CGA: On-Premise Up +29% Versus 2019
The positive velocity trends in on-premise retailers have carried over through the latest analysis from market research firm CGA.
On-premise velocity increased +120% for the week ending May 29 compared to the same week in 2020, and was up +29% versus the same week in 2019.
“That’s the biggest growth versus two years ago that we have seen so far,” Matthew Crompton, CGA’s client solutions director for the Americas, said in a release. “As consumers continue to return to the on-premise as restrictions ease across states, understanding the changing path to purchase will be key to engage and maximize these visitation opportunities.”
Sales velocity across the U.S. saw a decline week-over-week (-1%), which is likely due to the high numbers from Mother’s Day on May 16.
Of the key states observed, Illinois recorded the best performance against last year (+277%). Illinois (+1%) and California (+2%) were the only states to have positive growth week-over-week. California’s growth last week is credited to strong performances by the state’s big cities: San Diego (+15%), San Francisco (+10%) and Los Angeles (+6%).
Florida and New York posted the greatest decline in sales velocity versus the prior week, both states reporting 4% declines. Florida cities (+86% year-over-year) experienced varied success, with declines driven by Miami (-7%) while remaining flat in Orlando, and slightly negative in Tampa (-1%). New York’s decline was driven by New York City (-5%), while the state’s sales velocity generated the second-highest growth year-over-year at +238%.
Sales velocity declined 3% in Texas last week versus the prior week, with the negative trend driven by Austin (-8%) and Dallas (-4%). The state is up 78% compared to 2020.
NBWA’s May Beer Purchasers’ Index Shows Significant Change from 2020
The National Beer Wholesalers Association’s (NBWA) latest Beer Purchasers’ Index (BPI) showed wholesaler purchasing expanded in May with an overall reading of 80 — a jump from May 2020’s reading of 64.
“This month’s survey cycles the May 2020 survey, a month that saw dramatic shifts in consumer behavior as the on-premise beer business was at a virtual standstill and off-premise business was booming,” Lester Jones, NBWA’s chief economist, said in a release. “This index is the strongest reading over the past five surveys going back to 2015.”
The NBWA’s monthly survey polls wholesalers across the country on their beer purchasing behavior. A reading of 50 and above indicates expansion, while a reading below 50 indicates contraction.
Additionally, “at-risk” inventory (inventory at risk of going out of code in the next 30 days) continues to look hopeful, with a reading at 31, well below the long-running average despite out-of-stocks and supply disruptions still impacting the industry, according to NBWA.
Craft posted the strongest reading improvement compared to last year, with an index of 65 in May 2021, compared to a 42 reading in May 2020.
FMBs and seltzers outperformed all other segments in May 2021 with a reading of 82. The segment was a few points below May 2020, which had a reading of 90.
The index for imports continues to expand, with a reading of 68 last month, above the 53 reading for May 2020. Premium lights are also still expanding with a reading of 64, although the index was lower than 2020’s reading of 69.
Below premium (36) contracted, down 15 points from April’s BPI. The segment dropped significantly compared to May 2020’s reading of 71.
Regular domestic (48) and cider (46) also contracted.