TPX.B:CC - Prepared cocktail demand shines in latest Nielsen readout while hard seltzer beer and wine categories lag

2023-07-25 13:40:45 ET

Total U.S. beer sales by volume fell for the third straight Nielsen four-week tracking period of retail sales. Beer sales were down 2.7% for the four weeks ending on July 15 to follow the 3.3% drop in the four-week period ending on June 17 and 4.2% decline for the four-week tracking period ending on May 20. The recent volume drop was offset by a 5.6% increase in pricing and mix.

Molson Coors ( TAP ) had volume growth of 9.6% for the latest tracking period, while Constellation Brands ( STZ ) recorded volume growth of 10.5%. Boston Beer ( SAM ) had a volume decline of 10.2% and Heineken ( OTCQX:HEINY ) saw a 2.6% drop.

Anheuser-Busch InBev ( BUD ) reported improved numbers from the last three Nielsen reports, although volume was still down 15.3% year-over-year for the four weeks and pricing was only up 4.8% as the Bud Light controversy continues to weigh heavily. Anheuser-Busch ( BUD ) brands Corona Extra, Busch Light and Michelob Ulta were the only brands with higher sales compared to a full year ago. The beer giant's prepared cocktails continued to grow strongly, according to Bank of America. NÜTRL vodka seltzer soared 189% and Cutwater spirits sales jumped 34% year-over-year as the spirits business continues to outpace the growth seen with beer.

Wine volume was down 3.1% during the four-week tracking period, offset by a 4.6% gain in pricing and mix. Hard seltzer demand continued to fall hard, with volume down 25.4% from a year ago and price/mix up 3.9%. As for spirits, total distilled spirits dollar sales accelerated by double digits over the 4-week and 12-week tracking periods, while volume trends also improved. Prepared cocktails continue to be the fastest growing category in distilled spirits, noted Cowen analyst Vivien Azre. Across brown spirits, American whiskey, Canadian whiskey, Irish whiskey and Scotch trends accelerated relative to 12-week trends," pointed out Azer. Across white spirits, four-week trends for vodka, tequila, and gin all improved, while rum decelerated, relative to 12-week trends.

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