Control States Volume Up 3% in Month.

Posted on March 28, 2022 by Joel Whitaker

Control States nine-liter spirits case sales grew 3% from a year earlier, National Alcoholic Beverage Control Association reported.

Alabama (5.4%), Iowa (4.5%), Idaho (0.7%), Montgomery County Maryland (20.6%), Michigan (2.4%), Montana (14.8%), North Carolina (4.7%), Oregon (1.5%), Utah (10.6%), Virginia (3.2%), Vermont (7.7%), and Wyoming (3.7%) reported monthly growth rates for February exceeding their 12-month trends. The growth rates for Maine (0.4%), Mississippi (-1.2%), New Hampshire (-3.7%), Ohio (0.3%), Pennsylvania (4.3%), and West Virginia (-10.1%) fell short of their 12-month trends.

Control state rolling-twelve-month-volume growth, 3.8%, is down from January’s reported 4.1%. Spirits’ volumes growth is flat year-to-date compared to 5.0% a year ago.

Control state spirits shelf dollars are up 6.9% during February while trending at 8.6% during the past twelve months. Iowa (9.4%), Idaho (6.7%), Montgomery County Maryland (27.2%), Michigan (8.0%), Mississippi (10.4%), Montana (22.9%), Oregon (7.1%), Utah (12.6%), Virginia (7.7%), Vermont (12.4%), and Wyoming (9.2%) reported monthly growth rates for February exceeding their 12-month trends. Alabama (7.4%), Maine (7.1%), North Carolina (11%), New Hampshire (-5.4%), Ohio (2.5%), Pennsylvania (4.5%), and West Virginia (-5.8%) grew shelf dollars at rates below their twelve-month trends. Shelf dollars in the control states are up 3.5% year-to-date compared to being up 11.9% last February.

Price/Mix for February is 3.9%, improving upon January’s reported 2.7%.

Cocktails, with 4% share of the nine-liter case control states spirits market, was February’s fastest growing category with 40.6% reported and a twelve-month trend of 36.6%. Tequila, with 9% share, grew at 22.9% during February and 23.2% during the past twelve months. Vodka, with 32% share, grew during the same periods at 0.8% and 0.7%, respectively. Canadian Whiskey(1.1% during February, -0.7% twelve-month trend), Cocktails(40.6%, 36.6%), Irish Whiskey(16.7%, 14.1%), and Vodka(0.8%, 0.7%) grew at rates above their twelve-month trends, while Brandy/Cognac(-18.6%, -8.9%), Cordials(8.2%, 11.2%), Domestic Whiskey(2.6%, 3.0%), Gin(-2.0%, -0.4%), Rum(-0.8%, 0.5%), Scotch(-1.5%, 0.5%), and Tequila(22.9%, 23.2%) grew at rates below theirs.

February’s nine-liter wine case sales growth rate was -6.2%. Pennsylvania (reporting -7.2% nine-liter-case growth for wines), New Hampshire (-6.9%), Mississippi (-3.0%), Utah (-0.5%), Montgomery County Maryland (-0.9%), and Wyoming (-14.6%) are the control states that are the sole wholesalers of wines and spirits within their geographical boundaries. Rolling-twelve-month wine volume growth in these six control states is –4.6%, down from January’s reported -4.1%.

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Beer Pouring Open Rate Steady

Posted on March 28, 2022 by Joel Whitaker

Higher gas prices may lead people to cut back spending at restaurants, as suggested by Technomic, but they haven’t led to a decline in volume or the number of beer-pouring locations open and ready for business, according to BeerBoard, which reports the number of locations open and pouring beer held steady at 94% for the second weekend in a row.  In fact, the number of open beer-pouring locations hasn’t retreated once so far this year.

The number of taps remained at 20 peer location, although four states added a handle during the March 24-27 weekend — California (23), Illinois (18), Minnesota (21) and Nevada (21).  Percentage Taps Pouring checked in at 75% on the weekend, a two-point increase over the prior period. Nine of the 11
states tracked saw an increase on the weekend, with growth paced by Minnesota (+6%), Illinois (+4%) and Nevada
(+4%).

For the second consecutive period, volume grew, this time rising 4.2% after a 3.3% climb for the prior period of March 10-13.  Nevada (+17.1%) and Minnesota (+15.4%) realized double-digit growth, while California (+9.2%) and Michigan (+7.3%) were also among the 10 states BeerBoard tracked to see an uptick on the weekend.  Rate of sale grew 4.1%, the second consecutive period of growth.

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86% Say Rising Gas Prices Impacting Other Spending

Posted on March 28, 2022 by Joel Whitaker

Gas prices have exploded, rising on average about $1.40 a gallon in just a few weeks.  And that, a new study from Technomic finds, is hurting restaurants. What consumers are being most affected?  Those in the 18-to-24 age bracket.  Least affected? No surprise: Those earning $150,000 or more a year.

Technomic surveyed consumers, and 49% said they are reducing their spending at limited-service restaurants, 48% at full-service restaurants.  Spending on entertainment, in general, is being cut by 47% and leisure travel by 44%.

None of this is particularly good news for bev/al marketers.  To be sure, there will be some shifting from on-premise bev/al sales to off-premise, but on-premise historically has been where people were willing to spend more for bev/al.  It’s also where new brands are introduced and where consumers go to learn about new products.

The last time gas prices averaged more than $4 per gallon nationally for an extended period was in May through July 2008.  Looking at this period compared to the same period in 2007, Technomic found there certainly was a drawback in LSR and FSR sales. But the change is more drastic within full-service restaurants compared to limited service, which were down 4.3 points and 2.2 points in 2008 on inflation-adjusted bases, respectively.

Technomic notes that when consumers feel financially challenged, “they don’t typically trade out of food service but rather rather, they trade down. Instead of frequenting a higher-end restaurant restaurant, a consumer may opt for a less expensive casual dining dining or fast-casual experience. Or, instead of visiting a sit-down casual-dining restaurant, they move to a quick-service restaurant instead of a wholesale shift to more at-home meals.”

But each notch down results in a change in alcoholic beverages available on premise.

 

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Wisconsin Report Proposes 61 Different Actions to Curb Alcohol Use

Posted on March 28, 2022 by Joel Whitaker

With a 54% increase in alcohol-related deaths since 2014, “Wisconsin leads the nation in excessive use of alcohol with reports showing increased alcohol sales and a rising death toll,” according to a new report by the Medical College of Wisconsin’s Comprehensive Injury Center.  The report outlines 61 policy and systems recommendations to help modify the factors that encourage excessive alcohol consumption, but the major ones can be summarized as:

  • Raising the price of alcohol (reduce youth consumption and binge, heavy drinkers);
  • Reducing the density of alcohol outlets;
  • Alcohol Compliance checks to ensure outlets aren’t selling to children;
  • Place of Last Drink (POLD) to help communities understand where excessive alcohol drinking is happening within their communities; and
  • Screenings and brief interventions as evidence show they can help reduce those who are binge drinking and also those who should be referred to treatment.

Wisconsin leads the nation in many alcohol-related factors that cost taxpayers billions related to OWI traffic crashes, health care costs, law enforcement resources, and in deaths and disease, the study says. The Wisconsin Department of Health Services estimated over 3,100 deaths in Wisconsin could be attributed to alcohol use in 2020 alone.

“It’s time we stop thinking excessive alcohol consumption is normal and start working on the culture around alcohol,” said Terri deRoon-Cassini, Director, CIC, MCW. “Alcohol impacts much of the work we do at the Comprehensive Injury Center and is a major factor in violence, crashes, injury, trauma and suicides. We see reducing excessive alcohol use as a very important way to reduce harm and trauma, as well as an important factor in many health issues like liver disease, cancer, mental health issues and others. By bringing the Wisconsin Alcohol Policy Project to the CIC, we are able to provide communities with effective tools they can use to change their alcohol environment and reduce excessive drinking.”

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Champagne Shipped More than 34 Million Bottles to U.S. in 2021

Posted on March 24, 2022 by Joel Whitaker

Champagne Bureau, USA, said 34,119,758 bottles of Champagne were shipped to the United States in 2021, a 63.9% increase year-over-year in the adjusted final annual figures and the most bottles shipped to any country outside of France. In addition, the value of these shipments reached more than $872.5 million (€793.5 million) in 2021, again the highest of any country outside of France. Globally, Champagne shipped 322 million bottles in 2021, an increase of 32 percent from 2020 as COVID-19 restrictions eased worldwide.

“Champagne has bounced back as the United States made progress towards recovery from the global pandemic, including a return to in-person celebrations and fewer restrictions at restaurants and bars across the country,” said Jennifer Hall, director of the Champagne Bureau, USA. “We are proud to say that not only did Champagne shipments to the United States rebound last year, but the United States led all countries in shipment volume for the first time in decades.”

The closure of primary consumption and sales hubs, along with the cancellation of in-person events, put pressure on the Champagne industry globally in 2020. However, thanks in part to steps taken by the Comité Champagne to preserve the economic fabric of the Champagne industry and consumers finding new ways to enjoy Champagne even in the face of unprecedented restrictions, global shipments increased by 32% year-over-year in 2021.

The Champagne industry has weathered global upheaval before, most recently following the 2008 financial crisis. Shipments to the United States fell nearly 27 in 2009. However, as in 2021, the shipments quickly bounced back, and the industry subsequently saw seven consecutive years of growth in the United States between 2012 and 2019, with an average 6.2% growth in volume per year. Champagne now hopes for a similar cycle of growth as the industry heads into 2022 and beyond.

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Eastside Distilling Secures $3 Million Credit Facility

Posted on March 24, 2022 by Joel Whitaker

Eastside Distilling, Inc. said it has closed a new secured credit facility of up to $3 million in available principal amount with TQLA, LLC.

The Company has entered into a definitive agreement with TQLA, LLC to accept a one-year loan of $2 million with a conditional additional loan of $1 million and a conditional term extension of six months. The loan will bear interest at 9.25% and carry a commitment fee of 2.5%. The Company will issue a common stock purchase warrant to TQLA covering the loan amount with a strike price of $1.20.

Geoffrey Gwin, Eastside’s CEO, said, “This is an encouraging development and will help us fund the growing working capital needs of the business as we launch digital can printing.  We greatly value the partnership with a key stakeholder such as Pat Kilkenny.”

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