The trades taking place on Wall Street often can come with a sense of urgency and anxiety for brokers and their respective clients. However, consumers also are opting to “trade up” when it comes to their beer selection.
CNBC’s “Mad Money with Jim Cramer” rarely is short on advice when it comes to the next hot stock. For the beer market, the release and sales of numerous hard sodas and seltzers helped contribute to the “hot” performance of the flavored malt beverage (FMB)/progressive adult beverage (PAB) segment in 2016.
The 2015-2020 Dietary Guidelines and the Food and Drug Administration’s (FDA) new Nutrition Facts label, in conjunction with continued consumer demand for transparency, less sugar and clean-label products, have resulted in an increased demand for natural, non-caloric, high-intensity sweeteners (HIS), like stevia, monk fruit and erythritol.
As the bottled water market has ridden a high tide of success in the past several years, many players in the market have experienced likened success. Founded in 2001, New York-based Voss Water of Norway established itself as an ultra-premium bottled water brand that was exclusively offered in high-end on-premise accounts.
Capping several years of steady, modest growth for both domestic and import wines, the wine market in the United States continues to grow, experts note. Fueled by consumers’ interest in fine wine and increased product launches, the market has grown “at mid-single-digit rates on dollars [and] smaller single-digit rates on volume as consumers continue to trade up to more expensive wines,” says Danny Brager, senior vice president of beverage alcohol for New York-based Nielsen. “Sparkling wines in particular continue to grow dynamically at double-digit rates.”
Once a niche category within the beverage market, better-for-you products have found a home in the mainstream market during the past several years as more consumers focus on their overall health and wellness.
In January 2016, the U.S. Department of Agriculture (USDA) and Health and Human Services (HHS) released the 2015-2020 Dietary Guidelines. The eighth edition of this report highlighted the importance of following a healthy eating plan that includes a variety of nutrient-dense foods as well as limiting calories from components such as added sugars, saturated fats and reducing sodium intake.
As today’s consumers spend their dollars across more channels and store formats, retailers are facing increased competition for dollar share, experts note. Despite this fact, the overall discount retail channel performed “quite well” last year as dollar stores drove growth of nearly 7 percent, notes Jon Hauptman, senior director of retail at Long Grove, Ill.-based Willard Bishop Co., an Inmar analytics company.