Idahoans spent a record amount on liquor in past year. The top seller is ‘off the charts’

Employees of the Idaho State Liquor Division raised a toast recently — figuratively, if not literally.

They just ended a banner 12 months. Thanks to our $300 million drinking habits.

Wait, this is positive news.

Liquor sales statewide hit a whopping $305.6 million during fiscal year 2022, which ended June 30. That’s the first time they’ve passed the $300 million mark. A record! Overall, sales grew 2.9% from the prior year’s $297 million.

Simultaneously, overall volume decreased. By 1.5%.

How’s that possible, you ask from your barstool?

Idahoans purchased fewer half gallons and more fifths, said Tony Faraca, CFO of the Liquor Division — dropping more coin in the process.

“They opted for much more premium offerings this year,” he explained, “so even though the average bottle is smaller, they spent more on that bottle.”

Big spenders with happier livers? Much like Fireball straight out of the freezer — damn, we’re smooth.

“From our perspective, this is the best of both worlds,” Faraca said, “where consumption is down but our dividends to our beneficiaries are still increasing. It’s kind of one of those unique ... win-win years. Just generally speaking, it’s healthier to drink less. So we should feel good about that.”

Uncertain future

Before everyone downs a snobby, celebratory shot of Clase Azul tequila, ask yourself: Is our less-is-more, premium-brand preference the start of a trend? Or just an anomaly?

Well, a decline in overall sales volume had not happened in Idaho since the 1980s, Faraca said.

And inflation markups and recession worries could nudge consumers back toward the bottom shelf. In the month of July, Faraca said, liquor suppliers have started to inch up prices slightly.

If Tito’s begins costing more, will Idahoans keep snapping it up? Or will it be rotgut vodka time? (OK, maybe just Stroika time.)

“We don’t know what’s going to happen,” Faraca said. “How’s the customer going to respond? Are they going to say, ‘Well, I like Tito’s, I’m sticking with it. I like Crown Royal, I’m sticking with it.’ Or do they look for something more affordable. Do you step down in quality and save yourself a few dollars?”

Faraca, a Liquor Division employee since 2008, has witnessed economic factors such as unemployment cause a ripple effect before.

“When things were coming down after the mortgage meltdown and the last recession,” he remembers, “... that’s exactly what we saw. The other thing we saw is people stopped going out. ... Instead of spending $10 on whatever cocktail, you figure out you can make it at home for two or three bucks.”

Whatever happens, Tito himself probably won’t worry much. The Austin, Texas-made spirit was Idaho’s top seller in both dollars sales and volume in fiscal 2022. By a mile.

After growing dollar sales by 25% in fiscal 2021, Tito’s leaped another 17% in 2022 — to a staggering $13.5 million.

Tito’s is “completely on another level than anyone else,” Faraca says. “In three or four years’ time, they’ve completely separated from everyone else.

“They have one product. They don’t do any flavors. They have kind of a single-minded focus. They’ve sort of cracked the code in a lot of different ways.”

Idaho’s favorite liquors

▪ Here are Idaho’s best-selling liquors during fiscal 2022 based on dollar sales.

1. Tito’s Handmade Vodka ($13,501,975): Is it Tito’s grass-roots marketing? Is it the so-called “craft” distilling? Tito’s loves dogs. Is that it, Boise? “I’ve talked to those guys,” Faraca said. “ ‘Well, what’s the secret?’ And they’re like, ‘You know, there’s a lot of different things, and if we really knew how we did it, we’d do something else!’ ”

2. Pendleton Canadian Whisky ($8,295,435): In 2018, Oregon-based Hood River Distillers sold Pendleton to Proximo Spirits, the parent company of Jose Cuervo. The impact on marketing has been significant.

3. Fireball Cinnamon Whiskey ($7,224,432): America’s preferred shot has spawned imitators, but the original Canadian creation is still en fuego.

4. Crown Royal Canadian Whisky (regular not flavored, $6,999,387): Created by Seagram, this classic is the best-selling Canadian whiskey in the United States.

5. Jack Daniel’s Old No. 7 ($6,682,621): Your dad drank it. So did your grandpa. Always solid mixed with cola.

6. Jameson Irish Whiskey ($5,573,765): Happy St. Patrick’s Day — apparently every day in Idaho.

7. Smirnoff Vodka (regular, $4,868,897): Ever buy a sixer of the premixed Smirnoff Ice bottles? Fun fact — Smirnoff Ice doesn’t actually contain vodka.

8. Captain Morgan Original Spiced Rum ($4,350,726): “A secret blend of Caribbean rums,” the Captain is a party favorite mixed with Coke.

9. Black Velvet Blended Canadian Whisky (regular, $3,906,092): As Alannah Myles once sang, “Black Velvet will bring you to your knees.” It might put you on your back, too, the way Idaho consumes it.

10. Crown Royal Regal Apple ($3,734,381): Um, not exactly the choice of whiskey snobs. Nevertheless, this 70-proof alcohol is hugely popular.

▪ Here are Idaho’s most popular liquors based on overall volume — total ounces sold — in fiscal 2022:

1. Tito’s Handmade Vodka (60,632 nine-liter cases sold): If Idaho ever sees rain again, don’t be surprised if Tito’s falls from the sky.

2. Fireball Cinnamon Whiskey (41,674): Brush your teeth with it if you want. But at 66 proof, try not to guzzle this candy-like liquid.

3. Stroika Vodka (39,547): “A distinctively smooth vodka made from the finest Midwest grain,” according to the Liquor Division’s MixBlendEnjoy.com website. Get your buzz on for the bargain price of $6.95 for a 750-milliliter plastic traveler.

4. Black Velvet Blended Canadian Whisky (regular, 36,834): Once upon a time, this was Idaho’s biggest seller by volume. Not anymore (thanks, Tito!), but it’s still a force.

5. Smirnoff Vodka (regular, 36,419): Vodka is the nation’s best-selling spirit, and Tito’s leads the category. But worldwide? Smirnoff is the planet’s best-selling vodka.

6. Platinum 7x Vodka (33,790): “Distilled seven times for exceptional purity and a smooth, polished finish,” the company brags, “Platinum 7x has raised the bar on what it means to be smooth.” Maybe use that bar to pole vault up to a higher shelf someday?

7. Pendleton Canadian Whisky (29,950): If you live in the Northwest and grab a bottle of Pendleton, it almost feels like you’re “buying local,” right? You’re not, but keep drinking.

8. Jack Daniel’s Old No. 7 (26,812): A Jack-infused Lynchburg lemonade tastes awfully good when it’s 100 degrees out.

9. Captain Morgan Original Spiced Rum (24,608): Did you know that there also are Captain Morgan Sliced Apple and Cherry Vanilla spiced rums? Thank me after your hangover.

10. Crown Royal Canadian Whisky (24,457): Those purple bags always seem like they should be kept around after the bottle has been emptied. To hold beer koozies.

‘A milestone’

Hitting the $300 million mark in sales was a big deal for the Idaho State Liquor Division. In a newsletter emailed to employees and local supplier representatives, Faraca noted that sales passed $200 million for the first time just five years ago. We’re a growing state, right?

“For a little more context, it took us about 70 years to finally hit $100 million in fiscal year 2006,” he wrote. “As our sales have tripled since 2006, our distributions have nearly quadrupled during that same time from $33 million to $118 million. ...

“Congratulations to the many associates who work hard every day and contribute to our success. We should be very proud of reaching this milestone.”