Americans Turned to Cheap Liquor During the Recession

Americans love for top of the line liquor ceased during the recession. A new report shows that American’s relied on cheap liquor in order to pass the hard times by. Liquor industry growth slowed in 2009 and was the worst year in alcohol sales dating all the way back to 2001.

Last year the lowest-priced segment, such as brands like Popov vodka can go for less than $10 for a fifth, ended up growing the fastest, with volume rising 5.5 percent, after growing 0.6% in 2008. Meanwhile, the most expensive price range, roughly $30 or more for a 750 mL bottle like Grey Goose, owned by Bacardi fell the most, tumbling 5.1%.

The liquor industry’s goal is to keep people drinking spirits, no matter what the price is, and will then get them to pay for higher-priced drinks when the economy recovers. Most major liquor manufacturers make brands in a variety of price ranges. For example, industry giant Diageo plc, a company based in London, makes vodka brands ranging from cheap liquor like Popov to midpriced Smirnoff and then to expensive Ketel One and Ciroc.