Black Velvet is still the state's top selling spirit
Pub Date: 2/1/2008
While it has been said that Americans are drinking less but drinking better, that same adage may not hold true in Montana, where our drinking habits, when it comes to distilled spirits, remain rather pedestrian but also robust.
According to Department of Revenue Liquor Division Administrator Shauna Helfert, liquor sales through the state warehouse produced $92.3 million in gross revenue during Fiscal Year (FY) 2007 which ran July 1, 2006-June 30, 2007. That sum includes cost of goods sold, a 40 percent mark-up, freight and a 26 percent excise tax.
That represents an $8.4 million gain, up 9 percent over the previous fiscal year, Helfert said, which posted revenues of $83.9 million.
Unit volume was 616,400 cases, up 7.5 percent or 38,289 cases from FY 2006's volume of 578,111, she reported.
Helfert said of that volume, about 62 percent is retailed through on-premise sales in taverns, while 38 percent is sold directly to the consuming public through the state's retail off-premise liquor stores. So taverns purchased and re-sold 382,168 cases of spirits with a purchase value of approximately $57.23 million.
In Montana we still love our Black Velvet Canadian whiskey, and a host of other mainstays as well such as Nikolai vodka, Captain Morgan rum, Seagram's Crown Royal and Black Jack Daniels--the top five labels.
Very few of the more specialized, trendy, upscale labels make it into the top seller bracket in this state, with just Jagermeister and Absolut representing that pack.
Black Velvet has been the state's best seller year after year and holds a wide lead over number two Nikolai. By the calendar-year ended Dec. 31, 2007, Montana's retail off-premise stores, and thus the state liquor warehouse, moved 42,631 cases of "BV" to both on-premise accounts for resale and to the walk-in public.
While that gross volume may be astonishing--and it is a 7.19 percent total market share--it represents a very small gain of just 288 cases over the previous calendar year, trailing badly the gains posted by the next three top brands.
Number two Nikolai vodka posted case sales of 33,483, a gain of 1,873 over the previous year. Number three Captain Morgan grew more than 10 percent last year with 21,491 cases sold, up 2,384 cases.
Crown Royal, in fourth place, also notched a better than 10 percent increase, moving 18,752 cases, up 1,913 cases over the previous year.
Fifth place Jagermeister's growth was far less robust, gaining just 551 cases on total volume of 14,959 cases. McCormick vodka, ranked sixth, posted a case volume at 14,785, put only increased by 88 cases.
Rounding out the top ten labels were: Bacardi Light Dry rum at 14,483 cases, up 314; Canadian Rich and Rare (R&R) at 13,758 cases, up 428 cases and number 10 Smirnoff Vodka with 13,110 total cases sold, but up an impressive 1,433 cases or about 11 percent.
Holding down 11th through 15th place for volume sales respectively are: Cuervo Especial tequila, Lewis and Clark vodka, Jim Beam bourbon, Canadian Mist whiskey and Seagram 7 Crown whiskey.
All brands in the top 15 showed sales gains with the exception of the Lewis and Clark which was down about 5 percent or 508 cases.
Some big winners were: Absolut vodka, up 572 cases on total volume of 6,621; Potters vodka, up an astonishing 1,874 cases with total volume of 3,978; Pendleton whiskey, up 1,527 cases on a volume of 3,721; Canadian Club, up 445 cases on a volume of 3,199; Crown Russe vodka, posting an incredible 1,037 case gain on sales of 2,744 cases and Montana Silver vodka, up 814 cases on total sales of 2,721.
Others showing very impressive sales gains were Skol vodka, Jameson Irish whiskey, Burnett's vodka, Fleischmann Royal vodka, Patron Silver tequila and Sauza Extra Gold tequila.
Notable losers were: Arrow vodka, down 941 cases; Coral Bay White rum, down 790 cases; Kahlua liqueur, down 299 cases; Lewis and Clark gin, down 220 cases; Lauder's scotch, down 219 cases and Coral Bay Gold rum, down 210 cases.
Source: The Montana Tavern Times, February, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.