RTDs lead off-trade spirits sales in US

Spirits continued to drive the growth of US off-trade alcohol sales in the week ending 2 May, boosted by ready-to-drink cocktails, according to Nielsen’s latest figures.

Spirits led alcohol sales in the US off-trade in the week ending 2 May 2020

Off-trade spirits sales were up 38.6% in the week ending 2 May 2020 compared to the same seven-day period last year. This also represented a 4.7% increase on the previous week.

Total off-trade alcohol sales were up 32%. During the seven-day period, wine rose by 35.8%, while beer, flavoured malt beverages and cider increased by 28.1%. Beer specifically grew by 18.6%, up 5.7% on the previous week.

Ready-to-drink cocktails once again led the growth of spirits, while cordials and Tequila witnessed “strong growth”. It was followed by gin and Irish whiskey.

Nielsen said: “It’s likely no coincidence that each of those segments had a higher dollar share of spirits in on-premise (as per Nielsen CGA) than their share in off-premise, particularly cordials and Tequila – just another validation that consumers are shifting their on-premise preferences to drinking preferences at home.”

Nielsen estimates that total alcohol sales must maintain at least 22% volume growth rates on average in the off-trade in order to make up for the losses in the on-trade.

For the Covid-19 period to date (from the week ending 7 March to week ending 2 May 2020), spirits rose 31.8% in volume sales within the US off-trade, compared with the same period last year.

Danny Brager, senior vice president of beverage alcohol at Nielsen, said: “This week’s strong growth is likely partially due to some pre-Cinco de Mayo related consumer purchasing as an extra boost to off-premise sales, whereas last year many of those celebrations were on-premise (within bars, restaurants, etc).

“That said, many non-Cinco centric segments also grew rapidly – i.e., growth went way beyond Mexican beer or Tequila. Perhaps warmer weather in many parts of the country, coupled with some ‘indoor fatigue and monotony’, also contributed – driving more people outdoors, and leading to more drinking occasions (and related higher sales activity). Everyone is finding their own unique ways to celebrate.”