Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, September 7, 1994 TAG: 9409070113
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: NORFOLK LENGTH: Medium
Statewide liquor sales dropped from 9.3 million gallons in fiscal 1982 to 6.8 million gallons in fiscal 1994, which ended June 30. That's despite the state's continued population growth.
``Consumers are gravitating to products with less alcohol,'' said Catherine Giordano, head of the Virginia Alcoholic Beverage Control Board.
While liquor sales have been dropping, wine and beer sales have been fairly steady since wine sales peaked in 1986 and beer sales peaked in 1987.
A national study showed that on average each adult Virginian drank 1.49 gallons of distilled spirits in 1993. That is 21 percent less than the national average of 1.88 gallons and about one-third of the champion New Hampshire average of 5.41.
The only states drier than Virginia were Utah, Kansas, Iowa, Ohio, Pennsylvania and West Virginia. Of the seven lowest states in alcohol consumption, all but Kansas are ``control states,'' where the state government sells liquor. New Hampshire, however, also is a control state. Its low taxes on alcohol attract buyers from other states.
By definition, distilled spirits are liquor obtained by distillation, usually containing at least 25 percent alcohol. Examples are whisky, brandy, gin, rum and vodka.
Experts say tougher drunken-driving laws, higher taxes and health concerns are factors accounting for the decline in liquor consumption. Another factor is higher prices.
``The No. 1 reason is taxes,'' said Elizabeth Board, spokeswoman for the Distilled Spirits Council of the United States, based in Washington, D.C. ``The tax rate has increased substantially on spirits, but not beer and wine. We are taxed nationwide at twice the rate of beer and three times the rate of wine.''
Virginia taxes spirits at a rate far above the national average.
According to 1993 figures from the Distilled Spirits Council, 59 percent of the cost of a typical 750-milliliter bottle of 80-proof spirits in Virginia goes for taxes, compared with the national average of 44 percent.
For a $9.35 bottle, a Virginian pays $2.15 in federal taxes, $3.39 in state and local taxes, and $3.81 for the contents.
by CNB