Gap Between Dollar and Volume Velocities Widening

Dear Client: The data are starting to catch up to the true effects on demand of the beer industry's two price increases this year. "Beer case prices are up 12% since 2019, largely to combat inflation," writes Kaumil Gajrawala and Sanjeet Aujla at Credit Suisse, citing Nielsen numbers. "Unexpectedly low elasticities (thus far) make revenue growth look healthy. But a look at unit velocity tells a different story." In other words, the bloom may be fraying off the rose in