Bev-alc sales declined in the two-week period ending September 6, although cider, as well as wine and spirits-based ready-to-drink (RTD) continue to buck the trends, according to analysis of NIQ data from Goldman Sachs Equity Research.
NIQ 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.
Total alcohol beverage dollar sales declined (-3.9% 2W/ -3.1% 4W). Volume trends dipped (-3.2% 2W/ -2.3% 4W) against slight pricing declines (-0.5% 2W/ -0.6% 4W).
Category Highlights
- RTDs: One of the few bright spots, spirits-based RTDs continue to grow (+22.6% 2W/ +25.1% 4W), while wine-based RTDs remain fairly steady (+26.8% 2W/ +27% 4W).
- Cider: Cider was another positive, as sales rose 5.3% in the two-week period (+6.4% 4W), with volume up as well (4.8%).
- Spirits: Spirits were down (-1.7% 2W/ -0.9% 4W). Volumes rose +3.9%, likely thanks to RTDs, though average prices declined -5.3%.
- FMBs: Sales dipped 7.4% in the two-week period (-5.9% 4W). Twisted Tea declined -13.4% but saw share expansion, while Simply Spiked was down -27.1% (-28.5% 4W).
- Hard Seltzer: Nothing new bubbling up here – sales were down 8.2% (-6.4% 4W), with Truly falling 13.9% and share continuing to contract.
- Beer: Dollar sales fell 4.4% in the latest two weeks (-3.2% 4W), driven by -6% volume declines, partially offset by +1.7% pricing.
RTDs Boost Spirits; Brand Extensions Struggle
In RTDs, major players continue to dominate share, while the category remains fragmented with brands outside of the top 11 making up 41.5% of dollar share.
High Noon remains the category leader (20% of spirit-based RTD share) but sales are down (-9.7% 2W/ -7.9% 4W) and velocity is down (-20.9% 2W/ -20.6% 4W).
Cutwater follows with 15.5% of share, and sales showing major improvement (+123.6% 2W /125.2% 4W). Nutrl is also holding steady (+9.5% 2W/ +11.8% 4W).
Jack Daniel’s RTD has gone back into decline since its early summer bump (-5% 2W/ -3.3% 4W) with distribution holding steady and sales velocity still negative (-16% 2W/ -16.5% 4W). A limited-time Jack & Coca-Cola Vanilla 4-pack returns this month to encourage Fall sales.
The only other spirit brand extension in the top brands, Jose Cuervo Cocktail, remains in a sales slump (-10.2% 2W/ -9.1% 4W).
Meanwhile White Claw Spirits Cocktails and Truly Cocktail, which have each failed to translate brand recognition from hard seltzer into strong RTD cocktail traction, saw sales fall -88.4%, and -94.2% respectively in the two-weeks.
Sales of Fresca Mixed Cocktail continued to decline at -23%, a stat that the executives at The Coca-Cola company are likely hoping could see some change as the brand transitions to Sazerac’s portfolio from Constellation Brands.
Sales of the independent (and original) vodka-spiked ice tea, Surfside have dipped from triple digits but still remain strong (+82.4% 2W/ +91.3% 4W) and the brand is still slightly ahead in distribution (41% ACV) of its Boston Beer competitor, Sun Cruiser (38%) in the last two-week period, which is still seeing triple-digit sales (+260.2% 2W/ +287.6% 4W). Sales velocity is where we see the larger gap, with Surfside down -60.8% versus Sun Cruiser at -28.2%. Surfside now holds an 8.3% dollar share of spirits-based RTDs, behind only High Noon and Cutwater.
As for wine-based RTDs, BuzzBallz is still leading the pack in sales growth (+71.5% 2W), with Beatbox second (+23.3% 2W) and Big Sipz following (+22.6% 2W). Rancho La Glora (-6.7%) and Daily’s Cocktail (-13.6%) saw sales fall in the two-week period.