1、 2022 Information Resources Inc.(IRI).Confidential and proprietary.March 2023State of the Beverage Alcohol Industry 2 2Executive SummaryEven as total inflation is moderating,inflation for beverage alcohol(6.3%)is lower than total food and beverage inflation(13.2%).While consumers are watching their

2、budgets,pockets of premium remain.Read on for overall trends and opportunities for beverage alcohol in both retail and on-premise.The State of Beverage AlcoholConsumers continue to support BevAl premiumization,even increasing recently within beer and wine.Premium spirits lost some ground to value as

3、 data normalized somewhat from a pandemic lift and newly introduced value-oriented spirits products impacted the segment.As consumers adopt healthier habits,better-for-you beverage alcohol options,including low-and no-alcohol options are gaining traction.Sales of ready-to-drink cocktails and hard se

4、ltzers had a meteoric rise from 2018 to 2021,but growth leveled off in 2022.Younger generations,including millennials aged 21+and Gen X,buy nearly two-thirds of all RTD beverage alcohol drinks.Beverage alcohol is the only grocery department to make a sizeable gain in in-store displays in 2022.On-pre

5、mise has yet to rebound from the pandemic and remains dogged by labor shortages.Implications and Growth Opportunities RetailWith on-premise yet to rebound from the pandemic,retail can shift the trial experiencefrom on-premise to at-home.Consider multi-flavor,multi-pack expansion as consumers look fo

6、r new flavor experiences.Leverage holidays and major events to promote products as right for the“occasion,”including Super Bowl,Memorial Day,Thanksgiving,etc.OperatorsConversely,operators should find ways of promoting the on-premise experience to lure consumers back for fun with friends or a place t

7、o celebrate.Capitalize on the lower inflation rate of on-premise vs.retail.3Increased At-HomeConsumptionDemand for Better-for-You ProductsHybrid and Remote Work Required Convenient SolutionsWere Expanding Our Definition of WellnessExperience and Indulgence Create Positive MomentsDeal-Seeking Consume

8、rs Can Erode Retailer LoyaltyHeadwinds and Tailwinds Have an Impact on Beverage AlcoholInflation Is the Top Concern of ConsumersWhile a Plus for Retail;On-Premise Should Promote Deals and Celebratory ExperiencesSupply Chain and Labor Constraints Continue to Dampen Return to On-premiseAt-Home Consump

9、tion and Convenience as Inspiration for TBA Innovation 44.3%6.3%7.9%10.2%11.6%13.7%14.9%15.5%16.5%16.6%17.7%18.4%23.4%Fresh Meat&SeafoodAlcoholProduceProcessed MeatIce Cream/FZ DessertsBeveragesDeliSnacksDairyBakingSS Meals&IngredFZ Meals&IngredBakeryInflation for Beverage Alcohol Is Nearly Half Tha

10、t of Total Food&Beverage and Is Among the Lowest Across the StoreNote:Dollar-weighted average price(including base price and promotion)change across UPCs,based on releasable UPCs.Excludes any product mix effects.Source:IRI POS data ending 11/27/22.IRI Client EngagementAverage F&B=13.2%5Consumers Shi

11、fted From Value to Premium for Beer and Wine While Value Spirits Experienced a Resurgence Driven by Premixed CocktailsPrice Tier ComparisonSource:IRI OmniMarket,Total US Multi Outlet+Conv+Liquor,Latest 26wks ending 11/27/22;Beer$2-3|Wine$11-25|Spirits$15-30BEER-2%-2%-2%L26L26L26Value($)Premium($)Lux

12、ury($)51.7%49.5%34.0%35.7%14.3%14.8%Prior2 YearsLatest26 Weeks76.2%74.2%22.6%24.6%1.2%1.2%Prior2 YearsLatest26 Weeks+2%+2%69.8%72.2%25.5%23.4%4.7%4.4%Prior2 YearsLatest26 Weeks+2%SPIRITSWINE6Changing Their“Share of Sip,”Consumers Have Shifted More Dollars Toward CSDs,Sports/Energy Drinks,Water and P

13、remixed CocktailsSource:IRI Consumer Network Panel,52 WE 11-6-22 vs.YA,2YA,3YA,Total US All Outlets Distribution of Dollars(Share of Wallet)Total Alcoholic+Non-Alcoholic BevsThemed and Limited Release Packs Continue to Trend Across Alcohol15.8%15.5%15.9%17.2%16.8%17.2%16.2%15.3%14.2%13.7%13.3%13.3%1

14、1.5%11.2%11.8%12.6%11.8%12.6%12.5%11.4%13.6%13.6%12.5%11.3%6.7%6.8%7.9%8.7%6.5%6.2%6.2%6.4%1.9%1.9%1.9%1.9%0.4%0.6%0.9%0.9%0.7%0.8%0.8%0.9%20022Coffee&TeaNon-Fruit DrinksSports/Energy DrinksWineWaterJuicesPremixed Cocktails/CoolersDrink MixesSpirits/LiquorBeer/CiderCSDs7All BFY Segments G

15、rew Points of Distribution in 2022BFY Alcohol Dollar Sales($MM)LOW/NO+5%+32%+11%SeltzersNon-AlcoholicLow ABVNatural/Organic/BiodynamicLight/Low CalKombuchaAs Consumers Adopt Healthier Habits,Better-for-You Beverage Alcohol Options Are Gaining TractionBetter-for-you within alcohol has evolved with no

16、n-traditional beverages entering,likely benefitting from the 2020 pandemic.Source:IRI DB,52 WE 11-06-22 vs.YA,2YA,3YA,Total US MULO+C/*Excludes Traditional Light BeerCSD-BevAl Blend60620181,293BFY BEER*1,61320201,52520191,6351,9764,0028654,0041,9594,90320211,8461,9334,5472022BFY WINEBFY SPIRITS2,983

17、7,2728,4968,3261,603774+16%8Compared to 2021,HHs Appear To Be Shifting Beverage Dollars to NA Beer&NA Beverages,Yet Gen Z Shifted to Traditional Beer&NA BeveragesNA Beer Trips,Sales and Share of Throat increased across Millennials,Gen Xers&Boomers vs.YA;NA Beer HH Spend Among Gen Xers Declined Sligh

18、tly(-1.4%vs.YA)as HH Spend across other Beverages increasedSource:IRI,52 Weeks Ending 10-9-22 vs.YA,2YA,3YA,Total US MULO+C*NA Beer for Gen Z is directional12.5%11.6%11.4%12.4%13.0%14.5%12.3%7.7%11.1%11.8%14.0%9.8%11.4%6.3%7.8%9.8%13.9%18.5%0.2%0.1%0.1%0.1%0.2%0.2%Gen XMillennials55.8%Total HHs2.9%6

19、0.8%2.1%56.8%BoomersSeniors/Retirees3.9%1.2%4.0%65.6%Gen Z3.2%70.4%62.6%BWS Share of Throat by Generation*Beer AABNA BeerWineTrad BeerSpiritsNA BeveragesMix Shift vs.YANA Beer*0.0%-0.4%0.0%0.0%0.0%0.0%Beer AAB-0.2%-0.9%-0.4%-0.2%-0.2%0.1%Wine-1.2%-2.5%-1.1%-0.8%-1.1%-2.2%Trad Beer-0.7%0.0%-0.8%-0.8%

20、-0.6%-0.5%Spirits-0.9%-7.6%-0.7%-1.1%-0.8%-0.7%NA Beverages3.0%11.3%2.8%2.9%2.8%3.3%9Representing 26%of Buyers,Those Purchasing a Combination of Beer,Wine and Spirits Make Upthe Largest Beverage Alcohol Buyer GroupSource:IRI National Consumer Panel,Total U.S.All Outlet,52 WE 11-6-2022SPIRITS11%Incid

21、ence of exclusive spirits purchasing continues to increase.Wine13%Beer16%12%12%26%10%Combos with Wine&Spirits,Spirits&Beer purchasing are also increasing.Exclusive spirits buyers are adding to their ranks.Normalization back to on-premise could reset categories closer to pre-pandemic levels.10Dr Pepp

22、er&Cream SodaKeurig Dr PepperCarbonated Beverages1$137.3M9.0%Triers50.2%RepeatersAHAThe Coca-Cola Co.Sparkling Water2$128.6M7.9%Triers51.3%RepeatersCoronaHard SeltzerConstellation BrandsHard Seltzer3$113.8M2.0%Triers53.2%RepeatersHigh Noon Sun SipsE&J Gallo WineryHard Seltzer4$103.4M1.8%Triers63.0%R

23、epeaters5OatlyOatlyDairy Alternatives$98.8M2.7%Triers62.5%RepeatersTrulyIced TeaThe Boston Beer Co.Hard SeltzerImpossibleBurgerImpossible FoodsRefrigerated Meat SubstitutesMinute Maid Zero SugarThe Coca-Cola Co.Refrigerated Juices689107LIFE CUISINENestlFrozen EntresMichelob ULTRAOrganic SeltzerAB In

24、BevHard Seltzer$90.5M1.8%Triers53.0%Repeaters$87.2M1.5%Triers51.7%Repeaters$86.1M3.5%Triers41.8%Repeaters$72.8M4.4%Triers39.3%Repeaters$70.7M2.8%Triers60.5%RepeatersInnovation Is Attracting New Beverage Alcohol CustomersBeverage Alcohol reigned in 2021 with four of the top 10 food and beverage New P

25、roduct Pacesetters.Triers=%of Households Trying;Repeaters=%of Triers Repeating;Media=Total Media Spend$52 Weeks from Launch;Kantar Media11CoronaHard SeltzerConstellation BrandsHard Seltzer1$113.8M2.0%Triers53.2%Repeaters2$103.4MVizzy Hard SeltzerMolson CoorsHard Seltzer345TrulyIced TeaThe Boston Bee

26、r Co.Hard SeltzerBarefoot FruitscatoE&J GalloFruit VarietalBud Light Platinum SeltzerAnheuser-Busch InBevHard Seltzer68910719 Crimes Cali RedTreasury Wine EstatesTable Still WineMichelob ULTRAOrganic SeltzerAB InBevHard Seltzer$90.5M1.8%Triers53.0%Repeaters$87.2M1.5%Triers51.7%Repeaters$42.5M1.2%Tri

27、ers49.8%Repeaters$14.6MN/A TriersxN/A Repeaters$14.6MN/A TriersN/A RepeatersHigh Noon Sun SipsE&J Gallo WineryHard Seltzer1.8%Triers63.0%Repeaters$60.1M1.6%Triers46.2%Repeaters$51.8M2.1%Triers44.1%RepeatersBlue Moon Light SkyMolson CoorsCraftBudweiser ZeroAnheuser-Busch InBevNon-Alcoholic$48.3M1.6%T

28、riers48.2%RepeatersTop 10 Pacesetters:Beer,Wine&SpiritsHard Seltzer reigned in 2021.Triers=%of Households Trying;Repeaters=%of Triers Repeating12LISTED ALPHABETICALLYAlani NuAlani NutritionEnergy DrinksBen&JerrysToppedUnileverIce CreamBublyBouncePepsiCoSparkling WaterChick-fil-ASaucesLancaster Colon

29、yOther SaucesRancho La GloriaSkinny MargaritaMPL BrandsPremixed CocktailsTopo ChicoMolson CoorsHard Seltzer7TrulyPunchThe Boston Beer CompanyHard SeltzerMtn DewEnergyPepsiCoEnergy DrinksTr FrTru FruFrozen DessertsTattooed ChefTattooed ChefFrozen EntresRising Stars:Food&BeverageLikely candidates for

30、New Product Pacesetter status in 2022 include three beverage alcohol products.13Nonalcohol and Alcohol Beverages Play a Role in Leisure and Entertaining at HomeAt-home drinking occasions spiked in 2020 and remained strong through 2021.Hard seltzer variety packs made entertaining at home more interes

31、ting and were a great way for consumers to experiment without the higher prices associated with on-premise.2021 Non-Alcohol NPP Dr Pepper&Cream Soda,AHA Sparkling Water,Minute Maid Zero Sugar2021 Alcohol NPPCorona Hard Seltzer,High Noon Sun Sips,Truly Iced Tea,Michelob ULTRA Organic Seltzer142018$3.

32、2B2019$4.6B2021$8.9B2020$7.8BHS$.5BHS$1.5BL52$9.2BHS$4.4BHS$4.0BHS$4.7BReady-to-Drink/Hard Seltzer Sales Growth May Be Softening but Remain Strong ContendersSource:IRI OmniMarket,Total US Multi Outlet+Conv,Latest WE 11/27/2215Variety Pack$3.9BIced Tea$469MMBlack Cherry$389MMMargarita$288MMLemonade$2

33、79MMMango$190MMTop Flavors(RTD)Source:IRI OmniMarket,Total US Multi Outlet+Conv+Liquor,52 WE 11/27/2216Though Hard Seltzers Are Still Seeing Switching Gains From Other BevAl Products,Those Gains Were Dampened by Decreased Consumption and Lost BevAl BuyersSource:IRI OmniConsumerTM Scan Panel TUS All

34、Outlets June 2022;*=greater than expected0.44.9-3.5-1.0Net Vol%ChgGains Due to SwitchingLosses Due to Buy RateLosses Due to Lost BWS BuyersTop Switching GAINS:Table Wine,Whiskey,Craft Beer,*Vodka,FMB*Malt-based beverages are showing vulnerability to spirits-based RTDs.Top Switching LOSSES:Import Bee

35、r,Spirits-Based Seltzers,*Premixed Cocktails*Malt-Based SeltzersSource of Volume17Ready-to-Drink Consumer Purchase BehaviorReady-to-Drink Consumer DemographicsMillennials35Gen X36Boomers2618112160%VolumeIndex to Total LiquorLower Income18Middle Income39Upper Income428995111White HHs80Hispanics12Afri

36、can American HHS898103105A Third of U.S.Households Bought an RTD Product and Spent$144 Annually;Millennials and Gen X Buy Nearly Two-Thirds of all RTD Source:IRI CSIA;Total US All Outlets;Latest 52 WE 11/06/22 vs.YATrips per BuyerPurchase CycleRepeat BuyersHousehold PenetrationBuy Rate33.2%33.2%(-4.

37、0 pts)$143.74$143.74(+14.7%)9.2 9.2(+5.4%)32 days 32 days(-1.7)74.4%74.4%(-0.4 pts)18In-Store Displays Help Deliver a Sales Lift But Beverage Alcohol Is the Only Grocery Department to Make a Sizeable Gain in In-Store Displays in 2022Number of Displays per Store by Department in 52 Weeks 2022 in Tota

38、l U.S.GrocerySource:IRI Syndicated Data;Total U.S.Grocery;Total Store Display Audit;Average Weekly Number of Displays per Store includes all stores in the projected geography;52 weeks ending 10/9/2254.120.89.05.53.814.85.74.74.1General FoodBeveragesBev.AlcoholRefrigeratedFrozenGeneral Merch.HealthBe

39、autyHome CareChange vs.2019-4.3-0.61.0-0.5-0.2-2.30.10.0-0.119But Displays Are Not Even Across Beverage AlcoholWine Lost Significant Displays Across Most Locations in the Store;Spirits Gained Significant Store DisplaysSource:IRI ILD;Total U.S.Grocery;Detailed category display collection,Number of Di

40、splays includes all stores in the projected geography;calendar years 2019,2021 and 2023;IRI custom display collection with the perimeter/racetrack location broken out by eight detailed store departments.Number of Displays%Change in 2022 vs.2019 by Location50.3%45.7%31.9%62.9%56.4%65.9%141.1%219.0%Sp

41、irits CategoryChg vs.LY1,016,842299,292184,516195,483108,623158,32542,76227,842Total DisplaysPerimeter/RacetrackAll OtherEnd CapFront End CapIn-AisleBack End CapLobbySeasonal/PromotionalWine Category-4.3%-14.2%-7.9%-0.1%25.8%0.5%21.9%29.3%Chg vs.LY-228,293-304,671-105,,339,2,57227,09911,29

42、62020Seltzer Displays Changed Significantly in 2022,With Beer and Wine Seltzers Down Due to Assortment Changes and Spirits Seltzers Growing Due to New EntrantsNumber of Displays%Change in 2022 vs.2021 by Category SegmentSource:IRI ILD;Total U.S.Grocery;Detailed category display collection,Number of

43、Displays includes all stores in the projected geography;calendar year 2019;,2021 and 2023;IRI custom display collection with the perimeter/racetrack location broken out by eight detailed store departments.1.2%-1.0%-26.6%11.9%0.6%40.3%17.2%13.6%6.3%Total BeerCraftBeer SeltzerImportPremiumFMBSuper Pre

44、mSub PremAll Other17.3%29.4%1.0%61.1%4.0%0.8%17.4%-2.7%6.3%5.3%Total SpiritsPremixedVodkaSpirits SeltzersAmericanLiqueurCanadianRumTequilaAll Other0.5%-0.1%7.8%14.3%4.5%-36.9%-3.3%Total WineTable WineSparklingFruit VarietalBeverageWine SeltzerAll Other21All Regions Are Lagging Pre-COVID-19,With the

45、Northeast Experiencing the Most Significant Lag Data normalizing after COVID-19 on-premise surge in Southeast,Texas Regions and CA(Southern)$809K-20%$703K-38%$712K-19%$297K-11%$116K-6%$360K+11%$184K+4%$146K-18%$451K+1%$368K-15%$287K-7%Total On-Premise Beverage Alcohol Sales Averaged$374K per Venue,-

46、3.7%vs.YA;78%of Meals Are Prepared at Home vs.48%Pre-PandemicSource:IRI On-Premise Data,12/4/2022 On-premise beverage alcohol sales are up as patrons are beginning to return to in-person dining post-pandemic.Restaurants have been forced to raise prices as a result of increased product and transporta

47、tion costs amid supply shortages.22On-Premise Sales Are Beginning to Rise,But Still Down vs.Pre-Pandemic LevelsSource:National Restaurant Association On-Premise 2022The foodservice industry is forecast to reach$898B in sales in 2022.The foodservice industry workforce is projected to grow by 400,000

48、jobs,for total industry employment of 14.9M by the end of 2022.More than half of restaurant operators said it would be a year or more before business conditions return to normal.Food,labor and occupancy costs are expected to remain elevated,and continue to impact restaurant profit margins in 2022.96

49、%of operators experienced supply delays or shortages of key food or beverage items in 2021 and these challenges will likely continue in 2022.51%of adults say they arent eating at restaurants as often as they would like,which is an increase of 6 percentage points from before the pandemic.Despite it a

50、ll,consumers pent-up demand for restaurant services remains high.23On-Premise BevAl Category Sales Are Returning to Pre-COVID-19 Levels as Consumers Begin to Return to In-Restaurant DiningSources:IRI On-Premise Data,11-27-2022;*National Restaurant Association While consumers want to resume on-premis

51、e visits,90,000 restaurant locations are temporarily or permanently closed,and the industry struggles with staffing and supply.*Lockdown(April 2020)Reopening(November 2022)Pre-COVID-19(January 2020)4.5%2.1%12.3%81.1%BeerWineSpirits/CocktailsFood/NA Bev1.1%0.7%2.1%96.1%5.8%2.8%12.1%79.4%24March 13,20

52、20:President Trump declares a nationwide emergency around the COVID-19 pandemic.December 2020:The U.S.Congress passes second Covid Relief Act,initial vaccines begin rollout.May 14,2021:CDC lifts mask/distancing mandates for fully vaccinated Americans.July 7,2021:The Delta variant becomes the dominan

53、t COVID-19 strain in U.S.The U.S.On-Premise Market Continues to Recover,But Consumer Sales Are Still Riding the Wave of Uncertainty Brought On by COVID-19,Inflation and LaborIRI on-premise daily data shows effects on both total menu and beverage alcohol sales.Source:IRI On-Premise data 11-27-22 Tota

54、l U.S.:Quarterly Dollar Sales per Venue25The economy is consumers dominant issue,and beverage alcohol companies should promote their relative price stability and offer ways for consumers to save even more.Recognize that“value”doesnt always equate to lowest price.While making gains,on-premise will co

55、ntinue to face challenges,including inflation and the labor to support a positive experience.Ready-to-drink cocktails are a growth opportunity,but brands need to have a point of differentiation.Consider premium,value,interesting flavor combinations and better-for-you attributes.Operators can win by

56、reminding consumers of the celebratory atmosphere of on-premise and should promote those occasions.Innovate like your life depends on it!Key trends of note include better-for-you options,new flavor experiencesand premiumization.Things to think aboutThings to think about26IRI Thought Leadership Deliv

57、ers Insightful and Provocative InsightsC-Suite Conversation Series18 conversations recorded to date with transcripts,video and audio content.Demand Index Inflation Tracker E-Commerce Demand Index Supply Index Channel Shift Index Promotions IndexCPG Economic IndicatorsThe latest data on category tren

58、ds,out-of-stocks,demand and supply,inflation,consumer sentiment and more.Industry-Leading Reports45+thought leadership reports published to date,reshaping how our client executives perceive us.WebinarsBlogsPodcasts27 2022 Information Resources Inc.(IRI).Confidential and Users Get New Thought Leadership from IRIs Research,Data&Analytics Experts28 2023 Information Resources Inc.(IRI).Confidential and proprietary.IRI