For the first time since April, off-premise beer category dollar sales dipped below $1 billion, to $987 million, for the one-week ending August 29, according to market research firm Nielsen.
New Jersey restaurants are permitted to resume indoor dining at 25% capacity beginning today, Gov. Phil Murphy announced earlier this week. Last week, Iowa Gov. Kim Reynolds issued a proclamation forcing the closure of drinking establishments for on-premise service in six counties as the state combats a spike in cases of COVID-19.
The fundamental changes in everyday life brought on by the COVID-19 pandemic have affected the beer industry’s supply chain in ways both expected and unexpected. With bars and restaurants closed for on-site service for months, the evaporating demand for draft beer forced brewers to package more beer than ever before, creating a shortage of cans.
Two days after a majority of its hospitality employees announced their intention to unionize, Minneapolis-based Surly Brewing Company announced it will close its beer hall indefinitely beginning November 2.
So far, 2020 has defied definition for brewers. For many, the loss of sales inside their own taprooms and at bars and restaurants has been devastating. For others, pivoting to packaged beer sales has been successful but not enough to replace the lost on-premise revenue.
Craft brewers have availed themselves of several lifelines since the COVID-19 pandemic sent the beer industry into turmoil. They include the U.S. Small Business Administration’s Paycheck Protection Program, curbside beer-to-go sales and, in some cases, delivery to consumers’ homes.
In his fall legislative agenda, Pennsylvania Gov. Tom Wolf urged the state Legislature to legalize recreational marijuana and use proceeds from its sale to support business grants and restorative justice programs, as well as pass a six-month reduction or cancellation of the state’s alcohol tax on the hospitality industry.
The top selling eight beer brand families have all surpassed $1 billion in sales at multi-outlet chain and convenience stores year-to-date, according to data shared by market research firm IRI, which includes sales data through August 9.
Behind You is pleased to announced that they have recently surpassed $100,000 in funds raised for their COVID-19 Emergency Relief Fun. Behind You, a Salem-based organization that is entirely volunteer run, previously provided financial support to food service industry employees who found themselves out of work due to illness or injury for a period longer than four weeks.
Consumers’ rates of visits to bars and restaurants remain somewhat flat at the country’s on-premise venues, with 46% of adults having dined out in the past two weeks, according to Nielsen CGA.
After enhanced unemployment benefits ended last month, consumers reined in their grocery spending on most categories, except for beverage alcohol, according to a report from market research firm IRI.
Cans are a hot topic for the nation’s brewers, as the COVID-19 pandemic forced the closure of bars and restaurants for several months. Without on-premise venues to visit, Americans began to drink more beer at home, and cans picked up the slack in the market left by draft beer. Ball, the world’s largest manufacturer of aluminum cans, said inventory is likely to be sold out or severely tight for the remainder of the year.