This near-term decline corresponds with the current COVID-19 environment and is predominantly driven by Wine approvals though all three categories are seeing a tremendous deceleration versus the L12M time period.
By Category:
- Beer: 8.6K product approvals over the L3M, –3.2% vs. last year (L12M: +7.7%).
- Spirits: 4K product approvals over the L3M, +0.9% vs. last year (L12M: +20.2%).
- Wine: 27.1K product approvals over the L3M, –15.6% vs. last year (L12M: +2.5%).
Likely as a result of tariff threats compounded by COVID-19, the near-term decline is driven by Imports.
By Origin:
- Domestic: 22.2K product approvals over the L3M, +3.2% vs. last year (L12M: +11.9%).
- Imports: 17.5K product approvals over the L3M, –25.3% vs. last year (L12M: –1.3%).
These approvals may also hint at other dynamics in the industry.
- Domestic Beer approvals are down -0.1% L3M vs. +9.0% over the L12M possibly indicating weakness in the craft beer space.
- Domestic Wine approvals are still up +5.8% L3M vs. +12.7% over the L12M. Total Wine approvals are disproportionately concentrated in Imports (vs. Beer and Spirits) with 60% of Wine products approved over L12M being imports.
Ultimately, these results may indicate a near-term shift in new product introductions moving forward.
For more information regarding Product Approvals including detailed category breakdowns and origin information (State for Domestic products and Country for Imported products), subscribe to the bw166 Product Approvals Report or visit our website at www.bw166.com.