How are beer prices faring compared to food in this inflationary environment? How did the pandemic affect consumption? Is on-premise consumption back to pre-pandemic levels?
Danelle Kosmal, VP of research for the Beer Institute; Jon Berg, VP alcohol industry thought leadership at NielsenIQ; and Danny Brager from 3 Tier Beverages provided a reality check with context on the state of the beverage alcohol industry during the Brewbound Live business conference last month.
The trio looked at consumer shifts to economy offerings, which segment is benefiting from lost hard seltzer volume and more.
Along recent trend lines, Berg noted that within NielsenIQ’s data set, below premium offerings are beginning to “have a real moment.” Kosmal offered that the economy segment’s volume share is holding steady. She added that the economy segment will be a factor in purchasing decisions over the next six-to-12 months.
Berg also noted that more than 50% of the hard seltzer segment’s losses have shifted and benefitted domestic light beer and there’s a misconception that it’s moving to spirits-based ready-to-drink canned cocktails.
“Maybe the product life cycle for them is a little bit shorter than it is for others,” Berg said. “So you’re going to go elsewhere in your own selection set. When you do that, one of [the] first stops you’ll probably make is something you might have put on the shelf for a little bit or left in the refrigerator for a little bit, and then you might come back to it.”
Citing 52-week NielsenIQ off-premise data through November 5, Brager noted that there’s “an enormous difference” between the dollar sales of hard seltzers ($4.3 billion), flavored malt beverages ($3.8 billion) and RTD spirits ($1.1 billion).
On RTDs, Kosmal added that survey data shows that most consumers don’t know what encompasses RTDs. She added that it’s up to the industry to educate consumers.
The three dive into craft beer growth brands, robust growth for cider brands, top hard kombucha brand trends, wellness and moderation trends such as taking an alcohol break, non-alcoholic beverage trends and several other insights. Watch the full presentation above.