Bev Alc Order Frequency Dips On-Premise

Dear Client:

The majority of consumers (a whopping 98%) said ordering take out/delivery does not impact future in-store visits, according to Next Level Marketing’s annual consumer survey, which is “surprising and encouraging,” said NLM’s Mike Ginley at the VIBE conference in San Diego last week.

In fact, the number of restaurant visits per week has increased over last year to 2.9 visits per week, and 88% said they still enjoy going out to eat.

BEV ALC ORDER FREQUENCY SLOWS. When eating out, 82% of those surveyed said they usually or always order an alcoholic drink. But this is slightly down compared to last year’s survey (84%). “I wouldn’t be too concerned, but when you start to look at it in more detail it does signal something to watch,” said Mike.

And this time the blame is on the newest generational cohort to enter the legal drinking age, gen z. Millennials are actually the most likely to always order alcohol on-premise (86%), while gen z reported the lowest order frequency at 76%.

As for how many drinks they’re ordering per occasion, that number has increased slightly from 2.2 drinks on average last year to 2.3 drinks this year. Males and millennials tend to skew a little higher, at 2.5 and 2.6, respectively. Again, gen z lags behind at an average of 2.2 drinks per occasion.

WHAT ARE THEY ORDERING? By category, beer is still the most often ordered drink on-premise (41%), but that’s down from last year (44%). Spirits and wine gained ground, now at 35% and 24%, respectively. But consumers don’t just stick to one category anymore. The majority of consumers surveyed said they drank across all three beverage types in the past 90 days on-premise.

Consumers are also open to trying new brands. New brand trial was “remarkably consistent” across beer, wine and spirits, with 75% of those surveyed trying new brands every 90 days, according to Mike. Even though consumers are willing to try new brands, they tend to stick to about 3-4 brands that they know, showing that brand loyalty is still a factor.

WAIT, HOW MANY CALORIES ARE IN THIS? About five or six years ago, consumers weren’t at all interested in knowing how many calories were in each bev alc drink. Now 57% said they want to see drink calorie information on the menu. That number is even higher among gen z at 70%.

Nearly 40% of those surveyed said they would order lower calorie drinks. Moreover, 55% said they’re interested in ordering low alcohol and low calorie drinks. “Looking at these trends, it’s something that I expect to increase in the years to come,” said Mike.

Stay tuned for more on-premise consumer insights in future issues.

TOTAL WINE HOPES THIRD TIME’S THE CHARM IN CT

Total Wine & More isn’t ready to give up its fight to change Connecticut’s minimum pricing laws just yet. The retailer is now asking the full Second Circuit to hear and reverse the recent appellate court decision, also known as an en banc review.

QUICK RECAP. Total Wine filed a federal lawsuit against Connecticut in 2016, alleging the state’s practice of setting minimum prices for wine and spirits is “price fixing” and has created “artificially high price levels” [see WSD 08-24-2016]. Total Wine targeted three provisions it said violated the Sherman Antitrust Act: price discrimination prohibition, minimum retail resale price and the post and hold provisions.

In June 2017, US District Judge Janet Hall dismissed the case “because these provisions constitute hybrid restraints that receive rule of reason scrutiny and therefore cannot by preempted,” per court documents. Shortly after, Total Wine filed an appeal. But the appeals court decided to uphold the lower court’s ruling [see WSD 02-21-2019].

In its request for a rehearing, Total Wine outlines “three errors” made by the appellate court and the district court: 1) the decision splits the circuits on whether post-and-hold statutes and quantity discount bans are preempted by the Sherman Act, citing the Ninth and Fourth Circuits’ decisions that favor Total Wine’s stance; 2) the decision conflicts with at least one Supreme Court decision; and 3) a previous case the court relied on should be clarified as “no longer good law,” per court documents.

Alcohol Law Review notes that en banc reviews are rarely granted. Total Wine’s next option would be to take the issue up with the Supreme Court, which the retailer is no stranger to. You’ll recall, Total Wine is currently involved in a Supreme Court case against the Tennessee Alcoholic Beverage Commission [see WSD 01-16-2019].

SAZERAC’S BARTON 1792 DISTILLERY LOSES 120,000 GALLONS OF FERMENTED MASH

On Tuesday, Sazerac’s Barton 1792 distillery in Bardstown, Kentucky lost 120,000 gallons of fermented mash after one of the legs of a 55,000-gallon tank gave way, according to Kentucky Energy and Environment Cabinet spokesman John Mura, per local news affiliate the Courier Journal.

When the tank went down, it took a few others down with it, puncturing three other fermenting tanks. Two people were injured, fortunately with non-life-threatening injuries, and have already been treated and released from the hospital, according to a release from the Nelson County Dispatch Center.

This distillery just can’t catch a break. You may recall, last summer, one of the barrel warehouses collapsed, causing the distillery to lose 340,000 gallons of whiskey [see WSD 07-18-2018].

The majority of the mash spilled into a secondary containment and about 10,000 gallons spilled into a storm drain. Sazerac spokeswoman Amy Preske told the Courier that the company is currently working to secure the area.

WSD BRIEFS:

TERRAVANT WINE CO. BUYS SUMMERLAND WINERY. Terravant Wine Company has acquired Summerland Winery just outside Santa Barbara. Summerland was founded in 2002 and is known for its estate-grown pinot noir and chardonnay. “We are very pleased with this acquisition and what it means to Terravant and the quality of our current portfolio of wines,” says ceo and board chairman Paul Griswold. “Since securing a $40 million recapitalization from Raven Capital Management in December, the goal has been to expand our footprint in the Santa Barbara area and beyond.” No purchase price was disclosed.

WENTE FAMILY ESTATES APPOINTS NEW VP SUPPLY CHAIN. Wente Family Estates has appointed Tony Coleman as vp supply chain. Tony brings with him 27 years of industry experience, most recently working as director of bottling at Trinchero Family Estates and previously working at Diageo Chateau & Estates and E&J Gallo. In his new position, Tony will work to streamline processes, communications and set best practices, per a release. He will report to coo and chief winemaker Karl Wente.

Until tomorrow,
Sarah

“Never argue with a fool, onlookers may not be able to tell the difference.” – Mark Twain     

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