We do love a tipple; whether it’s to celebrate good times or commiserate hard times. So what better industry to be in than the alcohol industry – whether it’s boom or bust, it’s all good!
What Alcohol is Selling?
Even though people have less disposable income these days, it seems they’re not shy to spend it on booze. With one small difference, however: whereas in previous years we may have blown our wages on a night out on the town, complete with high-end wine and whiskey, it seems the recession is forcing us to booze it up at home, alone or with family and friends. And the most popular booze? Why, cheap plonk, of course.
Don’t forget the ciggies…
Despite the high sin taxes imposed on ‘vice products’, alcohol and it’s partner in crime, tobacco, remain recession-resistant industries. Despite the controversy surrounding them, investing in alcohol and tobacco stocks is currently a wise decision, indeed.
Who’s Boozing the Recession?
These countries are raising their spirits:
- USA – alcohol sales are reportedly up 10% this past year. Seems they’ve learned from their past mistakes – implementing Prohibition during the Great Depression caused the Mob to take hold of America, leading to a decades-long war on crime.
- Russia – alcohol consumption in Russia is twice the critical level set by the World Health Organisation. Currently, alcohol can be sold around the clock, in any store.
- South Africa – the alcohol industry makes a substantial contribution to South Africa’s GDP, through wine exports, heavy taxes and local retail sales.