Alcohol sales are declining worldwide, despite the fact that more people stock up on alcohol at home

Hard seltzer is king. Big beer owns it

IWSR Drinks Market Analysis, a global company that monitors alcohol sales, said Tuesday that it expects “double-digit drops” this year due to the rigorous global shutdown of travel, restaurants, bars and live events to prevent spread. by Covid-19. The company said global sales will drop 12% this year, compared to the modest 0.1% growth it had last year.

Mark Meek, CEO of IWSR, said that the post-2008 financial crisis recession was “less severe than what we are seeing now” and that 2019 was “the last” normal “year” for the industry for a little ‘. The company expects it will take at least 2024 to reach pre-pandemic sales levels, Meek said.

Coronavirus has been an advantage for some parts of the alcohol industry. Marketing research firm Nielsen said last week that total alcohol sales in stores in the United States grew 26.5% between mid-March and mid-May over the same period a year earlier. However, this is not enough to compensate for the losses that the industry is experiencing due to restaurants, bars and closed events such as sports and festivals.

Retail travel, a part of the industry of around $ 10 billion, which consists of selling alcohol on flights, on cruises and in duty-free shops, has been particularly difficult due to travel restrictions and cancellations, he said. IWSR.

“Like many other industries, it’s amazing how a few months of freezing will result in several years of recovery, but beverage alcohol has proven to be remarkably tough in previous recessions, and this shouldn’t be any different,” said Meek.

In particular, beer will pick up faster than alcohol and wine because of its cheaper price. Globally, however, the IWSR has said that beer sales will be supported by non-alcoholic beers (i.e. products like Heineken 0.0) while people are turning to healthy alternatives without the hangover.
Ready-to-drink canned cocktails, especially hard seltzer, are likely to grow 7% over the next five years worldwide. Much of the growth comes from the United States, where spiked seltzer brands such as White Claw and Verely continue to be hot sellers in part because of their low calorie content.
Another positive point is e-commerce, as people develop a new habit of obtaining alcohol delivery by limiting human contact. IWSR said the $ 21 billion portion of the industry should be “welcome news for brands facing current challenges.”
See also  Asylum: Trump administration proposes blocking asylum seekers on public health grounds

LEAVE A REPLY

Please enter your comment!
Please enter your name here