Anyone who chose Sovereignty to win this year’s Kentucky Derby walked away pretty happy earlier this month, but the bev-alc industry was not so lucky, according to BeerBoard, an on-premise data firm.
For the extended weekend of Friday, May 2 (Derby Day) to Monday, May 5 (Cinco de Mayo), total bev-alc on-premise sales fell 7.3% versus the same event period in 2024 (May 3-6).
Packaged beer and spirits were hit the hardest year-over-year (YoY), while imported draft beer, ready-to-drink cocktails (RTDs) and adult non-alcoholic (ANA) offerings were able to buck trends, highlighting “key shifts in consumer preferences,” BeerBoard reported.
Total draft beer volume declined 1.6% YoY. However, Mexican import draft volume, measured in poured kegs, grew 4.3%, and increased its share 6% YoY.
Riding the wave was Constellation Brands’ Modelo Especial, which was the No. 2 largest beer brand on draft for the weekend. The import rose from No. 4 in 2023, boosted by a 9.5% increase in poured kegs and 11.5% increase in volume share.
Anheuser-Busch InBev’s (A-B) Michelob Ultra was the No. 1 draft beer offering, with Molson Coors’ Coors Light and Miller Lite landing at No. 3 and No. 4, followed by A-B’s Bud Light.
Despite imports’ growth, lagers, including Mexican lagers, recorded a 0.2% decline in kegs poured. Volume share increased 1.5%. The largest YoY growth was recorded by American ales (poured kegs +38%, volume share +40.1%), while the No. 1 draft style, light lagers, was about flat (poured kegs -0.7%, volume share +0.9%).
Packaged beer had a less sunny weekend, with overall volume falling 17% YoY. Domestic packaged beer volume, measured in units sold, fell 15.5%, despite volume share of packaged beer growing 1.8%. However, the No. 1 packaged style’s losses were outpaced by imported beer (volume -20.3%, volume share -4%).
Packaged craft volume declined 13%, while packaged beer volume share increased 4.9%.
Beyond beer offerings, including RTDs, hard seltzers and ANA, recorded a 14.1% increase in total on-premise volume share. Volume growth was led by ANA (volume +19.6%, volume share +38.6%), followed by RTDs (volume +6.3%, volume share +28.5%).
Hard seltzer volume declined 17.5%, while volume share was nearly flat (-0.8%). Some individual brands were able to find growth, including Mark Anthony Brands’ White Claw Black Cherry (volume share +9%).
BeerBoard also called out positive brand performances by Heineken 0.0 (volume +4.4%, volume share +25.6%) and Surfside Iced Tea + Lemonade (volume +3.8%, volume share +23.4%).
Spirits was hit the hardest by lackluster YoY trends, with sales declining 17.5%. Despite Cinco de Mayo, spirits’ heavy hitter tequila recorded a 26% decline in volume and 11% drop in spirits volume share, “indicating few but higher-value pours,” BeerBoard wrote.
Bourbon, which has been tackling declines, increased volume 6.2% YoY, while volume share was up 28%, “suggesting a focus on premium pours.” The spirit was likely boosted by its inclusion in Mint Juleps, the signature cocktail of the Kentucky Derby.