Access Is of Greater Concern (PRGO, KVUE, HLN)
57% of Americans who purchase OTC medications are at least somewhat concerned about access if the medications are pulled from the shelves. Concern over access was 9% points higher than adults who are at least somewhat concerned about how the panel’s decision could impact their health. Gen Z adults were the most likely to express concern about accessibility and health issues with the potential for a recall.
Wine trends and brands for sale (PRNDY, NAPA)
According to NIQ, domestic wine sales decreased 1% YOY in the four weeks ended August 12 in the off-premise channel. Volume fell 4% YOY. Table wine sales decreased by 1%, sparkling wines decreased by 3%, and volumes fell by 4% and 6%, respectively. The four-week period was slightly better than the 2% decline in the 52 weeks ended August 12. Total U.S. wine sales increased 10% YOY in the four weeks with better trends in the on-premise market.
Pernod Ricard is reportedly exploring a sale of its Oceania business and wine portfolio that includes Jacob’s Creek, St. Hugo, George Wyndham, Brancott Estate, and Stoneleigh. The wine unit had previously been valued at ~$1B when an activist investor pushed for a sale. The Australian Financial Review reported that a sale process may begin in a month. It has been difficult for Australian wines since the Chinese government retaliated with punitive tariffs. Wine businesses have had a checkered history in the public markets. There could be fewer publicly traded wine businesses in the future when there is a disconnect between what private buyers are willing to pay and the public markets.
Coffee consumption (KDP, WEST, BRCC)
According to the National Coffee Association’s Fall report, 63% of Americans reported drinking coffee within the past day, down 2% points from the Spring report. Immediately before the pandemic, 62% reported drinking coffee within the past day.
- 40% of at-home coffee consumption among past-day coffee drinkers used drip coffee makers, followed by single cup brewers at 27%, cold brewing at 16%, and espresso machines at 11%.
- At-home coffee consumption among past-day coffee drinkers at 82% was higher than pre-pandemic levels but down slightly from the high of 85% during the pandemic and 1% in the Spring.
- In office, coffee rebounded to 36% from a low of 21% in 2021.
- 65% of younger to middle-aged Americans were likelier to have consumed a specialty coffee beverage within the past week.
Coffee consumption is one of the few consumer habits that accelerated during the pandemic and continued to grow as COVID-19's impact ebbed. Westrock Coffee is the largest store-label coffee and tea provider to U.S. restaurants. Consumers drink 20 million cups of its coffee daily. Not only is Westrock Coffee profitable, but the company's growth drivers in the next few years are highly visible.
