Introduction
The COVID-19 pandemic has drastically changed the landscape of the beer industry, forcing breweries to adapt to new ways of selling their products. With the rise of on-premise and off-premise sales, breweries have had to pivot their strategies to meet the changing demands of consumers. In this report, we will explore how on-premise and off-premise beer sales are evolving post-pandemic, looking at the trends, financial data, and industry insights shaping the industry.
On-Premise Beer Sales
Trends
Before the pandemic, on-premise beer sales were a significant revenue stream for breweries, with consumers enjoying the experience of drinking beer at bars, restaurants, and breweries. However, with the restrictions imposed during the pandemic, on-premise sales took a hit as many establishments were forced to close or operate at limited capacity. As restrictions have eased, on-premise sales have started to rebound, but the landscape looks different.
Financial Data
According to data from the Brewers Association, on-premise beer sales declined by 40% in 2020 compared to 2019. However, as restrictions have lifted, on-premise sales have begun to recover, with an increase of 15% in the first quarter of 2021 compared to the same period in 2020. Breweries are hopeful that on-premise sales will continue to improve as consumers feel more comfortable dining out and visiting bars.
Industry Insights
Breweries are focusing on enhancing the on-premise experience to attract consumers back to their establishments. Many breweries are offering unique events, live music, and food pairings to entice customers to visit their taprooms. Additionally, breweries are investing in outdoor seating areas and implementing safety measures to ensure a comfortable and safe environment for their patrons.
Off-Premise Beer Sales
Trends
Off-premise beer sales saw a significant increase during the pandemic as consumers shifted to purchasing beer for home consumption. E-commerce sales of beer also saw a surge as more consumers turned to online shopping for their alcohol needs. As the pandemic has continued, off-premise sales have remained strong, with many consumers continuing to purchase beer from retail stores and online platforms.
Financial Data
Off-premise beer sales experienced a 12% increase in 2020 compared to 2019, according to data from IRI Worldwide. This growth was driven by a surge in off-premise consumption as consumers stocked up on beer to enjoy at home. E-commerce sales of beer also saw a significant increase, with a 42% growth in online sales in 2020.
Industry Insights
Breweries are focusing on expanding their distribution channels to meet the demand for off-premise sales. Many breweries are partnering with online retailers and delivery services to reach a wider audience of consumers. Additionally, breweries are investing in packaging formats that are suitable for off-premise consumption, such as cans and bottles, to cater to consumers who prefer to drink beer at home.
Conclusion
As the beer industry continues to evolve post-pandemic, breweries are adapting their strategies to meet the changing demands of consumers. On-premise and off-premise beer sales are both important revenue streams for breweries, and understanding the trends, financial data, and industry insights shaping these sales channels is crucial for success in the industry. By focusing on enhancing the on-premise experience and expanding distribution channels for off-premise sales, breweries can position themselves for growth in the post-pandemic world.
