ADVISOR T H E THE NATION S LEADING LIQUOR STORE LICENSE RESOURCE M A G A O F F P R E M I S E I N Z I N S A L E S 2 0 2 2 The End of Pandemic Drinking At Home D T C H I T S W I N E 4 1 0 B I L L I O N I N T A K E A W A Y S T R E N D S L I Q U O R L I Q U O R F O R U S T H E I N D U S T R Y L I C E N S E R E S P O N S E ISSUE 13 MARCH 2022 S H I P M E N T S C O V I D P R O G R A M E
CEO s Note With the promise of Spring in the air what s to come for stakeholders in the liquor industry Looking For Featured Liquor Store Listings CLICK HERE Page 4 Off Premise Sales in 2022 The End of Pandemic Drinking At Home The world doesn t seem to be letting up We find ourselves once again in unfamiliar territory with the state of mandates workforce shortages supply chain issues and even unsettling conflict around the world Closer to home the attempt from out of state forces continues to threaten the industry as we know it With what has seemed like a rollercoaster for most business owners over the past few years we welcome a change of season and hopefully a much more stable and predictable future for all Page 6 DTC Wine Shipments Hits 4 Billion in U S Page 8 10 Takeaways Trends For The Liquor Industry Page 10 Liquor License COVID Response Program No matter what the season brings know we are always here for you Sincerely DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 www LiquorLicenseAdvisor com Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002
TOTAL WINE ENTERS SOUTH BAY What s Happening In Spring Noteworthy updates for the Boston liquor license industry by Dan Newcomb Vaccine Mandate Lifted In our Advisor Article 12 we reported on the concern that the vaccine mandate brought upon restaurant owners As of February 18 2022 Boston has lifted the proof of vaccine mandate for indoor dining and other activities It is important for venues to note as reported by Eater Boston While the proof of vaccine mandate has been lifted within the city of Boston the indoor mask mandate remains in place so diners at restaurants must continue to wear a mask when not eating or drinking For some owners it seems the policing of this style of mandates puts them in a tough spot with their patrons Total Wine the country s largest independent retailer of fine wine will be opening a South Bay location a popular shopping center for Boston residents located in Dorchester MA Is the landscape starting to change for independent store owners right before their eyes If you have questions we have answers reach out any time Dan Newcomb LLA The Boston restaurant industry is where we got our start in the liquor license business It s a great honor for us to support and assist many owners in finding a way through or even out of this pandemic If you need support with your restaurant in the Boston area we re here for you For more information on LLCRP please visit LiquorLicenseAdvisor com COVID www LiquorLicenseAdvisor com THE ADVISOR MAGAZINE 3
L I Q U O R I N D U S T R Y Off Premise Sales in 2022 The End of Pandemic Drinking At Home by Dan Newcomb Dan Newcomb is Founder CEO of Liquor License Advisor has been in the industry for more than 20 years THE ADVISOR MAGAZINE 4 www LiquorLicenseAdvisor com
Although COVID continues pandemic drinking may not Offpremise sales soared during the height of COVID with bars and restaurants either being closed facing restrictions or simply lacking appeal due to safety concerns With this drinking at home became an activity that many participated in Whether or not this spike of at home drinking was driven by anxiety boredom the need to feel social or perhaps a combination of these is hard to say for sure But what is easier to say is that the future of the offpremise heyday is uncertain Let s take a look at a few factors that may lead to less at home drinking New Year s resolutions however fleeting they may be generally stick for at least a month or two into the new year With many drinking more at home during the pandemic people may have resolved to drink less at home in 2022 saving their glasses of wine and cocktails for nights out at restaurants as eager customers return to dining out Movements like the Dry Feb fundraiser in Canada that challenges people to go alcohol free in February to raise funds for the Canadian Cancer Society have become a thing especially for those who wanted to go dry in January but missed the boat Another trend gaining attention is the Sober Curious movement which has people opting for booze free beverages As the focus on health and wellness gains momentum especially amongst the younger population a lot of people want less calories sugar and the negative effect that alcohol has People are paying attention to what they put into their bodies more so now than ever A Business Insider report that was released at the end of 2021 stated that Non alcoholic beverage sales increased 33 to 331 million in the last year according to Nielsen and that Nielsen senior vice president Kim Cox said survey data suggests most nonalcoholic beverage consumers aren t completely sober but rather want to have a healthier lifestyle or are losing interest in alcohol Millennials and Zoomers are leading this movement and are paving the way for others to follow
Off Premise Sales in 2022 continued A Good Morning America article released on New Year s Eve showcased Spirited Away the first booze free bottle shop that opened in New York City in 2020 and its owner Doug Watters told GMA The pandemic shifted people in one of two directions Some started drinking a lot more alcohol and some people started reexamining their habits and perhaps trying to drink less People who used the pandemic as an excuse to drink more than usual may not hold alcohol on the same pedestal as before as it may have lost its novelty and they may want to instead make drinking more of an occasion to do at restaurants and bars rather than on their couch The financial impact of drinking at home may also have some skipping their packy run Many Americans have been financially impacted by COVID and perhaps not spending as much money on gas getting to and from an office and receiving government COVID assistance funds helped ease the burden but as government assistance wanes and offices open back up people may be ready to buckle down financially and return to their previous structure which may not include frequent stops to their neighborhood liquor store What does this all mean for off premise It could mean that we will see a dip in alcohol sales as people return to the restaurants and pre pandemic routines It could mean that stores that offer low alcohol and non alcoholic options will continue to thrive If you notice a drop in your store s sales and don t currently offer these low or no alcohol options now may be the time to start New Year s resolutions coupled with the exhaustion of pandemic life may lead to sagging sales
Although pre-pandemic activity hasbegun to reemerge as consumersreturn to restaurants, bars, andwineries for their favorite glass ofwine, DTC (Direct-to-Consumer)wine shipments in 2021 surpassed$4 billion for the first time in theU.S. What does this surge mean forwine sales in the on and off-premisemarkets? The reason for this advance couldbe that although wine shipmentsjumped 28% in 2021, the year-on-year increase in volume was small,and the jump in shipments could bedue to the surge in price per bottle– which increased a record 11.8%.However, consumers still spenttheir money on higher priced winesvia DTC channels. Andrew Adams, Wine Analytics andreport editor at Wines Vines Analytics,commented, “Increases in price perbottle shipped helped balance out thedecreases in volume that someregions experienced, creating anoverall increase in value for the WestCoast”. (Napa enjoyed an almost$400 million increase in value of DTCshipments in 2021!) Another reason for the staggeringincrease could be that althougheating and drinking establishmentsare reopening, many consumersenjoyed the convenience of DTCpurchases that they discoveredduring the pandemic. Although theneed for such a service has lessenedwith restaurants, bars, and wineriesreopening their doors as somerestrictions lifted, the service hadsuch a positive impact that it seemsto have continuous power. According to beverage alcoholconsultant Danny Brager, “asCOVID-19’s impact on travel andtourism lessens, there is everyreason to believe DTC shipmentsbased on winery visitation and newclub memberships will be strong in2022.” Perhaps consumers willenjoy the best of both worlds. Combining consumers’ enjoymentof DTC convenience with theenthusiasm of returning torestaurants for their favorite glassof wine must leave liquor storeowners wondering, how can weposition ourselves to remainrelevant and indispensable intoday’s market? THE ADVISOR MAGAZINE | 7BY M ICHE LLE HANSFORD
CGA (Curren Goodden Associates) works closely with bar and restaurantleaders to distinguish current trends in the food and drink industry. MattCrompton, the regional director of North America, attended the Wine &Spirits Daily Summit located in San Diego, CA. Here's a summary of thekey takeaways from his presentation.1. There is hope that the loss of sales for the segments that sufferedmost in the heat of the pandemic (fine dining and premium nightclubs)will be more favorable as restrictions lift in 2022.2. Trading momentum is increasing for recovering venues at 44% higher than early 2021.3. There has been a significant increase in on-premise alcohol salesduring the weekend.4. Consumers’ off-premise purchase trends are highly influenced bybrands that they enjoy in bars and restaurants.5. Spirits, especially RTD cocktails, have been the majority of drink salesin the past year.6. Beer sales have been consistently flat over the past two years.7. Cabernet Sauvignon and French Champagne dominate the marketshare in wine sales.8. The popularity of hard seltzers continues to expand.9. Stock up on no/low alcohol cocktails, beer, wine, and spirits. The trendcontinues to increase as the importance of health and wellness is here tostay.10. 47% of consumers plan to visit bars/restaurants more frequently in2022 compared to 2021. 34% of consumers reported that they predicttheir spending habits will increase. THE ADVISOR MAGAZINE | 810 TAKEAWAYS & TRENDS FOR THE LIQUORINDUSTRY
THE ADVISOR MAGAZINE | 9QUESTIONS ABOUT LISTINGS?Call/Text Ben Jerrom Partner & Buyer SpecialistCell: 413.544.4960Liquor License Advisor offers, for your consideration, informationregarding the sale of a Plymouth county liquor store that iscentrally located on the main thoroughfare in a busy shoppingplaza. Customers enjoy perusing their selection of beer, wine,liquor, and tobacco products within this amply-sized store, whichalso contains a good-sized storage area in the back room. The plaza offers plenty of parking, and the neighboring storesencourage customers to frequent the plaza to run a myriad oferrands. The store has achieved high sales numbers in recent years, and anew owner could capitalize on sales by offering delivery services,as well as building an online presence. FEATURE Listing: Full Alcohol Package Store Plymouth County, MA $550,000 by Ben JerromContact Ben Jerrom directly for further details on all of our current listings.Full Alcohol Package StorePackage Store License - Wine & Malt $449,000 Westborough, MASomerville, MAMiddlesex County, MA$85,000 Package Store License - Wine & Malt$249,000Full Alcohol Package Store Middlesex County, MA$550,000 Asking Price: Location:Listing Type:Full Alcohol Package StoreWorcester County, MA$295,000
We understand that the past two years have been incredibly challenging for small businesses, especially for Boston restaurant owners who were forced to make very difficult decisions regarding staff and operations. We've supported many owners who came to us looking for the best option for their liquor license when they were at a crossroads and as a result, we've developed the Liquor License COVID Response Program (LLCRP). Whether you've received a non-use notice letter from the City of Boston or you're just trying to figure out allof your options at this time, this program offers specific guidance based on your personal situation.Legal Seafoods Dick's Last Resort CenterplateUno Pizzeria & GrilleCall/Text Dan Newcomb CEO & OwnerCell: 617.306.1551Boston Sports GrilleDa LaPosta Pizzeria Beacon Street LocaleLes Zygomates Wine Bar & BistroLittle Steve's Pizzeria Bella LunaHungry IConor Larkin's Grill & TapClients Who Have Benefited From LLCRP:*We're here to help you make smart decisions.*some of our representative transactions from 2021.QUESTIONS ABOUT THE PROGRAM?
Did you know that for over 2 decades, our Founder, Dan Newcomb, hasbeen in the liquor license industry as the "go-to" for other industryprofessionals and leaders? Every phone call that comes into our office is about a liquor license. Wedon't work in any other industry besides liquor stores and licenses.We provide owners with a "firewall" to protect them from all of the pitfallswe know are out there throughout a transaction because we know how toprepare the deal and navigate the waters. We're here for you.Dan NewcombCEO & FounderBen JerromBuyer SpecialistJennifer MedicoTransaction SpecialistGlenn LawlerSeller SpecialistMichelle HansfordSeller ConciergeNatali WilliamsSpecial ProjectsSherri BeauchampMarketing Specialist
© Liquor License Advisor 2022, All Rights Reserved Unless Otherwise NotedSpecial Contributions & Acknowledgements:- Features Editor & Editorial Assistant: Michelle Hansford;- Magazine & Digital Editor: Sherri Beauchamp.THE ADVISOR MAGAZINE | 12What's Happening this Spring? (Page 3)1 - ‘Boston Lifts Proof-of-Vaccine Mandate for Indoor Dining and Other Activities’ by Rachel Leah Blumenthal on Eater Boston, February 18, 2022 (‘Boston Lifts Proof-of-Vaccine Mandate for Indoor Dining and Other Activities’ | Eater Boston (Boston.Eater.com) Off-Premise Sales in 2022 (Page 4)1 - ‘These mocktail recipes can help you ring in 2022 without alcohol’ by Angeline Jane Bernabe on Good Morning America, December 31, 2021 (‘These mocktail recipes can help you ring in 2022 without alcohol’| Good Morning America (GoodMorningAmerica.com) 2 - ‘Wellness-focused, 'sober-curious' consumers are driving interest in booze-free cocktails, a relative newcomer to the $180 billion beverage industry’ by Allana Akhtar on Business Insider, November 3, 2021 (‘Wellness-focused, 'sober- curious' consumers are driving interest in booze-free cocktails, a relative newcomer to the $180 billion beverage industry’) | Business Insider (BusinessInsider.com) 10 Takeaways & Trends For The Liquor Industry (Page 8) 1 - ‘CGA at the Wine and Spirits Daily Summit: Ten Takeaways’ by Press Release on Wine Industry Advisor on February 7, 2022 (‘CGA at the Wine and Spirits Daily Summit: Ten Takeaways’) | Wine Industry Advisor (WineIndustryAdvisor.com)
The Advisor Magazine runs on a monthly basis to keep stakeholders in theliquor store & liquor license industry in the loop.Liquor License AdvisorSuite 1, 2036 Ocean Street Marshfield, MA 02050 781.319.9800www.LiquorLicenseAdvisor.comCome back for Issue #14 which will reveal the currentstate of the industry, how trends are shaping up in thefirst quarter and more.