The Advisor Magazine: Issue #11 –

• What happened in 2021;
• What (alcohol) is in store for 2022;
• 2022 opportunities for independent operators;
• Opportunities for Boston restaurant & bar owners;
• and more!

The Advisor Magazine: Issue #10 –

To access Issue #10 of The Advisor Magazine – click here.

Predictions For 2021 Holiday Liquor Sales In Massachusetts

Last holiday season was unprecedented, as COVID turned many large gatherings into small or virtual ones, and the most wonderful time of the year looked much different for most. People thought it was safe to assume that by the 2021 holiday season life would have returned to normal, and that holiday gatherings and spending would gain momentum.

Enter Delta variant and renewed restrictions in certain areas, and it looks like consumer trends may continue to shift. BevAlc recently released their top predictions for 2021 holiday sales, which highlights the uncertainty surrounding consumer behaviors during the months leading up to the start of 2022. Let’s take a closer look.

Before delving into what people will be consuming this holiday season, it is probably more notable to consider how they will be consuming. Celebrations will be mixed this year, as BevAlc reports that less than half of people surveyed will celebrate like they did in 2019, while a majority’s holidays will resemble those of 2020. Many are hesitant to make big plans in the ever-changing climate that has become pandemic life, and there will likely be a mix of pre-pandemic and pandemic celebrations.

Holidays wouldn’t be the holidays without gifts, and BevAlc believes that many gifts will continue to be purchased online this season. Drizly has reported significant growth in the gift giving sector, with share expanding from just 9% in 2019 to 20% by the end of 2020.

Retailers must pay attention to this significant shift, as it presents a valuable opportunity for them. Liz Paquette, Drizly’s head of consumer insights, comments that, “This is an awesome opportunity to drive valuable sales online”, as retailers can both acquire new customers online who perhaps wouldn’t normally frequent their store, as well as be introduced to new local shoppers.

People will be celebrating in different ways and making a lot of online purchases, but what will the drinks of choice be at these celebrations and for online purchases?

According to BevAlc’s report, tequila and whiskey will enjoy huge popularity, tequila making up 25% of liquor sales on Drizly.

Lander Otegui is the senior vice president of marketing at Proximo Spirits and remarked that “our customers like to enjoy tequila during celebratory moments”, and that “this is especially true during the holidays, a time when many are willing to spend more on premium offerings”.

Also making an appearance at holiday celebrations this year will be the newer-to-the-scene Ready to Drink cocktails. Drizly has reported an 85% increase in RTD sales, as hard seltzer sales decline and “RTDs could potentially be seen as a replacement for consumers for some secondary cocktail ingredients”, according to Paquette. If some are limiting their social interactions, hitting the liquor store or clicking around Drizly for the whole package might be all the rage this holiday season, rather than making multiple trips to multiple stores for cocktail ingredients.

And finally, champagne. “…in the U.S., Champagne is the wine for celebration”, according to Xavier Barlier, who is the senior vice president of marketing & communications at Maisons Marques & Domaines USA. Many felt cheated out of their 2020 holiday season, which is all the more reason to celebrate in 2021, whether at a small, socially distant gathering, a large reunion, or while catching up on Zoom. Champagne is also a great holiday and host gift, so people will be enjoying and gifting the bubbly.

“The more frustrated we get with COVID and Delta, “ comments Barlier, “the more we want to compensate. I think this year we’re going to splurge”.

For more articles on liquor licenses and liquor stores, check out our monthly magazine, The Advisor Magazine – Issue #9.

The Advisor Magazine: Issue #9 –

To access Issue #9 of The Advisor Magazine – click here.

The Advisor Magazine: Issue #8 –

-How Delta has impacted dining out & going for drinks;

-The “Shift” in liquor stores to watch out for;

-How retail owners can create a “digital shelf” for their customers;

-What seasonal beverage restaurants & retailers should have on their shelves;

and more!

To access Issue #8 of The Advisor Magazine – click here.

Shifting Liquor Store Trends

During the recent U.S. COVID-19 “recovery” phase, off-premise alcoholic beverage trends have been shifting.

NielsenIQ’s beverage alcohol expert, Kaleigh Theriault, recently discussed these shifting trends with Joe Tarnowski from ECRM and provided both helpful data and insights. Let’s take a look.

We’ll begin with the most revealing statistic, which is that off-premise sales have been declining since March 2021, which is contrary to the previous few years.

The article states that “Off-premise sales increased 19% in 2020 vs. 2019”, and that “off-premise sales increased 18% YTD vs. 2019 YTD.”

As consumers have recently enjoyed a higher comfort level dining and drinking out, off-premise numbers have declined. However, it will be interesting to see where these numbers go with the Delta Variant of COVID coming into play.

The article also highlights the continuing trend of increasing sales for Ready-to-drink alcoholic beverages and hard seltzers, as both categories have shown an increase since 2020.

Another category showing an influx is non-alcoholic beer, wine, and spirits, which have increased 35% YTD in sales.

Commenting on these trends, Theriault states that: “For the remainder of 2021, we can expect a few key trends to stick.

RTD sales are going to start gaining traction within on premise as consumers view these to be ‘safer’ beverage options.

Firstly, the movement towards ready-to-drink cocktails will continue as sales surpassed summer 2020 sales off-premise, and also expanded into on premise channels.

In addition, RTD sales are going to start gaining traction within on premise as consumers view these to be ‘safer’ beverage options.”

With the Delta variant picking up traction, we may see currently declining e-commerce sales begin to increase again, as consumers may choose to dine and drink in, rather than frequent the restaurants and bars with which they just became reacquainted.

Although online alcohol sales aren’t quite as high as they were during the height of COVID, many people have continued to utilize this service for its convenience and because they can personalize their alcoholic beverage choices.

For example, many shoppers enjoy the ability to type in “low calorie”, “low sugar”, or “gluten-free” to individualize their purchases. Theriault comments on this trend, stating that “…and retailers need to further develop their product descriptions and discoverability in order to cater to the growing segment of health-conscious consumers looking for personalization.”

We live in a more unpredictable world now than ever, and watching consumer trends is essential for off-premise suppliers’ and operators’ survival. We can expect consumers to adapt to the changing climate – and off-premise players must follow suit.

For more articles on the liquor industry – check out The Advisor Magazine – Issue 8.