New beer category products have delivered more than half a billion dollars in off-premise sales in the last year, according to market research firm NielsenIQ (NIQ).
However, the $556 million driven by innovation in the 52 weeks ending February 25 marked a -24.8% decline compared to sales of new products in the prior year.
During that previous period – which included the bulk of 2021 – the hard seltzer segment had yet to crater, and reached its highest share ever: 10.8% in Q2 2021, followed by 10.6% in Q3 2021. Several new-to-market products and brand line extensions made strong debuts, including Molson Coors’ Topo Chico Hard Seltzer, Boston Beer’s Truly Margarita and Punch hard seltzers, and Mark Anthony Brands’ White Claw Variety Pack 3 and White Claw Surge.
From February 2022 to February 2023, nearly all (94%) of products were line extensions.
Craft and core beer innovations contributed $421.8 million, -34.2% less? than new products in those segments contributed in the prior year. Dollar sales of flavored and specialty beer innovations (in which NIQ includes cheladas) increased +145.3%, to $121.95 million. Innovation products in the non-alcoholic or low-alcohol beer segment reached $22.2 million in dollar sales, a -64.3% decline compared to the previous year, according to NIQ.
New products’ dollar share of the category declined in 2022 compared to 2021. Innovation products accounted for 1.4% of all beer category sales, marking a decline of -0.5% from the prior year. In addition, NIQ recorded 662 innovation items category-wide, a decline of -22.1% compared to the prior year.