A maker of liqueurs has reported a loss of $1.4 million to date due to the price spike associated with a spike in the demand for its liqueures, according to its annual report.
Canton Ginger Liqueurs Inc. reported the loss on Thursday, and it said the price increase is affecting sales by more than 40 percent, with its overall sales up $842 million to $2.6 billion.
The company said it expects its revenue and profit to decline by about 20 percent to $1 billion.
Liqueur sales fell by about 10 percent in 2015 due to a steep rise in demand from tourists.
Cointreau, one of the leading brands in the market, reported a drop in revenue of $3.2 million to an estimated $1 million.
The market share for Liqueures and their brands fell from 24 percent in the third quarter of 2016 to 22 percent in 2017.
Liquor retailer Trader Joe’s reported a decline in sales of $11.7 million to about $2 million in the first quarter of this year.