ALCOHOLIC BEVERAGES
Cheers for Beer Performing well during the pandemic, the category’s momentum is expected to continue By Renée M. Covino EVEN IN THIS TOPSY-TURVY world, beer is upright. While the 2020 Convenience Store News Midyear Report Card showed most in-store product categories were negatively impacted by the coronavirus pandemic during the first six months of this year, beer was one of the few exceptions. The category exhibited the greatest percentage dollar growth (12 percent) in the first half.
Why does beer appear to be COVID-proof for the convenience channel? What is it about the category that has it performing so well so far this year? The National Beer Wholesalers Association (NBWA), based in Alexandria, Va., recently made note that with most of the 400,000 on-premise venues like bars and restaurants shut down for months, the roughly 240,000 off-premise grocery, convenience and liquor stores remained open for beer consumers and, thus, saw an impressive sales boom. “Halfway through the year, scan sales data shows that off-premise beer sales are up an impressive 15 percent on dollar sales and 12 percent on volumes,” the NBWA reported in a blog. Whether for pantry-loading or enjoyment at home, the association noted that the sales at off-premise accounts were up considerably. As most of the United States remains on lockdown, the convenience store is the perfect, quick, in-and-out destination, Marat Yeshchin, category manager at Loop Neighborhood Market, told CSNews. Loop operates more than 30 c-stores in California. “It is apparent that consumers do not want to be in confined spaces or near others. Grocery stores have many shoppers and long lines; we do not,” Yeshchin said. “As winter approaches, restaurants will struggle to seat customers outside. People will stay home, consuming alcohol. We fully expect the momentum to continue.” From a supplier perspective, Sara Hillstrom, senior director of category development at Anheuser-Busch, cited that beer has always been a trip driver for convenience stores, and “we continue to see this today with beer averaging 10.8 trips per buyer in the first half of the year and outpacing total edible trips by nearly three trips per buyer.”
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