Hard seltzer media spend soars in 2021 (SAM)
A MediaRadar analysis of advertising reported that spending on hard seltzer increased 39% to $237M from January through October. That included a 35% increase on TV to $195M. Spending on digital increased 63% to $48M. Spending on print increased 20% to $.6M. The number of companies spending on advertising hard seltzer increased to 50 in 2021 from 20 in 2020. Anheuser Busch InBev (BUD) led all companies in ad spending for hard seltzer at $72M. BUD spent 31% of its ad spending on hard seltzer, but its total spending was down 14%. Molson Coors was the second largest spender at $60M, spending 37% of its ad spending on hard seltzer. Molson Coors’ total spending increased 15%, but spending on TV fell 3%. Constellation Brands spent $40M on advertising hard seltzer, representing 11% of its total spending. Mark Anthony spent $37M, representing 69% of its total spending. Boston Beer spent $27M, representing 31% of its total spending. Boston Beer’s TV advertising spend increased 22% and digital spend increased 274%.
Grocery spending returns to flat (KR)
According to IRI total, CPG demand at grocery stores was flat YOY in the week ended December 19 as seen in the chart below. That represents a slight slowdown from the prior week which was up 1% YOY. The broad edible category was down 1% YOY, slowing 2% points from the previous week. The broad non-edible category was up 1% YOY, up 1% point from the previous week. Beverage alcohol was the weakest of the major edible categories at -7% YOY, slowing 2% points from the previous week. The strongest edible category continued to be beverages which were up 7% YOY. Produce demand was down 1% YOY, slowing 3% points from the previous week. The multi-outlet big box retailers continued to outperform the grocery channel with total CPG demand up 4% for the same week. It will probably take another week or two to determine if there is no uptick from the omicron variant as the outbreak continues to grow.
Subdued promotions (ACI)
The promotional intensity among grocery stores for all CPG categories was 4% less than the prior year according to IRI, 1% more than the previous week. With supply chain challenges and inflationary pressures, the CPG companies have been focused on raising prices not increasing promotions. IRI reports greater promotional intensity over 100 and fewer promotions below 100 as seen in the chart below. Beverage alcohol was the only major edible category with greater promotions than the prior year. Alcohol promotions have likely risen with the slowdown in the category. In non-edibles promotions were greatest in the home care category. In the edible category, frozen foods were the least promotional at 8% less than the prior year.
-Happy New Year.
