wednesday, june 24, 2020  · more selling days during this year’s may. • utah, with 3% of the...

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Wednesday, June 24, 2020 www.nabca.org TODAY’S HIGHLIGHTS Control State Results for May 2020 Navajo Tribe Objects To Family Dollar Application To Sell Alcohol New research reveals health behaviour clusters among young adults in Ireland FDA warns consumers to not use hand sanitizer made by Mexico-based company Unheard Voices in Wine, a Two-Part Series Hosted by SommCon and Diversity in Wine and Spirits, Launches June 26, 2020 via Zoom The States That Drink the Most Spirits in America NABCA News NABCA launches a COVID-19 Resource page. It includes interactive dashboards which includes state actions to lessen the spread of COVID-19 and policy changes that effect on- and off-premise retail operations, as well as additional information. Visit NABCA’s website for more information TTB NEWS NEW COVID-19 PAGE ON TTB.GOV You can now find all TTB’s COVID-19-related news and guidance in a single location. Check the page frequently to find new or updated information to help you and your business respond to the COVID- 19 national emergency. https://www.ttb.gov/coronavirus NABCA WEBINAR Women. Alcohol. Health. - From Blackouts to Breast Cancer. webinar is now available on our website. www.nabca.org/Resources/Webinars UPCOMING MEETINGS Beverage Alcohol Retailers Conference September 14-16, Austin, TX, Sheraton Capitol Click here for more details ADDITIONAL LINKS Visit NABCA’s website for information on: Control State Agency Information Doing Business in Control States NABCA News NABCA CONTROL STATE RESULTS Control State Results for May 2020 Control State Results NABCA June 23, 2020 During May nine-liter control states spirits case sales grew -1.0% over same period sales last year. Alabama (8.2%), Idaho (14.8%), Mississippi (14.6%), North Carolina (12.3%), New Hampshire (25.0%), Ohio (9.3%), Oregon (7.3%), Virginia (9.1%), Vermont (13.1%), West Virginia (11.3%), and Wyoming(6.9%) reported monthly growth rates for May exceeding their twelve-month trends. The growth rates for Iowa (-2.1%), Montgomery County Maryland (-2.7%), Maine (2.2%), Michigan (-7.2%), Montana (4.0%), Pennsylvania(-37.0%), and Utah(-12.8%) fell short of their twelve-month trends. Control state rolling- twelve-month-volume growth, 4.0%, was down from April’s reported 4.4%. Spirits volumes grew 4.8% year-to-date compared to 4.2% a year ago. Control state spirits shelf dollars were up 4.9% during May while trending at 6.7% during the past twelve months. Alabama (16.1%), Idaho (21.1%), Mississippi (19.9%), North Carolina (19.2%), New Hampshire (24.1%), Ohio (17.9%), Oregon (13.6%), Virginia (14.2%), Vermont (14.3%), and West Virginia(16.3%) reported growth rates exceeding their twelve-month trends. Iowa (-2.2%), Montgomery County Maryland (0.8%), Maine (2.0%), Michigan (2.1%), Montana (4.8%), Pennsylvania (-34.4%), Utah (-9.2%), and Wyoming (6.9%) grew shelf dollars at rates below their twelve-month trends.

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Page 1: Wednesday, June 24, 2020  · more selling days during this year’s May. • Utah, with 3% of the control state nine-liter-case volume, reported four weeks of sales ... Grocery stores

Wednesday, June 24, 2020 www.nabca.org

TODAY’S HIGHLIGHTS

• Control State Results for May 2020 • Navajo Tribe Objects To Family Dollar Application To Sell Alcohol • New research reveals health behaviour clusters among young adults in Ireland • FDA warns consumers to not use hand sanitizer made by Mexico-based company • Unheard Voices in Wine, a Two-Part Series Hosted by SommCon and Diversity in Wine and Spirits,

Launches June 26, 2020 via Zoom • The States That Drink the Most Spirits in America

NABCA News

NABCA launches a COVID-19 Resource page. It includes interactive dashboards which includes state actions to lessen the spread of COVID-19 and policy changes that effect on- and off-premise retail operations, as well as additional information. Visit NABCA’s website for more information

TTB NEWS

NEW COVID-19 PAGE ON TTB.GOV You can now find all TTB’s COVID-19-related news and guidance in a single location. Check the page frequently to find new or updated information to help you and your business respond to the COVID-19 national emergency. https://www.ttb.gov/coronavirus

NABCA WEBINAR

Women. Alcohol. Health. - From Blackouts to Breast Cancer. webinar is now available on our website. www.nabca.org/Resources/Webinars

UPCOMING MEETINGS

Beverage Alcohol Retailers Conference September 14-16, Austin, TX, Sheraton Capitol Click here for more details

ADDITIONAL LINKS

Visit NABCA’s website for information on:

• Control State Agency Information • Doing Business in Control States • NABCA News

NABCA CONTROL STATE RESULTS

Control State Results for May 2020

Control State Results NABCA June 23, 2020

During May nine-liter control states spirits case sales grew -1.0% over same period sales last year. Alabama (8.2%), Idaho (14.8%), Mississippi (14.6%), North Carolina (12.3%), New Hampshire (25.0%), Ohio (9.3%), Oregon (7.3%), Virginia (9.1%), Vermont (13.1%), West Virginia (11.3%), and Wyoming(6.9%) reported monthly growth rates for May exceeding their twelve-month trends. The growth rates for Iowa (-2.1%), Montgomery County Maryland (-2.7%), Maine (2.2%), Michigan (-7.2%), Montana (4.0%), Pennsylvania(-37.0%), and Utah(-12.8%) fell short of their twelve-month trends. Control state rolling-twelve-month-volume growth, 4.0%, was down from April’s reported 4.4%. Spirits volumes grew 4.8% year-to-date compared to 4.2% a year ago.

Control state spirits shelf dollars were up 4.9% during May while trending at 6.7% during the past twelve months. Alabama (16.1%), Idaho (21.1%), Mississippi (19.9%), North Carolina (19.2%), New Hampshire (24.1%), Ohio (17.9%), Oregon (13.6%), Virginia (14.2%), Vermont (14.3%), and West Virginia(16.3%) reported growth rates exceeding their twelve-month trends. Iowa (-2.2%), Montgomery County Maryland (0.8%), Maine (2.0%), Michigan (2.1%), Montana (4.8%), Pennsylvania (-34.4%), Utah (-9.2%), and Wyoming (6.9%) grew shelf dollars at rates below their twelve-month trends.

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Shelf dollars in the control states are up 8.0% year-to-date compared to 6.9% last year.

Price/Mix for May is 5.9%, lapping April’s reported 2.8%.

Price/Mix has been tracked by NABCA since January 2002, and May’s 5.9% is the largest Price/Mix value published, ever. The previous highest value, 4.7%, was recorded during November 2006.

During March, April, and May the control states’ on- and off-premise markets behaved capriciously. During the twelve-month period ending February 2020, the off-premise monthly share averaged 82%. During March the of-premise share jumped to 90% and during April to 99%. During May it moderated, somewhat, to 96%. Trends suggest the Control State off-premise share for June may continue to be elevated above historical levels.

May’s growth rate was effected by calendar anomalies in the control states.

• Michigan, with 16% of control state nine-liter-case volume, reported four weeks of sales this May compared to five last May, artificially deflating sales and skewing control state results. Michigan had seven fewer selling days during this year’s May.

• New Hampshire, with 5% of control state nine-liter-case volume, reported five weeks of sales this May compared to four last May, artificially inflating sales and skewing control state results. New Hampshire had seven more selling days during this year’s May.

• Utah, with 3% of the control state nine-liter-case volume, reported four weeks of sales this May compared to five last May, artificially deflating sales and skewing control state results. Utah had five fewer selling days during this year’s May.

• Pennsylvania, with 13# of control state nine-liter-case volume, reported nine-liter-case growth of -37.0% for the month of May. Off-premise (consumer takeaways) sales were down -20.4% compared to same period last year. Sales to on-premise licensees were down 95.2%.

• On net, there were eight fewer selling days during May in the control states, 1.5% fewer, compared to last year.

• After equivalizing selling-day variations between this year’s May and last year’s, May’s nine-liter-case-spirits growth rate is 4.2% with a rolling-twelve-month trend of 5.3%. May’s shelf-dollar growth rate is 10.7% with a rolling-twelve-month trend of 8.1%.

Equivalized price/mix for May is 6.6%.

Cocktails, with 2% share of the nine-liter case control states spirits market, was May’s fastest growing category with 43.2% reported and a twelve-month trend of 20.1%. Brandy / Cognac, with 6% share, grew during May at 12.1% and 4.7% during the past twelve months while Tequila, with 7% share, grew at 11.2% and 10.7%. Vodka, with 34% share, grew during the same periods at -6.6% and 2.7%, respectively. Brandy/Cognac(12.1% during May, 4.7% twelve-month trend), Cocktails(43.2%, 20.1%), and Tequila(11.2%, 10.7%) grew at rates above their twelve-month trends, while Canadian Whiskey(-0.7%, 3.2%), Cordials(-7.4%, 0.0%), Domestic Whiskey(4.4%, 8.3%), Gin(-6.7%, -0.1%), Irish Whiskey(-10.6%, 4.7%), Rum(-7.2%, -0.5%), Scotch(-5.5%, 0.2%), and Vodka(-6.6%, 2.7%) fell short.

May’s nine-liter wine case sales growth rate was 7.4%. Pennsylvania (reporting 7.6% nine-liter-case growth for wines), New Hampshire (30.2%), Utah (-20.4%), Mississippi (10.0%), Montgomery County Maryland (-8.4%), and Wyoming (-2.2%) are the control states that are the sole wholesalers of wines and spirits within their geographical boundaries. Rolling-twelve-month wine volume growth in these six control states is -0.1%, up from April’s reported -1.0%. 9L

Cases CM % Chg

Shelf $ CM % Chg Price/Mix

Control States

Total Control States

-1.0 4.9 5.9%

Central Region

-11.5 -4.5 7.0% IA, MD, MI, OH, PA, WV

NE Region

15.7 15.1 -0.6% ME, NH, VT

NW Region

4.0 8.9 4.9% ID, MT, OR, UT, WY

Southern Region

10.8 17.0 6.2% AL, MS, NC, VA

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LICENSE STATE NEWS

AZ: Navajo Tribe Objects To Family Dollar Application To Sell Alcohol

Knau By Knau Staff June 24, 2020

The Navajo Nation tribal government is objecting to a notice of application to sell alcohol in a Family Dollar store in St. Michaels, Arizona.

President Jonathan Nez and Vice-President Myron Lizer issued a statement saying the application poses a direct threat of the health and safety of the Navajo Nation. "Our Navajo People have a long, ongoing battle with alcohol and the devastation that alcoholism causes to our families and communities," the statement says. Nez asked the Apache County Board of Supervisors and the Arizona State Liquor Board to deny the application, and encouraged Navajos to boycott Family Dollar stores.

The Apache County Board of Supervisors scheduled a hearing on the issue on July 28.

In April, Navajo tribal government objected to another application for a liquor license by the Family Dollar store located in Tuba City, Arizona.

GA: Alcohol home deliveries bill clears Georgia Senate

MDJ By Beau Evans, Staff Writer, Capitol Beat News Service June 24, 2020

Homebody drinkers, rejoice.

The Georgia Senate passed legislation Tuesday allowing restaurants, grocery stores and other businesses licensed to sell alcohol to make home deliveries of beer and wine in Georgia.

Senate passage of House Bill 879, sponsored by Rep. Brett Harrell, comes after many Georgians clamored for alcohol deliveries amid recent stay-at-home orders prompted by the coronavirus pandemic.

It cleared the Senate by a 49-9 vote and now heads back to the state House of Representatives.

Grocery stores would include the upscale Whole Foods, which is owned by Amazon and would be able to utilize the internet sales giant’s online vending

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platform, Senate lawmakers confirmed at a committee hearing last week.

Liquor stores would also be allowed to make deliveries after Senate lawmakers pushed through an amendment to the bill late Tuesday permitting them to do so. Backers of that change said letting liquor stores join the delivery bunch would help many mom-and-pop businesses keep afloat.

Deliveries could only be made by retailers or third-party vendors who are licensed to drive in Georgia, are at least 21 years old and have completed training on proper deliveries. Recipients would have to show photo ID and sign off for a delivery when it’s brought to their homes.

Businesses making deliveries would also need to follow any local rules that counties and cities have on alcohol sales, including purchase hours and whether restaurants can serve adult beverages. If the bill is passed into law, local governments could still move to ban alcohol deliveries in their own communities.

The measure by Harrell, R-Snellville, comes as restaurants and other food-service businesses in Georgia continue reeling from the economic fallout of coronavirus, which spurred many restaurants to close or lay off workers.

Karen Bremer, chief executive officer of the Georgia Restaurant Association, said at a hearing last week the state’s restaurant industry had lost more than $4.8 billion in sales over the past 15 weeks and saw more than 300,000 restaurant workers lose their jobs.

She called for passage of the deliveries bill to help restaurants recover.

“I think it’s a great piece of legislation,” Bremer said. “It takes care of a lot of issues.”

Kathy Kuzava, president of the Georgia Food Industry Association, also praised the measure last week. She noted grocery stores have seen their delivery sales increase in recent years but particularly since the pandemic took hold, during which some grocers reported deliveries had doubled.

“You are making a lot of customers and retailers happy in the state,” Kuzava said. “Your constituents will be very, very pleased.”

Not everyone has cheered the bill. The Georgia Baptist Mission Board came out against it on grounds it could increase alcohol consumption in the state.

“This is not the expansion of Coca-Colas and Pepsis,” said Mike Griffin, a lobbyist for the board. “This is a different type of beverage.

INTERNATIONAL NEWS

Ireland: New research reveals health behaviour clusters among young adults in Ireland

Longford Leader By Reporter June 23, 2020

New research published today examines how 4 key risk factors for disease (smoking, alcohol consumption, physical activity, diet) cluster together among young adults in Ireland.

Using data from the Growing up in Ireland ’98 Cohort at 17 years of age, the research conducted by ESRI and funded by HSE Health and Wellbeing, identified 3 distinct health behaviour clusters among young adults in Ireland.

A ‘healthy’ group (43 per cent) who did not smoke, drank rarely, engaged in exercise on six or more days

in the previous fortnight and had the best quality diet;

An ‘unhealthy diet and physical activity’ group (36 per cent of 17-year-olds), who did not smoke, drank alcohol rarely (monthly or less) but had the worst levels of physical activity (just 1-2 days in the previous fortnight) and had the poorest dietary quality;

The remainder comprised an ‘unhealthy smokers and drinkers’ group (21 per cent of 17-year-olds), who had the highest level of alcohol consumption, were daily or occasional smokers, had moderate to low levels of physical activity and poor to moderate dietary quality.

A number of individual and family-level factors were associated with cluster group membership:

Young women were more likely to fall into the unhealthy smoker/drinker and, especially, the unhealthy diet/activity groups;

Young people from working-class backgrounds were more likely to be a smoker/drinker while those whose mothers had lower levels of education (Leaving Certificate or less) were more likely to have poor diet/physical activity levels;

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Parental health behaviour also made a difference with higher rates of drinking/smoking among young people whose parents are occasional or regular smokers.

Anne Nolan, one of the authors of the report, commented: “The study findings show us that health behaviours are interconnected. They suggest that a multi-faceted approach is needed to promote positive health behaviours. The increasing emphasis on wellbeing as an area of learning at second-level offers further opportunities for promoting positive health behaviours during adolescence.

“The research findings show that measures to promote both school engagement and a more positive school climate, while important for educational outcomes, are likely to have positive spill-overs for other aspects of young people’s lives, including health behaviours.”

The potential for schools to promote healthy behaviour has long been recognised. The research found that:

Young people’s health behaviours were found to vary significantly by the second-level school and, to a lesser extent, the primary school attended;

The measures of school policy examined had little impact on cluster group membership (school policies included the provision of physical education and sports facilities, having a healthy eating policy). Instead, the socioeconomic composition of students and school climate emerged as more important influences on health behaviour;

A key feature was the interface between the young person and the school environment, with negative interaction with teachers and disaffection from school associated with greater levels of drinking/smoking in particular.

HSE Health and Wellbeing funded this research as part of their work to promote health under the Healthy Ireland Framework.

Helen Deely, Interim Programme Lead for HSE Health and Wellbeing said: “We know that patterns of health behaviour that can lead to chronic illness can be formed at a young age. This research is telling us that a positive school environment makes it more likely that young people will experience a sense of belonging and connection and less likely that young people will turn to risky health behaviours, such as using tobacco and alcohol or engaging in unhealthy

eating patterns, to cope with their feelings of isolation and disconnection.

“In that context, we welcome the publication of the Wellbeing Policy Statement and Framework for Practice by the Department of Education and Skills which supports a whole school approach to wellbeing, and encourages school communities to reflect on their social environment and to consider how they might increase the proportion of young people that feel a sense of belonging and connection to the school."

“The HSE will continue to work in partnership with the Department of Education in relation to teacher training and resource development, to support wellbeing promotion in the school setting. However, it is clear that schools are not the only influences on adolescent health. The intergenerational transmission of smoking and drinking alcohol identified in this study reinforces the importance of supporting parents with managing their own health behaviours,” she continued.

“Preventing unhealthy behaviours taking hold in adolescence is more cost-effective to the State and life-enhancing for citizens, than dealing with chronic disease in adulthood. While policy and practice is moving in the right direction, redoubling efforts to ensure preventative interventions are in place in school and home settings is critically important.”

PUBLIC HEALTH NEWS

FDA warns consumers to not use hand sanitizer made by Mexico-based company

Progress staff reports June 24, 2020

The Food and Drug Administration has issued a bulletin warning consumers in the United States to avoid using nine brands of hand sanitizer that are made by Eskbiochem SA de CV, a Mexico-based manufacturer.

The hand sanitizers may contain methanol, or wood alcohol, a substance that can be dangerous when absorbed through the skin of ingested.

The coronavirus (COVID-19) pandemic has created a tremendous demand world-wide for hand sanitizer as an alternative to hand washing.

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The FDA warning has requested that the producer of the questionable brands to remove the “Potentially dangerous products” from the U.S. Market.

Agency tests indicated that one product, Lavar Gel, contained 81 percent methanol and those of CleanCare No Germ 28 percent.

Brands consumers should avoid include: All-Clean Hand Sanitizer, Esk Biochem Hand Sanitizer, The Good Gel Antibacterial Gel Hand Sanitizer, Clean Care No Germ, Advanced Hand Sanitizer (80 percent alcohol, two different NDC numbers) and 75 percent alcohol, Lavar Gel, and Sandiderm Advanced Hand sanitizer.

Consumers who have been exposed to hand sanitizer containing methanol should seek immediate treatment, which is critical for potential reversal of toxic effects of methanol poisoning. Substantial methanol exposure can result in nausea, vomiting, headache, blurred vision, permanent blindness, seizures, coma, permanent damage to the nervous system or death.

INDUSTRY NEWS

Unheard Voices in Wine, a Two-Part Series Hosted by SommCon and Diversity in Wine and Spirits, Launches June 26, 2020 via Zoom

Press Release Wine Industry Network June 23, 2020

San Diego, CA (June 23, 2020) –SommCon®, a leading conference for wine, beer, and spirit professionals and serious enthusiasts, co-hosts the Unheard Voices in Wine webinar series with Diversity in Wine and Spirits (DWS). The two-part series amplifies melanated voices through necessary conversations that address the lack of representation of black individuals in the wine industry, issues relating to black industry professionals, and how allies can help create a more diverse and inclusive environment moving forward.

The panel is fully comprised of black wine professionals who provide meaningful and tangible solutions in an effort to shift the wine industry’s current paradigm. With more to come, confirmed panelists for part one are as follows:

• MODERATOR: Lia Jones, Executive Director, Diversity in Wine and Spirits

• CO-MODERATOR: Philippe André, US Ambassador, Champagne Charles Heidsieck

• DLynn Proctor, Director, Fantesca Estate

• Brenae Royal, Vineyard Manager, Monte Rosso/Gallo

• Rick Arline, Wine Director, Auburn Los Angeles

• Deniece Bourne, Business Development Manager, WSET

“DWS has been conducting research in the wine industry for the past 2 years,” says Lia Jones, Executive Director of Diversity in Wine and Spirits. “We have found that there have been panels featuring all-black wine professionals however this will be the first of its kind for a major wine conference. This is history in the making and we are excited to be part of a change that is long overdue.”

During part one of Unheard Voices in Wine, panelists acknowledge specific companies within the industry who exemplify diversity and emphasize tools and strategies that can be learned from them. Additional

topics being discussed during the first webinar include hiring practices post COVID-19 relating to marginalized professionals, how educational organizations such as WSET are addressing diversity issues, and the importance of having diversity demonstrated on boards and leadership teams.

Part one of Unheard Voices in Wine is to be held via Zoom on Friday June 26, 2020 at 9:00 a.m. PDT. Stay tuned for details of the second webinar in the Unheard Voices in Wine series.

Visit HERE to register for the two-part webinar series.

The webinar will be available for continued viewing in the SommCon resource center and profiled in an upcoming issue of The Tasting Panel Magazine. For additional resources and articles on the Unheard Voices in Wine series, visit SommConUSA.com/blog.

US breweries registered about half as many new beer varieties as last year, data suggests FOX News By Alexandra Deabler June 23, 2020

Your summertime brew may look familiar this season.

Breweries are reportedly only registering half as many new beers this year than in 2019 due to the

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coronavirus pandemic, new data shows. According to Sovos ShipCompliant, a company that provides software to alcohol companies to protect against compliance risks, the breweries it works with registered 43.4 percent fewer new brews in April and May than last year during that same period, Food and Wine reported.

“The closure of tasting rooms beginning in mid-March left many industry producers struggling to make ends meet. Breweries, in particular, appear to have rallied around their core products rather than investing in seasonal or limited releases, as a way to cut costs,” Larry Cormier, vice president, general manager of Sovos ShipCompliant, explained to Food and Wine.

The beer industry – craft beer especially – has taken a hit during the COVID-19 outbreak.

Between 2019 and 2018, American craft beer sales doubled. However, since the pandemic, sales have dropped 65 percent across the nation for the usually-more-expensive offerings.

As previously reported, breweries have also had to throw out millions of gallons of beer that had gone stale, impacting revenue.

Nielsen Data: Some Alcohol Consumers Returning to Pre-COVID Shopping Patterns

Wine Industry Advisor By Press Release June 23, 2020

Unless otherwise noted, all trends below are for dollar sales within Nielsen U.S. off-premise channels for the one-week period ending 6/13/20 compared to the same week in 2019. We continue to remind our readers that we are only measuring some specific off premise channels, and that the impact of the health crisis on sales is uneven across companies in the alcohol industry.

The year-over-year growth rate for total off-premise alcohol dollar sales within Nielsen measured channels is +21.2%.

• Spirits again led growth, +25.1% (down from +30.5% last week).

• Wine was +20.1% (down from +24% last week).

• Beer/FMB/cider growth is +20.3% (down from +22.3% last week). Beer specifically is +11.1%.

The following two graphics reflect the year-over-year change in dollar sales for the pre-COVID, ~full pandemic (15-week period ending 6/13/20) and recent one-week periods. The second graphic also includes year-over-year change in volume sales over the full pandemic period.

E-commerce

• During its peak in April, alcohol e-commerce sales levels were 6 times higher than comparable weeks of one year ago, primarily driven by increases in new buyers of alcohol online.

• Those increases in June to-date have now fallen to 3 times higher than a year ago, coinciding with a decrease in online alcohol buyers.

• Growth is still very impressive, but some consumers are likely returning to pre-COVID shopping patterns.

Consumer Insights

• Throughout COVID weeks, an increase in the number of households purchasing alcohol has been one of the primary drivers of growth for off-premise dollars.

• However, in recent weeks, the growth in the number of buyers is beginning to slow, up 14.7% for the 4 weeks ending 6/6/20 compared to those same 4 weeks last year.

• For a comparison, the number of buyers purchasing alcohol was up 16.2% for the 4 weeks ending 5/5/20, and up 20.5% for the 4 weeks ending 4/11/20 compared to last year.

• Throughout COVID weeks, liquor stores consistently have been driving much of the growth in buyers.

• The number of alcohol buyers in liquor stores is up 25.4% for the latest 4 weeks compared to last year.

• Grocery store alcohol buyers are up 14.2% compared to last year.

• Club buyers are also driving growth, up 17.2% compared to a year ago.

In the words of Danny Brager, Senior Vice President of Beverage Alcohol at Nielsen:

“As the on-premise space continues to expand openings across the country and we move from

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restricted living to re-opening, off-premise alcohol sales have experienced a steady slowing of growth since early May.

That said, we also have seen some recent and interesting trends in the growth of households purchasing items that correlate with celebrations, such as sparkling wine and higher-end wine and spirits. The timing of the spike in the number of households purchasing these celebratory items also coincides with Mother’s Day and college graduations.

All eyes will be on sales leading up to the upcoming July 4 holiday and long weekend, during a year unlike any other.”

In the words of Danelle Kosmal, Vice President of Beverage Alcohol at Nielsen:

“This was the first week since the beginning of March that beer/FMB/cider, with the significant tailwinds of hard seltzer, actually grew faster than wine.”

BEER/FMB/CIDER

Beer/FMB/cider dollar sales growth is +20.3%. Beer specifically is +11.1%.

• Growth rates for nearly all beer/FMB/cider segments are slowing compared to earlier COVID-19 weeks, except for super premiums and FMBs, which have maintained somewhat steady growth rates, up 22.7% and 19.0% respectively for the latest week.

• Hard seltzer growth rates continue to hover around 250% and maintain share above 10%, accounting for 10.4% of total category dollars for the latest week.

WINE

Wine dollar sales in Nielsen measured off-premise channels grew +20.1% in the most recent week vs. one year ago.

• The top 100 wine brands – accounting for approximately two-thirds of Nielsen measured off premise channel dollar sales – has seen some change since the beginning of March.

• Over these last 15 weeks, 4 brands entered the top 100 that were not there in the year prior – Castello del Poggio, Line 39, Rancho La Gloria, and Whitehaven.

• But in addition, several other brands – previously in the top 100 – moved up considerably higher within this top sales echelon. Brands that moved up 6 or more placements included (in alphabetical order): Bartenura, Bread & Butter, Cavit, Daily’s Cocktails, Decoy, Gerard Bertrand, Justin, Kim Crawford, Matua, Oliver, Risata, Stella Rosa (now in the top 10), Roscato, Starborough, and Whispering Angel.

• The brand diversity is remarkable – some non traditional wine types and packaging, strong NZ (Sauv Blancs), Italian, and California representation, an Indiana based winery, sweeter wines, and French rose’s.

Direct to Consumer Wine shipments for the month of May 2020 based upon Nielsen’s partnership with Wines Vines Analytics and Sovos ShipCompliant contained some other interesting insights.

• While wines made in the three western states and especially California account for the majority of overall DtC shipments, the highest shipment growth rates (over +50%) were from “remaining” USA – states beyond the big three wine producing states (CA, OR, WA).

• By winery size, the highest DtC shipment percentage growth rates were highly polarized, led by the largest wineries at one end (those over 500K cases annually) and the smallest ones at the other (limited production wineries under 1,000 cases annually), with growth for both segments over the last 3 months between +30% and +40% versus year ago. The latter group was much less likely though to make up for its on-site sales losses.

SPIRITS

Spirit sales in Nielsen measured off-premise channels grew +25.1%, the lowest level of growth since the week ending March 14, 2020, but still leading both wine and beer.

• While growth of most segments edged down just a bit, ready-to-drink (RTD) cocktails were an exception, as we’ve seen consistent growth rates over 80% for eleven consecutive weeks.

• Looking back over the last six weeks in aggregate, RTD cocktails sales are now bigger in Nielsen measured off-premise channels than both gin and Irish whiskey.

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• After that, within the major spirit segments, Tequila remains comfortably in second place based on growth rates, followed by cordials, with cognac not too far behind.

• While whiskey growth was still double digits in the current week, its growth was over 10 percentage points less than last week’s growth.

DAILY NEWS

The States That Drink the Most Spirits in America

VinePair words: VinePair Staff June 23, 2020

Across the board, Americans are big supporters of booze. In fact, we drink about 570 million gallons of liquor each year — and that’s not to mention 914 million gallons of wine, and over 6 billion gallons of beer.

But according to recent data from the National Institute on Alcohol Abuse and Alcoholism, certain states are drinking more spirits than others.

When it comes to residents drinking the most liquor per capita, New Hampshire tops the list, followed by Delaware, the District of Columbia, and Nevada — the latter likely thanks to tourism at the state’s casinos. West Virginians, Utahans, and Ohioans, however, tend to steer clear of the hard stuff more than other American drinkers.

Wondering how boozy your state is? Read on for VinePair’s color-coded maps showing spirits consumption per capita and by volume in the 50 states and Washington, D.C.

THE STATES THAT DRINK THE MOST SPIRITS PER CAPITA

Residents of New Hampshire, Delaware, Washington, D.C., and Nevada drink the highest amount of spirits per capita. On the other end, residents of West Virginia, Utah, and Ohio drink the least.

Gallons Per Capita

Rank State Gallons of Ethanol Per Capita*

1 New Hampshire 2.04 2 Delaware 1.69 3 Washington, D.C. 1.68 4 Nevada 1.46

Rank State Gallons of Ethanol Per Capita*

5 North Dakota 1.33 6 Alaska 1.25 6 Wisconsin 1.25 8 Wyoming 1.24 9 Colorado 1.23 10 Minnesota 1.21 11 Rhode Island 1.15 12 Maine 1.07 13 Florida 1.04 14 Missouri 1.02 15 Connecticut 1.01 16 Massachusetts 1.00 17 Louisiana 0.99 17 Montana 0.99 19 New Jersey 0.98 20 Michigan 0.96 21 Oregon 0.95 22 Iowa 0.92 23 Maryland 0.91 24 Indiana 0.9 25 New Mexico 0.89 26 California 0.87 27 Illinois 0.85 28 Tennessee 0.84 29 Idaho 0.83 30 Kentucky 0.81 30 New York 0.81 30 Washington 0.81 33 South Carolina 0.8 34 Hawaii 0.79 35 Kansas 0.79 35 Arizona 0.79 37 Mississippi 0.78 38 South Dakota 0.77 39 Vermont 0.76 40 Nebraska 0.73 41 Pennsylvania 0.72 42 Texas 0.71 43 Georgia 0.7 43 Virginia 0.7 45 Alabama 0.69 46 North Carolina 0.68 47 Oklahoma 0.65

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48 Arkansas 0.64 49 Ohio 0.62 50 Utah 0.57 51 West Virginia 0.47

THE STATES THAT DRINK THE MOST SPIRITS BY VOLUME

As is true with wine and beer, the highly populated states of California, Florida, Texas, and New York drink the largest quantities of spirits by volume. Vermont drinks the smallest quantity of liquor, consuming less than a million gallons per year — a measly portion compared to California’s yearly 69.1 million gallons. Gallons Overall Rank State Gallons Overall 1 California 69.1M 2 Florida 45.8M 3 Texas 39.5M 4 New York 32.5M 5 Illinois 21.9M 6 Michigan 19.5M 7 Pennsylvania 19M 8 New Jersey 17.7M 9 Georgia 14.7M 9 Wisconsin 14.7M 11 Ohio 14.6M 12 Massachusetts 14.3M 13 North Carolina 14.2M 14 Colorado 14.1M 15 Minnesota 13.5M 16 Missouri 12.6M 17 Washington 12.2M 18 Virginia 12M 19 Indiana 11.9M 20 Tennessee 11.4M 21 Arizona 11.3M 22 Maryland 11.1M 23 Louisiana 9.1M 24 Nevada 8.9M 25 South Carolina 8.3M 26 Oregon 8.1M 27 Connecticut 7.4M 28 Kentucky 7.3M 29 Alabama 6.7M

30 Iowa 5.8M 30 New Hampshire 5.8M 32 Oklahoma 5M 33 Mississippi 4.7M 34 Kansas 4.6M 35 Arkansas 3.9M 36 New Mexico 3.7M 37 Utah 3.4M 38 Delaware 3.3M 39 Maine 3M 40 Idaho 2.9M 41 Nebraska 2.8M 42 Rhode Island 2.5M 43 Washington, D.C. 2.4M 44 Hawaii 2.3M 45 Montana 2.1M 46 North Dakota 2M 47 Alaska 1.8M 48 West Virginia 1.8M 49 Wyoming 1.4M 50 South Dakota 1.3M 51 Vermont 1M

The real reason you'll find fewer seasonal craft beers this summer

Mashed By Maria Scinto June 23, 2020

Well, it's already shaping up to be a bummer of a summer. Fairs and festivals of all types are canceled, there's still no baseball (yet), Fourth of July fireworks are not happening in many areas, and even a trip to the beach might make us sick.

Well, not to rain on your parade any further (since it's probably been canceled as well), but Food & Wine is now telling us that there's even more bad news for beer lovers — at least those of us who aren't super loyal to specific brands. If one of your favorite parts of the summer season involved sampling all the new offerings from craft breweries, well, prepare for yet one more massive disappointment. Yes, that pesky pandemic and ruiner of all the things has also interfered with brewery R&D to the point where, according to booze compliance company Sovos ShipCompliant, brewers

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registered 43.4 percent fewer new products in the months of April and May than they did during those same months last year.

Why there will be fewer beers

Breweries took a devastating hit when mandatory closures were ordered. While most were still permitted to continue producing their product, they no longer had the ability to try out anything new in the tasting room. Larry Cormier, vice president and general manager of Sovos ShipCompliant, told Food & Wine, "Craft beer innovation takes place in the taproom. " He also explained that, for many smaller brewers, taproom sales take precedence over other distribution methods. Once the bars and restaurants shut down, the Brewers Association found that nearly two-thirds of brewery workers polled also lost their jobs for the duration (if not permanently).

With fewer workers, it's harder to develop new products. There have also been disruptions in the supply chain, resulting in ingredients being harder to come by. Not to mention, shoppers who found themselves reluctant to venture out of the house were more likely to buy beers readily available in the grocery store, and rising economic uncertainty also means cheaper beers tend to be better sellers. All these factors add up to hard times in the beer business, to the point where Food Dive speculates that thousands of breweries may wind up closing.

Manufacturers large and small are reluctant to risk introducing new products into such an uncertain market, so instead they're doubling down on the tried-and-true. Luckily, their best-sellers are pretty darn good, so we'll still have plenty of high-quality beer to see us through this sorry excuse for a summer.

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