Brewers Association chief economist Bart Watson explored why draft beer sales have yet to recover to pre-pandemic levels in his latest members’ only analysis.
Watson noted that while first quarter production data shared by the Alcohol and Tobacco Tax and Trade Bureau (TTB) showed that keg production was up over March 2020, it still lagged 29% behind 2019 levels. BeerBoard data also showed that April and May numbers are about 38% below 2019 numbers.
So, why haven’t draft beer sales recovered yet? Watson offered four reasons.
For starters, delivery and takeout sales from restaurants are still growing, indicating they’ve taken share. And when consumers are going out, they’re going out for meals more than drinks. Plus, the places they’re going are limited-service and more food-centric.
Finally, those who are drinking are choosing bottles and cans over draft beer.
Watson digs deeper into the reasons why and offers more insights on how long these trends may persist in his post. Read it here.
Beer Institute: Shipments Up 8.6% in April 2021
U.S. brewers shipped 14.6 million barrels of beer in April, an 8.6% increase over April 2020, according to Alcohol and Tobacco Tax and Trade Bureau (TTB) figures shared by the Beer Institute (BI).
Through the first four months of 2021, U.S. brewers have shipped more than 54.2 million barrels of beer, a 4.5% increase (or more than 2.3 million barrels), compared to the same period in 2020.
Shipments increased 5.3% in January, 3.3% in February and 0.9% in March.
May numbers are expected to be released on June 23.
Target Adds Bev-Alc Same-Day Pickup and Delivery
More than 1,200 Target stores in 29 states will offer in-store and curbside pickup of alcoholic beverages, in addition to same-day delivery from more than 600 stores via Shipt, where local laws permit it, by the end of the month.
The big box retailer cited more than 450% digital growth in the adult beverage category last year after successful pilot programs in Florida, California and South Dakota.
“Our adult beverage category is one of the fastest-growing divisions within our food and beverage business, and we continue to hear from guests how much they love our fast, easy and safe same-day services,” Rick Gomez, Target’s chief food and beverage officer, said in a statement. “As we continue to invest in the products and experiences our guests love, making our wine, beer and spirits selection available for pickup and delivery is a natural next step, and we’re proud our team moved so quickly to bring this enhanced service to hundreds of additional stores nationwide.”
Glass and Metal Packaging Producer Ardagh Group Experiences Cyberattack
Luxembourg-based Ardagh Group, one of the main glass suppliers for Anheuser-Busch (A-B), was forced to shut down some of its systems and applications last week following a cyberattack, according to Security Week.
While production continued at all 33 of the company’s metal and glass packing facilities, the attack caused delays in supply chain operations, according to Ardagh.
“While every effort is being made to minimize the impact on our operations, and our customers and suppliers, this incident has resulted in some delay and disruption in parts of our business,” Ardagh said in a statement. “This is likely to give rise to some deferral or loss of revenue, as well as to incremental costs.”
“We continue to assess the overall operational and financial impact of this incident. Current indications are that it will not affect our full 2021 guidance for the Group,” the statement continued.
Ardagh said it has introduced new protection tools to their network, and that IT investments have been accelerated to further improve effectiveness and security.
Jonathan Wakefield Starts SiriusXM Series
Wakefield Brewing founder Jonathan Wakefield and head brewer and operations manager Maria Cabré have started a six-part series called The Beer Hour on SiriusXM’s Business Radio station. The first episode aired May 27.
The show is expected to dive into craft beer’s intersection with pop culture, featuring two guests each week. Guests will include Crowns &Hops co-founder Teo Hunter.
Episodes will also be available as podcasts via Pandora.