The Price of a l L Bottle

[ambrose]

For the most part, it usually makes sense to buy the large size of a product, whether it's solid or liquid.

Recently, I've noticed that this does not seem to hold for liquor. I live in NJ and have found that you're better off buying a 750 mL bottle of whatever because its unit price is lower than that for the 1 L bottle (the best buy is usually the 1.5 L bottle, if it exists). What's going on?

I've found this to be true at four local liquor stores. At a fifth, the unit price was the same for both the 750 ml and 1 L bottles. In no case did it make sense to buy a 1 L bottle.

Is this practice widespread?

[Sacto_Damkier]

I never see the 1L bottles of spirits on sale, nor do a lot of places carry 1L bottles. Both of these would drive up the price of 1L bottles. Trader Joe's often carries the 1L bottles at the same price as a 750 mL bottle in a regular store, but that is probably from all the other retailers unloading unsold product. Bars usually buy liquor from the distributor, avoiding the retailers altogether, so it is hard to draw a comparison.

[Dennis S]

Pretty sure that last statement is true in Missouri and perhaps most of the country, but in VA, and I assume most of the East, the state runs all liquor sales - period. For instance, there is an ABC store in Arlington that does have a retail potential to it, but you have to know what you want - they don't allow anyone to peruse shelves - it's primarily to distribute to the many bars in the area. You have to tell the person what you want and they go to get it. Not sure how it all works in the back scene, but I know this is a true fact there.

[Sacto_Damkier]

Absolutely. The unique tapestry of state liquor laws across the United States makes each case unique. Here in California, spirits are available in grocery stores, convienence stores, and liquor stores with few restrictions on the price and/or marketing. Since Virginia is a Control State with a state-operated liquor system, it would make sense that the bars would have to buy from the ABC system. States with private distributors have different processes.

I grew up in the "free states" California, Nevada, Arizona & New Mexico and thought everyone in the nation could buy spirits in a supermarket on Sunday! Gotta love that 21st Amendment.

[Dennis S]

Well, even though I like mixed drinks more than beer, it was more than 6 months after moving to VA that I realized you had to go to different stores to get it. I went through so many grocery stores wondering where the liquor was...

In Missouri, you could stop at Exxon, get gas, liqour, beer, cigs, snack food and then be off for a night at the river. Now that sometimes takes a stop at three places.

[zin1953]

TJ's and BevMo both carry a number of 1.0L bottles. So do *some* "regular" liquor stores. However . . .

>>> but that is probably from all the other retailers unloading unsold product <<<

Not likely. First of all, it is illegal for one retailer to sell product to another retailer. (Huge fines and a suspension of your liquor license if caught; a chain like TJ's has too much to lose to do that.) Secondly, since TJ's does much of their buying centrally, the deals on 1.0L liquor are done for one very simple reason: the wholesaler has product to move. In other words, in order to keep the major liquor supplier happy (let's say it's Diageo), the wholesale company has to promise to move "x" number of boxes. They have targets for each brand and for each size of that brand. Since liters are typically only handled by bars and restaurants, the wholesaler(s) generally offer up deals at some point during the year (e.g.: 1.0L of Tullamore Dew in February & March to stock up for St. Patrick's Day; Presidente Brandy for Cinco de Mayo; and so on). Companies like TJ's and BevMo can stock up by buying 100 cases, 250 cases or more at a time . . . something clearly no bar would ever do.

[Sacto_Damkier]

Sounds like a better explanation. I did not know that liquor stores were stuck with the merchandise in California. I had thought they could resell back to the distributor, who would then resell the product at a discount. Again, gotta love that 21st Amendment!

[zin1953]

Retail stores/restaurants can return an order within 30 (15?) days. After that, they own it! The only *legal* reason (after that) to return product is if it is spoiled (think a "corked" wine).

This is a California law and has nothing to do *directly* with the 21st Amendment.

[zin1953]

Keep in mind that 1.0L bottles are generally what bars serve from and what restaurants use in the kitchen. So it's something of a "captive" audience. Also, remember that much has to do with what is discounted by the wholesaler, and 750ml and 1.75L bottles are often discounted deeper and more frequently than 1.0L bottles.

That said, in fact 1.0L are often CHEAPER, at least here in California. The difference can be slight (e.g.: Absolut Citron Vokda is $0.028/ml in a 750ml bottle, but only $0.026/ml in a 1.0L bottle at one retailer), or dramatic (e.g. Tullamore Dew is $0.027/ml in a 750ml bottle, but only $0.021/ml in a 1.0L bottle at one retailer). That may not sound like much, but when you look at the bottle price -- $19.99 for a 750ml, but only $20.99 for a 1.0L (and these are "regular," not sale, prices). the difference is considerable.

Clearly, it depends upon the specific item and the specific state . . . let alone any sales that may exist . . . .

[Dennis S]

I wonder if there's any correlation on the bar thing, where the inventory is at greater risk to run low, so that size goes up? I noticed the same thing before.