Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
Mexican beer imports decelerate
Total beverage alcohol imports declined 5% over the last twelve months ended February and increased 2% over the last three months.
34% of all beverage alcohol imports came from Mexico over the last twelve months.
- Imported beer remained flat by volume and up 2% by value over the last twelve months. Over the last three months, beer imports grew 11% by volume and 13% by value, decelerating from 22% growth in volume and 23% by value in the previous three months. 72% of imported beer by value comes from Mexico. Constellation Brands imports have slowed as inventory levels at distributors have returned to normal levels.
- For the last twelve months, imported packaged spirits grew 3% by volume and declined 6% by value. Over the last three months, volumes grew 10%, and value grew by 5%.
- For the last twelve months, import packaged wine grew 8% by volume and declined 11% by value. Over the last three months, volumes grew 1% and declined 8% by value. 35% of all imported packaged wine by value arrived from Italy.
Premiumization trend in beer continues
The highest-priced segments in the beer category, craft, imports, super premiums, flavored malt beverages (tier 3 in the chart below) have risen from less than 10% of beer sales in 1950 to 50% in 2020.
Craft beer is a key beneficiary of this trend.
Premium and premium light beer (tier 2) had been the dominant group from 1975 to 2015. The lowest-priced tier (tier 1), consisting of value brands and older regional offerings, accounted for more than 70% of beer sales from 1950-1965. In 2020 the lowest-priced tier accounted for less than 20% of beer sales.
Tier 1 and 3 were about equal in 2010, slightly higher than 25%, while tier 2 was slightly below 50%. Tier 1 has since slowed while tier 3 overtook tier 2 in 2017 with the introduction of hard seltzer. Constellation Brands is a beneficiary of the premiumization trend.