We like to think of the COLA database as a microcosm for the US economy. This got us wondering whether the economic meltdown has tamped down the number of labels submitted to and approved by TTB.
In blue, above, is the S&P 500 Index from late 2004 through February 23, 2009. It shows the meltdown, from roughly the beginning of 2008 through February 23, 2009; a drop of 712 points or about 48%.
In red are the number of TTB labels approved, during the December through January (2 month) period each year. We picked this 2-month time period because it best allows a comparison to the ugly last month of 2008 and first month of 2009. The red line shows no falloff in the number of labels approved each period, with 14,151 labels approved during the most recently completed two month period (and 11,041 approved during the comparable period from 12/1/2004-1/31/2005). It’s nice to see a graph that’s not headed south, and this should bode well for variety at the store, and many interesting labels to showcase here in the near future.
Plenty of COLAs
About Author
Robert C. Lehrman is the principal attorney at Lehrman Beverage Law, PLLC. Robert founded the firm in 2001 after 12 years at the Washington, DC office of a larger firm that specializes in federal and state administrative law. From 1998...... Read Full Bio
The graph may not be heading south now, but what is the lead time on a label application? If it takes a couple of months to put together an application, you would expect the drop off in applications to come after a drop in the broader economy.
No; if it takes a few months, the applicant is probably heading in the wrong direction. A normal wine label, these days, takes as little as three days from submission to approval. So it is almost real-time. And wine is something like well over 90% of all the labels.
Well that is good news then. Then again, despite my almost 40% portfolio losses, I still haven’t stopped drinking.
If anything, the alchoholic beverage market may prove countercyclical.
Call the five bars nearest NYSE and this will be resolved once and for all(?).