(ShankenNewsDaily) - Washington-based Costco reports that sales of beverage alcohol are up 8% in the nine months ending May 31, the first three quarters of its fiscal year. The company is projecting nearly a 10% rise for the full year. Currently with 627 locations and with nine more units planned to open before September 1, Costco is one of the largest retailers of beverage alcohol in the U.S. and in foreign markets including Canada, Mexico, U.K., Japan, Taiwan, Korea and Australia. Shanken News Daily recently spoke with Annette Alvarez-Peters, Costco’s assistant general merchandise manager for wine, spirits and beer, about sales trends.

SND: How are sales of beverage alcohol at Costco for the first three quarters of your fiscal year?

Alvarez-Peters: We are up 8% for the first nine months of our fiscal. Spirits sales are healthy, up by double digits (comparable sales without Washington State). Wine is up by high single digits. While beer is up, it’s not performing as strongly as spirits and wine.

SND: What trends are you seeing in wine?                     

Alvarez-Peters: Domestic wines continue to drive sales, representing 65% of our wine business. The domestic categories with double-digit increases are red blends, dry rosés, Petite Sirah and Chardonnay. Imported wines, especially those priced at over $12, continue to improve with double-digit increases. Wines from the Rhone and Spain are performing quite well for us.