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Nielsen Beverage Alcohol Performance Through June 13

TOTAL BEVERAGE ALCOHOL Unless otherwise noted, all trends below are for Nielsen off premise channels for the week ending 6/13//20 compared to the same week in 2019.  As the on premise continues to expand openings across the country and we move from RESTRICTED LIVING to RE-OPENING, trends for alcohol off premise sales have experienced a steady slowing of growth since early May.  For the latest week ending June 13th, 2020, total alcohol sales in the off premise were up 21.2% compared to the same week last year.  Spirits once again leads growth rates, up 25.1% (falling from +30.5% last week), followed by beer/FMB/cider up 20.3% (compared to +22.3% last week), and wine up 20.1% (reduced from +24.0% last week).  This was the first week since the beginning of March that beer/FMB/cider, with the significant tailwinds of hard seltzer, actually grew faster than wine.  All off premise alcohol categories continue to outpace total fast-moving consumer goods, which are back into double-digit growth rates, up 10.1% compared to last year. All eyes will be on sales leading up to the upcoming July 4 holiday and long weekend, within a year unlike any other we’ve seen in our lifetime. WINE Wine dollar sales in Nielsen measured off premise channels grew +20.1% in the most recent week vs year ago. The top 100 wine brands – accounting for approximately ⅔ of Nielsen measured off premise channel dollar sales – has seen some change since the beginning of March.  Over the 14 weeks through June 6, 2020, 4 brands entered the top 100 that were not there in the year prior – Castello del...

US Considers New Tariffs on European Beer & Gin

The US Trade Representative is considering applying new tariffs on European exports including beer and gin. The Distilled Spirits Council of the US has strongly opposed the new tariffs, noting that it would escalate an ongoing trade dispute that has already caused American whiskey exports to the EU to drop 33%. Additionally, the proposed tariffs would likely hurt the big international players such as Remy Cointreau, Pernod Ricard, and William Grant & Sons among others. Source: IBTimes, June 2020...

Crowlers Prove to Be a Lifeline for Breweries During Pandemic

When the majority of the country closed down the on-premise channel earlier this year, the demand for refillable crowler cans shot up. Crowler Nation, which sell crowler equipment, says its sales are up about seven times the average amount. As such, crowlers became a lifeline for some breweries and provided the packaging style mainstream recognition. “When they open up bars and restaurants, it’s not going to be normal again,” says Nima Hadian, owner of Shangy’s off-premise only shop in Pennsylvania. “You don’t need to leave your house anymore” for entertainment and good food. And if there’s a big increase in places filling Crowler cans, it’ll be easy enough to crack open a taste of freshly poured draft beer at home as well.” Source: Seven Fifty Daily, June 2020...

E & J Gallo Adds Tequila Brand Don Fulano to Portfolio

E & J Gallo Winery has reached a deal to be the exclusive US Importer of family-owned and operated luxury tequila brand Don Fulano. Don Fulano’s brand range includes a Blanco, Blanco Fuerte 100 Proof, Reposado, Añejo and Imperial Extra Añejo. The deal helps E & J Gallo further develop its lineup of luxury spirits brands, which currently includes The Dalmore Single Malt Scotch portfolio, Diplomático Rum, and Jura Single Malt Scotch. Source: PR Newswire, June 2020...

USMCA Requires New Certification for Imported Wine & Spirits

The US-Mexico-Canada-Agreement (USMCA), a new free trade deal, is set to go into effect July 1. The agreement will create at least one major procedural change for the wine & spirits industry, replacing the NAFTA Certificate of Origin with a new certification. The certification must be presented to the importer at the time of entry into US territory from Mexico or Canada and must detail specific information on the product including the producer’s information, the certifier’s information, a description of the product and Harmonized Tariff Schedule (HTS) code, and origin criteria for the product. Source: Park Street Announcement, June 2020...

Off-Premise Alcohol Sales Remain Strong As States Reopen On-Premise

Total off-premise sales for the week ended June 6 continued to grow at a strong pace, up 24.1%, despite the fact that many states have reopened the on-premise. However, growth for the spirits category did slow a bit while beer/FMB/cider category accelerated, according to Nielsen. For the period, spirits sales grew +30.2% (vs +32.4% last week), followed by wine at +23.8% (vs +24.4% last week), and beer/FMB/cider growth of +22.1% (vs +18.3% last week). Additionally, for the majority of the lockdown time period (14 weeks to June 6) the total alcohol beverage category has hit the 22% growth rate threshold Nielsen estimates is necessary to offset on-premise losses. For the 14-week period, category growth rates were lead by spirits (+31.6%), followed by wine (+25.8%), and beer/FMB/cider (+17.3%). “It’s likely that we will start to see deceleration of the substantial off-premise gains that we had seen over the last 3 months going forward, but it’s still a long road back to pre-COVID times,” Danny Brager, Nielsen’s Senior Vice-President, Beverage Alcohol Practice. Source: Nielsen, June 2020...