Booze sales fall back to earth — except for one retailer

New York CNN — The hangover has finally arrived for spirits and beer companies, as the surge in sales boosted by Americans who stayed at home during the Covid-19 pandemic has ended. Earnings from some of the world’s biggest alcohol makers — including Remy Cointreau, Absolut vodka maker Pernod Ricard, Jose Cuervo tequila producer Proximo Spirits and beer conglomerate Anheuser-Busch — have all recently reported declines in volumes or sales amid a push back from customers over higher prices. “This performance reflects the continued de-stocking in the United States on the back of a persistent weak depletion and more importantly, below our expectations,” said Luca Marotta, Remy Cointreau’s chief financial officer, on a recent earnings call, adding that US sales had a “very strong decline” of 22.8% with its cognac brands being its worst performers. US sales slumped 10% in its most recent quarter because retailers “continue to tightly manage their stock level and promotional intensity remains strong,” said Hélène de Tissot, the company’s financial officer, on a recent call. Customers have really seen the value proposition, which is the quality and price.” Aldi’s rapid expansion has also helped its beer portfolio soar 100% in sales, with more than a quarter of US households shopping at the discount chain — twice as many compared to six years ago.