Alcohol consumption trends (STZ)
According to a Gallup poll in July, 60% of adults in the U.S. consume alcohol, down from 65% in 2019. (The poll was not conducted in 2020 due to the pandemic.) The poll had a margin of error of 5%, which suggests that alcohol consumers have not changed much. Going back to the results of the previous poll dating back to 1929, the percentage of adults consuming alcohol has varied between 55% and 71%. As seen in the chart below, the 60% level is at the lower end of the range seen in the past 40 years.
Survey respondents said they consumed on average 3.6 drinks per week in 2021 compared to 4 in 2019. Per capita consumption in the U.S. is 2.5 gallons. Beer is still the most popular alcoholic beverage of choice for 39% of consumers, as seen in the chart below. The wine was chosen by 31% and liquor by 27%. However, in recent years liquor has gained as the beverage of choice. Among consumers aged 18 to 24, beer is preferred by 45% and liquor by 30%. Among consumers aged 35 to 54, beer is preferred by 42% and liquor by 27%. Beer is preferred by 54% of men, followed by 28% for liquor and 15% for wine. Wine is preferred by 49% of women, followed by 26% for liquor and 23% for beer.
Frozen food sales tick up (CAG)
As seen in the chart below, frozen food sales have stayed within a narrow -1% to +2% range from mid-June through the end of July. With significant inflation in the fresh meat department, frozen protein sales have seen a benefit. In the latest two weeks of data, frozen food sales have accelerated to +3 to 4%, with some tailwind from the delta variant of COVID-19. Compared to the same weeks in 2019, the frozen food category is up over 20%. In addition, a few areas of the frozen food section are lifting the overall category. Frozen breakfast foods were up 11.8%, dinners were up 4.3%, frozen meat was up 2.7%, and the processed chicken was up 10.4%.
Proposition 22 ruled unconstitutional (ACI)
A California judge said on Friday that Proposition 22 is unenforceable and unconstitutional. Proposition 22 was a ballot measure passed by California voters in November. The gig economy companies spent more than $200 million to pass Proposition 22. The ruling does not change how the companies conduct their business until the appeals process has been exhausted. The Alameda County Superior Court Judge found that because a section of Proposition 22 limits the ability of future legislatures to amend the law, it is unconstitutional. Uber said the ruling “defies both logic and the law.” The ruling will likely end up in California’s Supreme Court.
Albertsons made the strategic decision in January to discontinue its own delivery fleet of trucks in locations including Southern California. As a result, the company laid off its full-time union delivery drivers. Instead, Albertsons took advantage of Proposition 22 to use third-party delivery providers.
