With two months left in 2020, beer category sales at off-premise retailers remain elevated, as on-premise establishments continue to grapple with capacity restrictions and, in some states and cities, on-site service shutdowns.
Year-to-date through November 1, beer category dollar sales are up 15.5%, to $37.4 billion, at off-premise multi-outlet grocery stores, mass retailers and convenience stores, according to market research firm IRI. However, the increased sales haven’t been spread evenly across all segments. And this report comes with the usual disclaimer: Off-premise beer category sales have not been able to make up for the loss of on-premise sales.
The flavored malt beverage (FMB) segment, which includes hard seltzers, accounted for roughly half of the added $5 billion in off-premise beer category sales so far this year.
FMB dollar sales have grown by $2.474 billion year-to-date, an increase of 72.5% over the same period last year. Total FMB dollar sales have reached $5.887 billion year-to-date. The segment’s dollar share has increased by 5.19 sharepoints, while the dollar share of the domestic premium (-3.21 sharepoints) and sub-premium (-1.82 sharepoints) have both declined. All other segments’ dollar shares were roughly flat by comparison.
Although domestic premiums’ dollar share declined, the segment’s dollar sales increased 4.1% year-to-date. Most beer category segments’ dollar sales increases have lagged behind the overall category (+15.5%) to varying degrees: craft (+14.6%), imports (+13.2%), cider (+11%) and domestic sub-premiums (+1%). The only segment to post declines in dollar sales was assorted packs (-12.5%).
Three segments have outpaced the beer category: FMBs (+72.5%), domestic super premiums (+20.1%) and non-alcoholic beer (+38.9%).
The domestic super premium segment’s increases are due to the rise of Anheuser-Busch InBev’s Michelob Ultra, now the No. 2 selling beer nationwide, according to IRI. Michelob Ultra’s off-premise dollar sales have increased 23.7% year-to-date, to $2.372 billion. The Michelob brand family gained 0.43 dollar sharepoints to reach 7.14.
The top 10 brand families year-to-date include:
- Bud brand family, dollar sales increased 2.3%, to $6.164 billion;
- Michelob brand family, dollar sales increased 22.8%, to $2.677 billion;
- Modelo brand family, dollar sales increased 20.8%, to $2.477 billion;
- Corona brand family, dollar sales increased 9.7%, to $2.385 billion;
- Coors brand family, dollar sales increased 6.4%, to $2.301 billion;
- Miller Lite brand family, dollar sales increased 8.9%, to $1.9 billion;
- White Claw brand family, dollar sales increased 153.6%, to $1.713 billion;
- Busch brand family, dollar sales increased 9.5%, to $1.453 billion;
- Natural brand family, dollar sales increased 0.6%, to $1.239 billion;
- Truly brand family, dollar sales increased 154.5%, to $793 million.
The three brand families recording the largest dollar share gains were Mark Anthony Brands’ White Claw Hard Seltzer (+2.49 sharepoints), Boston Beer’s Truly Hard Seltzer (+1.16 sharepoints) and A-B’s Bud Light Seltzer (+0.83 sharepoints). The Bud brand family posted the largest dollar share loss (-2.12 sharepoints), followed by the Coors brand family (-0.53 sharepoints) and the Natural brand family (-0.49 sharepoints).
In the craft segment, year-to-date dollar share among the top 30 brands has been more stable, with the largest share gains going to Molson Coors’ Blue Moon Light Sky (+0.94 sharepoints), Sierra Nevada Hazy Little Thing IPA (+0.65 sharepoints) and New Belgium Voodoo Ranger Imperial IPA (+0.64 sharepoints).
Blue Moon Light Sky, which launched in February as a “better for you” alternative to Blue Moon Belgian White, is the only new product in the top 30 craft brands in off-premise multi-outlet and convenience stores, with $40.5 million in dollar sales year-to-date through November 1. Its sister brand, Blue Moon Belgian White, is the No. 1 craft brand at off-premise retail with $259.8 million in sales year-to-date, an increase of 10.6% over the same period in 2019.
The top 10 craft brands include a mix of flagships and popular innovation styles from established brands:
- Blue Moon Belgian White, dollar sales increased 10.6%, to $259.8 million;
- Sierra Nevada Pale Ale, dollar sales increased 7.1%, to $96.2 million;
- Lagunitas IPA, dollar sales increased 18.6%, to $89.2 million;
- Samuel Adams Seasonal, dollar sales increased 9.5%, to $89 million;
- Leinenkugel’s Shandy Seasonal, dollar sales increased 8.5%, to $86.3 million;
- Shiner Bock, dollar sales increased 167%, to $84.8 million;
- Sierra Nevada Hazy Little Thing IPA, dollar sales increased 77.7%, to $79.5 million;
- New Belgium Voodoo Ranger Imperial IPA, dollar sales increased 83.5%, to $74 million;
- Founders All Day IPA, dollar sales increased 16.7%, to $71.2 million;
- Firestone Walker 805 Blonde Ale, dollar sales increased 25.9%, to $66.8 million.
Year-to-date, IPA remains the dominant craft style. Off-premise dollar sales of the style have reached $1.783 billion, $1.345 billion more than the next largest style, seasonals. IPAs hold 41.3 dollar sharepoints and dollar sales of craft IPAs have increased 21.8% over the same period last year.
Other craft styles with significant increases in off-premise dollar sales include Belgian wits (+17.9%), craft variety packs (+16.5%), craft golden ales (+18.7%), craft Belgian ales (+23.9%) and craft light beer (+38.2%).