Little change in on-premise visits (BUD)
According to Nielsen, the number of legal drinking age adults who have visited on-premise establishments has remained flat at 50% for several months. Nielsen surveyed consumers over the January 8-10th period and reported that 50% had gone out for a meal. The results were similar to the survey two weeks prior. Only 17% of respondents had gone out for a drink in the two weeks before the January 8-10 survey, up 1% from the prior two-week period. In Florida, where bars and restaurants are allowed to open with no limitations, 61% of respondents had gone out for a meal. In California, where on-site dining is mostly shut down, only 36% had visited a restaurant. Respondents did not vary much with age, with 48% of 21-34-year-olds having dined out compared to 50% for the 55+ group. State restrictions did not have a meaningful impact on going out for drinks. Only 19% of Florida respondents compared to 16% in California and Texas had visited on-premise for drinking. Visiting for drinking occasions did vary based on age, with 28% of 21-34-year-olds having visited for drinks compared with only 7% of respondents aged 55+.
Beer purchasing index ticks down in December (SAM)
According to the National Beer Wholesalers Association, wholesalers’ beer purchasing in December remained elevated compared to a year ago. The Beer Purchaser’s Index (BPI) moderated from previous months to a reading of 64 in December compared to 61 a year ago. A reading higher than 50 indicates the industry is expanding, while lower than 50 indicates contracting. The BPI is the only forward-looking indicator for distributors to measure expected beer demand. The index surveys beer distributors’ purchases across different segments and compares them to previous years.
Craft beer had a reading of 44, after being above 50 for four months. Craft was the one category that was lower than last year, as seen in the chart below. Below premium had a reading of 42, which has been decelerating since its peak in May. FMBs and hard seltzer had a reading of 80, 9 above the prior year but the lowest reading of 2020. In October, the reading was 92. Imports had a reading of 61, 6 above the prior year.
Organic produce’s record 2020 (SFM, GO)
According to the Organic Produce Network, organic produce sales grew 14.2% in 2020, outpacing conventional sales and volume growth. According to Nielsen, sales of organic fresh produce reached $8.5 billion, comprising 12% of all fresh produce sales. Organic produce volumes grew 16%. Conventional produce, in contrast, grew 10.7% in dollars and 9% in volume. Pre-packaged salads were the largest category with a growth of 15.4%, as seen in the following chart. Berries (strawberries, blueberries, and raspberries) grew 12.2%. The West had the highest growth rate of 16.8% in dollars and 17.5% in volume. Organic produce is a key category for both Sprouts Farms Market and Grocery Outlet.
