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Below is a brief excerpt from a complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
Alcohol sales rebound
Total alcohol sales grew 17.3% for the week ended July 11, rebounding from 11.5% growth in the preceding week.
Spirits grew 25.5%, and wine grew 16.6% for the week. Off-premise beer category sales grew 14.9% for the week, as seen in the chart below. Core beer sales increased by 14.3%. Hard seltzers grew 149% with Truly up 156%.
Craft beer grew by 10.6%. The super-premium segment grew 19.6%, driven by Michelob Ultra. Mexican import sales grew 8.2%, still impacted by the shutdown’s impact on inventory.
Below premium beer sales declined 1.6%, premium lights grew 5%, FMBs ex-seltzer grew 6.7%, and cider grew 2.3%.
Wine sales led by off-premise, still down across channels
The average bottle price of shipments fell 11% in the first half of 2020.
Total consumer spending on domestic wine was down 5% for the year ended June 30, according to bw166. In June, total wine sales decreased by 16%, as seen in the following chart.
On-premise sales in June are estimated to be down 69%, weighing down total growth. Still, that is an improvement from down 90% in previous months as restaurants, bars, and wine tasting rooms began to open in late May.
