Constellation Brands overtook Molson Coors as the No. 2 beer category vendor by dollar sales in multi-outlet grocery and convenience stores (MULO+C) in 2023, according to market research firm Circana, which shared its year-end report.
Constellation – whose portfolio includes Modelo, Corona and Pacifico – grew off-premise dollars by $1.092 billion to $8.446 billion through December 31. The +14.9% increase was enough to best Molson Coors’ year-end dollar sales performance by $11.7 million.
Molson Coors also had a strong year, increasing dollar sales +11.2% ($852 million), to $8.434 billion. Both companies grew volume in major off-premise channels, Constellation by +11.1% and Molson Coors by +6.9%.
Constellation leaders were expecting Modelo to overtake Anheuser-Busch InBev’s (A-B) Bud Light as the best selling beer in the country even before the massive shift in consumer spending away from Bud Light following calls for boycotts from Kid Rock and other conservative influencers. That sea change – which began after Bud Light partnered with Dylan Mulvaney, a transgender woman and social media influencer, in April 2023 – has had profound effects on the beer category, and Constellation and Molson Coors have benefited the most.
A-B remains the category’s largest vendor with 32.08% of all beer category dollars, but it has lost -3.8% in dollar share, 3.38% of which went to Constellation and Molson Coors. Constellation’s share increased +1.96%, to 18.44%, narrowly beating out Molson Coors, which increased its share +1.42%, to 18.41%.
The total beer category recorded a +2.6% increase in dollar sales, to $45.8 billion, in MULO+C stores. Volume declined -1.7%, to 1.53 billion cases.
In the convenience channel, the category’s dollar sales grew +5.2%, to $25.92 billion. Volume declined -0.4%, to 818.7 million cases.
Constellation was also the No. 2 vendor in the convenience channel, where it increased dollar sales +17.5%, to $5.616 billion, volume +13.4%, and share +2.28%, to 21.67%.
The share gap between Constellation and Molson Coors was wider in c-stores, where Molson Coors holds 17.26% of sales, an increase of +1.28%. In the channel, Molson Coors grew dollar sales +13.6%, to $4.472 billion, and increased volume +8.4%.
However, Molson Coors is larger than Constellation in grocery stores, where it remains the No. 2 vendor. Molson Coors increased share +1.49% in the channel, to 19.65%. The brewer grew grocery dollar sales +6.9%, to $2.599 billion, and volume +3.4%.
In grocery stores, Constellation increased dollar sales +10%, to $1.729 billion, and volume +7.7%. Constellation gained +1.49% in share, finishing the year at 12.99% of beer dollars in the grocery channel.
Total beer recorded a -1.2% decline in dollar sales in the grocery channel, to $13.2 billion. Volume declined -4.4%, to 449.8 million cases.
A-B suffered its biggest dollar losses in grocery stores, where its dollar sales declined -11.3%, to $3.464 billion, and volume declined -13.4%. A-B’s share declined -2.97% in the channel, which was less than the -4.62% of share it lost in c-stores. The company’s c-store dollar sales declined -7.4%, to $8.844 billion, and its volume in the channel declined -11%.
Outside the three largest beer category vendors, No. 4 Mark Anthony Brands (White Claw, Mike’s Hard Lemonade, Cayman Jack) grew dollar sales +3.7%, to $3.009 billion, in MULO+C. The company’s volume declined -1.1%, and its share was roughly flat, increasing +0.07%, to 6.57%.
No. 5 Boston Beer (Twisted Tea, Truly Hard Seltzer, Angry Orchard, Samuel Adams, Dogfish Head) increased dollar sales +0.4%, to $2.427 billion, but recorded losses in volume (-3.9%) and share (-0.12%, to 5.3% of the category). The convenience channel, where Boston Beer’s largest brand Twisted Tea is strongest, delivered a +9.2% increase in dollar sales, offset by an -8.3% decline in grocery dollar sales.
At No. 6, Heineken was the last major beer category vendor to cross the billion-dollar mark in MULO+C stores. The Dutch brewery – whose portfolio includes Heineken, Amstel, Dos Equis, Tecate and Red Stripe – increased dollar sales +2.2%, to $1.549 billion. Its share of the category was flat, -0.01%, to 3.38% of dollars. Heineken volume declined -1.6%. C-stores drove Heineken’s gains; the company’s dollar sales in the channel increased +3.9%, compared to roughly flat (+0.4%) dollar sales in the grocery channel.
Diageo (Guinness, Smirnoff Ice, Lone River), the seventh largest beer category vendor, increased dollar sales +1.8%, to $764.6 million, in MULO+C stores. The company’s volume declined -2.1%, and its share was flat, -0.01%, to 1.76% of the category.
Kirin-Lion, the U.S. umbrella parent company of New Belgium and Bell’s Brewery, recorded +18.3% dollar sales growth, to $637.7 million, increased share +0.18% to 1.39% of the category, MULO+C stores. New Belgium’s Voodoo Ranger family drove much of the company’s gains in the convenience channel, where Kirin-Lion grew in dollar sales (+34.9%), share (+0.26%) and volume (+29.6%).
In addition to Constellation, Molson Coors and Kirin-Lion, seven other vendors in the top 25 recorded positive dollar sales and volume in MULO+C stores in 2023:
- No. 9 Pabst – +7.7% in dollars, +6.8% in volume;
- No. 10 D.G. Yuengling & Son, Inc. – +26.2% in dollars, +22.6% in volume;
- No. 13 Geloso Beverage Group – +17.1% in dollars, +16.5% in volume;
- No. 15 Phusion Projects – +13.1% in dollars, +7.9% in volume;
- No. 18 Sazerac – +22.9% in dollars, +18.1% in volume;
- No. 19 Artisanal Brewing Ventures – +5.7% in dollars, +3.8% in volume;
- And No. 25 Athletic Brewing – +112.3% in dollars, +111.7% in volume.
Nine companies recorded declines in both dollars and volume:
- No. 1 A-B – -8.2% in dollars, -11.2% in volume;
- No. 11 FIFCO USA – -0.6% in dollars, -4% in volume;
- No. 14 Tilray – -6.3% in dollars, -8.3% in volume;
- No. 16 Lagunitas – -9.4% in dollars, -13% in volume;
- No. 17 Gambrinus – -1.4% in dollars, -4.6% in volume;
- No. 21 Firestone Walker – -7.5% in dollars, -10.6% in volume;
- No. 22 Sapporo USA – -0.1% in dollars, -0.8% in volume;
- No. 20 Mahou USA – -1.7% in dollars, -6% in volume;
- No. 24 CANarchy – -8.4% in dollars, -11.8% in volume.
Five companies increased dollar sales but declined in volume:
- No. 4 Mark Anthony Brands – +1.8% in dollars, -1.1% in volume;
- No. 5 Boston Beer – +0.4% in dollars, -3.9% in volume;
- No. 6 Heineken – +2.2% in dollars, -1.6% in volume;
- No. 7 Diageo – +1.8% in dollars, -2.1% in volume;
- No. 12 Sierra Nevada – +1.8% in dollars, -2.6% in volume.
Monster, which owns CANarchy but launched its own bev-alc brand The Beast Unleashed in 2023, was the only new player in the top 25 at No. 23. Its dollar sales reached $100.3 million in MULO+C stores, accounting for 0.22% of beer category dollars.
Within grocery stores, Sazerac, Geloso and Phusion fell out of the top 25, making room for two major craft producers to crack the list: No. 22 Deschutes Brewery (-8.1% in dollar sales, to $37.2 million; -13.7% in volume) and No. 25 Great Lakes Brewing (-1.1% in dollar sales, to $22.5 million; -2.4% in volume). The assorted segment was the 23rd largest vendor in grocery (-19.8% in dollar sales, to $26.5 million; -23% in volume).
In the convenience channel, AriZona Beverages USA, producer of AriZona Hard Iced Tea, landed at the No. 24 spot. The brand is cycling its U.S. launch and recorded dollar sales growth of +11,205.4%, to $22.3 million, accounting for 0.09% of beer category dollars in c-stores.