NielsenIQ alcoholic beverage update for the week ending June 5, 2021
Unless otherwise indicated, the data and information below is for Memorial Day weeks in 2021 (2 weeks ending June 5, 2021) compared to Memorial Day weeks in 2020 and 2019 (2 weeks ending May 30, 2020 and 2 weeks ending June 1, 2019) in NielsenIQ offsite channels.
The Total Fast-Moving Consumer Goods (FMCG) market had a relatively strong Memorial Day, with dollar sales up 1.4% from 2020 and 14% from 2019. Sales of off-site alcohol decreased for Memorial Day 2021 compared to 2020, which was expected given the return to on-site establishments. While Memorial Day is generally an offsite-centric party, this year was the first major party to take place after many CDC restrictions were lifted across the country, resulting in more eating and drinking opportunities on place than in previous years. That said, overall alcohol consumption still has an above-average trend toward offsite, which is evident in comparisons from two years ago, with total offsite alcohol dollars rising by. 17% compared to Memorial Day weeks in 2019.
On the spot
NielsenIQ partner CGA provided on-site Memorial Day highlights from their CGA Covid Impact Consumer Research Wave 21 and total sales data (BeverageTrak data as of 05/31/2021)
While Memorial Day may previously have been an off-site occasion, 44% of consumers said they plan to celebrate the holidays and 18% of those in bars or restaurants.
In the US, value velocity increased + 43% from the previous Monday in 2021, with trends of + 30pp higher than in 2019, where velocity was only up + 13% compared to the previous week. Compared to 2019, the value velocity is also 30% higher, with the average selling point hitting $ 10,825 (up from $ 8,302 in 2019). This is largely due to higher average check values, as while there was + 5% more banknotes during the day, the average value of checks rose from $ 35 to $ 43, an increase by + 24%.
Positive trends were also seen on Remembrance Day compared to the previous Monday in major states, with California (+ 58%) recording the best results – although this should be factored in with the competition they also received. the best results in 2019 (+ 28%). New York (+ 43%), Texas (+ 40%), Illinois (+ 39%) and Florida (+ 31%) also performed well from the previous Monday, with all states also up significantly compared to 2019, led by states that have historically been more open through COVID – Texas (+ 39% vs. 2019) and New York (+ 43%).
Beer / FMB / Cider / Seltzer
Memorial Day is the second biggest beer holiday of the year. In a sense, it sets the stage for the performance of the category for the rest of the summer, and is sometimes an indicator of which segments will perform strongly and which will fall behind in sales for months to come. Given the unique time periods for alcohol in 2020, any dollar growth comparisons to follow will be compared to Memorial Day weeks starting in 2019 (2 weeks ending 1/6/19).
Basic beer (excluding FMB, cider and seltzer) edged up in dollars compared to 2019, up 1.9%. The biggest winners in staple beer were imports, driven by Mexican import brands (+ 17.3%), super premium beers (+ 10.7%) and craft beers (+4.1 %). For this key festival of beer consumption, the biggest losses came from the lower premium (-11.4%), premium light (-5.3%) and premium regular (-4.8%) categories.
Most of the biggest gains in the category came from the ‘beyond beer’ segments, with the selts as the leader in the real dollar change, up 297% from 2019 and 10 sales. , 7% from Memorial Day 2020 sales. Around the same time last year, hard seltzers were reaching up to 10% of the category’s dollar share (9.8%). For Memorial Day 2021, hard seltzer has reached an almost 12% share, accounting for 11.7% of total offsite category dollars. To put that in perspective, this is the same dollar share for craft beer in NielsenIQ’s offsite channels for Memorial Day weeks. While hard seltzer sales have most certainly slowed down in recent months, it remains one of the few segments to exceed 2020 dollar sales, indicating that hard seltzer will once again be a staple for consumers. offsite drinking opportunities this summer.
Beyond beer, other segments that saw significant gains compared to 2019 include FMB (+ 4.3%), hard kombucha (+ 232%), and hard tea (+ 59%). Most of these segments also grew in dollars compared to last year’s sales, with the exception of FMB (-11.7%), but with strong growth in hard kombucha (+ 32.4%) and hard tea (+ 18.2%).
The top 5 brands in the category for the 2 weeks ending 5/6/21 were Bud Light, Modelo Especial, Mich Ultra, Coors Light and Corona Extra. All but one brands are behind on Memorial Day offsite sales of 2020. The fastest growing brand extensions for Memorial Day are a sea of seltzer, with 9 of the top 10 representing hard seltzer brands or flavor extensions launched this year. Twisted Tea is the only salt-free brand among the Top 10 Growth Brands.
For Memorial Day 2021, almost all categories of spirits are in decline compared to off-premises sales for Memorial Day 2020. However, compared to Memorial Day 2019, almost all categories of spirits are on the rise, and in most areas. two-digit case. Whiskey was the main overall contributor to the dollar’s growth, up 28%, followed by tequila, up 87%. Tequila even topped Memorial Day 2020 sales, up 3.9% from last year.
Ready-to-drink cocktails continue to soar, with sales up 496% from 2019 and 111% from 2020. RTD cocktails recorded the largest dollar share gains of all categories spirits for Memorial Day, up 2 share points from last year. . RTD spirits reached 3.7% of total spirits dollars for the two-week period, surpassing dollar sales of gin in NielsenIQ’s off-site channels.
For the two weeks ending 6/6/21, almost all wine segments are down from Memorial Day in 2020. But how does wine performance compare to Memorial Day in 2019? Compared to the 2 weeks ending 01/06/19 in the off-establishment circuits, the total of wines is up 14.3%, with sparkling wines leading the growth, up 38.6% and table wines up 7.1%. French champagne has been a major driver of growth, up 87% from 2019 and 23.9% from 2020. Remember that French champagne has started to increase its growth in dollars at the same period last year, therefore, we are starting to record strong growth rates compared to last year, and even, the segment continues to experience double-digit growth. (For Memorial Day last year, French champagne increased 51% over the previous year in off-establishment chains).
Wine-based cocktails continue to climb, up 47% from last year and 247% from 2 years ago. Other growth segments include flavored wine, up 16.4% from the previous year and 86% from 2 years ago, and non-alcoholic wine, although still very small, has nearly doubled in size over the past two years, up 88% from Memorial. Day 2019.
Since sales of almost all wine segments in off-premises channels are still far above norms, particularly compared to 2019, it is useful to look at the changes in shares to better understand which segments are performing the most. higher in wine. Compared to Memorial Day 2019, table wine lost 5.3 dollar share points, sparkling wine gained 2.0 share points (French champagne gained 1.2 points), flavored wine 1.2 points share and wine cocktails up 2.2 share points. All of the segments that gain share also tend to be segments that attract young consumers of legal drinking age. Longer term, this could be beneficial for the wine industry by engaging millennials and millennials through non-traditional wine segments like flavored wines and cocktails and then becoming table wine. .