Beer category dollar sales at off-premise retailers increased 11.3% during the four-week period ending February 20, according to market research firm NielsenIQ.
At present, scan data is cycling the period in 2020 before COVID-19 pandemic shutdowns began and the on-premise channel was operating at full capacity. Consumer spending shifted almost exclusively to the off-premise channel in mid-March.
Elevated beer category sales are due to strong performance of hard seltzers, which increased dollar sales 72.9% over the last month. Other segments that outpaced the category’s growth include flavored malt beverages (+15.8%), domestic super premiums (+13.9%) and craft beer (+13.6%).
Imports (+11.2%) performed nearly at parity with the category, as did cider (+10.5%).
Segments that grew but underperformed relative to the overall category include premium lights (+5.1%) and premium regulars (+0.9%). In premium lights, Molson Coors Beverage Company’s Miller Lite (+8.7%) and Coors Light (+6.9%) outpaced Anheuser-Busch InBev’s Bud Light (+2.2%).
In premium regulars, dollar sales of Molson Coors’ Miller Genuine Draft declined -14.5%, but the company’s Coors Banquet increased sales 8.2%. A-B’s Budweiser was flat (+0.3%) and Yuengling Amber Lager increased dollar sales 1%.
Only two segments were in decline, below premiums (-1.2%) and malt liquor (-12%).
The only two suppliers to outpace category dollar sales increases significantly were Boston Beer Company (+60%) and Mark Anthony Brands (+31.6%). Constellation Brands slightly outpaced the category with a 13.8% increase in dollar sales, and Diageo (+11.2%) and FIFCO USA (+11.8%) were about even with overall category performance. Meanwhile, A-B (+6.2%), Heineken USA (+6.2%) and Molson Coors (+4%) recorded single-digit growth.
Of all major suppliers, only Pabst’s dollar sales declined 1.1%. Dollar sales of all other suppliers not included in the top nine increased 18.5%.
Contributing to Boston Beer’s strong increased sales were Truly Hard Seltzer (+127.5%) and Twisted Tea (+50.5%). Dollar sales of Samuel Adams increased 5.8%. Angry Orchard (-3.9%) was the only major cider brand in decline.
Truly’s dollar sales increased at nearly four times the rate of Mark Anthony Brands’ White Claw (+33.1%). Both brands, which are firmly entrenched as the hard seltzer segment leaders, gained dollar share, White Claw by 0.6 sharepoints and Truly by 1.3 sharepoints. The remaining top hard seltzer brands were flat in dollar share — Diageo’s Smirnoff Spiked Sparkling Seltzer (no share change), Constellation Brands’ Corona Hard Seltzer (+0.3 sharepoints) and A-B’s Bud Light Seltzer (+0.3).
The top five hard seltzer brands all decelerated in dollar sales during the four weeks ending February 20 compared to year-to-date. Bud Light Seltzer’s deceleration was the most drastic, as the brand cycled its early January 2020 launch. In the last four weeks, its dollar sales increased 67.1%, but year-to-date sales increased 99% compared to the same period last year.
Within craft beer, the New Belgium brand family continues to outpace the segment, increasing dollar sales 39.1% in the four weeks ending February 20 compared to last year. Molson Coors’ Blue Moon (+15.2%) and Sierra Nevada (+17.7%) also outpaced total craft. Samuel Adams (+5.8%) and Heineken-owned Lagunitas (+6.7%) lagged behind but still posted single-digit growth.
Four of the top five craft brands had no change in dollar share; New Belgium grew share 0.2 sharepoints.
NBWA Beer Purchasers’ Index Shows Beer Category Expanded in February
Wholesaler purchasing continued to expand in February, according to the National Beer Wholesalers Association’s monthly Beer Purchasers’ Index.
Overall beer posted a reading of 70 in February 2021, an increase of six points over its February 2020 reading of 64. Readings greater than 50 indicate expansion; a reading below 50 indicates the category or a segment is in contraction.
The flavored malt beverage (FMB) segment, which includes hard seltzers, had the highest reading at 84, nine points lower than its February 2020 reading — only the second time since May 2020 that the segment posted a reading lower than 90.
Imports had the second highest reading at 61, “well above the 52 reading from February 2020,” the NBWA wrote.
Premium lights also expanded with a reading of 58, 20 points higher than the segment’s February 2020 reading.
Below premiums crossed into expansion territory with a reading of 51, which the NBWA described as “unexpected.” The segment had been in contraction for several months; its February 2020 reading was 32.
Craft beer (45) and cider (37) both contracted in February 2021.
“This is the third monthly reading below 50 as craft continues to struggle to gain momentum with continued reduced on-premises activity,” the NBWA wrote.
BeerBoard: On-Premise Open Rate Returns to Previous High of 92%
The number of on-premise establishments open and selling draft beer has returned to its previous high of 92%, according to BeerBoard, which tracks draft sales at bars and restaurants nationwide.
The last time this many on-premise establishments had been open was the weekend of October 23-25, before COVID-19 cases surged last fall.
Between February 25-28, draft volume increased in nearly all markets measured by BeerBoard. Nationwide, draft sales increased 13% compared to the February 11-14 weekend. Only Florida (-6.6%), Georgia (-2.8%) and South Carolina (-7.5%) declined in volume.