Craft finished Q1 with dollar sales nearly flat year-over-year (YoY), declining -0.3% in NIQ-tracked off-premise channels (total xAOC + liquor plus + convenience) through March 30, Bump Williams Consulting (BWC) reported in its first quarterly craft report for 2024.
While not quite in the green, craft had the smallest decline of all beer segments, in a quarter when only three segments recorded growth: imports (+6.8% YoY), flavored malt beverages (+11.3%) and non-alcoholic (NA) beer (+32.5%). Craft also outperformed total beer, which recorded a -1.2% decline in dollar sales in the quarter.
Craft recorded growth in grocery – a channel that the segment has struggled with recently – posting a +1% increase in dollar sales YoY, on-par with total beer trends (+1.1%). In convenience, the strongest channel for craft, the segment increased dollar sales +1%, well above total beer (-3%).
Craft took the biggest hit in liquor plus, where dollar sales declined -5.4%. Total beer recorded a -2.3% decline in the channel.
Craft trends also appear to be improving, with dollar sales declining -0.2% YoY in the last 13 weeks, and increasing +0.9% in the last four weeks. Total beer dollar sales declined -1.2% in the 13-week period and increased +1.2% in the four-week period.
Craft share of total beer dollar sales in total NIQ-tracked off-premise channels increased +0.1 share points versus Q1 2023, to 11.8%. The segment had the third largest increase in share behind imports (+1.8 points, to 23.7%) and FMBs (+1.1 points, to 9.6%). All other segments, excluding NA offerings, were flat or lost share.
In grocery, craft share was flat, holding 20.9% share of total beer dollars in the channel. Two share points now separate craft from domestic premiums as the No. 1 segment in grocery, after the latter lost -0.9 share points, to 22.9% share. Share growth was recorded by imports (+1.6 points, to 20.5%), FMBs (+0.7 points, to 6.9%) and below premium (+0.1 points, to 9.6%).
In c-stores, craft share increased +0.3 points YoY, to 6.4%, recording the third largest share growth behind imports (+2.1 points, to 25.6%) and FMBs (+1.4%, to 11.9%). All other beer segments were flat or in decline: domestic premium -3.4 points, to 25%; below premium -0.5 points, to 13.2%; domestic super premium -0.4 points, to 9.9%; hard seltzer -0.4 points, to 5.9%; cider flat, at 0.6%; and malt liquor flat, at 3.4%.
BWC also analyzed craft trends based on brand distribution size. National brands, which include brands with a national category weighted distribution (CWD) of 40% or more, such as Kirin-owned New Belgium and Molson Coors’ Blue Moon, increased dollar sales +4% versus 2023, +3.2% versus 2022 and +1.4% versus 2021. National brands drove craft growth, with the largest percentage gains versus prior years and second largest dollar sales contribution.
Regional brands, which include brands with more than 15% national CWD, such as Founders, Elysian and Leinenkugel’s, contributed the lowest amount of dollar sales. They increased dollar sales +0.4% versus 2023 and +0.8% versus 2022, but declined -5.4% versus 2021.
“Other,” which accounted for the majority of dollar sales in the segment, drove declines, with dollar sales declining -3.5% versus 2023, -2.7% versus 2022 and -7.1% versus 2021.
Zooming in on regional divisions and craft trends within xAOC channels (craft dollar sales +0.4%, with 16.3% share of beer), craft recorded dollar sales gains in the Mountain region (dollar sales +1.4%, holding 18% share of total beer in the region); East North Central (dollar sales +1.6%, 18.1% share); Mid-Atlantic (dollar sales +0.04%, 21.3% share); and New England (dollar sales +4.5%, 31.4% share).
Craft recorded dollar sales declines in the Pacific (-1%, 22.9% share of total beer in the region); West North Central (-0.3%, 13.8% share); and South Atlantic (-0.2%, 13.9% share).
New Belgium Passes Molson Coors as No. 1 Craft Vendor
Kirin-owned New Belgium Brewing was the No.1 craft vendor in NIQ-tracked channels, passing Molson Coors and increasing dollar sales (+14.6%) and volume (+11.8%) YTD. The Fort Collins, Colorado-headquartered craft brewery increased its share of total craft dollars +1.3 points YTD, to 10.3%.
As a beer vendor, Molson Coors increased dollar sales of its brands +7.2% and volume +5.3%. However, when including only its craft brands, Molson Coors dollar sales declined -6.6% and volume declined -8.9%. Molson Coors craft brands also recorded a loss of -2.8 weighted distribution points YoY, and a -0.6 point decline in share of craft dollars, to 8.5% share.
Other top craft vendors in the green through Q1 include:
- No. 4 Sierra Nevada (dollar sales +3%, volume -0.4%, craft dollar share +0.2 points, to 6.7%);
- No. 8 Gambrinus (dollar sales +0.8%, volume -0.5%, dollar share flat, at 2.3%);
- No. 9 Athletic (dollar sales +66.7%, volume +71.2%, dollar share +0.9 points, to 2.2%);
- No. 10 Firestone Walker (dollar sales +1.3%, volume flat, share flat, at 2.2%);
- No. 11 Mahou USA-owned Founders (dollar sales +1.6%, volume -1.4%, share flat, at 2.1%);
- No. 12 Kirin-owned Bell’s Brewery (dollar sales +6.9%, volume +5.6%, share +0.1 points, to 1.9%).
The rest of the Top 15 were in the red, including:
- No. 3 Anheuser-Busch InBev (dollar sales -3.1%, volume -4.6%, share -0.2 points, to 8.1%);
- No. 5 Boston Beer Company (dollar sales -2.6%, volume -6.2%, share -0.1 points, to 4.4%);
- No. 6 Tilray Brands (dollar sales -8.3%, volume -8.2%, share -0.3, to 3.5%);
- No. 7 Heineken (dollar sales -2.9%, volume -5.4%, share -0.1 points, to 3.3%);
- No. 13 Monster Brewing (dollar sales -9.7%, volume -11%, share -0.2 points, to 1.8%);
- No. 14 Stone Brewing (dollar sales -9%, volume -10.7%, share -0.1 points, to 1.5%)
- No. 15 Artisanal Brewing Ventures (dollar sales -5.9%, volume -4.7%, share -0.1 points, to 1.5%).
New Belgium was also the No. 1 craft family by dollar sales, and had the highest average number of items per shelf (6.1).
Other top craft brands with double-digit dollar sales growth include No. 7 Athletic (above), No. 13 A-B’s Kona (+12.1%), No. 20 New Glarus (+11.9%) and No. 22 Tilray-owned 10 Barrel (+11.5%).
Nearly all Top 15 craft families recorded declines in CWD YoY, except for Athletic (+8.1 points, to 31.1%); Bell’s (+1.4 points, to 25.9%); A-B-owned Goose Island (+1 point, to 39.9%) and Kona (+4.2 points, to 43%).
Among the top 25 craft brands, dollar sales growth was recorded by seven:
- New Belgium’s Voodoo Ranger Imperial (dollar sales +1.9%, volume -0.4%);
- Voodoo Ranger Juice Force (dollar sales +72.7%, volume +76.4%);
- Kona Big Wave (dollar sales +29.7%, volume +32.6%);
- Voodoo Ranger Fruit Force (dollar sales +47.7%, volume +45.7%);
- Athletic’s Run Wild IPA (dollar sales +58.4%, volume +62.7%);
- Athletic’s Upside Dawn (dollar sales +66.4%, volume +71.4%);
- Goose Island’s Tropical Hug (dollar sales +39.2%, volume +34.9%).
Double-digit declines were recorded by Voodoo Ranger Juicy Haze (dollar sales -18.5%, volume -19.3%) and Molson Coors’ Blue Moon Light Sky, which was recently rebranded as Blue Moon Light (dollar sales -19%, volume -20.5%).
NA Offerings Dominating Growth and New Brands
The top 25 growth brands (incremental dollar sales growth) in the quarter included six NA offerings: No. 2 Athletic’s Run Wild IPA; No. 5 Athletic’s Upside Dawn; No. 6 Athletic’s Free Wave; No. 10 Samuel Adams’ Just the Haze; No. 21 Athletic’s Cerveza NA; and No. 25 Lagunitas’ Hoppy Refresher.
Four NA brands also made the list of top 25 new craft brands, three of which were Sierra Nevada brands: No. 2 Blue Moon Non-Alcoholic Belgian White; No. 4 Sierra Nevada Non-Alcoholic Trail Pass IPA; Sierra Nevada Non-Alcoholic Trail Pass Golden; and No. 25 Sierra Nevada Hop Splash Citrus hop water.
Two other Sierra Nevada brands made the top 25 new brands list: No. 3 Juicy Little Thing IPA and No. 20 IPA variety pack.