With the summer selling season officially in the rearview mirror, beer category off-premise dollar sales ended with a -7.6% decline compared to the same period in 2020, but increased +9.3% compared to summer 2019, according to market research firm NielsenIQ.
“Off-premise alcohol sales declined for Summer 2021 compared to 2020, which was expected given the shift back to on-premise establishments, along with the tough comps from last year,” NielsenIQ beverage alcohol practice client manager Kaleigh Theriault wrote in a recent report. “While off-premise alcohol sales declined by 7.0% compared to Summer 2020, sales remain above the norm for off-premise, with dollar sales up 14.2% compared to Summer 2019.”
During the summer selling period — which NielsenIQ defines as the period between May 2 and September 11 — all three beverage alcohol categories posted sales declines compared to 2020 but increased compared to 2019:
- Beer: -7.6% vs. 2020, +9.3% vs. 2019;
- Spirits: -3.7% vs. 2020, +39.9% vs. 2019;
- Wine: -8.7% vs. 2020, +13% vs. 2019.
Within the beer category, only two segments increased sales compared to 2020: hard seltzer (+3.3%) and Mexican imports (+1.3%).
Still, sales of hard seltzer significantly decelerated during the summer season, causing Truly Hard Seltzer maker Boston Beer Company to withdraw its financial guidance, drawing a lawsuit from investors. During the two weeks encompassing Labor Day weekend, dollar sales of hard seltzer declined -3.9% compared to 2020, but nearly doubled (+91.2%) compared to the same two-week period in 2019.
Hard seltzer dollar sales reached $2.1 billion during the summer, which accounted for 11.3% of overall beer category sales, “in line with below premium and craft craft beer,” according to NielsenIQ. Compared to Summer 2019, sales of hard seltzer increased +175.6%.
Little overlap exists between the best-selling hard seltzers of Summer 2021 and Summer 2019. Segment leaders Mark Anthony Brands’ White Claw and Boston Beer’s Truly remain in the No. 1 and No. 2 spots, but only two other brands appear on both lists. E. & J. Gallo Winery’s High Noon Sun Sips appeared at No. 6 in 2019 and rose to No. 4 in 2021. Diageo’s Smirnoff Spiked Sparkling Seltzer appeared at No. 4 in 2019 but fell to No. 10 in 2021, a spot that Anheuser-Busch InBev’s Cacti knocked it out of during the July 4 and Labor Day periods.
Dollar sales of core beer — the beer category with hard seltzer, FMBs and ciders excluded — declined -9.2% compared to 2020, but increased +0.6% compared to 2019. Although most segments declined vs. 2020, some increased sales vs. 2019:
- Craft beer: -12.8% vs. 2020, +3.4% vs. 2019;
- Super premiums: -7.8% vs. 2020, +10.9% vs. 2019;
- Imports: -0.3% vs. 2020, +13.4% vs. 2019;
- Mexican imports: +1.3% vs. 2020, +14.4% vs. 2019;
- FMBs (excluding hard seltzer): -4.5% ABV vs. 2020, +12.5% vs. 2019.
Other segments posted two consecutive summers of declining off-premise sales:
- Premium regular: -12.3% vs. 2020, -6.9% vs. 2019;
- Below premiums: -13.9% vs. 2020, -12.7% vs. 2019;
- Premium lights: -12.2% vs. 2020, -5.9% vs. 2019;
- Cider: -13/6% vs. 2020, -3.2% vs. 2019.
Beyond beer offerings drove most of the beer category’s growth, NielisenIQ said. Key segments include hard tea (+11.1% vs. 2020, +52.2% vs. 2019), hard kombucha (+23.1% vs. 2020, +208% vs. 2019), non-alcoholic beer (+24.9% vs. 2020, +5.6% vs. 2019), and relative newcomer hard coffee (+8% vs. 2020, not tracked in 2019).
Dollar sales of spirits-based, ready-to-drink offerings increased +106.6% over Summer 2020 and +484% over Summer 2019.
Beverage alcohol e-commerce sales declined -32.4% during Summer 2021 compared to Summer 2020, but were up +167% compared to Summer 2019, NielsenIQ reported.
“Online sales previously peaked during April and May 2020 and again in December
of 2020,” Theriault wrote. “Since then, online alcohol sales have levelled off through the summer as consumers return to in-store purchasing and on-premise consumption.”
Online beer category sales (-18.7%) declined at slower rates than wine (-36.9%) and spirits (-33.2%) between Summer 2021 and Summer 2020. Within the beer category, online orders of FMBs and hard seltzers declined -3.9%.
Compared to Summer 2019, e-commerce orders of all categories of beverage alcohol had “tremendous growth rates”:
- Beer: +186%;
- FMBs and hard seltzers: +466%;
- Wine: +121%;
- Spirits: +330%.
E-commerce declines were driven by declines in number of orders (-20%) and shoppers (-12.8%) compared to 2020.
“At the category level, though dollars are down for FMBs, there was an increase in the
number of online buyers in Summer 2021 (up 1.3% vs 2020),” Theriault wrote. “Across total alcohol, smaller basket rings and fewer orders per buyer also declined in Summer 2021.”
Nearly all e-commerce retailers’ sales declined in Summer 2021, excluding Target and on-demand convenience delivery retailer Gopuff.