That’s how important hard seltzer is — 21% of Drizly’s beer sales last year. That’s down slightly from the summer, when it accounted for as much as 25%. White Claw and Truly continued to dominate although other brands entered the category.
Success of hard seltzer led to success for easy-drinking, low-alcohol hard seltzer alternatives. “Hard alternatives such as hard kombucha and hard iced tea were among the fastest-growing categories on Drizly,” says Liz Paquette, Drizly’s head of consumer insights. She noted that the hard kombucha category saw a 2,122% sales gain over the previous year. “We expect the trend to persist through 2021 as product innovation continues.”
Local brands often surpassed big players at the market level. With local bars and taprooms hit hard by the pandemic, consumers used their beer choices to support local businesses.
For example, in Boston, local brands Night Shift, Lord Hobo and Samuel Adams joined Bud Light and Corona in the market’s top five beer brands on Drizly in 2020. Likewise, in New Orleans, hometown favorites Urban South Brewery, Abita, and Gnarly Barley sit alongside Miller Brewing Co. and Michelob in the market’s top five beer brands.
New England/Hazy IPA saw the most significant growth in the IPA category in 2020, spurred by local craft breweries; the subcategory’s sales increased 652 percent year-over-year. White IPA and Imperial/Double IPA were also among the fastest-growing IPA subcategories.
Wine
Champagne and sparkling wine bounced back from their March and April lows of 13% and 14.3% of wine share respectively to finish the year at 17.6% of wine sales, up slightly from 2019. Champagne garnered the largest share of sales for the subcategory in 2020 at nearly 48 percent, followed by Prosecco at just under 29 percent. Sparkling red wine saw impressive growth from a small base, with sales increasing 611 percent over the previous year.
Wines in alternative packaging — that is, beyond 750-milliliter bottles — gained share on Drizly in 2020, with formats such as three-liter bag-in-box and cans gaining popularity. Among the most popular alternative format brands were Bota Box, Black Box, House Wine, Underwood, and BABE. Paquette predicts “the move toward alt-packaging will continue in 2021, as consumer perceptions shift and product innovation continues.”
Spirits
Turning to spirits,
One of the biggest winners of 2020 was tequila, which experienced soaring growth as consumers brought cocktail culture home. According to Nielsen off-premise sales data for the 52 weeks ending Dec. 26, 2020, dollar sales for tequila grew 54 percent year-over-year. Tequila share grew 22 percent on Drizly in 2020, and the spirit now accounts for 15 percent of all liquor sales.
Two tequilas also ranked among Drizly’s top 10 liquor SKUs in 2020: Casamigos Blanco (ranked No. 3) and Espolòn Tequila Blanco (No. 7). Reposado was Drizly’s fastest-growing tequila subcategory in 2020, holding 21.6 percent of tequila share last year.
Even More Growth for Bourbon
Bourbon has become an increasingly important spirit over the past decade and is now a staple in most American consumer households, but 2020 resulted in even further growth for the subcategory. Bourbon was Drizly’s top-selling whiskey subcategory in 2020, holding 44 percent of whiskey share compared to 42 percent of share in 2019. Not only is the bourbon boom expected to continue into 2021, but there’s no end in sight for this leading spirit.
Canned Cocktails on Fire
Fueled by new products and the popularity of single-serve offerings, sales for the ready-to-drink (RTD) cocktail subcategory surged 1,483 percent in 2020. According to Nielsen off-premise sales data for the 52 weeks ending Dec. 26, 2020, dollar sales for prepared cocktails grew nearly 80 percent year-over-year.
“Product innovation played a key role, with new brands like High Noon and On the Rocks rising in popularity,” says Paquette, noting that other top-selling single-serve RTD brands were Ranch Rider, Fisher’s Island, and Cutwater Spirits. The pandemic also played a role in fueling growth, especially in the summer months when consumers headed outdoors to socialize.
Increased Share for Liqueurs
As on-premise establishments shuttered, consumers looked to recreate their favorite restaurant and bar cocktails at home. This at-home cocktail craze translated to serious growth for liqueurs, cordials, and schnapps in 2020.
Throughout the year, the category accounted for 6.7 percent of liquor sales share on Drizly — up nearly two percentage points from 2019 — and they peaked in May at 8.2 percent of share. According to Paquette, “we anticipate that many consumers who learned to make their favorite cocktails at home in 2020 will continue to do so in 2021, even as restaurants and bars reopen.”
Spirits Premiumization
Though 2020’s trading-up trend occurred across beer, wine and spirits, it was most pronounced in the liquor category. As categories like bourbon and tequila gained popularity, premium-priced products also gained share.
Paquette attributes the trend to customers’ desire to create the special feeling of a high-end bar or restaurant experience at home during shutdowns, and predicts that for consumers not impacted by pandemic job losses, the practice will continue in 2021. However, the economy will undoubtedly impact purchasing habits this year as well. “Value brands will also play a role as consumers shift their buying habits in order to adapt,” she adds.