Craft Maintains ‘Moderate Growth’ through Q1 2021, Per Bump Williams

Off-premise dollar sales of craft beer have maintained a “moderate growth” rate through the first three months of 2021, as dollar sales increased 6%, to $1.3 billion, according to NielsenIQ data shared by Bump Williams Consulting.

Overall craft sales were slower than last year, but that’s not unexpected after consumers shifted their purchasing from the on-premise to the off-premise during the outset of the COVID-19 pandemic, leading to sales spikes as fridges were stocked — and re-stocked. For calendar year 2020, off-premise craft sales increased 14.7%, while overall beer category off-premise sales increased 15.2%, according to NielsenIQ.

Still, Bump noted that the craft segment performed “well above where” the segment finished 2019. Craft’s Q1 trends also varied by channel, with craft up +2.5% in AOC (which includes food/grocery, drug and mass merchandiser data), +2.7% in total U.S. food, and +16.8% in convenience.

The return to familiar brands narrative also seems to be coming to an end, as “mainstream” craft brands have slid back into the red, although overall declines are “fairly minor” at -0.5%, according to Bump.

Twelve of the 15 top-selling craft breweries posted year-over-year dollar gains, with Boston Beer (-2.9% dollar sales vs. 2020), Stone Brewing (-3.7%) and Deschutes Brewery (-1.9%) being the outliers, Bump reported.

Through the first three months of the year, New Belgium (+26.4% dollar sales vs. 2020) has leapfrogged Sierra Nevada (+9.2%) to become the third best-selling craft vendor, trailing just Blue Moon-maker Molson Coors and Anheuser-Busch.

Bump pointed out that so-called “traditional” IPAs lost share of craft (-0.7 points) for the first time “in recent memory.” Nevertheless, IPAs still account for 27.6% of total sales, and other IPA styles, such as imperial (+1 point) and hazy (+1.6 points), have gained share through Q1.

In fact, imperial/double/triple IPAs now account for 7.8% of craft’s dollar share, while hazy IPAs make up 7.5% share. They’re also the third and fourth largest styles now, trailing just IPA and seasonals (8.2% dollar share). Witbier/Belgian wheat rounded out the top five, with 7.1% dollar share (-0.8%).

Molson Coors’ Blue Moon Belgian White (-2.2% dollar sales versus 2020), remains the top-selling craft beer brand, followed by Sierra Nevada Pale Ale (+1.6%), New Belgium Voodoo Ranger Imperial IPA (+53.9%), Lagunitas IPA ( -2.8%), and Sierra Nevada Hazy Little Thing IPA (+30.1%).

Sierra Nevada Big Little Thing Imperial IPA led the list of top 10 new craft brands, followed by Firestone Walker 805 Cerveza, Sierra Nevada Dankful IPA, Lagunitas IPNA non-alcoholic beer, Mac & Jack’s African Amber Ale, Boneyard Beer RPM IPA (which was acquired by Deschutes earlier this year), SweetWater Hazy IPA, Cigar City Jai Low IPA, Deschutes Royal Fresh Imperial IPA and Great Lakes Hazecraft Juicy & Tropical IPA.

Two non-alcoholic beers, Lagunitas IPNA and Boston Beer’s Samuel Adams Just the Haze, both cracked the top 25 new brands, Bump noted.

As for packaging, 6-pack bottles (-5% sales versus 2020) remain the top-selling craft package format, although 6-pack cans (+14%) are closing the gap. Meanwhile, 12-pack cans (+28%) are also closing the gap on 12-pack bottles (-8%).

This year, through April 3, the total beer category (beer, FMBs and cider) is up 6.8%, to nearly $10.5 billion.