Monday, June 30, 2008

Drinkers, gardeners rank D.C. tops

The typical Washington day starts off with a cup of coffee and winds down with a cocktail and some gardening, a study suggests.

The international business intelligence group Asterop has identified the Washington metropolitan area as the strongest retail market in the nation for coffee, alcohol and lawn and garden supplies.

Some say the strong markets for those products might relate to stress levels or to the perceived importance of socializing.

"It may be in the D.C. area because there's so much networking and the social aspects of meeting people and networking produce more interactions where people sit down and have a drink together or have a cup of coffee together," said Maryland.

"I think that's a positive take on it. The negative take on it is that people use it to deal with their stress. I think it's pretty clear that in this area, people have a high level of stress. ... I can't say there's a cause or effect, but I could say there's certainly a stress relationship," she said.

Ms. Alvord said studies show that caffeine may affect feelings of stress and people often garden or drink alcohol to relieve stress.

Adams Morgan section of Washington, agreed that his customers drink alcohol to unwind.

"There might be a lot of drinking in this town because it's a stressful city," he said. "This is an island of relaxation in a stressful sea."

But owners of other Washington drinking establishments argued that visitors, not the locals, are responsible for the top ranking.

"Washington has traditionally sold more liquor than any other metro area in the East," said Perry Luntz, publisher and editor of Beverage Alcohol Market Report. "But we all know D.C. primarily feeds the suburbs. Consumption per capita has never gone up. These are mostly people who work in Washington and live in the suburbs."

Another factor may be the amount of wining and dining, said Mr. Jirikowic.

"I think its skewed because of the tourists and the influence-peddling and maybe the young people passing through - the students and interns," he said. "As people pass through, they have a tendency to party a lot. I don't think it's any different from blue-collar towns - where, I'm telling you, people drink."

Capitol Hill, said an array of clubs, cafes and lounges now fills the traditional divide between the smoky bar and the restaurant.

Although more people may be drinking, he said, it doesn't necessarily mean they drink more. "If anything, people are drinking less," he said.

The coffee market may benefit from heavy foot traffic and the number of coffee shops within walking distance of workplaces, said Ryan Jensen, who has worked in the Washington coffee business for the past five years. He will open Peregrine Coffee at 660 Pennsylvania Ave. SE later this summer.

"I think it drives business a little bit - having things close," he said. "I think D.C., we pride ourselves on being the movers and shakers, and we have to keep up that intensity level with always having some coffee in our hands and having that caffeine coursing through our veins."

Urban Gardener owner Joe Carmack said he isn't surprised that the local market favors lawn and garden businesses as well.

"I've always thought of D.C. as a garden city," he said, adding that his 3,000-square-foot store does business comparable to much bigger locations.

"But the connection between beer and wine, I don't know," he said as an afterthought. "Except that they're both a way of escape. Some people watch TV. Some people drink beer. Some people garden. Some people do a little bit of both. It's a way to change gears, get your mind off business."

Economic slumps don't necessarily run across the board, said Asterop Chief Executive Officer Christophe Girardier, noting that retailers can tap the local $532 million coffee market, the $1.26 billion alcohol market and the $664 million lawn and garden supply market.

"What we see is that there are pockets of strengthening demand despite crises in other parts of the economy," said Brian Vais, chief operating officer for Asterop. "There's clear evidence of growth in the consumer trend. For retailing purposes, it shows a lot of strength."

People generally consider coffee, alcohol and garden supplies as part of their normal spending, even when the economy stumbles, said Alexandria.

"I would say that many people would not even define those types of expenditures as discretionary," he said. "It's just a part of their living. People are socializing with their neighbors, and these are dollars being spent to enhance their lifestyle."

Mr. Weiss of Union Pub said he benefits from the number of people who want to drink and who want to socialize.

"People drink when they're depressed; people drink when they're happy," he said. "It's a good business to be in."