A recent bevalcinsights.com report featuring “Drizly’s Top Predictions for Summer 2022 Sales” provides some great insight as to what consumers plan to drink this summer as temperatures – and travel – heats up. This summer, recovering retailers can capitalize on consumer preferences and their desire to experience the local flavor after being homebound for summers’ past. It’s no surprise that people generally reach for more refreshing beverages during the hot summer months; however, as beverage trends have shifted, what refreshing beverages people will reach for is the key question this summer.
According to Drizly’s report, white wine and light lagers have experienced more popularity than usual this year, which suggests that this popularity will only increase during the summer months.
Ready-to-drink (RTD) cocktails continue to enjoy massive popularity, and it seems that they may replace hard seltzers as the #1 go-to for summer celebrations. One reason why RTD are gaining popularity may be because people are considering more what they are putting into their bodies, opting for more natural choices. Liz Paquette, Drizly’s head of consumer insights, notes that, “The RTD category continues to grow and gain awareness among consumers. Consumers are becoming more educated on what is in the drinks they are choosing – like vodka-based cocktails versus malt-based seltzers – as well as seeking new flavor innovation.”
As red wine has recently increased in popularity, especially amongst younger consumers, white wine may also increase in popularity this summer, as it has increased in shares since 2021, and wine lovers may opt for the cooler, more refreshing wine option during the summer months.
Summer vacations are also amping up this summer with restrictions lifting and people wanting to make up for lost time and delayed travel. And it seems that increasing gas prices and unpredictable air travel won’t stop them: a June 21, 2022, AAA article reports that the ultimate summer holiday – the 4th of July – will see a high volume of people hit the roads and the airlines this holiday: “AAA predicts 47.9 million people will travel 50 miles or more from home over the holiday weekend (June 30 – July 4)…The biggest surprise – car travel – will set a new record despite historically high gas prices with 42 million people hitting the road.”
Once vacationers reach their destinations, many will opt for local beverages, which both on and off-premise operators can capitalize on by ensuring they have plenty of local offerings in stock and strategies to market them. Many travellers will also opt for the tropical vibe, as many will travel to tropical places or will just want to embrace the laid-back lifestyle it suggests.
Drizly reports that many popular brands are offering tropical options, such as TRULY Hard Seltzer, High Noon, Corona, and even Bud is offering a Bud Light Hard Seltzer Tropical Cocktail Hour as a limited edition variety pack.
Despite high gas prices, unsettling air travel, and covid not being completely over, consumers are ready to travel and celebrate not only the 4th of July, but summer and the return of the laid-back, refreshing vibe that summer has always encompassed. ~
To read the full article – check out The Advisor Magazine – Issue 17.
A Home Rule Petition was filed on April 1, 2022 regarding the allocation of liquor licenses in the City of Boston, as supporters of the petition argue that there is a disproportionate distribution of liquor licenses across the city and that “the well-documented racial wealth gap in Boston shows that it is crucial for MWBE’s [Minority/Women-Owned Business Enterprises] to have equitable access to liquor licenses in order to advance economic equity”.
The petition requests that 200 non-transferable licenses (meaning that if the business closes, the license would go back to the city) over a three-year period be distributed to establishments with a capacity of 50 people and under in the following neighborhoods: Dorchester, Mattapan, Roxbury, and Hyde Park, where there is currently a lack of licenses. For example, the petition points out that out of the 1,432 liquor licenses in Boston, Mattapan holds only ten of them.
It is proposed that all liquor licenses in the City of Boston shall increase by at least 10% over a ten year period. These licenses are for on premise use only, and because they would be non-transferable, these licenses would be given back to the City of Boston if revoked or canceled, to grant an application with the same requirements.
WCVB5 Boston commented on the petition in an April 7 update, describing it as “a tool for addressing the city’s racial wealth gap”. Likewise, an April 17 Boston Globe article entitled, “Waiting for liquor license reform in Boston”, comments on the petition, stating that: “Reforming liquor license law isn’t ultimately about booze. It’s about economic opportunity”. The article argues that because liquor license holders tend to open establishments in wealthier parts of the city, the less wealthy neighborhoods are hurting. The article also calls out Boston’s state-imposed hard cap on restaurant liquor licenses as being “antiquated and stubborn…a vestige of a bygone time”.
On June 16th, 2022, a City Council Committee on Government Operations hearing was held regarding important matters for the City of Boston, including this home rule petition, which consists of two Dockets: Docket #0465 and #0435.
Docket #0465 is the Petition for a Special Law Regarding an Act Authorizing Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Premises in Boston, with sponsors being Councilors Brian Worrell, Ruthzee Louijeune, and Ricardo Arroyo. Docket #0435 is the Petition for a Special Law Regarding An Act Authorizing the City of Boston to Grant Four Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Specified Premises, with sponsors being Councilors Ruthzee Louijeune and Julia Mejia. If you were unable to attend the hearing, we’ve got you covered with an overview of the discussion to provide you with the most current updates.
To read the full article – check out The Advisor Magazine – Issue 17.
A sobering May 19 article from the Independent Restaurant Coalition claims that at least 50% of restaurants could close after the senate does not pass funding for struggling restaurants. Sponsored by Senator Roger Wicker and Senator Ben Cardin, The Small Business COVID Relief Act hoped to replenish the Restaurant Revitalization Fund (RRF), which 90 senators voted to create last February, with $40 billion. However, in a 52 to 43 vote, the funding did not pass.
According to Erika Polmar, Executive Director of the Independent Restaurant Coalition, more than half of the 177,300 restaurants waiting for this grant will close within the next few months. “Local restaurants expected help and the Senate couldn’t finish the job”, according to Polmar. The report states that at least 90,000 restaurants and bars have closed since the beginning of the pandemic, which is when the Independent Restaurant Coalition originated.
In 2021 alone, nearly 300,000 restaurants applied for the Restaurant Revitalization Fund grants, but nearly 200,000 didn’t receive the funding. Here are some interesting statistics from the article:
– 42% of businesses that did not receive RRF grants are in danger of filing for or have filed for bankruptcy, compared to just 20% that received RRF grants.
– 28% of businesses that did not receive RRF grants have received or are anticipating receiving an eviction notice compared to just 10% that received RRF grants.
– Restaurant and bar owners who did not receive an RRF grant are taking on more personal debt. 41% of people that did not receive RRF reported taking out new personal loans to support their businesses since February of 2020. This is only true for 19% of businesses that received an RRF grant.
– 46% of businesses reported that their operating hours were impacted for more than 10 days in December 2021.
– 58% of businesses reported that their sales decreased by more than half in December 2021. If you are a restaurant or bar owner who is looking to sell your liquor license because of the current difficult climate in this industry, give us a call. We have qualified buyers waiting and are here for you.
For More Liquor License articles – check out The Advisor Magazine – Issue 16.
Twenty years is a long time to reflect back on and recall some incredible stories!
Some of the main characters who influenced my career path include Howard Deering Johnson, Donnie Wahlberg, Charlie Perkins, and of course, Dick Newcomb, my Father and original creator/owner of the Mug ‘n Muffin restaurants.
Our original family restaurant business started in 1965 in Wollaston, Massachusetts, the birthplace of one of America’s best-known restaurant chains, Howard Johnson’s (HoJo’s). My Dad’s new restaurant, named Mug ‘n Muffin, was opened in July 1965, only 1.5 years after I was born, so I was essentially born into the family business. Even as a young kid, I was involved as my Dad grew his business, which had evolved to 26 restaurants by the early 1980’s.
I grew up flipping eggs and burgers at my family’s restaurant, and before I was old enough to do that, I watched guys like Bobby Orr and other decorated Boston Bruins stop in for coffee, as one of the main restaurants was conveniently located across from the old Garden. Over the years, I watched my Dad negotiate with vendors and landlords and I now realize that I was getting a front-row seat to a real-life masterclass in influence before I was old enough to drive. I knew I wanted to be a restaurant owner and run my Dad’s business.
After I graduated college in 1986, we re-developed the concept, worked hard, and I was able to grow from two to four restaurants that I managed for the family. A lot of work and stress brought a lifestyle I didn’t want to maintain as my own family grew.
Ironically, my Dad’s restaurant was a regular host to AA groups, and I’ve been sober since March 28, 1988.
To see how the next 20 something years go – check out The Advisor Magazine – Issue 16.
Quincy may be the latest Massachusetts town to ban the sale of nips, according to a March 31 Patriot Ledger report. Mayor Thomas Koch has expressed interest in asking the city’s licensing board to ban the sale of nips (alcoholic beverages in containers 100 milliliters or less) to control littering and waterway pollution, as well as address other problems, such as trash-lined streets, debris in storm drains and contaminating ocean water.
Koch also believes that nips make it more difficult for restaurants and other establishments to control underage drinking. Koch has reportedly given this decision time, as the pandemic has already hit many businesses hard.
Quincy would follow five other Massachusetts towns that have already banned nips: Chelsea, Mashpee, Falmouth, Wareham (to go into effect 5/11/22) and Newton (to go into effect 6/30/22).
Also interesting to note is that a Rhode Island legislator has proposed a law that would ban nips statewide.
The question is: Will some businesses be able to make up the revenue if nips and miniature bottles are removed?
For more articles on the liquor industry – check out The Advisor Magazine – Issue 15.
The next time you uncork a bottle of your favorite cabernet or sauvignon blanc, ask yourself if seeing the nutritional information listed on the back changes the experience for you? Would the experience be less enjoyable because you were concentrating more on the sugar content and calories per serving than the hints of cherry in your pinot noir, or the smooth taste of your chardonnay? How important are a winery’s social and environmental convictions to you, and would knowing them affect your consumer behavior?
Current data indicates that millennials, who have a large impact on the alcohol industry, prefer having the nutritional, social, and environmental information presented to them, and they aren’t getting it from the wine industry. Wine sales and interest are both lagging the increasingly popular seltzer and ready-to-drink cocktails, and it appears that the culprits behind this shift are millennials.
A recent New York Times article reveals concern over the current state of the wine industry, and according to the article, millennials are not drinking enough wine. Baby boomers and their tendency to opt for wine has led to a healthy wine market in the past; however, as these boomers reach retirement age, they have less influence on the market because they aren’t spending as much. Millennials, on the other hand, do have much more influence on the market and have an agenda as a health-conscious, socially aware, environmentally concerned generation.
Rob McMillan, an executive vice president of Silicon Valley Bank in Santa Clara, California, and a long-time analyst of the American wine market, states that “Sales of American wine could plummet by 20% in the next decade,” and this decrease could be because the wine market has not addressed millennial concerns yet.
“It [the wine industry] has failed to recognize the changing demographics that millennials represent,” according to the article. McMillan suggests that in an effort to adapt to what millennials want, winemakers could list ingredients and nutritional information, for example, or make their social and environmental values clear.
Millennials are a generation of hard seltzer and premade cocktail fans, less often opting for the glass of wine than for their can of choice. They are not only making a stance on noting that their calories count, but they also want to know how and where these calories were made – – and wine producers haven’t offered that information yet. They also haven’t made professing their social and environmental views a priority, which apparently has not settled well with this extremely health-conscious, socially and environmentally aware generation.
Another factor contributing to the decline in wine sales amongst millennials is that wine tends to be a more expensive beverage option, whereas hard seltzers, RTD cocktails, and craft beers are less expensive, and millennials are generally more financially burdened than their parents. Millennials are entering a world where everything costs more, including their education and homes, and they will cut costs where they can.
As more “organic”, “sugar-free”, and “low and no alcohol” wines appear on the shelves, it does cause consumers to take pause and consider why these options are suddenly appearing. The future of the wine industry is yet to be determined: Will shelves will soon be lined with “healthier” wine varietals, with declarations of environmental responsibilities and social commitments plastered on their bottles? Do wine lovers want that? Does the wine-loving generation have enough of a market pull to maintain wine’s classic image?
The verdict is out, and upcoming trends and sales will tell.
For more articles on the liquor industry – check out The Advisor Magazine – Issue 14.
Although pre-pandemic activity has begun to reemerge as consumers return to restaurants, bars, and wineries for their favorite glass of wine, DTC (Direct-to-Consumer) wine shipments in 2021 surpassed $4 billion for the first time in the U.S. What does this surge mean for wine sales in the on and off-premise markets?
The reason for this advance could be that although wine shipments jumped 28% in 2021, the year-on-year increase in volume was small, and the jump in shipments could be due to the surge in price per bottle – which increased a record 11.8%. However, consumers still spent their money on higher priced wines via DTC channels.
Andrew Adams, Wine Analytics and report editor at Wines Vines Analytics, commented, “Increases in price per bottle shipped helped balance out the decreases in volume that some regions experienced, creating an overall increase in value for the West Coast”. (Napa enjoyed an almost $400 million increase in value of DTC shipments in 2021!)
Another reason for the staggering increase could be that although eating and drinking establishments are reopening, many consumers enjoyed the convenience of DTC purchases that they discovered during the pandemic. Although the need for such a service has lessened with restaurants, bars, and wineries reopening their doors as some restrictions lifted, the service had such a positive impact that it seems to have continuous power.
According to beverage alcohol consultant Danny Brager, “as COVID-19’s impact on travel and tourism lessens, there is every reason to believe DTC shipments based on winery visitation and new club memberships will be strong in 2022.” Perhaps consumers will enjoy the best of both worlds.
Combining consumers’ enjoyment of DTC convenience with the enthusiasm of returning to restaurants for their favorite glass of wine must leave liquor store owners wondering, how can we position ourselves to remain relevant and indispensable in today’s market?
For more articles on the liquor industry – check out The Advisor Magazine – Issue 13.
A recent Massachusetts Package Stores Association (“MassPack”) newsletter and message to MPSA Members from Executive Director Robert Mellion provided some great insight into the work that his association did in 2021 and continues to do in 2022 regarding the many circulating bills that could impact alcohol beverage retail as we know it. According to the newsletter, more than 190 bills were introduced during this legislative session that would impact alcoholic beverage retail – 100 of which would directly overtake local retail by replacing them with out-of-state choices for consumers.
Some of the 2021 highlights from MassPack include:
· Cumberland Farms was derailed from filing another ballot question initiative which would allow unlimited food store licenses to sell beer and wine.
· MassPack prevented industry disruptors from using Covid to further modify alcohol beverage regulations, advance online lottery, and allow for direct shipping of distilled spirits.
· MassPack testified at more than 25 hearings on over 180 bills; a third of the bills filed this session expand off-premise licenses or repeal state and municipal quotas.
· MassPack testified against bills by out-of-state chain stores, supermarkets, and big box retailers that dismantled local licensing and state quota systems.
· MassPack is the only alcohol industry participant to testify against five bills increasing excise tax on alcohol.
· Only MassPack challenged six bills that either ban or place a deposit on miniature bottles and testified against “Nip Bans” at more than 20 municipal hearings across Massachusetts.
· Adding alcohol shipments to the U.S. Postal Reform bill was a top priority.
And as the new year begins, MassPack is already testifying against remaining bills that seek to expand licenses, such as:
· An Act that would further regulate certain licenses for the sale of alcoholic beverages, which is very troublesome because this bill increases the number of allowed all-alcohol retail licenses from 9 to 18.
· An Act concerning the sale of wines and malt beverages by food stores would allow marketplace control of the cheap to moderate alcohol beverages marketplace.
Although the number of bills to monitor and consider is considerable, MassPack asks that we “weigh how [these bills] impact the ABCC’s ability to regulate, consequences to the marketplace and whether these bills undercut public health and safety.”
For more articles on the liquor industry – check out The Advisor Magazine – Issue 12.
It is hard to wrap our heads around the fact that we will soon be heading into year three of the pandemic. It has been nothing short of a rollercoaster: from normalcy feeling at arm’s length away with cases decreasing, to cases rapidly increasing and feeling as though we are right back to square one.
Many Boston restaurants are still operating with the hope that there is an end in sight, and the turbulence is exhausting. With the new vaccine requirement instated for indoor dining in Boston, the endless struggle to ensure safety for customers and employees is now increasingly more worrisome to restaurant owners.
These restaurant owners fear it will affect their already weakened customer base and ultimately, their bottom line.
The WBUR reported, “But while many restaurants are on board with keeping staff and patrons safe, they also told WBUR the mandate puts even more stress on an already-exhausted industry.”
The instability in the industry has many owners wondering, “is it worth it to even be in the industry anymore?” The fear of the unknown has been at an all-time high for the past few years, and to some, it’s an intolerable burden.
If you are feeling hopeless and burnt out, give us a call. We have been in the industry for over two decades and are here to help you navigate your next move and to make your exit as seamless and beneficial to you as possible.
For more articles on the liquor industry – check out The Advisor Magazine – Issue 12.
The key to success in 2022 is going to be preparation and awareness. Support of small businesses was a hot topic during the pandemic where people wanted to help businesses stay afloat, but realistically sometimes it’s more convenient to make a purchase from the big guy.
CEO of LLA, Dan Newcomb, discussed in Advisor Issue #10, the trend in 2021 of consolidation is going to continue with the future ballot question, “the bigger stores are going to get bigger, and the small guys are going to be few and far between. There’ll be less smaller liquor stores in Massachusetts in 2023 than there was in 2021”.
Across alcohol retail sales in Massachusetts, a future ballot question proposes the number of liquor licenses to increase from 9 to 18, and it’s going to provoke commotion. With a forecast of consolidation in mind, it’s crucial that existing owners are attentive to what’s going on in the industry.
If you were presented with the opportunity to execute a quick sale today, would you be ready? You’re going to want to be prepared to maximize your return on investment and we can help you create this plan.
It’s no surprise to many that the supply chain issues have had a major impact on the alcoholic beverage industry. We advise liquor stores to formulate a plan to ensure consumer demand is met, by always having their best-selling products in stock. The key takeaway here is that your best-selling products are highly likely to stay favorable, so stock up now in order to meet consumer demand.
In the age of conscious consumption, sustainability and being environmentally cautious is not going to disappear anytime soon. Consumer demand for more transparent products has significantly increased in the past few years. Selling and marketing organic alcohol is a simple way to introduce sustainable products into your business plan.
Upcycler’s Lab reported, “Organic Alcohol is produced in a way that promotes the sustainability of our planet. Companies producing organic alcohol aim to minimize their impact on the environment by using alternative energy sources, reducing waste, and recycling”.
Preparation and awareness are the keys to success for operators in 2022.
For more articles on the liquor industry – check out The Advisor Magazine – Issue 11.