Dear Client:
The year-end data reports are rolling in, and your editor combed through the spreadsheets so you don’t have to.
Of course, we knew the growth we saw in 2020 would be hard to match. Indeed, only a few categories were up to the challenge. But before we dig into that, let’s take a look at overall performance for the 52 weeks ended January 1, 2022 in NielsenIQ-measured channels:
- Total spirits sales were up 1.5% and volumes were flattish (down 0.6%).
- Total wine sales were down 4.4% and volumes were down 9.1%.
Spirits was buoyed last year by the usual suspects: whiskey, tequila, and prepared cocktails. Most whiskey categories grew sales last year (only Canadian and Irish whiskey were in the red), with moonshine (sales up 13.4%) and Japanese whiskey (up 11%) reporting double digit growth.
Tequila ended the year with sales up 16.1% and volumes up nearly 5%. For prepared cocktails, volume growth outpaced sales growth, with volumes up 62.3% and sales up 52.4% for the 52-week period.
Tequila and prepared cocktails also picked up some dollar share last year. Prepared cocktails hit 5.1 share in 2021, up from 3.4 share in 2020, and tequila dollar share was up 1.6 points from 11 share in 2020 to 12.6 in 2021.
Meanwhile, wine clearly suffered more against tough comps. Indeed, we saw a lot of red in those spreadsheets. Table wine weighed down category growth, with sales down nearly 7% and volumes down 11% for the year.
On the other hand, sparkling wine (sales up 5.2%, volumes up 0.3%), non-alcoholic wine (sales up 29%, volumes up 12.4%) and wine-based cocktails (sales up 51%, volumes up 37.5%) grew last year.
PREMIUM SEGMENTS IN GROWTH. Premium wine and spirits continued to grow last year. Premium spirits sales were up 2% for the 52-week period and ultra premium grew sales by 23.5%. And table wine $15+ grew for the year, with ultra premium ($15-$20) sales up 2.2%, luxury ($20-$25) sales up 1.9%, and super luxury ($25+) sales up 12%.
Moreover, we noticed some major price increases from spirits categories, including Scotch with an average price increase of $2.17 per 750ml; single malt Scotch, up $3.24; rye, up $2.07; Cognac, up $3.54; and tequila up $2.84.
A LOOK AT TOP BRANDS. In addition to the latest NielsenIQ data, we also took a look at IRI’s recent reports, digging into how top wine and spirits brands fared last year.
For spirits, the following gained share in the 52 weeks ended December 26, 2021: Tito’s picked up 1.51 dollar share points, holding tight to its No.1 spot; several tequila brands picked up significant share, including Casamigos (2.23 share points), Teremana (2.54 points) and Don Julio (1.57 points); Sovereign Brands-owned D’Usse VSOP Cognac grabbed 2.63 dollar share points; and Fireball picked up 0.61 share points and is at No.3 on the top brands list.
Spirit brand dollar share donors include: Hennessy VS, down 1.81 share points; Jose Cuervo, down 3.32 points; Seagrams gin down 1 point; and Sauza tequila down 1.28 share points.
Turning to wine, only five table wine brands in IRI’s top brands in total US (multi outlet + convenience) reported sales growth for the same 52-week period. They are: Josh Cellars; 19 Crimes; Meiomi; La Crema; and Decoy.
There was a lot more sales growth among sparkling wine brands, with a few reporting particularly strong growth, including: Josh Cellars sparkling, with sales up 65%; Stella Rosa Black sparkling, sales up 39.6%; Tropical Sparkling, sales up 52%; and Luc Belaire sparkling, with sales up a whopping 106%.
MONSTER’S “OPEN PLAYBOOK” FOR BEV ALC INCLUDES SPIRITS
Yesterday, Monster made its foray into bev alc, striking a definitive agreement to acquire CANarchy Craft Brewery Collective for $330 million in cash. To discuss the deal and provide more color on their bev alc strategy, Monster chiefs Hilton Scholsberg and Rodney Sacks held a business call update.
Essentially, the plan is to leverage existing CANarchy brands, as well as develop their own, in the beverage alcohol space.
The opportunity is “to build on the CANarchy brands that they have and to introduce new alcoholic brands, whether they’d be in beer, in seltzers, in mixed cocktails, in spirits… We have an open playbook to be able to launch a business and develop a business in the alcohol space,” said Hilton.
If and when they do launch a spirits-based product, Rodney noted that they will bring them to market through beer distributors in states where it’s allowed, and in markets where beer distribs can’t carry them they’ll take them through wine and spirits wholesalers. “So there will be a hybrid system ultimately for any spirit-based products,” he explained.
It was unclear, however, how Monster would produce a spirits-based product. They do have a facility in Hawaii that they’re currently building out, which will be used to develop non-alcoholic and alcoholic products. Though, Rodney noted “it’s very premature to look at what we’re going to do there.”
One thing we won’t see? Monster-branded alcohol products. Indeed, the brass voiced a lot of concern about bringing Monster brands into alcohol. Hilton even said that he is “vehemently opposed” to putting the Monster brand onto an alcoholic product. “I think it’s just opening up for major issues down the road,” he said.
LANTERN REPORTS 350% GROWTH IN 2021
E-commerce cannabis platform Lantern reported 350% growth during the past fiscal year, ended December 31, 2021, over the year prior.
You may recall, the company formally split off from former sister company Drizly in October 2021 after Uber finalized its acquisition of Drizly. Lantern received $40 million in capital from Drizly in the deal.
Lantern expanded into a handful of key markets during the fiscal year, including Aurora, Colorado and Grand Rapids, Michigan and became the first adult-use delivery platform in Massachusetts, serving the Greater Boston area. It has partnered with several local dispensaries and couriers in the respective cities.
“Lantern’s record year of growth is a bellwether for the enormous potential of the cannabis delivery market– especially considering how consumer adoption of delivery services increased by 25% throughout the country,” says Lantern co-founder and ceo Meredith Mahoney. “Our team is eager to leverage our current momentum and foster deeper relationships with additional local partners to bring accessible and personalized cannabis retail experiences to an ever wider audience in the upcoming year.”
Until Monday,
Your editors
Sarah Barrett, Executive Editor
Hana Kruger, Assistant Editor
“Short cuts make long delays.” – J. R. R. Tolkien
——- Sell Day Calendar ———
Today’s Sell Day: 10
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
