Q3 2016: INDUSTRY REPORT

On-Premise Trends: Traffic to the On-Premise declined -2.8% year-over-year during the four-weeks ending 10/2/16 - in line with the previous four-week period through 9/4/16. Traffic was slightly below the 52-week trend (-2.7%), but above the 12-week (-3.3%) and 24-week (-3.4%) trends.

Total Alcohol: Total Alcohol units declined -3.8% during the period, also slightly improved from the 12-week trend (-4.1%) and but below longer trends (-3.5%, 52-week).

Beer: Beer units declined -6.1% over the four-weeks, declining from the 12-week trend (-6.0%) and moving further from the 52-week trend (-5.4%). As a result, Beer’s share of total alcohol losses worsened to -1.2 share points. Premium Plus continued strong performance – gaining +0.4 share points over the latest 4 and 12 weeks.

Beer Segments: Craft share gains slipped into negative territory, losing -0.2 points, after slowing to +0.1 points over the latest 12 weeks. Premium Lights lost -0.3 share points during the period (improving from -0.5 points over the latest 12 weeks). Import share gains increased to +0.3 points during the period, while Cider lost -0.1 points. The top 20 brands improved their collective share gains from +0.2 points over the latest 12 weeks to +0.7 points during the recent period.

Spirits Categories: Spirits unit growth improved from -1.9% during the latest 12-weeks to -1.1% during the most recent period, outpacing the 52-week trend (-1.3%). Spirits gained +1.1 points of total alcohol share – while Wine share was up +0.1 points and Beer lost -1.2 points during the period. Vodka gained +0.8 points during the four weeks, Tequila gained +0.6 points, Irish gained +0.4 points, Brandy/Cognac gained +0.2 points, and Gin & Canadian both gained +0.1 points. Bourbon/Blends lost -1.2 share points, Cordials lost -0.4 points, Rum lost -0.3 points, and Scotch lost -0.2 points during the four-weeks.

Overall Wine: Wine unit growth trends improved from -3.9% (12-weeks) to -3.3% (4-weeks), outpacing total Alcohol improvements but remaining slightly below the 52-week trend (-3.2%).

Wine Varietals: Within the Wine category, Bubbles lost -0.1 points during the four weeks, after slowing from +0.3 points over the latest 52 weeks to +0.1 points over the latest 12 weeks. Wine Cocktails were up +0.7 points during the period, while Table wine lost -0.7 points. Ultra Premium (+1.6 points) grew at the expense of Luxury (-0.3 points), while Super Premium continued to lose share (-0.6 points). Economy continued to gain share (+0.3 points) while Popular Premium lost share (-1.0 points). Rose gained +0.3 points, White share was flat, and Red lost -0.2 points during the period.