Spirits sales growth steady; price/mix moderates a bit

Total spirit sales in Nielsen-tracked xAOC (food, drug, mass, WMT; ex-Washington) grew +5.0% for the four weeks ended 6/21, in-line with its 12-wk average, driven primarily by volume growth of +3.8% and price/mix gains of +1.2%. Both sales and volumes accelerated on a two-year stack basis, while price/mix was slightly slower. Brown spirits continue to drive category growth, as Canadian/Irish whiskey sales increased +13.8%/+15.8%, Bourbon increased +9.8%, and scotch increased +6%. Other notable style performances: vodka +4.0%, tequila +3.9%, gin +2.9%, rum +1.8%, cordials/liqueurs +1.9%, and brandy/cognac -0.9%. Prepared cocktail sales increased +3.5%, the first positive figure in nearly 2 years.

 

BF_B sales +3.8% as Jack grows +5.2%

BF_B company sales increased +3.8% in the period, driven by Jack Daniel’s sales growth of +5.2%. El Jimador continued its recent run of growth, up +10.1%, while Chambord and Southern Comfort declined -7.3%/-4.1%, respectively. Super-premium bourbon Woodford Reserve accelerated to +42.6%, highlighting strong category growth. BF_B lost -8bp of sales share, roughly in-line with its 1-year average, driven primarily by Southern Comfort.

 

STZ spirit sales improve to +3.6% on Svedka growth

STZ spirit sales increased +3.6% this period, ahead of last month’s +2.3% but against a +70bp easier year-ago compare. Volume increased +2% while price/mix accelerated to +1.6%. Svedka sales accelerated back to MSD, at +5.4%, while Black Velvet growth was flat sequentially at +3.5%.

 

Beam-Suntory sales back to growth at +3.9%

Beam-Suntory sales increased +3.9% this period, an improvement from last month’s -0.9%. Growth was primarily volume driven, up +3.2%, while price/mix improved sequentially to +0.7%. Beam lost -11bp of sales share, an improvement from last month’s -42bp, as gains in Jim Beam (+13bp) were offset elsewhere, primarily in Skinny Girl cocktails (-20bp). Super-premium whiskey growth was robust, with Laphroaig increasing +38.4%, Knob Creek increasing +51.7% and Maker’s Mark improving slightly to +5%.

Source: Goldman Sachs

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