Texas on-premise alcohol beverage tax receipts recover (BUD)
Texas reports its alcoholic beverages sales tax receipts monthly. In May, alcoholic beverage receipts increased 352% YOY, accelerating from April’s 109% increase. Compared to May 2019, receipts were up 7.6%. Sequentially receipts in May grew 6.2%. Since January 2019, alcoholic beverage tax receipts were only twice greater than the May 2021 receipts in a single month. In Texas, bars were shut down in mid-March 2020 and allowed to reopen on May 22. In late June, bars were shut down again, then reopened by the county in October. Bars were also allowed to reclassify as restaurants since June as long as food sales exceeded alcohol sales.
Beer sales fall in May (SAM)
Beer category sales in the off-premise channel were up 0.4% in the year-to-date period through May 22, according to NielsenIQ. In the last four weeks, sales were down 11.8%. The beer category grew 14% in January, +12% in February, -1.8% in March, and -2.7% in April. In the YTD period, imports grew 5%, domestic super premiums grew 2.5%, FMBs grew 3.5%, and hard seltzer grew 31.7%. Over the last four weeks, imports decreased 6.7%, craft decreased 17.1%, domestic super-premium decreased 10.6%, FMBs excluding hard seltzer decreased 11.8%, premium regular decreased 15.3%, premium light decreased 16.2%, cider decreased 21%, below premium decreased 16.1%, malt liquor decreased 18.4%, while hard seltzer grew 3.5%. In the latest week, hard seltzer decreased 1.7% YOY.
Drizly said hard seltzer was 28% of overall beer category sales during the Memorial Day weekend, up from 25% for May. Drizly said online alcohol orders have slowed. YTD through the end of April, online alcohol orders grew 87% YOY, according to NielsenIQ. Drizly’s average order declined 13% in March and April but remained 25% higher than in 2019. Boston Beer’s expectation for this year is hard seltzer to grow 60-90% in 2021, with Truly growing faster than the category.
Plant-based vs. various label claims (STKL)
Sales of meat, poultry, and seafood grew 14% in the year ended April 16. Meat products with animal welfare claims grew by 18%. Meat products with organic labels grew 15%, non-GMO grew 22%, grass-fed grew 25%, and free range/pasture-raised grew 5%. In comparison, plant-based meat grew 27% over the same period.
Sales of dairy milk, cheese, creamer, and yogurt grew 8% in the year ended April 16. Products in those categories labeled organic, non-GMO, or no-added hormones grew by 4%. Products in those categories with animal welfare claims grew 13%. Grass-fed milk grew 4%. In comparison, plant-based milk, cheese, creamer, and yogurt grew by 18%.
There is a lot of confusion for the consumer about the various label claims ranging from organic, non-GMO, grass-fed, no-added hormones, free-range, pasture-raised, grass-finished, etc. Plant-based labels are much easier for consumers to understand, and the faster growth rate seems to corroborate that.
