NH is selling more alcohol

Times may be tough, but many New Hampshire residents still see the glass as half full — of alcohol.

That makes Joseph Mollica very happy. He's one of three state liquor commissioners.

Overall, state liquor sales are up 4.62 percent since the beginning of fiscal year 2010, which started July 1, 2009.

Retail sales are up a hefty 6.5 percent, with restaurants sales showing just a 0.6 percent increase. That means more people are drinking, but they're doing it at home.

Off-premise sales, grocery store sales of wine, are up 1.2 percent this fiscal year.

And people aren't filling up on the cheap stuff. Mollica said vodka sales are up 4.2 percent and people tend to buy higher-end brands, like Belvedere and Grey Goose. When it comes to bourbon, with sales up 3.6 percent, they're tending toward brands like Maker's Mark.

But, he said, people are shopping smarter. The state is selling a lot more wine — 8.8 percent more this fiscal year than last — and that's an area where less expensive brands are selling well.

"There's a lot of great wines," he said. "Vineyards and brokers have worked together in order to bring less expensive quality wines to us."

The state has recently started selling its own Inscription wines, created exclusively for New Hampshire liquor and wine outlets by Michael Mondavi. Two limited-edition Inscription wines, Petite Sirah and Old Vine Zinfandel, retail for $12.99 a bottle.

"It's going very well for our own line of wines," Mollica said. "We're very happy with the sales."

State revenue officials should be happy, too. When the state sells more alcohol, there's more revenue flowing into the state's general fund.

In fiscal year 2009, state alcohol sales totaled $512 million. All net profits go into the general fund.

"We serve the people of New Hampshire," Mollica said, "We're here as a revenue base for the people of the state."

Things are on track for a very good year. Net profits are up 9 percent, $7 million, he said. And with just a few months left in the fiscal year, the state is entering the busiest months for alcohol sales.

The state operates 77 stores. The Merrimack store is ready to reopen and the state is redoing Liquor Store 33, north of Manchester. It will more than double in size when it's completed.

Some of the state's busiest outlets are on the highway — one on either side of Interstate 95 in Hampton and two more on Interstate 93 in Hooksett.

Mollica acknowledged those "smarter shoppers" he referred to may well be shopping smarter by crossing the state line to take advantage of New Hampshire prices.

It probably didn't hurt that a month into New Hampshire's current fiscal year, Massachusetts imposed its 6.25 percent sales tax on liquor, beer and wine.

"Considering the economy, people are certainly shopping smarter," Mollica said. "They're very price conscious, as we are at the liquor outlets."