Liquor sales spike at Mecklenburg ABC stores as bars, restaurants closed over pandemic

There are more people stocking up on alcohol at home in Mecklenburg County as the coronavirus crisis closed many North Carolina and restaurants and bars.

In fact, ABC stores saw a nearly 30% jump in sales compared to a year ago, said Jason Hughes, CEO of the Mecklenburg County ABC Commission.

The county Alcoholic Beverage Control (ABC) Board manages the sale of distilled spirits at its retail stores, and also separately sells liquor to restaurants and bars.

Restaurant and bar sales were down 47.5% last month compared to a year ago, netting only $2.9 million compared to $5.6 million last year, Hughes said. Gov. Roy Cooper ordered restaurants and bars closed, other than takeout and delivery, on March 17.

Hughes said there was an initial rush to buy more liquor and in larger sizes because people thought the ABC stores might close as the county and then the state initiated stay-at-home orders. Those orders were for residents to shelter at home, and banning gatherings of more than 10 people, including closing non-essential businesses that would bring together larger groups.

Mecklenburg County’s order started March 26 and is valid through April 16. Cooper’s 30-day order took effect Monday. In both, liquor stores are deemed essential businesses and can remain open.

Since then, Hughes said, store sales have resumed to normal levels.

Hughes said annual sales for the current fiscal year were up 9.4% at the end of February. But, he said, if restaurants and bars remain closed this month, “we expect to be down a significant amount.”

This means some Mecklenburg ABC funding could be short.

For example, the county ABC board annually funds about $13.1 million to county, city and library programs and services, and $2.2 million to law enforcement for safety and prevention, according to the website.

“We’re committed to disbursing those funds,” Hughes said.

However, most of that money comes from taxed alcohol at restaurants and bars. “They’re more profitable because an additional tax goes to state and communities, and that’s not being collected,” Hughes said.

Liquor refund for bars and restaurants?

Hughes said that since Wednesday, there’s been talk among county ABC board members about possibly providing refunds, whether allowing restaurants and bars to return unopened bottles or provide part of the beverage tax back.

“We’re going to recommend a way to help over the next few weeks to help local establishments as best we can,” Hughes said.

Jeff Strickland, spokesman for the state ABC commission that oversees all 107 boards, said that chairman Zander Guy supports policies allowing local ABC boards to buy back unopened bottles that businesses haven’t been able to use. Each individual board would make such a decision.

“We’ve received other similar inquiries since the State of Emergency was declared,” Strickland said. “Some boards already have put this practice in place.”

The next scheduled county ABC Commission meeting has been April 21. Instead, a special meeting has been called at 1:30 p.m. April 14 to discuss COVID-19 issues and hear the board’s regular monthly business, according to the website.

This story was originally published April 3, 2020 at 5:30 AM with the headline "Liquor sales spike at Mecklenburg ABC stores as bars, restaurants closed over pandemic."