Off-premise dollar sales of craft beer have declined -7.4% for the first half of 2022 compared to last year, according to NielsenIQ data analyzed by Bump Williams Consulting (BWC).
“Rate of decline has slowed a bit in Q2 (-6.4%) vs. Q1 (-8.5%), but the fact of the matter is that sales overall remain in the red, while several other segments have started to show signs of life,” BWC wrote.
BWC’s analysis tracks with the report Brewers Association (BA) chief economist Bart Watson published earlier this week that found craft beer declined -7.7% year-to-date through June 12. However, BWC’s data set runs through July 2, indicating that craft sales got a boost in the second half of June and the days leading up to July 4.
Within craft, only three of the segment’s top 20 styles are “experiencing any degree” of year-over-year dollar sales gains, BWC wrote. Craft’s top two growth segments are hazy imperial IPAs and traditional imperial IPAs, indicating that “ABVs are in demand.”
Dollar sales of imperial/double/triple IPAs increased +6.7% year-to-date through July 2, to $233.8 million in sales at off-premise grocery, convenience and liquor stores. The style gained +0.4% in craft dollar share.
Hazy imperial/double/triple IPAs dollar sales more than doubled, increasing +128.7% to $33.3 million, and gained +0.7% in craft dollar share.
Overall, IPAs accounted for 46% of craft dollar share, increasing share +1.8%, far outpacing any other craft style. Wheat ale, the second-largest craft style behind IPA, gained +0.2% share, increasing to 11% of craft dollars. The “other ale” style, in which BWC includes blonde ales and golden ales, increased +0.1% share, to 5% of craft dollars. Seasonal beers – the fourth-largest craft style behind No. 1 IPA, No. 2 wheat and No. 3 lager (9%) – lost -0.6% share, declining to 8% share of craft dollars.
American wheat ale was the only other craft style to grow its dollar sales after hazy and traditional imperial/double/triple IPAs. Dollar sales of the style increased +0.8%, to $71.3 million.
The only craft segment vendor to record dollar sales growth was Lion-owned New Belgium, which posted +14.8% growth year-to-date through July 2. The company also increased its dollar share within craft, adding +1.4% share for a total of 7.4%, making it the second-largest vendor in the segment, behind only Molson Coors (11.1% share of craft dollars), which is the parent company of Blue Moon Belgian White, the top craft brand in scan data.
Canal Street Brewing Co. (Founders) posted the steepest decline in dollar sales for the first half of the year, -15.3%, followed by Bell’s Brewery (-11.4%), Deschutes (-11%), Boston Beer (Samuel Adams and Dogfish Head, -10.4%), and Heineken (Lagunitas, -10.1%).
Of the top 25 craft brand families, non-alcoholic craft brewer Athletic Brewing posted the highest growth (+110.2%), followed by Anheuser-Busch InBev-owned Wicked Weed (+20%), New Belgium (+14.8%) and A-B’s Goose Island (+1.6%). All other craft brand families in the top 25 declined in dollar sales.
Beyond the top 25, Shelburne, Vermont-based Fiddlehead Brewing was the third-largest craft growth leader, increasing dollar sales +75.1%, behind New Belgium and Athletic. Bend, Oregon-based Boneyard, which Deschutes acquired last year, increased dollar sales +59.8%.
The craft segment’s biggest loss leader was A-B’s Shock Top, which saw its dollar sales decline -23.1%, followed by A-B’s Elysian (-9.9%), Molson Coors-owned Leinenekugel’s (-8.7%), Boston Beer-owned Dogfish Head (-18.4%) and Gambrinus-owned Shiner (-9%).