring in the New Year with friends and family, rather than pay more for their drinks in pubs and bars, according to bottle store managers.

“Our sales have been about 30% higher than last year,” said Grahamstown Buddy‘s Liquor Store manager Mike Theron.

"The rush on stores has been so intense that major drink manufacturer and distributor Distell – responsible for cider brands as well as brandies, whiskies and wines – cannot keep up with the demand for its ready-to-drink (RTD) brands of Hunters and Savanna with shortages of the drinks around the country.

According to a Port Elizabeth Distell sales representative who wished to remain anonymous, the high demand was not anticipated.

Port Elizabeth Distell sales head Peter Thompson attributed the record sales – for which numbers have yet to be tallied – to the huge influx of visitors to the region.

He said it was because of the tighter financial environment that people were partying more.

“When people have a hard year and get some extra finance, they tend to party more.”

SA Breweries said their sales were also up, with Christmas and New Year sales expected to top mid-year sales by up to 44%.

“Our data for this period is only clear in January,” said SAB spokesman Janine van Stolk. “However, sales have been good this season across all brands.”

More good news is that despite the record sales of alcohol, the holiday road death toll countrywide is down by more than 30% from 2006.

In the Eastern Cape the death toll between December 1 and Christmas was 114 compared with 140 last year.

Despite this, Arrive Alive spokesman Tshepo Machaea said the figures were still “unacceptable”, with alcohol remaining a major contributor to many accidents.

Article via I-Net-Bridge

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