Wine sales (VWE)
Total U.S. wine sales increased 19% in October YOY according to bw166, decelerating slightly from 22% growth in September. Over the past 12 months, U.S. wine sales are up 11% YOY. Off-premise wine sales decreased 8% YOY. DTC shipments increased 14% YOY in October.
Food retail sales accelerate (K.R.)
Grocery retail sales accelerated to 9.0% growth YOY in October, from 7.1% in September. Food and beverage store sales accelerated to 8.3% in October from 6.5% in September. Foodservice and drinking places sales decelerated to 29.3% from 29.8% in September. The share of spending for food at home fell 40bps to 53.4% in October. The share for food away from home has steadily increased each month from February’s 40.7% to October’s 46.6%. Yesterday Walmart said it gained share in U.S. grocery in Q3 with price and assortment compelling. Walmart’s grocery sales were up nearly 10% with MSD% inflation, accelerating from 6% sequentially. Management said they were happy with the current price gap to the competition. It is a reminder that food retail is the most competitive sector of retail.
Big Beer acquisitions (BUD SAM HEIA)
Anheuser-Busch InBev announced the acquisition of Hoop Tea, a hard tea manufacturer. Hoop Tea produces hard teas and tea-infused hard seltzers. Hoop Tea’s founder and CEO will continue to lead the company for Anheuser-Busch. SAM’s Twisted Tea market share is between 90-95% of the hard tea category. BUD is not afraid to enter a category late and invest behind it, but can it sustain the focus to achieve the #2 share?
Heineken announced the acquisition of Distell Group Holdings for $2.5B. Distell Group Holdings is a South African wine and spirits manufacturer. Heineken will also acquire a majority stake in Namibia Breweries and Ohlthaver & List Group, forming a combination valued at $4.6B. Heineken expects synergies in costs and revenues. Heineken was quick to note, “It should not be seen that we now start to buy spirits and wine companies all over the world.”
