RTD Sales (Including Hard Seltzers) Near $9 Billion in IRI-Tracked Channels
IRI-defined ready-to-drink alcoholic beverages (RTDs) have recorded nearly $9 billion in sales over the last 52 weeks (ending June 5) in IRI tracked off-premise channels (multi-outlet plus convenience), according to the market research firm.
IRI’s definition of RTDs includes: hard seltzers (including malt-, wine- and spirits-based hard seltzers); flavored adult beverages or FABs (including hard lemonade/hard tea, hard soda, hard kombucha, coolers, frozen and spritzers); and premixed cocktails.
Dollar sales for the segment have increased +6.2% year-over-year (YOY) in the 52-week period, led by single-serve premixed cocktails – such as BuzzBallz and Crown Royal canned cocktails – increasing +64.1% YOY with an additional $193 million in sales, and spirits-based hard seltzers – such as E. & J. Gallo’s High Noon Sun Sips and Anheuser-Busch InBev’s (A-B’s) Cutwater Spirits – increasing +132.6% YOY with an additional $130 million in sales.
Malt-based hard seltzers – the largest RTD subsegment by dollar sales and UPCs – were nearly flat in the period (+0.2%) with more than $4.4 billion in sales across 1,275 UPCs. Single-serve premixed cocktails accounted for the second largest number of UPCs (1,022), which recorded nearly $500 million in sales in the period.
Hard Lemonade/hard tea, such as Mark Anthony Brands’ Mike’s Hard and Boston Beer Company’s Twisted Tea, accounted for the third-largest amount of dollar sales, after “other FAB,” with nearly $1.3 billion in dollar sales across 300 UPCs.
Hard soda recorded the largest decline in dollar sales in the period (-$15.8 million), decreasing -53% YOY, followed by spiritzers (-$12.8 million, -27.9% YOY), wine-based hard seltzer (-$5.2 million, -35.1% YOY) and frozen FAB (-$4.4 million, -6.3% YOY).
In the latest week (ending June 5), spirits were flat in IRI-tracked channels. Leading suppliers in the category for the week include RTD-makers BuzzBallz (+53.2% versus the week before), A-B (+44%) and Gallo (+36%). Brands with significant increases in dollar sales in the segment include High Noon (+91.8%), BuzzBallz (+53.8%), Fireball (+21.7%), Diageo’s Don Julio (+10.8%) and Tito’s (+4.1%).
Beer sales in IRI-tracked channels declined -1.4% in the week, despite gains from New Belgium Brewing and Bell’s parent company Lion Little World Beverages (+11.5%), Geloso Beverage Group (+10.9%), Yuengling (+10.5%) and Constellation Brands (+8%). Brands with leading sales increases over the week included Twisted Tea (+33%), New Belgium (+22.7%), Modelo (+17.9%), Busch Beer (+8.7%), and Michelob (+7.2%).
CGA: Father’s Day Expected to Boost On-Premise Again
The on-premise channel is expected to get a “welcome boost” from Father’s Day this Sunday (June 19), according to market research firm CGA.
The holiday is traditionally the biggest Sunday of the year for beer sales (+51% last year compared to an average Sunday in 2021), led by craft beers, and the third biggest Sunday for spirits (+33%), according to CGA.
While the holiday is “primarily an eating-led occasion,” drink-led on-premise establishments still recorded a +27% increase in sales velocity during the holiday in 2021 compared to an average Sunday for the year. Sales velocity for all on-premise establishments increased +60% last year versus an average Sunday, while traffic increased +33% and check value increased +20%.
The holiday follows a strong Memorial Day, in which national sales velocity increased +30%, driven by a +26% increase in traffic. All key states observed recorded double-digit velocity increases on the holiday versus the Monday before, led by California (+45% vs. the states average velocity for 2022).
In the most recent week reported (ending June 4), on-premise sales velocity declined -4% versus the previous week (ending May 28). However, velocity remained above 2021 numbers, increasing +5% nationally year-over-year in the week ending June 4, led by Illinois (+20%), New York (+16%) and California (+12%). Velocity is up +25% in the last 12 weeks ending June 4 compared to the same period in 2021.
In a recent Father’s Day Consumer Survey Report, data firm Numerator reported that the majority of respondents planning to buy alcoholic beverages said they would buy beer (75%), followed by spirits (38%), wine (33%) and hard seltzers (23%).
95% of Consumers Report Financial Impact from Inflation, Despite Some Improvement in June
The majority of consumers (95%) in a recent Numerator survey said their finances have been impacted by inflation, the company reported in its New Realities and Routines study, published Wednesday.
Numerator surveyed more than 10,000 consumers between April 8 and April 14, analyzing financial impacts and workplace habits.
Two-in-five respondents (40%) said they expect inflation to worsen over the next few months. That number increases to 69% when counting responses solely from consumers who identify as “struggling” (about 32% of respondents). Still, the majority of respondents (55%) reported a “somewhat or very positive” outlook for the future.
Consumers are responding to the increased financial strain by cutting back on non-essential spend (66%), stocking up on sale items (51%) and searching for coupons and promotions (50%). Dining out is the most popular expense consumers said they were cutting back on (59%), followed by non-essential food purchases (57%), apparel (54%), recreational activities (48%) and travel (42%).
Financial concerns may have improved somewhat since the survey, according to a more recent report from the financial services firm, Jefferies.
In its June consumer inflation survey, published Wednesday, Jefferies reported that 37% of respondents felt less confident about their finances this month than the previous month, compared to 53% in April. About a quarter of respondents (25%) said they feel more or much more confident about their finances this month, compared to about 17% in April.
Still, the majority of respondents (about 80%) expect prices to increase over the next 12 months, compared to about 70% of respondents in April. Gasoline was the largest area of concern for consumers (>80%), followed by groceries (about 70%), restaurants and rent (about 25%).