Grocery flash update (KR, ACI, SFM, GO)
According to Acosta, an integrated sales and marketing provider, 54% of consumers are eating out less often due to inflation. There are different motivations to dining out. The top reasons according to Acosta’s consumer survey are 53% lack of motivation to cook, 51% craving a certain meal, and 33% no time to cook. Not having enough time increased 13% points since last year’s survey as consumers resume more pre-pandemic aspects of their lives. One-third are choosing to trade down rather than trade out, opting for less expensive restaurants.
We are hosting our grocery sector flash update call today at 12:30 PM ET.
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CLICK HERE for the live webcast and materials. |
Truck spot rates continue to fall (UTZ)
For the second week of May can spot rates fell 0.6% week over week. Spot rates in April fell 7.5% from March, but are still up 7.9% YOY. Truckload spot rates have fallen 18% since the start of the year, but excluding fuel rates have fallen by 32%. Refrigerated truck rates normally increase during the summer, but in the second week of May rates fell 3% from April and were down slightly YOY.
The tender rejection rate was averaging over 20% for much of the past year until March as seen in the chart below. The rejection rate hit 8% in May. High rates of tender rejections indicate carriers that are either unwilling or unable to provide capacity for a contracted customer at a previously set rate. A national rate of 5% is indicative of a relatively loose trucking market. Contract rates will follow spot rates, but that will take time to flow through the P&L.
Wine consumption is on the rise (VWE, NAPA)
According to a survey of U.S. frequent beverage alcohol consumers (2-3 drinks or more per month) by LDA Opinions respondents in their 30s reported a 2% increase over the past 12 months in their frequency of beer consumption, 1% decline in spirits, and 8% increase in wine. Of alcohol consumers, those who prefer beer are the most loyal to beer as seen in the left-hand chart below. Of those who prefer wine, more than half drink wine weekly or more often. However, they will consume beer and spirits nearly as often as wine. Consumers in their 20s reported increased consumption of all types of alcohol, but consumers in their 30s reported the largest increase in wine as seen in the right-hand chart below.
