Oh, There’s a Pandemic? Let’s Drink!
How COVID-19 boosted sales at Idaho’s 44 North Vodka and Koenig Distillery
Story by Lex Nelson
How much beer, wine, and liquor did you drink in 2020? Was it more or less than 2019? If you answered “more,” you’re solidly in the majority. According to NPR, sales of all alcohol for home consumption spiked 24% during the pandemic, and sales of spirits rose 27%. Two Idaho distilleries, Boise-based 44 North Vodka and Caldwell-based Koenig Distillery, rode the wave to new heights. At Koenig, Founder Andy Koenig saw 20-45% growth in select brands of his vodka, brandy, and whiskey in 2020.
“When the governor put us all on lockdown in mid-March we had a surge, and then it kept growing from there. People were afraid. I think there was a miscommunication that liquor stores would also be closed during lockdown, so people kind of loaded up their pantries. Then [sales] kept growing throughout the year and have continued this year,” Koenig said.
At 44 North Vodka, which specializes in flavored Idaho potato vodkas, 2020 played out a bit differently.
“Things took a dip for us in the April/May period because people were trying to figure things out and bars were closed … [but] the third and fourth quarters were massive for us, so it’s just really interesting how the year progressed,” said 44 North Co-founder Ken Wyatt, adding, "The summer months we had were some of our biggest months ever.”
Koenig and Wyatt both reported an increase in local buying and a major shift from “on-premises” (bar, restaurant, etc.) to “off-premises” (liquor store) sales. That was the largest change in 44 North’s business, although Wyatt also wrangled supply chain hiccups and shortages of everything from glass bottles to huckleberries for the distillery’s flagship Mountain Huckleberry Vodka. In March, Koenig Distillery faced an even bigger production hurdle when it rushed to the aid of a local hospital and shut down its liquor production to make hand sanitizer.
“We started making hand sanitizer for the St. Luke’s hospital system because they had a big shortage. We made 15,000 gallons of hand sanitizer in March, April, and May to keep St. Luke’s afloat for several months,” said Koenig, adding that luckily the distillery had enough product on hand to meet demand in the meantime.
Despite these slowdowns, both 44 North and Koenig Distillery launched new products in 2020. Koenig released a Seven Devils Honey Whiskey, a Reserve Bourbon, and an Eight-Year Seven Devils Whiskey in the fall, and 44 North debuted a Huckleberry Cream Liqueur. Inspired by the pandemic shift to off-premises products, Wyatt also plans to launch a series of three low-alcohol canned and bottled cocktails in 2021. Unlike many of 44 North’s other products, customers will be able to snag these drinks in grocery stores like Fred Meyer.
Ultimately, it’s unclear how much of the growth of both distilleries is attributable to COVID-19, and how much could be due to new products and other innovations. Koenig Distillery, for example, was already growing at a steady 20% annual rate before the pandemic, and Koenig said it’s possible that trajectory just steepened.
“It could also have to do with a huge surge of new population moving in here,” he speculated. “There are so many factors, it’s hard to tell whether it’s pandemic related, consumer behavior, growth of our brands, or a combination of it all together.”