In-home delivery expanded (KR, ACI)
Walmart announced yesterday that it will expand its InHome delivery availability from 6M households to 30M by the end of the year. To support the growth Walmart will hire more than 3,000 delivery drivers. InHome allows employees wearing cameras to enter a customer’s home to deliver groceries and other purchases even when the customer is not home. The InHome service costs $19.95 per month. The service was pilot tested in Kansas City, Pittsburgh, and Vero Beach. Since then it has been rolled out to Northwest Arkansas, Atlanta, Phoenix, and Washington D.C. utilizing about 100 drivers.
The food delivery market whether it is from restaurants or retail stores is the most active sector for investments and new initiatives in our coverage universes. Numerous companies offer delivery services, but Walmart’s service is the largest initiative to have employees enter consumers’ homes even if the customer is not there. Late deliveries and having to be home for it is one of the largest friction points for grocery delivery. Using smart locks and opening a customer’s refrigerator is a significant test for consumer behavior. WorldAtlas estimates there are nearly 30,000 dog walking businesses in the U.S. employing over 52,000 people and nearly 40% of U.S. households own a dog. We are skeptical of the profitability and TAM of the offering, but what matters for the grocers we follow is the heightened competitive intensity it represents.
Texas on-premise alcohol beverage tax receipts (SAM)
Texas reports its alcoholic beverages sales tax receipts monthly. In December, alcoholic beverage receipts increased 47.4% YOY, accelerating from 46.5% in November. Compared to November, receipts decreased 11.8% month over month, as seen below. December 2021 was also 5.1% higher than December 2019. In Texas, bars were shut down in mid-March 2020 and allowed to re-open on May 22. In late June, bars were shut down again, then re-opened in October 2020 by the county. Since June, bars were also allowed to reclassify as restaurants as long as food sales exceeded alcohol sales.
Corona Sunbrew (BUD)
Corona is launching Corona Sunbrew, a non-alcoholic beer, in Canada this month. Corona Sunbrew will launch in the UK and other international markets later in the year. The new 0 alcohol beer will also contain 30% of the recommended daily intake of vitamin D. It is the first non-alcoholic beer with vitamin D which was challenging to put in the beer. It was brewed by extracting alcohol from Corona Extra and then blending it with vitamin D and natural flavors. Non-alcoholic beers are seeing a high rate of growth off a low base. Non-alcoholic beer represented 8% of its portfolio in 2019 with a goal of reaching 20% by 2025. Constellation Brands has access to new innovations developed for the Grupo Modelo brands. Corona Cero, a non-alcoholic beer, is already available in Mexico. A non-alcoholic beer with a complex brewing process is unlikely to be a priority for Constellation Brands, but it will monitor the success of Corona Sunbrew.
