Drizly: RTDs Gain Share of July 4 Sales; Hard Seltzer and Beer Lose Share
Ready-to-drink canned cocktails (RTDs) were a big winner on Drizly over Independence Day weekend (July 1-4), the alcohol e-commerce platform reported today.
The RTD segment recorded a 5.4% share of the weekend’s sales on Drizly, a +1.8% increase compared to last year’s holiday weekend (July 2-5, 2021), when the segment held a 3.6% share.
Hard seltzer had a 4.7% share of sales over the weekend, a -1.2% decrease compared to 2021, when the segment held a 5.9% share. The change marked the second holiday weekend this year in which RTDs claimed a larger share than hard seltzer, after the segment passed hard seltzer for the first time over Memorial Day weekend.
The top-selling hard seltzer brands over the weekend included:
- White Claw (Mark Anthony Brands)
- Truly Hard Seltzer (Boston Beer)
- Topo Chico Hard Seltzer (Molson Coors)
- Bud Light Hard Seltzer (Anheuser-Busch InBev)
- Vizzy (Molson Coors)
- Lone River Ranch Water (Diageo)
- Michelob Hard Seltzer (A-B)
- Happy Dad
- Corona Hard Seltzer (Constellation Brands)
- Smirnoff Seltzer (Diageo)
The top-selling RTD brands included:
- High Noon Sun Sips (E&J Gallo)
- Cutwater Spirits (A-B)
- On the Rocks (Beam Suntory)
- Jose Cuervo (Beckmann Family)
- 1800 Tequila (Beckmann Family)
- Skinnygirl (Beam Suntory)
- Fisher’s Island
- Two Chicks
- The Finnish Long Drink
- Buzzballz
Beer also lost share year-over-year (YOY), declining from 21% share in 2021, to 18% share in 2022. Liquor (48%) and wine (31%) each gained share YOY (+2% and +1%, respectively).
Non-alcoholic beer slightly gained share of total sales YOY (from 0.56 to 0.95%), as did non-alc wine (from 0.10% to 0.22%). Non-alc spirits maintained a 0.05% share of sales.
The top-selling brand families in the beer category (including hard seltzers) for the weekend were:
- White Claw (Mark Anthony)
- Corona (Constellation)
- Bud Light (A-B)
- Truly (Boston Beer)
- Coors (Molson Coors)
- Miller (Molson Coors)
- Michelob (A-B)
- Modelo (Constellation)
- Topo Chico Hard Seltzer (Molson Coors)
- Heineken
On-Premise Continues to Recover with Consumers Returning to Pre-Pandemic Spending Habits
While many consumers changed their ways of life during the COVID-19 pandemic, some habits have returned, to the benefit of the on-premise channel, according to the market research firm CGA.
CGA surveyed 1,600 consumers in Florida, Texas, California and New York from June 22-24.
Nearly half of respondents (44%) are now working at the office again for at least part of the time. Of those consumers, one-in-four are visiting on-premise establishments for after-work drinks on a weekly basis, while more than one-in-five (23%) are visiting every two weeks. Of those getting after-work drinks, three-in-five (60%) are most likely to do so on a Friday, followed by Thursday (31%) and Saturday (30%).
Nearly one-in-three respondents (27%) said they have not gone out for after-work drinks since returning to the office.
In total, 66% of consumers have visited the on-premise to eat in 2022, while 39% have gone out for a drink-led occasion. In the past two weeks, about seven-in-10 respondents visited bars and restaurants for food-led occasions (+1% compared to the same survey in May), while two-in-five visited for drink-led occasions (+4% vs. May).
The majority of respondents (70%) plan to visit the on-premise in the next two weeks for food-led occasions (-4% compared to May), while 47% plan to go out for drink-led occasions (+7% vs. May). The changes compared to the May survey may be due to the July 4 holiday, when food is typically consumed at home and with friends and family, but beverage-alcohol consumption increases.
Nightlife activities are also returning to pre-COVID-19 levels. One-in-five consumers have visited nightclubs in the past two weeks, according to CGA. Those visits take place mainly on Saturdays, followed by Fridays, with the most popular time to visit occurring in the late evening, followed by the late night.
Shots are the most popular drink at nightclubs, with two-in-five consumers saying they drink shots during their visits.
On-Premise Still Expected to Benefit from Traditionally Off-Premise July 4 Holiday
While July 4 is typically an off-premise holiday – celebrated with backyard barbecues, beach visits and at-home celebrations with friends and family – CGA expects the on-premise to see a boost from this past weekend as well.
In 2021, lower-than-usual traffic on July 4, which fell on a Sunday, caused a decrease in on-premise value velocity across observed states (California, Florida, Illinois, New York, Texas, Colorado, Georgia and New Jersey). However, the late night hours (10 p.m. 6 a.m.) were a different story, according to CGA.
Beer value velocity increased +39% in the evening compared to the average value velocity for the category during the same time period in the previous 11 weeks. Spirits value velocity increased +40% compared to the average. Vodka (+63%), hard seltzers and tequila (each +42%) specifically saw significant increases for the holiday, “largely driven by traffic” as people took “advantage of the Monday off,” “venturing out that bit later,” according to CGA.
“It’s easy to assume 4th [of] July is primarily celebrated off-premise with friends and family, but last year’s data shows the clear uptake in on-premise celebrations and this data could prove incredibly valuable to both operators and suppliers preparing for the day,” Matthew Crompon, CGA regional director, North America, said in a press release.
This year, July 4 was on a Monday. When the holiday was on a Sunday in 2021, the federal holiday was observed on Monday, July 5. On that Monday, on-premise value velocity of beer and spirits both increased compared to the average of the previous 11 weeks (+34% and +19%, respectively), due to increases in traffic. Imports (+25%) and craft (+24%) recorded the largest segment increases within the beer category during the holiday, while cordials, tequila and rum all increased +15% in the spirits category compared to the 11-week average.
All key states recorded double-digit velocity growth during the observed holiday compared to an average Monday, including California (beer +47%, spirits +26%), Illinois (beer and spirits >+25%), Texas and Florida (beer +24%, spirits +13%).
This year, 40% of respondents said they plan to visit an on-premise establishment to celebrate July 4. The most popular venue to visit is expected to be sports bars (32%), followed by neighborhood bars (29%) and casual dining chains (28%).
Beer was the drink category of choice for 45% of consumers planning to celebrate on-premise, followed by soft drinks (32%), whiskey (30%), non-specified cocktails (28%), vodka (27%) and tequila (25%).
Casual Dining Chains and Independently Owned Restaurants Top Venues for On-Premise Visits
CGA’s survey also gave insight to which on-premise establishments consumers are now visiting after the last two years of the pandemic.
Casual dining chains were the most popular, visited by 50% of respondents in the past two weeks, followed by independently owned restaurants (44%), fine dining restaurants (32%), neighborhood bars (28%) and sports bars (28%).
Bev-alc-driven establishments were mid-to-low tier, including premium bars (16%), brepubs/taprooms (15%), and airport bars (8%). Experiential-focused establishments are still recovering, including casinos (15%) and experiential bars, such as arcade bars (10%).
Beer was the most popular drink of choice at neighborhood bars – 44% of respondents consumed beer at an establishment in the past two weeks – as well as casual dining chains (26%), sports bars (51%), premium bars (40%) and brewpubs/taprooms (54%). Wine and spirits divided the top share of all other establishments, with the exception of experiential bars, where 38% of respondents consumed hard seltzers and 38% consumers RTDs.
Consumers seem to be generally pleased with their on-premise experiences, with 91% indicating they were “very satisfied or satisfied” with quality of service, and 90% satisfied with staff knowledge. Slightly less (89%) were satisfied with wait times for food, while 87% were very satisfied/satisfied with wait times for drinks.