USA: Slim cans account for 20.4% of off-premise can beer dollar sales

Aluminum cans are in short supply, and the shortage comes at a time when the can package is becoming more important to the beer category as US brewers shift their focus to off-premise sales during the pandemic, Brewbound reported on August 26.

Market research firm Nielsen’s latest report highlights the growth and importance of cans to the beer category. The firm reported that aluminum cans now account for 64% of beer category dollar sales in off-premise retailers, and dollar sales have increased 25% since the start of the pandemic in early March.

For the 52 weeks ending August 8, craft can dollar sales are up 30.4%, to nearly $2.7 billion. In the latest 26 weeks, craft can sales in off-premise retailers have increased 36.4%, to more than $42 million.

Driving much of the growth in the beer category has been slim cans, which have increased sales 107% during the COVID-19 weeks (first week of March through August 15) compared to the same period last year. Slim cans now make up 20.4% of beer category can dollar sales, an increase of 13% compared to the pre-COVID-19 timeframe.

Of course, much of the slim can growth is attributable to the top hard seltzer brands, such as Mark Anthony Brands’ White Claw, Boston Beer Company’s Truly Hard Seltzer and Anheuser-Busch InBev’s Bud Light Seltzer, as well as Anheuser-Busch InBev’s Michelob Ultra (the second-best-selling beer in off-premise retailers) and Molson Coors’ Blue Moon Light Sky line extension, which all rely on the slim can package.

In the latest one-week period ending August 15, hard seltzers led beer category growth, increasing off-premise dollar sales 123%.

“As a reminder, there are very tough comps from August 2019, so the continued triple-digit growth for hard seltzers is one of so many signs that hard seltzers will not slow down,” Nielsen VP of beverage alcohol practice Danelle Kosmal noted.

During the pandemic (first week of March through August 15), hard seltzer accounted for 9.2% of total beer category off-premise dollar sales. The segment has gained share during the summer, and now accounts for 10.5% of off-premise beer category dollar sales for the 11-week period ending August 15.

Nielsen also offered a look at off-premise sales of canned wine and spirits offerings. Canned spirits (ready-to-drink cocktails, spritzers and spirits-based seltzers) had increased off-premise dollar sales 88% and the growth has accelerated 140% from early March through mid-August.

Nevertheless, Kosmal noted that cans account for “a very small percentage” of wine and spirits dollar sales. In fact, cans account for just 1.2% of off-premise spirits sales, but those sales have “nearly doubled” since the start of the pandemic, she added.

Canned wine dollar sales growth has actually decelerated since the start of the pandemic. Before the pandemic began in March, off-premise canned wine sales were up 71%, but since the start of the pandemic sales were up 57%. Still, canned wine has increased its share of category dollars, increasing from 0.8% pre-COVID-19 to 1.1% during the pandemic.

“Historically, canned wine has held a stronger presence in off-premise compared to on-premise,” Kosmal wrote. “However, with the increase in consumer concern around health and safety, we are beginning to see restaurants expand on ideas like canned wine gardens. It will be interesting to see if this will further normalize the idea of cans and other alternative packaging for wine and even ready-to-drink cocktails.”

Off-premise beer category dollar sales in Nielsen tracked channels increased 15.7%, to $1.023 billion, for the one-week period ending August 15 compared to the same one-week period a year ago.

Year-to-date through the COVID-19 weeks (first week of March through mid-August), beer category sales are up 18.9% in Nielsen tracked channels. However, Kosmal noted that off-premise sales growth rates have slowed since the start of June, with off-premise dollar sales increasing 15.9% for the total category (beer, FMBs, cider) and 8.6% for “core” beer.

In the latest week, all segments except for below premiums (-0.3%) increased dollar sales year-over-year. Here’s a segment breakdown (all percentage compared to the same one-week period a year ago):

• Premium lights +6.5%, with all three premium light brands (Bud Light, Miller Lite, Coors Light) among the top 15 growth brands for the week;
• Hard tea +38%;
• Super premiums +22%;
• Cider +11.9%;
• Non-alcoholic beer +40%;
• Mexican imports +11.2%.

Craft brands increased off-premise dollar sales 14.4% for the week. According to Kosmal, craft beer has improved its off-premise trends over the last several weeks. Year-to-date through the COVID time period, craft beer sales in off-premise retailers are up 15.8%. (Reminder: Off-premise sales are not even close to making up for the loss of on-premise bar and restaurant sales.)

Nielsen looked at style trends during the pandemic, and of course IPA dollar sales (+26.5% in off-premise retailers from early March through mid-August) continue to lead the craft segment. IPAs account for 41% of craft beer dollar sales in off-premise retailers during the COVID-period year-to-date. Last year, IPAs accounted for 37% of those dollars.

Hazy IPAs and imperial/double/triple IPAs have driven the growth. Take away those subsegments and IPA dollar growth would be just 18% and account for 26.8% of craft off-premise dollar sales.

“Hazy styles now account for 7% of craft off-premise dollars, and are up 78% in dollar sales for the COVID YTD time period compared to last year,” Kosmal added. “Other craft beer styles that are leading growth in off-premise during COVID weeks include American wheat ales (+113%), sour ales (+61.3%) and non-alcoholic craft beers (+176%).”

Contributing to the growth of the American wheat ales is Molson Coors’ Blue Moon Light Sky line extension, Kosmal said.

Athletic Brewing has driven the growth of the non-alcoholic beer category, with some help from Lagunitas Hop Hoppy Refresher.

Sierra Nevada’s Wild Little Thing, Victory’s Sour Monkey Tripel and Odell Brewing’s Sippin’ Pretty have helped drive the sour ale growth.

27 August, 2020