Latest Beverage Industry News
California Governor Gavin Newson laid out in detail a new plan for reopening the state’s economy including new details for the hospitality and alcohol sectors. The new plan will attempt to avoid the spike in COVID-19 cases after the state reopened much of the economy in July.
The plan assigns one of four levels, or tiers, to each county based on virus cases and positivity rate. Businesses will be open to a greater extent in each county as the county moves through the tiers from tier 1 to tier 4.
In a few California counties which are currently assigned a tier 3 status, breweries and restaurants will be able to make a step forward. In those mostly rural counties, breweries will be able to serve beer outside without the current requirement to serve food and restaurants will be able to serve inside with a reduced capacity of 25%.
Off-premise scan data is continuing to show very strong results with continuing high demand for in-home consumption of alcohol.
According to an overview in Seeking Alpha, total beverage alcohol dollar sales growth accelerated to 18.4% for the week ended August 15 from +17.8% the prior week. Since COVID-19 was first reported in the U.S., total beverage alcohol sales are up 23.4%, consisting of strong growth across spirits (+33.8%), wine (+25.5%) and beer (+18.9%).
While hard seltzer sales have fallen from their peak sales growth marks of over 300% seen in March and April, the category is still growing at a +100% clip compared to a year ago even with more bars and restaurants open.