More Americans are tipping a cup than ever before, according to the Distilled Spirits Council of the United States, including $33.2 billion worth last year alone.
And more of those drinkers pointed to the top shelf last year, which accounted for the 17.5 percent uptick in sales of so-called super-premium liquor brands. Growth in high end and premium liquors also rose 6.5 and 5.1 percent respectively, while value-priced liquor held nearly steady.
Much of this shift can be attributed to marketing, according to Dr. Peter Cressy, president of the Distilled Spirits Council (DISCUS). Cressy gave a speech on the state of the beverage industry March 5 at a major food, beverage and hospitality industry trade show.
Although the industry spent $130 million in broadcast advertising dollars promoting alcohol last year, up from only $25 million in 2000, Cressy said it was a directed, strategic marketing agenda that led to such sales increases last year and throughout the last six years.
Sales of alcohol in bars, nightclubs and restaurants are up 58 percent since 2000, he said, and campaigns that stress quality rather than quantity and social responsibility are the reason.
"Responsibility is the key to sustainability," Cressy said, adding that no other American industry can claim such growth figures since the turn of the century. "We want more people drinking in moderation rather than few people drinking more."
Cressy said that $130 million in broadcast ads ran during programs whose demographics show that at least 70 percent, and usually closer to 80 percent, of viewers are adults.
DISCUS also has strict codes of responsibility for advertisers. All models in ads must be over 25, content is monitored to avoid overly-sexualized subjects, and external advisory panels and internal studies analyze the ads for appropriateness for the council.
Cressy said that as a result, as advertising dollars go up (along with profits), per capita consumption remains steady. More people are drinking fewer, but more expensive cocktails.
According to a survey, 51 percent said they had imbibed in the last 30 days, a higher number than ever before.
But at the same time that the alcohol industry organization is keeping a close watch on advertisers, Cressy said campaigns have become more creative and fun than ever before.
He pointed to ads by Grey Goose, Bacardi, Jim Beam and Jack Daniels running currently on cable networks as examples of the industry standard.
He also said creative on-site promotions, like one at least year's Kentucky Derby, are boosting sales. Organizers melted a piece of a glacier and made $1,000 mint juleps, raising more than $100,000 for charity and netting millions in free advertising along the way.
The bar and nightclub industry has also begun promoting bartenders as "master mixologists" akin to celebrity chefs.
"Having a bartender with flair can really drive sales of a specialty cocktail and runs those profits up for a night," Cressy said.
Bars across the country are also hosting category tastings, serving flights of tequila, promoting bottle service, pairing not just wine but beer and cocktails with food, reviving classic cocktails and requiring bar reservations to boost business.
"The minute you tell someone they can't have something, they want it," Cressy said of the reservation gimmick. "It's a great trick."
On the supplier side, liquor companies are trying to create broader appeal by reaching out to women, Hispanics and NASCAR fans, among others.
They're promoting brands, especially super- premium brands, to boost the bottom line and promoting liquor by category.
Sales of high-end vodkas are up 48 percent, single-malt scotches up 21 percent, high-end and super-premium tequilas up 90 percent, high-end and super-premium bourbons up 34 percent and Irish Whiskey up 83 percent, all since 2002.
And the industry is promoting its heritage, as with the renovation of George Washington's distillery at Mt. Vernon.
The result has been more than 4,000 positive articles on booze since 2001, including glossy spreads in major magazines and full-color pages in newspapers touting summer cocktails or hot toddies.
Cressy predicted that sales this year could reach nearly $35 million, an important figure for the hospitality industry.
And although Las Vegas knows better than any city the importance of making guests feel welcome, Cressy said the rest of the country should value the message, too, since the hospitality industry is the second largest employer in the country behind health care.
Phoebe Sweet covers banking and marketing for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached at (702)259-8832 or by e-mail at phoebe.sweet@lasvegassun.com.