Beer demand stumbles as gas prices surge, data show
CNBC • • business
Key Points:
- U.S. beer sales declined 6.3% year over year through early May, a sharper drop than the 3% decline seen from November to mid-April, signaling broader consumer spending pressures.
- The convenience retail channel, including chains like 7-Eleven and Shell, experienced a roughly 9% volume decline, attributed to reduced gas station traffic amid high gasoline prices averaging $4.51 per gallon.
- Higher fuel costs, especially in states like California with gas prices over $6 per gallon, correlate with steeper declines in beer sales, suggesting discretionary spending is being squeezed by rising energy expenses.
- The downturn in beer, full malt beverages, and cider sales is also affecting other beverage categories, indicating intensifying cyclical pressures on U.S. consumers amid record-low consumer sentiment.
- Within the beer industry, Michelob Ultra remains stable, while brands like Bud Light, Budweiser, Boston Beer, and Molson Coors face significant volume declines; Constellation Brands is gaining market share despite overall category softness.