Alcohol sales improve with easing of coronavirus restrictions in bars and restaurants: Diageo
Alcohol sales could be boosted by the reopening of bars and the slow return of happy hours.
After months of drying up booze sales partly due to bars closing during pandemic, spirits giant Diageo, the world’s largest alcohol producer, expects sales to improve until the end of the year while more Americans feel comfortable eating and drinking in bars and restaurants.
“Our business in the United States is performing well and exceeding our expectations, reflecting resilient consumer demand and the spirits category continuing to gain share in the total alcoholic beverages market”, Ivan Menezes, CEO of Diageo, said Monday.
Diageo, which owns Johnnie Walker and Smirnoff, among other big brands, said its overall business has improved as restrictions on coronaviruses have eased around the world.
“We continue to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 2020. Compared to the first half of fiscal 2020, we continue to expect lower net sales organic and diluted margins, ”the company said.
COVID-19 closures around the world have been a buzz for the restaurant and liquor industry. A beverage analysis report from the IWSR, which measures data on drinks around the world, predicted a double-digit drop in alcohol consumption around the world in May and estimated that it might still be necessary four years to return to pre-pandemic growth. Total global alcohol consumption was driven by the increase in beer and ready-to-drink products by 0.1% in volume and 3.6% in value last year, according to the analysis.
With the bars closing earlier in the year, canned drinks saw an increase in demand, with more consumers drinking at home and spending their money on cheaper beers than they would with. mixed drinks at a local bar or restaurant.
Between March 7 and June 6, in-store sales of premium national light beers such as Bud Light, Miller Lite and Coors Light increased by more than 10% from the same period last year, while hard seltzer sales have more than quadrupled, according to Nielsen data.