Beer category sales remain hard-seltzer driven (SAM)
Beer category sales at off-premise retailers increased 11.3% during the four-week period ending Feb. 20, according to NielsenIQ. Hard seltzer sales increased 72.9% over the four-week period while flavored malt beverages increased 15.8%, domestic super premiums increased 13.9%, craft beer increased 13.6%, and imports increased 11.2%. Segments that underperformed included premium lights 5.1% and premium regulars up 0.9%. In premium lights, Miller Lite grew 8.7%, Coors Light grew 6.9%, and Bud Light grew 2.2%. In premium regulars MGD decreased 14.5%, Coors Banquet increased 8.2%, Budweiser increased 0.3%, and Yuengling increased 1%. By total company sales, Boston Beer grew 60%, Mark Anthony Brands grew 31.6%, Constellation Brands grew 13.8%, Diageo grew 11.2%, Anheuser Busch InBev grew 6.2%, Heineken grew 6.2%, and Molson Coors grew 4%. Boston Beer’s Truly sales grew 127.5%, Twisted Tea grew 50.5%, Samuel Adams grew 5.8%, and Angry Orchard decreased 3.9%. White Claw sales grew 33.1%. Bud Light Seltzer sales grew 67.1% but decelerated from +99% YTD as it anniversaries the launch last year.
Beer distributor index improves from January (BUD)
The National Beer Wholesalers Association’s monthly Beer Purchasers’ Index reached 70 in February, up from 64 last February and 66 in January 2021. Readings over 50 indicate expansion and below 50 indicate contraction. The FMB segment was 84 in February, down from 93 last year and 90 the previous month. Imports were at 61, up from 52 a year ago and 59 a month ago. Premium lights were 58, up 20 from last year, but down 1 from a month earlier. Below premiums reached 51 after several months of contraction and up from 32 last year. Craft beer was 45, up 2 from January, and was the third month in a row below 50. Distributor inventories have nearly recovered from the pandemic and the “at-risk inventory” (inventory at risk of going out of code in the next 30 days) increased to 42 from 25.9 in December.
Oat milk popularity continues to grow (STKL)
According to LikeFolio, consumer mentions of buying and consuming oat milk are up 46% YOY over a 90 day moving average. That compares to a 4% increase for soy milk, 2% increase for coconut milk, and 1% decrease for almond milk. Oat milk mentions have surpassed almond milk in the past month, as seen in the following chart.
Oatly is driving the increase in oat milk mentions. The combination of its Super Bowl commercial and the launch of Oatly in Starbucks cafes on March 2nd has driven an 84% YOY growth in Oatly mentions. The media coverage of the IPO will further add to consumer demand for Oatly and oat milk. As strong as consumer demand for Oatly is, its POS sales in the most recent 13 week period are close to Planet Oat’s sales. Oatly’s growth will likely help the broader oat category due to its premium price and inventory tightness. SunOpta supplies Planet Oat.
