BeerBoard: On-Premise Volume Declines for Third Consecutive Period; Imports Get Slight Volume Bump for Cinco de Mayo
On-premise volume declined for the third consecutive period, decreasing -1.9% over the weekend of May 5-8 compared to the weekend before, according to the market research firm BeerBoard.
The weekend followed a -6.4% decline in volume April 21-24, and -3.5% decline April 7-10.
Compared to the same weekend in 2021, volume for the weekend increased +14.9% year-over-year (YOY). California (+37.1%), Nevada (+27.1%), New York (+25%) and Florida (+21.8%) recorded the largest YOY volume growth. Tennessee (-3.3%) had the only YOY decline.
Rate of sale (ROS) on average for on-premise establishments remained flat nationally over the weekend after two periods of decline, and increased +10.4% compared to the same weekend in 2021. However, each of the 11 states tracked by BeerBoard recorded week-over-week declines in ROS, led by Georgia (-18.9%), Minnesota (-13.9%), California (-9.9%) and Michigan (-9.5%).
ROS for four of the 11 tracked states also declined YOY in the period compared to the same weekend in 2021: South Carolina (-10%), Tennessee (-7.3%), Michigan (-2.1%) and Texas (-1.9%).
The average number of taps per location nationally remained at 19, a +5.6% increase compared to the same weekend in 2021, which had an average of 18 taps per location. Georgia was the only tracked state to add to their average (+5.9% to 17 taps), while Illinois (-5.9%), South Carolina (-5.9%), Florida (-5.3%), Tennessee (-5.3%), Minnesota (-4.5%) and Nevada (-4.5%) each dropped one tap on average.
The percentage of taps pouring per location declined for the third consecutive period, nationally, falling to 72% (down from 73% April 21-24 and 74% April 7-10). All but three states decreased their pouring percentage; Texas, New York and Michigan remained flat.
Domestic beer maintained the highest volume share of beer on-premise, although the segment’s share declined -1.4%. Imports claimed the difference (+1.4%) with 18.2% volume share – likely due to the Cinco de Mayo holiday. Craft’s volume share was flat at 34.2%.
BeerBoard Partners with Molson Coors
BeerBoard has partnered with Molson Coors Beverage Company, the market research firm announced today.
Through the partnership, Molson Coors will have access to BeerBoard’s on-premise data and analytics, including “actionable insights, tap/share distribution, packaged product sales, brewery snapshots and market trends and rank,” according to a press release.
Additionally, BeerBoard’s SmartOrders technology – intended to help retailers and distributors with inventory and order consolidation – will be shared with retailers, distributors and suppliers within the Molson Coors network.
“By partnering with BeerBoard, Molson Coors is demonstrating its understanding of the
technology landscape across all tiers,” Jim Randall, BeerBoard VP of strategic
development, said in the release. “BeerBoard remains committed to a three-
tier friendly approach, which will ultimately help retailers, distributors, and suppliers
make more profitable decisions.”
BeerBoard’s existing partnerships include Boston Beer Company, Constellation Brands, Laguinitas, Heineken, Diageo and Yuengling. The company also has partnerships with retailers, including Buffalo Wild Wings, Hooters, Twin Peaks, WingHouse, Mellow Mushroom and TGI Fridays.
CGA: Nearly 40% of Respondents Plan to Visit On-Prem Within Next Week; Opportunity for Bev-Alc with Return of Festivals
Nearly two-thirds (64%) of respondents have gone out to eat in the past two weeks, while more than one-third (38%) said they have gone out for a drink in that time, according to an on-premise survey from April 27-29 by the market research firm CGA.
The responses are down slightly from the April 2022 average of 67% for food-led visits, and 40% for drink-led visits. However, consumers are indicating plans to continue visiting the on-premise, with 70% indicating they plan to go out to eat in the next two weeks, while 43% said they plan to go out for a drink.
Nearly 40% of respondents said they plan to visit bars and/or restaurants within the next week, while 26% said they will within the next two weeks, followed by 14% “today/tomorrow” (surveyed between April 27-29), and 11% within the next month.
Since the start of 2022, consumer frequency of visits have remained above 2021 levels, and last month CGA indicated that frequency had returned to 2019 trends. In the most recent survey, three-quarters of respondents (75%) said they visited on-premise establishments at least three times in the past six months, while 19% visited twice and 7% visited once.
Not all pre-COVID-19 habits have returned “to normal.” While 51% of respondents said they attended at least one outdoor festival or concert pre-COVID-19, only 19% said they have in the last year. More than one-third of respondents (35%) said they have never been to an outdoor festival or concert.
However, nearly half of respondents (46%) said they are very likely/likely to attend a festival in 2022. Among respondents 21-34, that number increased to 62%. Food and drink festivals were the most popular type of festival respondents indicated they plan to attend (58%), followed by music festivals (54%), music concerts (52%) and street festivals (42%).
Higher festival attendance could be favorable to new bev-alc brands, as 42% of respondents said they have tried a new drink at an outdoor festival or concert, and 32% of festival goers said they continued to consume new drinks discovered at festivals when visiting bars and restaurants.
“The resurgence of festivals presents great opportunities for drinks brands to target younger consumers, especially as two-in-five festival attendees try new drinks brands when they go to these types of events,” Matthew Crompton, CGA regional director, North America, said in a press release.
The most popular alcoholic beverage of choice for outdoor events was beer (48%), followed by wine (27%), cocktails (23%) and ready-to-drink canned cocktails (22%). One-in-five respondents said they are most likely to consume hard seltzers at festivals and outdoor concerts, below vodka and whiskey (both 21%).
Additionally, half of respondents said they expect to consume more bev-alc at these events than they typically would at a bar or restaurant. That number increases to 59% for respondents aged 21-34. More than one-third of respondents (39%) said they would drink the same amount, while 11% said they would drink less.
CGA: Bev-Alc Opportunities Rising with Travel Surges
Four-in-five (86%) consumers who anticipate visiting a hotel in the next 12 months said they plan to do so for vacation, a +9% increase from 2020, according to the CGA in its third Hotel Bev Al Opportunity study, released Monday.
The study surveyed 5,000 respondents during March.
A quarter of respondents said they plan to visit hotels overnight for business trips within the next year, an increase of +4% compared to 2020.
Nearly half (48%) said they are planning non-overnight visits to hotels within the next 12 months, “suggesting consumers are exploring hotel concepts for their offerings and seeking alternatives that stray away from traditional standalone bars and restaurants,” according to CGA.
“After two challenging years for domestic and international travel, we will see a steady release of pent-up demand for vacations and business trips in 2022,” Crompton said. “From budget to luxury brands, there will be some exciting opportunities for beverage suppliers to grow popular brands and establish new ones. However, they will need to work closely with hotel operators to find the right assortment, pricing and promotional strategies.”
CGA will release further channel-focused studies of on-premise venues such as casinos, stadiums and nightclubs in the next few months, according to Crompton.