SipSource, Nielsen and industry executives provide insights on wine and spirits trends; SipSource shares data based upon five wholesalers’ depletions, inlcuding the largest four in the country
SipSource, the first and only source for wine and spirits distributor depletion data, today announced the issuance of their quarterly report that has identified wine and spirts industry trends for time period 12 months ending June 2019. The data points and trends are based upon five wholesalers currently sharing their depletion data with SipSource, including the largest four in the country.
TRENDS and HIGHLIGHTS
Wine Decline Begs Question: Will it Last?
Wine trends have declined 30—40 basis points each of the last four quarterly reporting periods while Spirits have continued to grow.
“We’re observing a consistent decline in wine growth trends over the last five quarterly reporting periods. Almost all traditional table wine varietals are trending down, and rose growth is half of what it was last summer. This appears to be driven by consumers choosing cocktails and RTDs over wine both on and off-premise,” said SipSource analyst Dale Stratton.
“Shifts driven by consumer demand is causing a significant reshuffling both in this category and within Beverage Alcohol generally,” said Danny Brager, Senior Vice President of Nielsen’s Beverage Alcohol Practice. “For example, wine in a can just passed 1% market share with rapid growth of +70% year over year while sparkling wines now account for over 10% of the category on dollars in the latest year, buoyed in particular by double digit Prosecco and Sparkling Rose’ gains.”
Cognac, Tequila, Pre-mixed Cocktails leading growth
Cognac, +8.9 and Tequila +8.8% leading growth segments. Pre-mixed cocktails +5.6% in SipSource data.
“America’s suppliers and wholesalers continue to introduce record numbers of new products focused in high growth segments like tequila, whiskey, and pre-mixed cocktails while growing established brands in segments like cognac. These growth segments have led to a consistently strong spirits market that has been trending upward for over five years.”
“While tequila and whiskey are maintaining positions of growth leadership, Cognac growth is again ascending to accompany segments winning in the marketplace. But the most significant growth of all spirit segments are now pre-mixed cocktails, with newer canned cocktails a major force within, representing over 20% of the ready to drink segment today.” said Danny Brager, Senior Vice President of Nielsen’s Beverage Alcohol Practice.
Consumers Taking Cocktail Culture Home
Consistent balanced growth between on-premise +2.7% and off-premise +2.2%
“With more on-premise spirits choices delivered to our nation’s bars and restaurants by America’s wholesalers than ever before, consumers are exploring a wide variety of spirit-based cocktails that are influencing their off-premise purchases and consumption,” said SipSource analyst Dale Stratton.
Cannabis Not Impacting Alcohol Sales, Yet
Consistent growth rate between +2.3% and 2.6% for Spirts across five quarterly reporting periods.
“As an increasing number of states legalize cannabis recreationally and medically, consumers have not decreased their consumption of alcohol despite increased access to and consumption of cannabis in various forms,” said SipSource analyst Dale Stratton.
“In looking at available data on the subject, currently there is no evidence that cannabis is significantly impacting wine and spirits sales in the 10 states that have legalized recreational cannabis,” said Danny Brager, Senior Vice President of Nielsen’s Beverage Alcohol Practice.
The SipSource data provides aggregated distributor depletion data (sales to retailers) covering an expansive portfolio of wine and spirits products sold in all trade channels across the U.S. SipSource is built from the individual store and item level, and contains no sampling, projections, or estimates.
Current WSWA wholesaler companies contributing data to SipSource include: Breakthru Beverage Group, Lipman Brothers, Republic National Distributing Company, Southern Glazer’s Wine & Spirits and Young’s Market Company.
Distributor depletion data in SipSource is compiled and aggregated by VIP. Nielsen provides contextual data and insights, and the Industry Leaders Sentiment Survey is conducted twice a year by A.T. Kearney. NABCA adds topline data from control states, and ShipCompliant by Sovos and Wines Vines Analytics share topline direct-to-consumer wine data.
For more information on SipSource, including pricing, please visit www.SipSource.com.