IRI: Bev-Alc Sales Soften After July 4 Holiday, Lowest Since May

Off-premise beverage-alcohol sales have begun to soften after summer holiday peaks, recording the lowest absolute dollars since May in the week ending July 17, according to market research firm IRI.

Total bev-alc dollar sales declined -6.1% week-over-week in IRI-tracked off-premise channels. Spirits recorded the largest decline week-over-week (-7.4%), but recorded the largest year-over-year (YOY) growth (+2.6%).

Beer dollar sales declined -7.2% week-over-week, and increased +0.2% YOY. The decline followed a +4% week-over-week increase in the previous week (ending July 10), when the category recorded its third-highest off-premise dollar sales ever ($1.104 billion).

Wine recorded another week of YOY loss, with dollar sales declining -3.6% in the week ending July 17, compared to the same week in 2021. In each of the past five weeks (ending July 17), the category has recorded YOY declines between -2.2% and -4.3%.

“A lot of red post-holiday ramp, with [the] exception of several growth brands within each category that has built on momentum to outpace the categories,” Scott Scanlon, IRI bev-alc vertical EVP wrote in a report. “Spirits has resumed leadership role after beer surge for the 4th of July, with wine continuing to struggle as a category.”

Beer brands that significantly outpaced the category in the week in multi-outlet plus convenience include Molson Coors’ Topo Chico Hard Seltzer (+133%), Boston Beer Company’s Twisted Tea (+46%), Little Lion World Beverage-owned New Belgium Brewing (+26.2%) and Constellation Brands’ Modelo (+18% YOY).

Within spirits, E. & J. Gallo’s High Noon Sun Sips continued to record near triple-digit YOY growth (+91.3%), as the top brand gainer in the category, followed by BuzzBallz (+36.8%) and Fireball (+20.5%).

Dollar sales in the ready-to-drink cocktails (RTD) segment increased +3% YOY in the week. In the last 52 weeks (ending July 17), dollar sales in the segment increased +5% compared to the 52-week period before, led by spirits-based hard seltzer (+121.5%), single-serve premixed cocktails (+61.3%) and hard lemonade/hard tea (+12.9%). RTD coolers (-88.7%), hard soda (-44.7%), wine-based hard seltzer (-35.4%) and spritzers (-31%) recorded the largest YOY percentage declines in the period.

Malt-based hard seltzer dollar sales declined -4% in the 52-week period, but still account for the largest number of moving UPCs, and contributed the most dollar sales in the segment (more than $4.3 billion).