Total BevAlc sales growth decelerated sharply in the two-week period ended January 27, reflecting accelerated volume declines and relatively steady average pricing growth, according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data.
Analysts noted that decelerated growth was likely caused, in part, by “unusually wet weather” and “extreme winter storms” across the U.S. in January.
Nielsen uses US x AOC (extended All Outlet Combined) including convenience stores to summarize multi-channel markets and aggregate all national cross-outlet market data, and includes certain retailers (such as Whole Foods Market) that other providers do not.
Here’s the overview:
- Dollar sales fell -1.5% in the two-week period, compared to +1.1% in the four-weeks and +1% in the 12-weeks.
- Volume growth declines accelerated to -4.8%, versus -2.6% in the four-week period and -2% in the 12-week period.
- Pricing growth remained relatively steady, up 3.5% in the two-weeks compared to +3.9% in the four-week period and +3.1% in the 12-week period.
- From a category standpoint, volume performance decelerated across the board for beer, wine, spirits, FMB, hard seltzer and cider.
Ready-to-Drink Cocktails
Dollar sales growth for spirit-based RTDs slowed to 30.9% in the two-weeks versus +36.8% in the four-week period and +41.3% in the 52-week period. Wine-based RTD cocktail sales also decelerated in the period at +33% compared to +37.4% in the four-weeks.
High Noon outpaced the category, with sales up 45.6% against a 41.2% volume jump and a +3.1% average pricing increase. Still vying for the second spot, Cutwater saw sales rise 28.4%, with volumes up 25.7% and pricing up 2.1%. Elsewhere, Jack Daniel’s RTD dollar sales were up a whopping 218% for two-weeks, albeit off a low base.
Both Dogfish Head Cocktails (-0.6%) and Truly (-33.9%) posted losses, while up-and-coming Fresca Mixed Cocktails – the result of a partnership between Coke and Constellation – reported a 24.9% increase with +36% volume and -8.2% average pricing.
Flavored Malt Beverages
FMB sales decelerated in the two-week period at 9.8%, compared to +12.4% in the four-weeks and +17.8% in the 52-weeks. Volumes were up by 9.3% (+11.8% in the four-weeks) and average pricing growth held steady at 0.5%.
Hard Tea’s growth slowed slightly up 24.2% in the two-weeks, led by Twisted Tea with sales decelerating, up 12.3% versus 20% for the four-weeks.
Elsewhere, Hard Lemonade sales declines continued, down -4.4% in the two-week period versus -1.6% in the four-weeks and +4.8% in the 52-weeks. In that category, Simply Spiked sales climbed 7.3% in the two-weeks, compared to +11.4% in the four-week period and +59.7% in the 52-week period.
Hard Soda dollar sales grew 46.8% for two-weeks versus +52.8% in the four-weeks and +43.5% in the 52-weeks. Hard MTN DEW growth dipped, down -3.4% compared to +0.9% in the four-weeks and +8.5% in the 52-weeks.
Hard Seltzer
Hard Seltzer sales slid -13.6% in the period, worsening from -11.4% in the four-weeks. Volumes were down -16% (-13.6% for four-weeks and -20.25% for 52-weeks), while average pricing remained relatively flat at 2.9%.
Frontrunner White Claw saw sales fall to -0.4% in the two-week period versus +1.7% in the four-weeks. Truly (-22.1%) Topo Chico Hard Cider (-17.1%), Vizzy (-33.4%) and Corona Hard Seltzer (-75.1%) all saw double-digit losses.