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.