April Results Highlight Dynamic Industry

bw166 released The Total Beverage Alcohol Overview for April 2020 utilizing tax paid data, government data sources, and other resources to give a perspective on the US Beverage Alcohol market. While the COVID-19 pandemic has caused alterations to the methodologies to track the significant shifts, bw166 continues to use actual data to provide a complete picture of the US.

Critical insights for April, the first full month of “stay at home”:

  • The 12-month serving index is up +2.4% versus LDA population growth of +1.0% – indicating US consumers have increased their overall consumption slightly while being home.
  • The significant shift from On-Premise to Off-Premise has reduced total consumer spending (due to On-Premise mark-ups) despite increases in volume.
  • Texas tax receipts in On-Premise accounts are down -88% year over year compared to +6% for 2019 (note that this data only includes On-Premise accounts that can sell Beer, Spirits, and Wine).
  • NABCA markets (excl. PA) show Spirits volumes +14.6% for the month. As these stores sell to consumers and On-Premise operators, this represents a significant increase in Spirits share.
  • Several states have released official reports for April which show Beer volumes -0.6%, Spirits volumes +5.7%, and Wine volumes +4.2% (inc. AK, IL, MO, NE, OR, TN, and WI which represented 12% of the LDA population and 12% of TBA servings in 2019).
  • The equivalent wholesale value of Beer and Spirits were up in April versus a year ago. Wine’s wholesale value was down due to the combined impact of significant declines in On-Premise and winery tasting rooms (bw166’s equivalent wholesale value represents the value as if 100% of business sells through the three-tier system).
  • Ultimately, the US Beverage Alcohol market is sustaining the impacts of COVID-19 far better than most countries with the Spirits category, the clear winner in gaining market share during the pandemic.