Off-Prem Continues to Surge

The year-over-year growth rate for total off-premise alcohol dollar sales within Nielsen measured channels was +18.6%.  Spirits continued to lead growth, up 31%, wine grew 18.2% in dollar sales and beer/FMB/cider growth was at up14.7%. Core beer excluding FMB/seltzer/cider was rose 8.1%.

Beer/FMBs/Cider

Hard seltzer growth “slowed” a bit, up 132%, but still surpassing $100 million in off premise sales for the latest week. This will be the 10th straight week of $100 million+ in off premise sales for hard seltzer.

Throughout COVID, Nielsen has identified and tracked trends that are similar and different to trends that were happening in pre-COVID time periods. For example, in 2019, assorted packs accounted for nearly two-thirds (63%) of hard seltzer dollars. Assorted packs are even more important now, accounting for 68% of hard seltzer off premise dollars for COVID YTD.

There has also been a slight shift in share among specific flavors. Cherry and berry flavors, for example, declined in dollar share, while mango, pineapple, and fruit combinations all gained share of hard seltzer dollars.

Looking outside of seltzers, there was not a substantial shift in trends for the latest week of off premise data across the beer category. Super premium remains strong, up 19.7%. Crafts finished a bit stronger than previous weeks, up 12.8%, led by large national craft brands.

FMBs have slowed over the past few weeks, up 4.0% for the latest week ending 7/25/20. Premium lights are up 6.2%, below premium segment is flat, and non-alcoholic beer experienced a bump, up 40% compared to the same week last year.

Wine

Wine is up 18.2% in dollars and up 12.1% in volume for the latest week ending 7/25/20 in Nielsen off premise channels.

Since May, dollar growth of sparkling wine has been outpacing that of table wine, up 34% and 14.3% respectively. French champagne now leads, up 65% for the latest week, and prosecco continues with strong double-digit growth, up 34.7%.

Table wine is growing at a much slower pace, up 14.3%.

Through the months of March, April, and May, the lower price tier of under $4 experienced positive growth week after week until the end of June, when it started to decline, returning closer to pre-COVID norms.

As consumers continue to shift their on premise dollars to off premise, higher price tiers are winning, with table wine in the $25+ range up 32.6% and $20-$25 ranges up 34.3% in off premise channels. While the higher price tiers lead growth rates across wine, the mid-range price tier of $11-$15 is still the largest contributor to growth, accounting for more than 1/3 of total growth dollars for table wine.

Spirits

Ready-to-drink cocktails continue to lead spirits growth, up 117%. While still small and accounting for just under 2% of total Spirit dollars, RTD cocktails have grown considerably in share, up from 0.8% from the 52 weeks prior to COVID.

Tequila continues as a growth driver, up 68.5% compared to last year, representing 3 of the top 10 growth brands across spirits for the latest week. Tequila is the biggest share gainer among spirit categories, accounting for 12.7% in spirit dollars, up from 9.1% for the 52 weeks prior to COVID in Nielsen off premise channels.

Cognac continues with extremely strong performance, up 71% vs year ago. Cordials also continue to outpace total spirits growth, up 36% in dollar sales for the latest week.

While whiskey is growing at a slightly slower pace than total spirits, given the overall size of whiskey, it continues to be the largest contributor of growth, accounting for 31% of off premise spirit growth dollars for the latest week. Four of the top 10 growth brands for spirits in the latest week of Nielsen off premise data are whiskey brands.

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