What's Booming in the Booze Biz

What alcohol is hot and what's not? Some interesting trends.

Liquor

A big winner during the lock downs

With younger folks and "the newly less affluent" (because of pandemic job loss) hard alcohol sales are up as cocktails are cheaper to make compared to drinking wine or beer -- more buzz for your buck. Vodka and whiskey are the top sellers in the U.S.

Seltzers

Anything showing signs of being healthier is increasing in sales. Seltzers are popular with those under 50. They are lower in calories and carbs and are easy-drinking though there's a trend to increase the alcohol content in some seltzers. Sales have doubled each of the last two years; even so they are only 2.5% of the market.

InBev, owners of Budweiser, is investing $1B over the next couple years in the seltzer market. They see where the sale of mediocre beer is heading and where they hope seltzer is going. Is hard seltzer here to stay or will people reach "seltzer fatigue" and move on to something else? Remember Zima?

Cans

Anything in cans is selling well and there has been a can shortage. The craft beer industry has largely moved to cans. You can get cocktails, mimosas, wine, and of course hard seltzer in cans. There is everything from Reed's Ginger Mule to Kahlua / rum coffee liqueur sold in cans.

Beer

During the pandemic lock downs beer sales fell sharply. This is mostly blamed on the lack of gatherings, picnics, ballgames, and the closure of bars. However, beer sales have declined for the past five years. Craft beer sales are the bright spot, but this sector of the market fell in 2020, also. Will craft beer recover or are sales permanently lost to the likes of liquor and seltzer?