2019-06-01_Market_Watch

60 MARKET WATCH | MARKETWATCHMAG.COM | JUNE 2019

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Sales revenue at Downtown Spirits exceeded $6 million last
year, according to Warren. Spirits account for half of the store’s
business, with wine and beer each comprising 25% of sales.
The 11,000-square-foot store employs 17 workers.
The Costco-backed 2011 voter initiative that moved the
retail sales of spirits from the state to privately run companies
stipulated that the stores must be in excess of 10,000 square
feet. This has been a boon for big-box stores and paved the
way for chains like Total Wine & More and BevMo to gain
share in the Evergreen State. The vast majority of inde-
pendently owned wine and spirits shops that opened follow-
ing privatization have closed due to fierce competition from
the larger players, Warren says. “We’ve been lucky in that
we’ve carved out a niche for ourselves,” he notes. The change
also ushered in a revised tax structure on spirits in the state;
as a result, Washington prices tend to be among the highest
in the country.

Whisk(e)y Destination
Downtown Spirits stocks about 2,500 different spirits, priced
from $2 a 50-ml. of Fireball whisky to $1,949 a 750-ml. of
The Macallan 25-year-old single malt Scotch. Top-selling
labels include Tito’s vodka ($44 a 1.75-liter), Svedka vodka
($14 a 750-ml.), Maker’s Mark Bourbon ($30), and Jack
Daniel’s Tennessee whiskey ($27). “Whisk(e)y is the biggest
trend,” says senior purchasing manager Terrence Tompkins.
“Bourbon is by far the most popular, but Scotch is still
beloved.” The store has partnered with names like Maker’s
Mark and Buffalo Trace on single-barrel offerings, which
have been popular with customers, he adds.
Among smaller categories, Tompkins says agave spirits,
gin, and amaro are showing healthy growth. Craft spirits are
also particularly strong in Seattle. “We support local spirits,”

DOWNTOWN SPIRITS AT A GLANCE

2012

Owner Marques Warren; senior purchas-

ing manager Terrence Tompkins

Seattle, Washington

1

Approximately $6.1 million

Spirits account for 50% of sales, with

wine and beer each contributing 25%.

Downtownspirits.com

Downtown Spirits plans to expand the

proprietary wines it offers as part of its

Wine & Spirits Guild membership.

Warren is also evaluating downtown

Seattle locations for possible expansion

of the concept.

Founded

Key Executives

Location

Number of

Stores

Annual Sales

Sales

Breakdown

Website

Future Plans

Downtown Spirits (beer coolers pictured) focuses its beer selec-
tion on local craft products, with top-sellers including Black
Raven Updraft pale ale and Deschutes Fresh Squeezed IPA.

Downtown Spirits’ location provides easy access to local neighbor-

hoods as well as major highways, which is key for the store’s delivery

service clients, including Boeing and Amazon (delivery van pictured).