Wine and Beer: Nielsen Data Analysis: Wine (+4.2% YoY) and Beer (+2.4%) Post Modest Sales Increases

February 28, 2013
Source: CITI
Wine Category Dollar Sales Increase MSD - In the four-week period ended Feb. 16, 2013, wine category dollar sales increased 4.2% YoY (vs. +13.2% last period due to timing issues and +4.7% in the past 12 weeks), while volume sales were up 0.9% YoY (vs. +7.6% last period and +1.1% in the last 12 weeks). Also of note, in the period we saw a category-wide decline in promotional spending (-1.8 pts YoY) as well as category-wide pricing increases (+3.3% YoY).

Beer Category Dollar Sales Increase LSD - Beer category dollar sales increased 2.4% YoY (vs. +7.2% last period owing to a timing issue and +2.7% over the last 12 weeks), with ABI's new Budweiser Black Crown offering accounting for 36% of the growth. Volume sales were down 0.7% YoY (vs. +3.9% last period and +0.2% over the last 12 weeks). As detailed by ABI on its recent earnings call, it is likely that trends in the period were negatively affected by a tough weather comp, the U.S. payroll tax increase and by higher gas prices. Beer category promotional spending was down in the period (-3.5 pts YoY, vs. -2.4 pts over the last 12 weeks), while category-wide pricing was up (+3.1%, vs. +2.5% over the last 12 weeks).