Off-premise alcohol dollar sales jumped 24.1% from a year earlier within Nielsen measured channels for the week ended June 6 vs. a year earlier.
Spirits again led growth, up 30.2%, followed by wine, up 23.8% and Beer/FMB/cider up 22.1%. Beer specifically was up 13.1%.
For the latest 14-week timeframe when COVID-19 heavily impacted consumer behavior (from the week ending March 7 through the week ending June 6, total alcohol sales were up 26.3%.
Beer/FMB/cider was up 21.4%, Beer, specifically, was up 3.3%, wine advanced 29.9% and spirits surged 35.2%
Under a full lockdown situation and even with ‘alcohol to go’ allowed, Nielsen has estimated that U.S. off-premise volume sales would need to maintain at least 22% growth rates to offset the on-premise losses. Spirits and wine had managed to maintain those volume growth rates, while beer/FMB/cider remained below that threshold.
For the 14-week timeframe ending 6/6/20, the percentage change in off-premise volume sales vs. one year ago is Spirits up 31.6%, wine advanced 25.8% and Beer/FMB/cider gained 17.3%
As the on-premise begins to emerge from lockdown and some consumption swings back to those channels, we will adjust those threshold growth rates.
“While every state has entered some phase of re-opening, we would expect to see off-premise alcohol growth rates beginning to slow as some volume shifts back to the on-premise,” said Danny Brager, Senior VP-Beverage Alcohol at Nielsen. “However, total off-premise alcohol sales in the current week still grew at a very strong pace, up 24.1% in dollar sales compared to last year.”
Adds Danelle Kosmal, Nielsen’s VP-Beverage Alcohol:
“While beer/flavored malt beverage/cider again trailed spirits and wine in year-over-year off-premise dollar sales growth, it has narrowed the gap and is now +22.1% for the latest week and +15.4% for the full year-to-date.”
Beer/FMB/Cider
Beer/FMB/cider dollar sales growth is up 22.1%. Beer specifically is up 13.1%.
Hard seltzer surged 255%, and maintained its double-digit dollar share of category, accounting for 10.1% of category dollars for the latest week, the third week in a row where hard seltzers accounted for more than 10% of the category.
FMBs (excluding seltzers) are +19.3%. Super premium is +22.8%. Premium lights were up 9.8% for the latest week. Craft had a strong week, up 16.5%. The top 10 craft brand families (ranked by dollars in pre-COVID time period) are up in dollar sales for the latest week, and all but one are up double digits.
Mexican imports are +19.0%. Kombucha had its slowest week, but is still up double digits at +50.1%.
Beer/FMB/cider pack sizes have not normalized yet, as growth of large packs continues to outpace smaller packs. 24-packs grew 27.7% in dollars, 30-packs +23.4%, 6-packs +12.3%, and singles still trailing at +6.3%. Similar to recent weeks, 12-packs are leading growth, up 42.5%.
Wine
Wine dollar sales in Nielsen measured off-premise channels grew 23.8% in the most recent week vs. one year ago.
Similar to pre-COVID trends, sparkling wine is growing faster than table wine, with various price points including French Champagne showing significant strength. Sparkling wine is up 30.5% and table wine is up 20.9%.
Growth rates for 750 ml table wine have now exceeded the 1.5 liter bottle for 7 consecutive weeks. Wine in cans continue to grow fast, but the current growth of 51.8% is below earlier weeks of growth, as well as pre-COVID growth.
Growth of both $20-$25 and $25+ table wine price tiers have remained near or above 40% for the last six weekly periods. Over the past 14 weeks, imported table wines have increased their share in Nielsen measured off-premise channels. In aggregate, their sales are up 32.7% vs. year ago, vs. 26.5% for domestic table wines.
Direct to Consumer
Based upon Nielsen’s partnership with Wines Vines Analytics and Sovos ShipCompliant, the newest Direct to Consumer Wine shipments for the month of May 2020, shows consistently high shipment growth.
Current month volume growth is up 44% ahead of year ago, following a similar increase last month. Dollar increases for May 2020 strengthened to +22% vs. +15% last month, so the gap between dollar gains and volume gains narrowed. However, the comparatively slower dollar growth relative to volume dropped the average price per shipped bottle -$6.45 to just over $35 during May 2020.
Spirits
Spirit sales in Nielsen measured off-premise channels grew 30.2%, again well ahead of the other alcohol categories.
Nielsen analysts caution it’s likely that some of spirits growth off-premise is a function of its higher on-premise share of alcohol than in the off-premise, and a transfer of demand as restaurants and bars shuttered for on-premise eating and drinking.
While growth of most segments edged down just a bit, ready-to-drink (RTD) cocktails were an exception, as we’ve seen consistent growth rates over 80% for eleven consecutive weeks.
Looking back over the last six weeks in aggregate, RTD cocktails sales are now bigger in Nielsen measured off-premise channels than both gin and Irish whiskey.
After that, within the major spirit segments, Tequila remains comfortably in second place based on growth rates, followed by cordials, with cognac not too far behind.