Off-Prem Sales Up 21.% in Year; Beer/Cider/FMBs Grow Faster Than Wine

The latest year-over-year growth rate for total off-premise alcohol dollar sales within Nielsen measured channels is +21.2%, Nielsen said.

Spirits again led growth, up 25.1% (but down from 30.5% in the prior week). Wine was +20.1% (down from +24% a week earlier).  And beer/FMB/cider growth is +20.3% (down from +22.3% last week). Beer specifically is +11.1%.

The following two graphics reflect the year-over-year change in dollar sales for the pre-COVID, ~full pandemic (15-week period ending 6/13/20) and recent one-week periods. The second graphic also includes year-over-year change in volume sales over the full pandemic period.

During its peak in April, alcohol e-commerce sales levels were six times higher than comparable weeks of one year ago, primarily driven by increases in new online buyers .  Those increases in June to-date have now fallen to three times higher than a year ago, coinciding with a decrease in online alcohol buyers.

Growth is still very impressive, but some consumers are likely returning to pre-Covid shopping patterns.

Consumer Insights

Throughout COVID weeks, an increase in the number of households purchasing alcohol has been one of the primary drivers of growth for off-premise dollars.  However, in recent weeks, the growth in the number of buyers is beginning to slow, up 14.7% for the 4 weeks ending 6/6/20 compared to those same 4 weeks last year.

For a comparison, the number of buyers purchasing alcohol was up 16.2% for the four weeks ending May 5, and up 20.5% for the four weeks ending April 11 compared to last year.

Throughout COVID weeks, liquor stores consistently have been driving much of the growth in buyers. The number of alcohol buyers in liquor stores is up 25.4% for the latest 4 weeks compared to last year. Grocery store alcohol buyers are up 14.2% compared to last year. Club buyers are also driving growth, up 17.2% compared to a year ago.

In the words of Danny Brager, Senior VP-Beverage Alcohol at Nielsen:

“As the on-premise space continues to expand openings across the country and we move from restricted living to re-opening, off-premise alcohol sales have experienced a steady slowing of growth since early May.

“That said, we also have seen some recent and interesting trends in the growth of households purchasing items that correlate with celebrations, such as sparkling wine and higher-end wine and spirits. The timing of the spike in the number of households purchasing these celebratory items also coincides with Mother’s Day and college graduations.”

In the words of Danelle Kosmal, VP-Beverage Alcohol at Nielsen:

“This was the first week since the beginning of March that beer/FMB/cider, with the significant tailwinds of hard seltzer, actually grew faster than wine.”

 

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