In a February presentation to a legislative budget subcommittee, the Oregon Liquor and Cannabis Commission (OLCC) revealed that recent liquor sales trends have not kept pace with expectations, and associated revenue projections are being revised downward.
According to the commission, sales of distilled spirits in Oregon grew steadily over the past couple of decades, and then sped up significantly between 2019 and 2021. Experts anticipated those accelerated growth trends would continue through 2023-25. However, as 2023-25 data has become available, the projected growth has not materialized. Rather, growth trends seem to be flattening. OLCC notes that flattening trends in alcohol consumption in Oregon align with national trends.
Slower liquor sales will translate into significantly lower county revenues for 2023-25, the OLCC said. Their prior forecast anticipated counties would receive $64.2 million for the biennium, but their new forecast indicates counties should expect only $51.3 million.
It isn’t known whether flattening sales trends reflect lower alcohol consumption, or whether consumers are just choosing less expensive spirits. However, the fact that alcohol consumption surged during the pandemic was widely reported, so the recent flattening trend could indicate that overall sales trends are returning to normal.
Contributed by: Michael Burdick | legislative affairs manager