NielsenIQ: Craft Beer Dollar Share Online Nearly Twice In-Store Share

NielsenIQ’s beverage alcohol practice team joined the Brewers Association’s weekly Collab Hour series to parse e-commerce alcohol trends this week.

When the COVID-19 pandemic forced consumers to stay home in March 2020, many turned to online ordering for groceries, household supplies and alcohol, causing online alcohol dollar sales to increase 232% in 2020 compared to 2019. Additionally, the closure of bars and restaurants shifted alcohol spending to the off-premise for at-home consumption to the tune of $93 billion, an increase of $16.2 billion from 2019.

Here are four key takeaways from NielsenIQ vice president of beverage alcohol practice Danelle Kosmal and client manager Kaleigh Theriault’s presentation:

  • Craft Beer’s Online Share is Double its In-Store Share

Consumers spent $97 million on craft beer through e-commerce in 2020, which accounted for 24% of all beer category dollar sales online. In brick-and-mortar stores, however, craft beer makes up 12.6% of all dollar sales. In fact, craft has the second largest dollar share behind flavored malt beverages (32%), which include hard seltzers.

Imports accounted for 12% of online sales, followed by premium lights (11%). All other beer category segments accounted for 21% of dollar sales.

  • Online Sales of Top Craft Brands Outpacing In-Store Sales

E-commerce sales of the top five craft brands online increased 418% year-over-year. Those brands include Sierra Nevada, New Belgium, Bell’s, Dogfish Head and Samuel Adams.

Although some overlap exists between the those five and the top five craft brands in stores (Yuengling, Sierra Nevada, New Belgium, Samuel Adams, Shiner), the top five craft brands in brick-and-mortar off-premise stores grew sales at a far slower rate — just 12% — in 2020 over 2019.

However, popular e-commerce platforms’ best-selling craft brands don’t totally align with NielsenIQ’s top-selling craft brands at off-premise retailers. Of the top 10 craft brands at NielsenIQ-measured off-premise retailers, only six were top sellers on Drizly and five were top sellers on Amazon F3, which powers e-commerce giants Amazon Prime and Amazon Fresh. Across total e-commerce, seven of the top craft sellers were on NielsenIQ’s top 10.

“Sometimes we talk to e-commerce as a channel and coming up with an e-commerce strategy, but it’s important to keep in mind that, when you’re coming up with that total strategy, you also take a second to develop strategies for specific e-retailers,” Theriault said.

  • Multicultural Craft Consumers Over Index Online

Multicultural consumers — in which NielsenIQ includes Black, Asian and Hispanic drinkers — account for 21% of craft beer dollar sales, but make up 26% of online craft purchasers. In 2020, the number of multicultural drinkers purchasing craft beer online more than tripled, and their dollars spent on craft beer increased 277%, according to NielsenIQ.

Older drinkers also spent more money on craft beer online in 2020. Unlike younger groups, drinkers in the 45-54 group (+1.2%), 55-64 age group (+3.1%) and 65+ age group (+2.7%) increased their share of online craft beer dollars.

  • Opportunities to Increase Alcohol Sales with Takeout Meal Orders

When the on-premise channel shut down, consumers shifted their restaurant spending to to-go orders, but only 29% took advantage of loosened laws that allowed restaurants to sell beer, wine and spirits to-go or for delivery.

“This obviously creates a great opportunity for all of us to just partner with local restaurants and bars and to really come up with ways and reminders for consumers to make that alcohol purchase with their food purchase for takeout and delivery,” Kosmal said.

For consumers who did add alcohol to their takeout orders, craft beer landed in the middle of the pack, being chosen for 14% of orders.