Industry Update Through June 2019

Posted on July 22nd, 2019 |

The bw166 TBA Overview Advance report for June 2019 indicates a market continuing the long-term trend of total servings of beverage alcohol growing at the rate of increase in Legal Drinking Age Population – both having grown +1.0% over the last 12 months.

Spirits is gaining share of standardized servings with overall growth of +3.6% over the past 12 months.  Beer has been flat with servings showing negligible change. Wine is showing weakness with servings down -1.0% over the past year driven mostly by losses of low-end bulk imports.

Consumers continue to increase spend for beverage alcohol with overall spend up +2.8%.  However, most of this is driven by the on premise with spend growing +5.0% while off premise spend is only growing +1.0%. Over the past few months spending in the off premise has seen a deceleration.

On premise spending growth is being driven primarily by operator margin expansion so very little, if any, of this is seen by wholesalers or producers.

With a number of public companies reporting either quarterly or annual results for June, the following table highlights industry total metrics to compare against (wholesale value is used as a proxy for supplier revenues).

 

3 Months

6 Months

12 Months

Beer Volumes

No Change

-0.2%

No Change

Beer Wholesale Value

+1.1%

+0.1%

+1.0%

Spirits Volumes

+3.7%

+4.3%

+3.6%

Spirits Wholesale Value

+0.8%

+1.7%

+0.8%

Wine Volumes

+0.5%

+0.2%

-0.7%

Wine Wholesale Value

+2.1%

+1.5%

+1.0%

 

For more details regarding the total beverage alcohol market, subscribe to the bw166 Total Beverage Alcohol Overview report.