Q1 2016: INDUSTRY REPORT

On-Premise Trends: On-Premise traffic slumped during the four-weeks ending 3/20/16 – down -4.4% from the previous year. January storms and a slow St. Patrick's/March Madness season have contributed to a weak start to 2016 – with traffic down -2.2% through the first 12 weeks versus +0.2% a year ago.

Total alcohol units were down -5.4% - pulled down by the Beer category (-8.0%).

Beer: Beer units were the hardest hit during the period, down -8.0%, while total alcohol units declined by -5.4%. Weak performance during the Beer-heavy period worsened Beer’s share of alcohol losses – slipping from -1.0 share points over the latest 12 weeks to -1.3 points during the four weeks ending 3/20/16.

Beer Segments: Performance between segments remained consistent – Craft share was up +0.6 points versus a year ago, Premium Plus share was up +0.2 points, and Import share was up +0.1 points. Premium Light share was down -0.9 points, Premium Regular share was down -0.2 points, and Cider share was flat.

Spirits Categories: Spirits unit growth dipped further into negative territory (-2.7% y/y), after hovering around flat over the latest 52 weeks (-0.5%). Vodka continued to gain share during the 4-week period (+1.1 points), as did Tequila (+0.8 points), Gin (+0.2 points), and Brandy (+0.1 points). Bourbon/Blends (-1.4points), Rum (-0.5 points), Cordials (-0.5 points), and Scotch (-0.2 points) all lost share. Irish maintained share growth during the period (+0.3 points), but has slowed from 12-week (+0.4 points) and 52-week (+0.6 points) gains.

Overall Wine: Wine units were down -3.9% during the period, but outperformed the alcohol category (-5.4%). The Popular Premium segment continued to lose share (-0.7 points during the period), while higher-priced segments collectively grew +0.2 points and the Economy segment grew +0.4 points. Rose (+0.3 points) and White (+0.5 points) grew share during the 4-weeks, at the expense of Red (-0.8 points).