Drizly report highlights optimism for 2022

Boston-based Drizly released its third annual BevAlc Insights by Drizly Retail Report, culled from a nationwide survey of more than 500 alcohol retailers during November 2021. Among standout findings, retailers expected higher sales during the holiday season despite reports of Champagne shortages, felt concerned about supply chain issues yet still optimistic about 2022, are poised to stock (yet) more tequila, have fresh interest in craft beer, and see big potential for cannabis-infused products.

The report, which also incorporates 2021 sales data derived from the Drizly platform, points to more shelf space for organic and natural products, along with locally produced beer, wine and spirits. And although hard seltzer’s torrid growth leveled off, retailers remain strongly bullish about ready-to-drink cocktails’ growth prospects.

“We know alcohol retailers have a strong pulse on consumer behavior and demand as they see trends and shifts firsthand in their stores day in, day out,” said Cathy Lewenberg, chief operating officer at Drizly, in a statement. “We’ve observed more of our Retail Partners on Drizly also leveraging Drizly’s data and insights to help drive their decision making when it comes to stocking new products. Combining their real-time observations with these data-driven insights ― the perfect mix of art and science ― helped form our annual retail report with a deep understanding of what's to come in 2022.”

The following are more key findings from the report:

• 2022 could be the year that tequila outsells vodka: Nearly 80% of retailers plan to carry more tequila next year, on par with bourbon, and 40 points ahead of vodka. It mirrors sales trends on Drizly, where over the past few years tequila’s share of spirits sales has grown by 13%, while vodka’s share has declined by 2%.
• People want to feel good about what they're drinking: Asked about special attributes that matter most, 66% of retailers surveyed said that they seek to stock locally made products, followed closely by organic and natural products (60%). What's more, products for health-conscious shoppers ranked close behind (57%), at a time when 90% of retailers on Drizly now stock non-alcohol beer, wine and other alternatives, and share of such products on Drizly are up 120% since 2020.
• Canned wars: Craft beer might reclaim shelf space from hard seltzer. Even as half of retailers surveyed see themselves carrying more hard seltzer next year, 57% said they expect to devote more shelf space to craft beer. On the flipside, 23% of retailers plan to stock less hard seltzer in 2022, in contrast to the only 8% who plan to do the same with craft beer.
• Retailers are very bullish about cannabis- and CBD-infused products: In a landslide, more than 50% of retailers believe that cannabis- and CBD-infused beverages have the industry’s biggest growth potential, although most CBD and cannabis-infused drinks have still not been approved by the FDA or TTB, it notes. That is nearly double those who cited non-alcohol products (26%). BI

The American Craft Spirits Association (ACSA) and Park Street presented highlights from the 2021 Craft Spirits Data Project (the Project) at the Annual Craft Spirits Economic Briefing, held in tandem with ACSA's Annual Distillers’ Convention & Vendor Trade Show in Louisville, Ky. Among the key findings were that the U.S. craft spirits market volume reached more than 12 million 9-liter cases in retail sales in 2020, growing at an annual growth rate of 7.3%. In value terms, the market reached $6.7 billion in sales, growing at an annual growth rate of 9.8%. U.S. craft spirits market share of total U.S. spirits reached 4.7% in volume and 7.1% in value in 2020, up from 2.2% in volume and 3% in value in 2015 and 4.6% in volume and 6.9% in value in 2019.

Golden Grail Technology, Weston, Fla., announced its acquisition of Trevi Essence Water. Trevi Essence Water was sold in high-end supermarkets and grocery chains such as Food City, Publix and Wayfield. Golden Grail entered into an agreement with Barebrick Beverage Co. Inc. to acquire Trevi Water brand assets and intellectual property, i.e., formulas, distributor lists, trademarks, etc.

Stone Distributing adds Ashland Hard Seltzer, El Segundo Brewing

Southern Glazer’s Wine & Spirits, Dallas and Miami, has formed a new affiliated company, DRAM Agency, to provide digital marketing consulting and services to wine and spirits suppliers looking to activate or accelerate their eCommerce strategies. DRAM stands for the Digital Revolution of Alcohol Marketing and the team behind the agency possesses a broad arsenal of experience within digital marketing operations and across all facets of eCommerce relating to wine and spirits, the company says. The DRAM Agency is a centralized resource for Southern Glazer’s strategic suppliers to access digital tools and solutions, data and education around eCommerce, and the growth opportunities for brands that exist in the digital marketplace, it adds.

Stone Distributing Co. (SDC), Escondido, Calif., announced the addition of Ashland Hard Seltzer and El Segundo Brewing Co. to its Southern California portfolio of craft beers.

Ashland Hard Seltzer, San Diego, crafts hard seltzers made with all-natural ingredients. This lineup has no sugar, no fat, zero carbohydrates, and is malt and gluten free.

El Segundo Brewing Co. produces hop-forward beers inspired by the West Coast IPAs of San Diego.

“The Southern California distribution rights of Ashland Hard Seltzer and El Segundo Brewing Company are a significant addition to Stone Distributing’s portfolio of amazing partners” stated Tom McReavy, Stone Brewing senior vice president of sales. “Our team has long admired the hop-forward IPAs of El Segundo and their commitment to freshness, and Ashland continues to be a top selling seltzer in SoCal.  We are thrilled to partner with both and continue to build on their successes.”

Stone Distributing adds its latest brands in a commitment to continual growth. SDC now commands 20% craft share across Southern California, up 1% versus last year.  

The distributor has added nine new distribution partners to its portfolio in 2021: Ashland Hard Seltzer, Bomani Cold Buzz, Crowns & Hops Brewing Co., El Segundo Brewing Co., Jiant Hard Kombucha, Societe Brewing Co., Spindrift Spiked, Tarantula Hill Brewing Co. and Villager Spirits, it says. BI