Beer imports continue to accelerate in November (STZ)
Total beverage alcohol imports declined 5% by value over the last year ended November, as seen in the chart below. Imports grew 2% over the last three months. 33% of all imported beverage alcohol by value come from Mexico over the past year. Imported beer declined 2% by volume and was flat by value over the past year. Over the last three months ended November, imports grew 18% by volume and 20% by value. That is up from 16% and 18% respectively in the three months ended October and 10% and 14% respectively in the three months ended September. 72% of imported beer by value comes from Mexico. According to the Department of Commerce, in November, beer imports from Mexico by volume were up 33.4% YOY compared to up 14.9% in October. Through November, YTD beer imports from Mexico were up 0.1% compared to down 2.8% YTD through October. Constellation Brands represents a majority of Mexican beer imports and 60% of imported beer. Constellation Brands said it expects inventory rebuilding to continue in the coming months.
Bar closures continue to tick up (BUD)
According to Womply (a small business CRM provider), the closure rate of local bars and lounges reached 44% at the end of 2020, as seen in the chart below. The additional restrictions on bars in many states caused the closure rate to increase from 34% in the middle of November.
The cause of the closures can be seen in the daily revenue trends at bars still open in the following chart. Revenue at the end of the year for local bars still reporting transactions was down 40%. Less competition has not benefited the bars still operating. The COVID-19 vaccines can not be rolled out fast enough for the bar industry.
Grocery delivery ideas get a green light (KR)
The U.K.-based Weezy, a speedy grocery delivery service, raised $20M in a Series A round of funding. The company raised $1M last August in a pre-seed round. Weezy promises to deliver groceries in 15 minutes or sooner. It utilizes a network of smaller fulfillment centers closer to shoppers. Orders are delivered via its network of delivery people utilizing bikes or electric scooters. Weezy operates in London and will use the funding to expand in more neighborhoods. Last month Gorillas, a German-based grocery delivery service, raised $44M. Walmart will test a temperature-controlled box from HomeValet that will enable home delivery of groceries. Walmart is testing the technology in Bentonville this spring. The HomeValet box has thought through several potential issues, including battery backup, UV-C lights to disinfect it, an anchor point to secure it, an app, etc.
When people eventually return to work, grocery delivery will run into one of its previous problems of limited delivery windows. Whether it is speedy delivery or a lockbox, I do not know, but it needs to be cheap. Outside of a pandemic, consumers have not been willing to pay enough to offset the costs.
