Pandemic cocktail hour

With some home bartenders feeling less than ambitious, sales of premixed cocktails — such as canned vodka mules and mai tais — have skyrocketed in popularity as well. Overall sales have nearly doubled since last year. Such convenience is perfect for those spontaneous Zoom cocktail hours with friends.

It might not be surprising to learn people are drinking more than usual during the pandemic.

And there's more than anecdotal evidence to back that up. According to a study conducted by the Rand Corp. and published last month in the journal JAMA Network Open, American adults reported drinking 14% more than the year before.

Those findings tend to match up with previous research, including data from marketing research firm Nielsen, that has shown total alcohol sales outside of bars and restaurants increasing roughly 24% since mid-March.

The reasons for the sustained increase are pretty apparent: Having an extra glass of wine or a cocktail is a common strategy for coping with pandemic-related stress, anxiety, depression and boredom.

Despite consumers stocking up on alcohol at home, the rise in retail and online sales has not been enough to offset the closure of bars and restaurants, which make up approximately a third of all alcohol-related spending in the U.S.

Just as revealing as how much Americans are drinking is what they're choosing to drink.

SPIRITED DRINKING

Pandemic cocktails

During the pandemic, people are enjoying cocktails and distilled spirits, which have outpaced other beverage categories in sales by a wide margin — tequila, gin and whiskey (both domestic and imported) have seen the largest uptick.

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This year, according to Nielsen sales data, the big winner has been distilled spirits, which have outpaced other beverage categories in sales by a wide margin — tequila, gin and whiskey (both domestic and imported) have seen the largest uptick.

"We've seen rises in really simple, two- to three-ingredient cocktails, anything from the Negroni to the classic martini," Tom Spaven, brand director at Bacardi-owned gin brand Bombay Sapphire, told CNBC in May, citing the company's increase in sales of "premium mixers" such as cordials, flavored liqueurs and aperitifs.

And with some home bartenders feeling less than ambitious, sales of premixed cocktails — such as canned vodka mules and mai tais — have skyrocketed in popularity as well. Overall sales have nearly doubled since last year.

Still, most drinkers are sticking with brands with which they're already familiar: Between March 14 and April 30, the alcohol delivery platform Drizly — which allows retail customers to order for at-home delivery — said that the top five liquors sold on the platform were Tito's, Bulleit, Casamigos, Jameson and Jack Daniel's.

Pandemic booze

During the pandemic, distilled spirits have outpaced other beverage categories in sales by a wide margin — tequila, gin and whiskey (both domestic and imported) have seen the largest uptick.

CONVENIENT PACKAGING

In the wine industry, changes in consumer habits have been more focused on packaging than the product itself. Canned wine in particular has seen an explosion in popularity, with one California-based company, Bev, reporting a 200% growth in sales each month since March.

Not to be outdone, boxed wine, that holdover from college sorority parties, has increased too, with overall sales building about 30% versus the previous year.


Market analysts say that the increase in canned and boxed wine isn't necessarily evidence that drinkers are seeking out bottom-shelf options but a sign that more established and respected wineries are expanding into formats besides bottles, a trend that was already in full swing before COVID-19 arrived.

Danelle Kosmal, vice president of the beverage alcohol practice at Nielsen, said that shift might continue as restaurants reopen this year: "As restaurants begin to expand on ideas like canned wine gardens, it will be interesting to see if this will further normalize the idea of cans and other alternative packaging for wine."

QUANTITY OVER QUALITY

Beer sales, which have risen around 16% so far this year according to Chicago-based market research firm IRI, tend to reflect similar trends regarding quantity over quality. Early on in the pandemic, customers were snapping up cases of flagship beers from big brewers: Michelob Ultra, Miller Light, Blue Moon and Modelo Especial. Even Corona, the subject of countless memes at the start of 2020, has performed well, up 20% compared to the past year.

Since beer has a much shorter expiration date compared to other beverages, many small craft brewers spent the first few months shifting production schedules in order to transition fresh-brewed beer originally planned for draft kegs into more shelf-stable packaging such as bottles and cans.

At Smog City Brewing in Torrance, that meant thousands of gallons of beer that would normally supply sports stadiums and theme parks would now be destined for cans. Much of that product was made up of the company's "core beers," such as its Little Bo Pils and Coffee Porter, traditionally the brewery's bedrock of sales.

Hard seltzers

Hard seltzer, the unofficial drink of summer 2019, continued to cement its popularity in summer 2020. According to Nielsen data, the sparkling beverage is now a $2-billion industry in the U.S., with sales up a whopping 224% year-over-year. Conglomerate-owned brands such as White Claw and Truly continue to make up 75% of the market.

And, of course, it would be remiss to talk about drinking during the pandemic without mentioning hard seltzer, the unofficial drink of summer 2019 that continued to cement its popularity in summer 2020. According to Nielsen data, the sparkling beverage is now a $2-billion industry in the U.S., with sales up a whopping 224% year-over-year.

Conglomerate-owned brands such as White Claw and Truly continue to make up 75% of the market, but that's in the process of changing — Bud Light Seltzer and Corona Seltzer both launched in 2020, and Coca-Cola recently announced it would roll out Topo Chico hard seltzer in 2021.

Given that the pandemic is far from over, it's not exactly clear how many of these trends portend a lasting change in how (and what) Americans are drinking. Online delivery orders, which shot through the roof in March, have already begun to ebb to prepandemic levels, as have mass-buying trends, which saw crowds stocking bulk quantities.

Comfort of home

Restaurant and bar customers who feel comfortable tend to stay longer and order more, but without that comfort level, drinking at home could easily remain the norm through the next year,

Of course, the looming threat of stricter lockdown measures heading into  winter, coupled with the holiday season, could mean increased demand at liquor, grocery and convenience stores as shoppers stock up once more.

"There's a visceral response to the word 'shutdown,'" said Brian Rosen, president and founder of BevStrat, an alcohol brand sales and strategy firm. "And during Q4, there are already more people drinking, so you could arguably have a perfect storm of fear, desperation, holidays and celebration."

Even when the pandemic is over, some in the hospitality industry are skeptical that the general public will quickly return to its pre-COVID ways.

"One thing we're seeing is that reservations are being made earlier in the evening and tables are not staying as long as they did before," said Hans Rockenwagner, owner of Dear John's in Culver City, which has been open for outdoor dining since June.

For restaurants, less time in seats often means reduced beverage sales. Once they reopen, the same can be said of bars. Customers who feel comfortable tend to stay longer and order more, but without that comfort level, drinking at home could easily remain the norm through the next year, while bars and restaurants do their best to entice drinkers with to-go cocktails and prepackaged drinks available under recently loosened liquor laws.

Copyright 2020 Tribune Content Agency.

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