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Texas Alcohol Index - October 2009

Published: 28 December 2009

Austin, TX: Virtue Group, a restaurant research company, announced today the release of the October TAI, the Texas Alcohol Index. The index is an aid to track the vitality and performance of the on-premise alcoholic beverage market in Texas. The index is released monthly, trailing two months. The TAI is intended to aid in assessing the vitality of the on-premise alcohol market in Texas and the entire full-service restaurant market as a whole.

Virtue Group Texas Alcohol Index: TAI

TAI October 2009: 184.89

TAI October 2008: 189.90

Percentage change from October 08: -2.64%
Inflation Rate for October 2008 - October 2009*: -0.18%

* Estimated inflation based on the change in the CPI-U for the period.

What is the TAI?

Monthly economic indicator for on-premise mixed beverage sales in the state of Texas. Monitors monthly gross alcohol sales relative to a base period: January 2000. Tracks growth or decline in the mixed beverage market sales from previous months and from the same month last year.

Summary

October sales this year were weaker than last year. We believe one reason for this trend, aside to the general economic condition was the effect of Hurricane Ike, which occurred September of last year on the marketplace. October sales in that year rose considerably to their highest recorded level, as consumer shifted and increased spending in on-premise establishments in the Houston area the month after Ike. After attempting to account for this effect of Ike on the months of September and October, these months were stagnate verse the same period last year, and up 3% from two years prior.

Wine sales decreased during the month, reversing gains of their positive trend in September, beer was able to increase its share of its segment in the market, and liquor's share decreased slightly. Despite the slowdown in sales, there are now more licensed on-premise establishments in the state of Texas than ever before, as their total number draws very near to 12,000.