Draft volumes decelerate (BUD)
BeerBoard reported that the open rate for bars, breweries, and restaurants reached 93% for the weekend of February 24-27. The open rate improved 4% points from the beginning of the year and was the highest it has been since May 2020. BeerBoard provides on-premise tracking of draft beer for its clients. The open rate was 93% during December 16-19, right before the Omicron variant caused a spike in cases in the U.S. and in early June, right before the Delta variant. The average number of taps per location increased 12% to 19 compared to the prior year. The percentage of taps pouring nationwide was flat compared to the prior month at 72%. Draft beer volume decreased 7.1% from the prior month, but was up 30.4% YOY. Volumes have declined sequentially in three of the last four periods. Sales velocity nationwide was up 3.6% YOY.
January wine sales (VWE)
Domestic wine sales including bulk imports increased 9% to $3.445B in January compared to the prior year as seen in the chart below. Off-premise wine sales decreased 7% to $985M compared to the prior year according to Nielsen. DTC wine shipments increased 7% YOY to $175M.
Return to the Office (ACI)
According to Kastle Office Systems, the average office occupancy of the top ten cities in the U.S. was 36.8% for the week ended Feb. 28. Door swipes have inched higher since the year-end holidays, but are still below the early December levels. The Texas cities have seen the biggest rebound to the 50% level while California cities and New York City remain depressed. According to Kastle, before the pandemic in March 2020 95% of office workers came into the office every day. It is difficult to see how the office schedule returns to pre-pandemic ways. The governor of New York, Kathy Hochul said, “It may never be a five-day week again.”
With the lifting of further indoor restrictions in New York and California we should see an acceleration of occupancy in the coming weeks. In his State of the Union speech President Biden said, “It’s time for Americans to get back to work and fill our great downtowns again. People working from home can feel safe to begin to return to the office. We’re doing that here in the federal government. The vast majority of federal workers will once again work in person.” The return to the office will determine how permanent the food consumption shift is from on-premise to off-premise.
