Less Holiday Cheer(s)

Addis Fortune (Addis Ababa)

Elias Gebreselassie

23 April 2011

Taddesse Tesema, a married man with a son, was scanning the assortment of liquor on display at a shop near Balezaf Alcohol Factory located on Dejazmach Wolde Mikael Street near Hotel D’Afrique when he noticed champagne made by Awash Winery Co. The drink would be a suitable gift for the wedding of his best friend at the end of last week and he bought two bottles at 95 Br each.

“Except for holidays when I usually buy local wine, I do not normally drink alcohol because of my religious beliefs,” Taddesse told Fortune.

However, following the government’s price cap on beer, the wine appeared expensive to Taddesse.

“In addition, I also have the issue of buying bonds for the building of the Renaissance Dam to ponder, as I intend to buy bonds soon after Easter,” he said.

This attitude is indicative of the consumers feeling the pinch of rising livings costs on their wallets, which in turn is felt by retailers.

Kebede Hailu, the shopkeeper, reckoned the holiday season shopping bug had not reached his shop yet. He was counting on the days shortly before Easter for bumper sales.

“My customers, the majority of whom are young people, usually purchase Ouzo araqe [48 Br] although a substantial number of older people buy export standard local wine in the small [30 Br] or large size [55 Br] during the holiday season,” Kebede told Fortune.

His shop, which is lined exclusively with alcoholic drinks of different shapes and sizes, charges 115 Br for Cold Supreme Whiskey and up to 900 Br for Johnnie Walker Black Label. Stolichnaya Vodka, which Kebede said is not popular among his customers, costs 240 Br per bottle.

Unlike Kebede, Wudinesh Negani did not expect business at Ayele Grocery, located behind Dembel City Center near Bole Road, to pick up towards the end of the week. Her customers’ favourite holiday drinks include Ouzo araqe, Greek araqe, and vodka.

“During holiday times, our customers usually buy araqe as a gift for neighbours or relatives,” she told Fortune. “To a lesser extent, they buy Stolichnaya Vodka [228 Br] and rarely Absolut Vodka [550 Br].”

The imported wine brands most popular among her customers during holidays are Swartland (136 Br) and Drostdy Hof (134 Br) from South Africa as well as Torsion (175 Br). Export standard Axumite (38 Br) also sells well.

Out of the White Horse (488 Br), Johnnie Walker Red Label (528 Br) and Black Label (875 Br), as well as Chivas Regal (1,108 Br) whiskey sold at Ayele Grocery, Black Label is the most popular, Wudinesh claimed.

She would remain on duty at work over the weekend, working in shifts with her colleagues, because it is one of the busiest times of year for the shop. However, if business did not pick up over the weekend, she intended to close her shop early.

Similar plans were expressed by Robel Kebede, an employee of Balezaf, while he was unloading crates of different flavoured araqe and gin to wholesalers around Bole Brass, near Bole Bridge.

“I will work halfway on Sunday before the factory gives me three crates of alcohol, as it does during holidays,” Robel told Fortune. “My favourites are Supermint and Ouzo araqe as well as Dry Gin. After buying hens and homemade bread, I will spend the remainder of the day with my family.”

His optimistic holiday mood seemed not to have reached Getachew Zerihun of Getachew Grocery, a wholesaler to whom Robel was delivering goods.

Business has been slow this year due to the steadily declining purchasing power of his customers, which are mainly hotels and bars that have been affected by the new trend that sees people preferring to drink at home and buy less expensive drinks, he argued.

“Although there is still time to sell alcohol before the arrival of the holiday, I can definitely say that business is down, even in comparison with last year’s Easter and New Year’s Eve 2011,” Getachew told Fortune.

His customers hold a variety of tastes. Older men prefer Ouzo araqe and Dry Gin, followed by whiskey around holiday times, mostly to serve as gifts. Women bought more wine, while young people preferred Supermint and pineapple flavoured araqe.

“My customers buy more Stolichnaya Vodka [230 Br] than Absolut Vodka [460 Br] because the former goes down easier and causes little to no hangover,” he explained. ‘It is also a little bit cheaper.”

He sells a fair amount of whiskey, despite the apparent cooling of the business with prices ranging from 450 Br for Johnnie Walker Red Label and White Horse to 850 Br for Johnnie Walker Black Label.

The lowered priced two see more sales, especially by other shops and individuals, according to Getachew.

He also sells wine, ranging from Gouder (30 Br) to export standard Axumite and Kamila (45 Br each), as well as Swartland (140 Br) although their sales are lower in comparison with other alcoholic drinks.

The prices have remained relatively stable and the number of customers has been predictable, with the holiday not making a big impact.

“The wallets of consumers have been hit hard by the tough economic times,” said Bekele Alemu, a salesperson for Balezaf, which offers 13 kinds of alcoholic drinks. Dry Gin, the company’s best seller, costs 32 Br per bottle and 480 Br per crate containing 15 bottles.

“The holiday season offers a surge in sales, especially of ouzo araqe and Dry Gin from both wholesalers and grocery owners,” he told Fortune.

However, the holiday cheer seemed to have bypassed a tired Dino Temam.

“Perhaps, it has become worse, either because people are choosing to drink at home instead of bars or their purchasing power has declined too much,” the retailer told Fortune. “Either way, it is bad for business.”

“People have switched to beer but it has virtually disappeared from my shelves since the price cap,” Dino said. “We are left with vodka and whiskey that are bought in single pairs by individuals, bars, and grocery owners or occasionally by foreigners. Araqe and wine are usually bought by bars at night when they have a shortage.”

Since most of the holiday market is geared towards beer, Dino’s sales have been disappointing. However, the ray of light is that men and women buy Ouzo araqe (38 Br), most often to give as gifts during the holiday season.

The prices of local wines range between 28 Br and 45 Br while foreign wines like Two Oceans cost 140 Br and Chevalier 180 Br. The cheapest whiskey on sale at the shop, White Horse, costs 470 Br and the most expensive brand on sale is Johnnie Walker Black Label, at 900 Br.

With all the gloom from wholesalers, Girma Kebede, who was buying two bottles of Ouzo and one of lemon araqe at a combined price of 144 Br would not allow the subdued holiday market inhibit him from purchasing these drinks for what he said were gifts for his neighbours and family members.

“Although prices for liquors have not changed and living costs are becoming a little more expensive, I am going to celebrate the Easter holiday with my family, like other holidays,” he told Fortune.

The popularity of araqe has pushed National Alcohol & Liquor Factory to launch a new coffee flavoured araqe for the Dagmawe Tensae feast a week after Easter. The factory will also be unveiling an orange flavoured araqe by the end of 2011.

“We will produce 3,300 coffee flavoured araqe for the trial process with a 30pc alcohol content targeted especially at younger people who desire sweeter and lighter liquors,” Kokebe Kumbi, head of quality standards and verification study services at the factory, told Fortune. “We hope to cope with the demands of customers by producing quality local liquor based on our new quality management system.”

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