Americans Seek Alcohol at Home... Increased Demand Amid COVID-19 Crisis

Allowing Alcohol Delivery Sales at Restaurants
Liquor Stores Classified as Essential Businesses Continue Normal Operations
Online Sales Permission Causes Backlash

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] As the novel coronavirus infection (COVID-19) rapidly spreads across the United States, the alcohol industry is reaping unexpected benefits. Strict alcohol regulations are being relaxed, and alcohol sales are soaring.

On the 1st (local time), the congressional media outlet The Hill reported that the alcohol industry is smiling due to regulatory easing following the implementation of social distancing guidelines.

Although various businesses have closed to enforce social distancing and about 80% of the entire U.S. population is sheltering at home, accelerating the economic downturn, the situation in the alcohol sales industry is different.

Many states in the U.S. that have issued stay-at-home orders classify alcohol retailers as essential businesses, allowing them to operate normally.

New York, Maryland, and New Jersey have designated alcohol retailers as essential businesses and allowed them to continue operations. Maryland and Texas have even permitted delivery services for alcohol retailers. While restaurants must close, alcohol retailers are operating normally, creating a paradoxical situation.

States including New York, California, Nebraska, Vermont, Kentucky, Colorado, and Washington D.C. have allowed restaurants to offer only delivery and takeout services, including alcohol. This is to help consumers purchase alcohol more easily and support restaurants and small businesses.

Concrete figures show that alcohol sales have increased. According to market research firm Nielsen on this day, weekly alcohol sales as of the 21st of last month surged by 55%. Sales of tequila, gin, and various cocktails increased by 75% compared to the same period last year. Wine and beer sales also soared by 66% and 42%, respectively.

Nielsen particularly noted that online alcohol sales increased by 243%, evaluating that alcohol consumption has risen as social distancing lifestyle guidelines have been implemented. Nielsen forecasted that alcohol sales will continue to increase as stay-at-home orders expand.

Residents of Pennsylvania, where alcohol sales have been suspended, are reportedly traveling to nearby New Jersey to purchase alcohol.

The Hill reported that although this regulatory easing is expected to be temporary following the COVID-19 crisis, the alcohol industry secretly hopes it will be implemented permanently, citing customer convenience and other reasons.