The temporary changes in alcohol laws in some states yielded tremendous increases in sales; albeit denoting that alcohol consumption is also on an upward trend.
The buzz going around is that the changes are likely to remain permanent. Mainly because the economic benefits yielded by the direct sale of alcoholic beverages to consumers, will help local governments support their respective communities amidst the recession. Yet at the end of the day, and after the overall impact have been evaluated, will the final results justify the means?
Alcohol beverage control laws in the U.S. have always been criticized as more focused on regulating markets and ensuring collection of taxes. The contention is that by making alcoholic beverages costly, there will be fewer cases of alcoholism.
When the realities of the COVID-19 pandemic forced governments to shut down bars and restaurants, lawmakers also saw the need to relax laws; specifically, the restrictions related to the direct sale of alcoholic beverages to consumers. Traditional liquor stores, bars, pubs and restaurants were given permission to provide bottled-services and to-go cocktail drinks directly to consumers by way of alcohol delivery services.
Except in the states of Pennsylvania, Alabama, Oklahoma and Utah, alcohol control laws in several states were relaxed to help liquor stores, bars and restaurants generate revenues. In turn, such revenues will bring in large amounts of taxes that state governments badly need to support the people in their communities. Actually, the relaxation of alcohol sales laws had more than helped the alcohol selling business stay afloat.
Nielsen Reports Attest to Growth of Alcohol Sales
According to data gatherer Nielsen, the total alcohol drinks sold off-premises throughout the country, had in fact boosted tremendous growth in sales. Overall sales of spirits contributed 34.1 percent increase, wine by 30.1 percent and beer by 12.6 percent. Comparisons were made against the figures reported in 2019 for the same period as of May 02, 2020.
Now what does this indicate? It means regardless of costs, the relaxation of laws also spurred increases in alcohol consumption.
Dr George Koob, Director of the National Abuse of Alcohol Abuse and Alcoholism (NIAAA)It’s said that increases are commonly seen in times of disaster. However, inasmuch as the move to temporarily lift laws aimed at controlling the sale and availability of alcohol, yielded notable economic results, there is now a likely possibility that the changes will stay for good
Last April, when Texas Gov. Greg Abbott tweeted his announcement of the extension of relaxed alcohol control rules, he had also implied that the changes might become permanent. According to the governor, many in Texas support the new law in alcohol procurement.
