For the week ending May 2, the alcohol category had its strongest performance since peak pantry-loading period in March, according to new Nielsen data. Total off-premise sales were up 32% for the week led by spirits (+38.6%), followed by wine (+35.8%), and then beer/FMB/cider (+28.1%).
Below are some of the highlights from the Nielsen update:
Nielsen speculates the period might have captured some pre-Cinco de Mayo purchasing, which resulted in the bump in sales. However, trends went “way beyond” just upticks for typical holiday drinks like Mexican beer or Tequila.
Data shows that price/mix is still trending upward as higher price tiers are growing faster than lower price tiers. For spirits specifically, the price tiers that had the largest gain were those in the middle, while the value and ultra premium price tiers on the far ends of the spectrum did not see as big of an increase.
Though, Nielsen notes that despite high-priced items moving faster, there is also less retail promotion happening. “Retailers likely have less of a need to offer deals as much as before, in reaction to what may be a less ‘price conscious’ consumer – at least for now,” according to the Nielsen Beverage Alcohol Practice team.
Source: Nielsen, May 2020