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Ohio Spirits Were Up In 2011
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It was a good year for alcohol.
In Ohio and the rest of the country, production, sales, and consumption of booze all saw gains while many other businesses dried up from the recession and its lingering effects.
One of the wettest, coolest years on record has made things tough at the Ferrante Winery in Geneva. But that doesnâ€™t keep Nick Ferrante from pouring a celebratory glass of his favorite dry white.
“This is our Vina della Castle White. Itâ€™s a blend of Chardonnay, Riesling, GewÃ¼rztraminer and Cayuga,” said Ferrante.
Ferrante says in the 30 years his familyâ€™s been operating the winery, heâ€™s never seen so much rain. The soggy climate has disrupted the grapesâ€™ fermentation process a bit, but he says itâ€™s not kept the winery from meeting strong and growing demand from customers.
“We just loaded 15 cases of wine into a gentlemanâ€™s car, so I think weâ€™ll finish strongly, by 5 to 6 percent (over last year).”
Interest in wine making isnâ€™t limited to just time-honored establishments like the Ferrante Winery. The Ohio Department of Commerce says there are now at least 164 licensed wine makers, up from 148 the year before. There are also 79 licensed beer makers, up from 70 in 2010.
Commerce Department head David Goodman adds overall sales of wine, beer, and spirits in the state are at record highs.
“So far this year, weâ€™re at approximately $770-million dollars in revenue. Which is historic,” Goodman said.
That growth jibes with the national figures Sam Zippen is seeing for alcohol sales. Sheâ€™s with North Carolina-based financial analysis firm Sageworks.
“In 2011 the sales growth was 5.2 percent, so that is obviously still positive and growing from 3.3 percent in 2010. So we have seen it go up a little bit, from 2008 to 2011, always staying positive, so sales have not gone down.”
Zippen points out one interesting trend: for beer, craft breweries have seen sales improve over the last two years, while big breweries have seen sales drop. Thatâ€™s good news for companies like the Great Lakes Brewing Company.
Kegging line rolls silver barrel after silver barrel almost non-stop at the Cleveland brewery. Co-owner Patrick Conway says while people are still trying to pinch pennies during these shaky economic times, they still want a quality drink.
“Now it will cost you more than the mass-produced, what we call ‘fizzy beers.’ But the flavors and robust characters of them are worth every penny.”
Conway says the Great Lakes Brewing Company has had record sales and 30-percent growth over the last year, and added nearly two dozen new positions when many other companies were laying off workers.
“And we are penciling in another healthy double-digit growth again for next year, I think around 20 to 25-percent.”
Not that there wonâ€™t be any fresh competition. Local entrepreneurs like Tom Lix are planning to enter the market in 2012. Lix started a distillery that will feature his patented whiskey thatâ€™s been scientifically aged at a faster rate than other brands.
While many start-ups are still dealing with the post-recession jitters, Lix is confident the alcohol market will treat him well.
“Five years from now, I think weâ€™ll be a 50-million dollar company, employ about 35 to 40 people, and itâ€™ll be a great success for us.”
State officials believe 2012 will be another good year for alcohol sales, especially given legislation just signed by Governor Kasich. The measure removes a cap on the number of specialized licenses that can be issued for micro-distilleries in Ohio, and lets breweries open tasting rooms and sell beer by the glass without buying an additional permit.
Between that and the recent steady sales, you could say spirits are up.