USA: Year-to-date beer category dollar sales are up 6% in off-premise

Driven by the continued growth of hard seltzer, year-to-date beer category dollar sales are up 6% at off-premise retailers to start the year, according to market research firm IRI.

The Chicago-based firm — which tracks scans at major retail chains, grocery outlets and convenience stores — said dollar sales of flavored malt beverages (FMBs), non-alcoholic beers, and domestic super premium offerings drove most of the growth during the year-to-date period ending January 26, 2020.

FMBs, including hard seltzers, led the way, growing nearly 60% during the first four weeks of the year. Dollar sales of non-alcoholic offerings trailed closely behind, growing 44.7% on the strength of consumer interest in Dry January. Meanwhile, dollar sales of domestic super premium beers (like Michelob Ultra) grew 11.2%.

Sales of craft beer got off to a rather sluggish start in January, with dollar sales growing just 1.1%. Nevertheless, craft brewers were able to find pockets of growth within the category, including IPAs (+9.2%), golden ales (+8.2%), pale lagers (+14.1%) and pilsners (+11.9%).

Among the top-30 individual craft brands, New Belgium’s Voodoo Ranger Liquid Paradise IPA and Sierra Nevada’s Hazy Little Thing IPA experienced the best growth.

Hazy Little Thing, which was introduced at the beginning of 2018, is now the seventh-largest craft beer by off-premise dollar sales, which have grown 114% to more than $55 million over the last 52 weeks. Meanwhile, dollar sales of Voodoo Ranger Liquid Paradise IPA grew 170% year-to-date through January 26, 2020.

However, more than half of the top-30 craft brands are in decline, according to IRI. Dollar sales of stalwart offerings like Blue Moon Belgium White, made by Molson Coors, and Sierra Nevada Pale Ale were down 3.1% and 7.2%, respectively.

Other notable decliners included Stone IPA (-20%), Bell’s Brewery Hopslam (-36%), and Lagunitas’ A Little Sumpin Sumpin Ale (-15.1%).

While mainstay light beer brands like Bud Light (-4.7%), Coors Light (-2.3%), and Miller Lite (+1.1%) got off to a bumpy start in 2020, hard seltzer continued to roll. Mark Anthony Brands’ White Claw hard seltzer variety packs, black cherry and mango offerings grew 298%, 329.5% and 999% through the first four weeks of the year.

Those sales propelled Mark Anthony Brands, now the fourth-largest “beer” supplier at off-premise retail, to 113.3% growth year-to-date through January 26.

Meanwhile, dollar sales of Boston Beer’s Truly sparkling berry mixed pack also grew 152%. Meanwhile, sales of the sparkling wild berry brand grew 309%, helping Boston Beer Company — which also makes Samuel Adams, Twisted Tea and Angry Orchard — grow 30.9% during the first month of the year.

01 March, 2020