SunOpta Black Book presentation today (STKL)
Plant-based food is the rapidly growing trend in the edible sector many food manufacturers are investing behind. Plant-based milk is by far the largest category of plant-based food. Oat milk is the fastest growing non-dairy milk, moving into second place in 2020. Driving the demand in the category is Oatly. SunOpta supplies all the largest oat milk producers except Oatly. Oatly is poised to be the next big consumer brand, but its supply can not keep up with demand. Oatly’s upcoming public offering will be the largest IPO in the consumer staples sector this year, bringing more attention to the category’s growth prospects. Oatly’s IPO will highlight the valuation gap to SunOpta.
We are hosting our Black Book presentation on SunOpta today at 2PM EST.
CLICK HERE for event details (includes video, dial-in, and materials link).
Frozen food demand remains elevated in the U.K. (NOMD)
For the week ended January 16 total, CPG demand remained elevated in the U.K. Demand was 10% higher YOY, down 2% from the prior week, as seen in the chart below. The frozen category was up 21% YOY, down 4% from the prior week. The frozen category was the second strongest after beverage alcohol for the week. Beverage alcohol was up 25% for the second week in a row as consumers were restricted from consuming alcohol on-premise. The UK is Nomad Food's largest country by sales, representing 31% of overall sales.
The 2020 year in review for hard seltzer (SAM)
According to Bump Williams Consulting and Nielsen, hard seltzer sales grew 160.4% in 2020 to $4.14B in the off-premise channel. For the year, hard seltzer had an 8.6% share of the beer category, gaining 4.8 share points. By category, hard seltzer is the sixth-largest. Domestic premiums have a 28% share, followed by 20.6% for imports, 12.5% for craft, 12.4% for below premiums, and 8.9% for domestic super premiums. 12 packs were the preferred package for hard seltzer at 75% of sales. White Claw and Truly combined for 75% of the category market share, but White Claw lost 8 share points. White Claw sales increased 125% and reached $2B. Through the first two weeks of 2021, hard seltzer sales were up 85%, a slight increase over the four-week period +78% and less than Q4 sales growth of 93%. Bud Light Seltzer captured a 9.6% share in 2020 with $394M in off-premise sales. Corona Hard Seltzer, with $183M in sales, had 4.5% share points. Smirnoff had a 2.2% share, and Vizzy Hard Seltzer (TAP) had 1.9 share points. Boston Beer is targeting doubling the Truly business in 2021. Boston Beer will spend $100M in media advertising this year, with 20% targeted for multicultural consumers.
