New Hampshire sold 43 gallons of beer per resident of legal drinking age in 2011 -- highest per-capita rate in U.S. -- driven by tourism, low taxes that entice out-of-state visitors to stock up, industry group says

Nevin Barich

LOS ANGELES , July 9, 2012 (Industry Intelligence Inc.) – Bars and retailers in New Hampshire sold 43 gallons of beer per resident of legal drinking age in 2011, the highest per-capita rate in the entire U.S., according to brewery trade group The Beer Institute, The Boston Herald reported July 6.

Nationwide, 6,304,893,677 gallons of beer were sold in the U.S., up from 6,270,587,744 gallons in 2003, The Beer Institute added. The average per-capita rate across the U.S. was 28.3 gallons per person.

While New Hampshire has the highest per-capita alcohol sales rate for four out of the past five years, Beer Institute Chief Economist Lester Jones said that the state’s per-capita consumption rate has likely been inflated by tourism and low taxes on alcohol.

Jones noted that towns near the border to another state account for the highest volume of alcohol sales in New Hampshire. Per-capita alcohol sales figures for rural states are likely a better reflection of per-capita beer consumption, he added.

New Hampshire’s taxes on beer sold by beverage manufacturers and wholesale distributors amount to 30 cents per gallon. In 2011, New Hampshire’s take from beer taxes amounted to US$13.2 million. This is consistent with trends over the last decade, which featured relatively flat revenue from permits and beer taxes, according to a 2011 New Hampshire report on alcohol sales.

Beer sales across the U.S. were negatively affected by the recent recession, particularly since blue-collar workers — who would have been more likely than their white-collar counterparts to grab a beer after work—were disproportionately affected, Jones said.

They have also been affected by demographic shifts, as older Americans generally prefer spirits and wine, Jones added, and by the explosion of alcoholic and non-alcoholic drink options at retailers.

The primary source of this article is The Boston Herald, Boston, Massachusetts, on July 6, 2012.

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