CGA: On-Premise Beer Declines in Dollars and Volume, But Bright Spots Exist in Imports, Below Premiums

Beer sales at bars and restaurants have declined in both dollar sales (-0.7%) and volume (-5.7%) in the 12-month period through the end of January, according to NIQ’s on-premise data firm CGA.

Within beer, below premiums, imports and flavored malt beverages are outperforming the category – though all have recorded volume declines. Below premiums’ volume declined -1% year-over-year (YoY), followed by imports (-1.9%) and FMBs (-2%).

Matthew Crompton, CGA regional – North America, wrote: “Pressure on disposable incomes has made for a hypercompetitive beer category in recent months, but our research confirms there are still many opportunities for growth. The resilience of the below-premium segment indicates the importance of value at the moment, while interest in imports and styles like stout suggests some beer consumers are looking beyond tried-and-trusted domestic brands for new flavors.”

Cider recorded the steepest volume decline of the period (-11.9%), followed by hard seltzer (-9.5%), domestic premiums (-7.6%), domestic super premiums (-6.4%), and craft (-6.4%).

Five segments expanded total distribution points (TDP):

  • Imports – +7.8%;
  • Below premiums – +7.1%;
  • FMBs – +4.9%;
  • Craft – +3.5%;
  • Hard seltzer – +1.8%.

Only domestic premiums recorded an increase in volume per point of distribution (+1.3%).

Among the five substyles gaining the most share, only three recorded growth in both dollars and volume:

  • Domestic premium amber lagers – +9.6% in dollars, +6.4% in volume;
  • Imported stouts – +12.6% in dollars, +7.8% in volume;
  • Craft blonde and golden ales – +15.2% in dollars, +8.4% in volume.

Imported pale lagers gained the most share (+0.7 sharepoints), followed by below premium page lagers (+0.3 sharepoints), domestic premium amber lagers (+0.22 sharepoints), imported stouts (+0.2 sharepoints) and craft blonde and golden ales (+0.2 sharepoints).

Of these share gainers, only domestic premium amber lagers (likely bolstered by Yuengling Lager, which has expanded into new markets due to a joint venture with Molson Coors) recorded growth in all four metrics:

  • +9.6% in dollars;
  • +6.4% in volume;
  • +1% in TDP;
  • +5.4% in volume per point of distribution.

Five of 16 tracked states recorded dollar sales growth. Colorado, an established craft market, recorded dollar sales gains of +2.4%, followed by Florida (+1.3%), Pennsylvania (+1%), Texas (+0.1%) and Oregon (+0.1%).

California recorded the steepest dollar sales decline (-3.5%), followed by Louisiana (-3.3%), Illinois (-2.8%), Washington (-2.3%), Arizona (-2.2%), Nevada (-1.9%), Tennessee (-1.6%), North Carolina (-1%), New York (-0.3%), Georgia (-0.3%), and Ohio (-0.2%).