In good times, people drink to celebrate. In bad times, they drink to dull the pain. Not so great for health, maybe, but it’s terrific for alcohol sales.

Last year, in the flush of good times, sales of liquor and wine totaled $774 million in Washington. This year, sales are on track to go 5 percent higher – even with the economy close to rigor mortis.

That’s some small good news for the state budget. In the 2008 fiscal year, the Washington State Liquor Control Board sent more than $322 million to government programs. Taxes on alcohol, about 34 percent of the retail price of a bottle of booze, constitute a revenue stream that will almost certainly continue healthily through the decade.

Steve Burnell is the Washington State Liquor Control Board’s marketing manager, and he’s an expert on alcohol sales, selection and – with 18 years of restaurant experience before he joined the state – considerable insight into drinking psychology.

The News Tribune talked to Burnell last week about why people drink what they drink, why they pay what they pay, and the marketing possibilities of broccoli-flavored vodka.

This recession seems to be hurting just about everybody. How are liquor sales holding up?

Actually, we seem to be pretty much recession-proof. We’re not seeing any decline in volume. I think what we’re seeing is that people think of spirits as kind of an affordable luxury. They are not giving them up.

What about in terms of what they’re buying? Are they going for the cheaper stuff?

For the past few years, with all the innovation in cocktails, the trend we’ve seen is people consuming less but trading up to premium brands.

Lately, sales have been softening a little bit in some of the most expensive brands.

So, in other words, people are drinking the same amount but spending less?

Well, yes, but that’s a little misleading. The premium brands are still fastest-growing, it’s just that they aren’t growing as fast as in previous years.

If I measure overall, dollars are still growing about 50 percent faster than volume. In 2005 and 2006 the dollar growth was almost double what the case growth was.

Really? That seems amazing.

People are still trading up, just not as fast.

Like what brands, for example?

Well, OK, in the vodka category, for example, if you take Ketel One or Grey Goose vodka, which we think of as premium or super premium brands, you see their sales slowing a little bit, while some of the more value brands like Smirnoff or Burnett’s are enjoying significant increases.

If I look at the case sales for Grey Goose, which sells for $34.95 a fifth, the volume between November 2006 and November 2007 increased at 13 percent. In the most current period, from November 2007 to 2008, they were off 6 percent.

Their average monthly sales were growing at a rate of 22 percent from 2006 to 2007. From 2007 to 2008 they were still growing, but at 7.8 percent.

That’s just hard liquor, or everything?

We saw that almost across the board. With beer, over the past few years the more expensive import beers were growing faster than domestic brands, but now it’s just the opposite. Now more affordable domestic brands are growing at the expense of import brands, which are softening.

What about wine?

The average bottle in good times might be 12 or 13 dollars. In times like these you see the average bottle go down a little bit.

Why do you suppose alcohol sales are so resilient?

That’s a very good question. I think, really, it is an affordable luxury. Maybe it’s a little bit analogous to travel. You know, people say they need to fly or die.

What we’re hearing a lot is, people don’t stop drinking in hard times, they just adjust their habits a little bit. Maybe they’re not drinking Grey Goose anymore, or maybe they’re having it just on the weekend. People are paying more attention to the bottom line.

The weather has been especially bad this month. What did that do to sales?

It’s too early to tell. I don’t have that kind of access to sales figures. We have had some store closures and some problems with freight deliveries. But we won’t know for sure until later on.

You’ve been with the state for what, 12 years? What are the big sales trends you’ve seen in that time?

Spirits have seen a real rebound. The growth in vodkas in particular has been just unbelievable. We keep thinking vodka sales are going to die down one of these years, but they never seem to.

The cocktail scene has changed. Cocktails have become immensely popular. And wine continues to explode. People are consuming a glass of wine more and more frequently. Everyone is trying Australian wines. And New Zealand wines.

Right now what we’re seeing a lot of is the Irish (whiskey). And the tequila category is big. We are the No. 1 tequila market in controlled states in the country. We’re probably eighth or ninth in the whole country.

And there’s the evolution of the martini. It used to be it had to be either gin or vodka. Now it can be anything. And we’re seeing lots of flavored vodkas – there’s chocolate, raspberry, cherry, pomegranate. We were joking the other day that they’re going to come up with asparagus and broccoli vodka. I hope not, but you never know.

The whole thing with vodka seems like a real marketing triumph. Except for the flavoring, don’t all vodkas taste the same?

I’m not going to touch that one. You hear it a lot, and there’s probably a lot of truth to it.

But, really, I think there probably are distinctive characteristics that you could distinguish. It’s maybe not so much in taste as in the different textures, aromas and things.

You’re not a vodka drinker?

I have been known to drink vodka.

I know you started out with the state Liquor Control Board as their wine program manager. Are you mostly a wine drinker?

Well, yes. But don’t tell the spirits people that.

So, what are your favorites?

Oh, boy. Let me see. I’ve been drinking wine for a long time. I suppose if I were to name a favorite, I guess I would have to say pinot noir. That would be my holy grail of wine. Romanée-Conti is not bad. That’s if you don’t have to pay for it. It goes for $500 to $600 a bottle.

Rob Carson: 253-597-8693

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