Total beer dollar sales in off-premise retailers reached nearly $43.8 billion in 2020, according to market research firm IRI.
IRI, which tracks category-wide sales at major off-premise retailers, reported a 14.7% increase in dollar sales and a 10% increase in volume sales at multi-outlet and convenience (MULC) stores (grocery, drug, club, dollar, mass-merchandiser and military) through December 27, 2020.
IRI reported that beer category dollar sales in U.S. food stores increased 18.3%, to nearly $14.2 billion, while convenience store sales increased 13.7%, to almost $23.4 billion, in 2020.
The sharp increases in sales are due to a shift in consumer spending away from on-premise outlets such as bars and restaurants, which were largely shut down across the country in mid-March due to the COVID-19 pandemic, in favor of stocking their fridges at off-premise stores.
The shift in spending led to every beer category segment increasing sales in 2020, with the exception of assorted (-13.8%).
Domestic premium beers led the way, increasing sales 3.7%, to $12.8 billion in dollar sales, followed by imports (+12.7%, to nearly $8.7 billion); FMBs, which include hard seltzers (+68.2%, to $6.8 billion); domestic sub-premium brands (0.5%, to nearly $5.6 billion); craft (+13.9%, to $5.1 billion); domestic super premium brands (+19.4%, to more than $4 billion); cider (+11%, to nearly $494.5 million); and non-alcoholic beer (+37.7%, to $188.2 million).
All of this still comes with a caveat: Scan data only offers part of the yearly picture — distributed beer sold in off-premise retailers such as grocery, convenience and big box stores. It does not include on-premise dollar sales, at-the-brewery sales and other metrics such as independent liquor stores.
For many craft breweries, those sales have not made up for the loss of on-premise and at-the-brewery sales. Brewers Association (BA) chief economist Bart Watson estimated in December that he expects volume at small and independent craft breweries to collectively decline about 8% in 2020, based on preliminary data from November 2020. So, while off-premise sales are up for craft, they haven’t offset lost on-premise sales.
Nevertheless, scan data offers insight into retail sales trends at larger breweries.
Within craft, IPA remains far and away the best-selling style, increasing off-premise dollar sales 21.1%, to $2.1 billion. The next closest style, seasonal offerings, generated around $526.5 million in sales, followed by Belgian wits at $444 million.
Within IRI’s scorecard of the top 30 craft brands, 24 increased off-premise sales in 2020, with just six brands in the red.
Molson Coors’ Blue Moon Belgian White remained the best selling craft beer offering, according to IRI, which does not differentiate between BA-defined craft and acquired craft brands. Blue Moon Belgian White sales increased 9.2%, to nearly $303.8 million, in 2020.
Sierra Nevada Pale Ale ranked second, posting more than $112.5 million in dollar sales (+6.3%). The Chico, California-headquartered craft brewery’s Hazy Little Thing IPA also cracked the top 10, as the sixth best-selling craft brand, increasing sales 71.3%, to more than $94 million. That made Hazy Little Thing the second best selling IPA brand, trailing just Heineken-owned Lagunitas IPA, which increased sales 15.9%, to nearly $104.3 million.
New Belgium posted a strong 2020, as Voodoo Ranger grew to the third best-selling IPA brand, increasing sales 80.2%, to $90.4 million.
Founders All Day IPA (+16.3%, to $82.8 million) and Anheuser-Busch InBev-owned Elysian Space Dust IPA (+19.1%, to $82.8 million) rounded out the top 5 selling IPA brands in the off-premise in 2020.
New Belgium claimed five spots within the top 30 craft brands. In addition to Voodoo Ranger Imperial IPA, the Fort Collins, Colorado-based craft brewery’s Fat Tire returned to the black in 2020, as the brand increased sales 4%, to around $62.5 million. Other New Belgium brands in the top 30 included Voodoo Ranger IPA (+9.8%, to $44.1 million), Voodoo Ranger Juicy Haze IPA (+54.3%, to nearly $23.8 million) and the Voodoo Ranger IPA rotator (+81.1%, to nearly $21 million).
Boston Beer Company, the second largest craft brewery by volume in the U.S., placed three SKUs in IRI’s top 30. The company’s top craft beer SKU, its portfolio of Samuel Adams seasonal offerings, increased sales 9.1%, to nearly $105 million, making it the third best-selling craft beer offering. Long-time flagship offering Samuel Adams Boston Lager was another tried and true brand that returned to growth in the off-premise in 2020, increasing sales 6.4%, to nearly $60.4 million. The Samuel Adams seasonal variety pack, however, lost sales, declining 4.2%, to $30 million.
Other top 30 craft brands in decline in 2020 included A-B owned Shock Top Belgian White (-16.1%, to around $52 million) and Goose Island IPA (-3.1%, to $40.9 million); Sierra Nevada’s seasonal offerings (-5.4%, to nearly $23.5 million); SweetWater 420 Extra Pale Ale (-2.1%, to nearly $21.2 million); and Deschutes Fresh Squeezed IPA (-4.1%, to nearly $19.2 million).
Craft brands in the black in 2020 included Shiner Bock (+14.8%, to $100 million); Leinenkugel’s Shandy (+10.2%, to $91.3 million); Firestone Walker 805 Blonde Ale (+21.2%, to $77.3 million); Bell’s Two Hearted Ale (+21.3%, to $54.9 million); Sierra Nevada Torpedo Extra IPA (+1%, to nearly $47.3 million); CANarchy-owned Cigar City Jai Alai IPA (+20.6%, to $41.2 million); Lagunitas A Little Sumpin’ Sumpin’ (+7.5%, to $39.6 million); A-B’s Kona Big Wave Golden Ale (+20.6%, to $37.7 million); Bell’s seasonal portfolio (+13.9%, to $26 million); and Blue Moon Mango Wheat (+17.4%, to $22.9 million).
Molson Coors’ Blue Moon Light Sky line extension rocketed onto the list in its first year on the market, posting sales of around $48.3 million, making it a top 20 brand, IRI reported.
Overall, Anheuser-Busch, the top selling beer company in the U.S, more than doubled the sales of Molson Coors at No. 2. In fact, every beer company on IRI’s list of top 25 vendors increased dollar sales in 2020. Compare that to 2019 when 16 of the top 25 increased portfolio-wide sales.
The top 25 for 2020 is as follows:
- A-B InBev, +8.8%, to nearly $16.7 billion
- Molson Coors, +4.7%, to nearly $7.9 billion
- Constellation Brands, +17.8%, to $6.1 billion
- Mark Anthony Brands (White Claw and Mike’s), +81.1%, to nearly $2.8 billion
- Boston Beer Company, +52%, to $1.9 billion
- Heineken USA, +8.3%, to $1.6 billion
- Diageo Beer Company, +21%, to more than $709.7 million
- Pabst Brewing, +4.5%, to $535 million
- FIFCO USA, +14%, to $430.1 million
- D.G. Yuengling & Son, +4.5%, to nearly $394.9 million
- Sierra Nevada, +18.5%, nearly $325.8 million
- New Belgium, +30.7%, to $299.5 million
- Lagunitas, +5.8%, to $204.5 million
- Phusion Projects (Four Loko), +5.1%, $161 million
- Gambrinus (Shiner), +15.6%, to $151.6 million
- Geloso Beverage Group, +20.9%, to $150.2 million
- Craft Brew Alliance (now owned by A-B), 11.3%, to nearly $145.8 million
- Founders Brewing, +13.2%, $137 million
- CANarchy Craft Brewery Collective, +31.9%, to around $126.3 million
- Firestone Walker, +30.3%, to $115.7 million
- Bell’s Brewery, +26.1%, to $109.7 million
- Artisanal Brewing Ventures (Victory, Sixpoint, Southern Tier, Bold Rock), +26.8%, $108.3 million
- Stone Brewing, +5%, $81.8 million
- Deschutes Brewery, +0.8%, $71 million
- SweetWater Brewing, +3.5%, to nearly $67.3 million
Overall, A-B owns five of the top 10 selling beers. The Bud Light brand remained the top-selling beer in U.S. off-premise retailers, increasing sales 1.7%, to $5.2 billion, in 2020. A-B’s Michelob Ultra came in second overall, growing sales 22.9%, to nearly $2.8 billion. Other A-B brands in the top 10 included Budweiser (+3.1%, $1.89 billion); Busch Light (+16.5%, $1.1 billion) and Natural Light (+1.9%, to $1 billion).
Constellation Brands’ Modelo Especial was the third best-selling brand of the year, racking up $2.6 billion in sales, up 21.5% compared to 2019. Corona Extra was the sixth best-selling beer brand, increasing sales 9.7%, to more than $2 billion.
Molson Coors’ Coors Light (+6%, $2.4 billion) and Miller Lite (+8.2%, $2.2 billion) brands rounded out the top five selling beer brands in 2020.
Heineken placed tenth, increasing sales 9.9%, to $870.8 million.
White Claw’s first hard seltzer variety pack fell just outside of the top 10, increasing sales 56.9%, to $718.9 million. In fact, White Claw is now the No. 7 best-selling beer brand family, increasing portfolio-wide sales 130.6%, to $1.97 billion. The company’s second variety pack, introduced in 2020, racked up $412.5 million in sales in Year One. White Claw’s Black Cherry single-flavor package increased sales 108.9%, to $391 million last year
The No. 2 hard seltzer brand, Truly Hard Seltzer, is the tenth best selling beer brand family, increasing sales 147.1%, to $923.2 million.
Also of note, Boston Beer’s Twisted Tea original flavor posted more dollar sales than any single Truly SKU. Twisted Tea original increased sales 29.7%, to $284 million, and portfolio-wide Twisted Tea sales increased 31.8%, to $506.3 million.
Truly’s top selling SKU was its Lemonade Seltzer mixed pack, which posted $269 million in sales. Meanwhile, the Truly Berry mix pack increased sales 70.8%, to more than $234 million.
A-B’s Bud Light Seltzer brand family recorded more than $372 million in sales in 2020. The brand’s variety pack accounted for more than $240 million of those sales.