New Nielsen data shows online liquor sales were up 243% in the US in the week ending March 21.
“Not surprisingly, online growth rates for alcohol are ahead of in-store sales growth, but the online measured increases were out of the park – up 243% versus the same period of a year ago,” said Danny Brager, Senior Vice President of Beverage Alcohol at Nielsen. “And wine continues to dominate in terms of online share, 71% of total beverage alcohol sales.”
Nielsen's online liquor data tracks with data supplied by the online wine retailer Vivino, which reported Friday, March 13, 2020, was the company’s “… highest sales day ever, beat out only by Black Friday 2019.”
The company said it saw “…300% sales growth globally year-over-year in terms of Gross Merchandise Value (GMV)". By March 21, Vivino recorded a “… global increase in GMV of 162% with the United States and Italy seeing even larger increases at 170% and 282%, respectively”.
Beer market boosted by coronavirus
Sales of beer, which has been gradually falling in the US, have soared. Nielsen said that larger packs of 24 or 30 both grew roughly 90% for the week compared to a year ago.
Sales growth by brewer: AB InBev +10.9%, Molson Coors +10.1%, Constellation Brands +18.0%, Heineken +4.3% and Boston Beer +52.2%.
Notable brand gainers were Michelob Ultra Light +26%, Blue Moon +20%, and Sam Adams Seasonal +33%. And, in case you were wondering, Corona Extra sales were up 11.3%.
Laurent Grandet, an analyst at Guggenheim, told CNN Business he expects sales to remain strong for cheaper beer like Budweiser. But he warned that the craft beer industry will be hurt, as around 70% of its sales come from the brewer's taprooms or at bars, which are both currently closed in much of the US.
"It's a perfect storm for the craft beer business," he said. He said they will further be harmed by retailers picking larger brands to stock their shelves because they're easier to get.
Overall, US sales of alcoholic beverages rose 55% in the week ending March 21, according to Nielsen.
Spirits led the way, with sales jumping 75% compared to the same period last year. Wine sales were up 66% while beer sales rose 42%.
Nielsen's Danelle Kosmal noted that growth rates probably peaked as people loaded up their pantries before state stay-at-home orders went into effect. Kosmal said data for the week ending March 28 will be a better indicator of ongoing demand.
Three-month comparison
Nielsen also noted that in the 13-week period ending January 25, 2020, wine was nearly flat - up 0.6%, spirits sales were up 3.8% and the beer/flavored malt beverage/cider category was up by 5%.
Large packages for wine and beer purchases are surging. Three-litre boxed wines are up by 53% over a year ago, canned wines are up by 95% and the 24-pack beer category is up 24%, which Nielsen said is “… aligning with the broader ‘stocking up’ that consumers are doing.”
Before the COVID-19 crisis, 1.5 litre glass wine segment retail sales had been declining, but in the week ending March 14, 2020, the category was up by almost 20% over the same period in 2019.
Kosmal said: “As more and more on-premise locations close, I think we will continue to see off-premise sales for beer, wine and spirits grow even more.”
Nielsen has established a COVID-19 microsite to keep the industry informed.
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