Alcoholic Drinks: Quarterly Statement Q3 2020

Delivery

This report comes in PPT.

Key Findings

Euromonitor’s analysis proves correct, risks skewed on the downside

From the immediate yet expanding lockdowns dealing a catastrophic blow to on-trade sales to the ever-deepening ripple effects on the real economy in the mid term and the ultimate seismic long-term shifts in drinking rituals and occasions, the crisis will radically reshape the alcoholic drinks industry.

Recovery will be painful, protracted and gradual

While a bounce back should begin by 2021 - as per Euromonitor’s baseline scenario - the apocalyptic state of the on-trade and permanent closures of bars, breweries and distilleries will be the basis of a new operating landscape. The emergence of cure or a vaccine will open the doors for a sustainable return of the on-trade, otherwise volatility will remain a huge challenge in the short term.

Hints of intoxicating optimism amidst the gloom

Initial suggestions and expectations regarding a V-shaped industry recovery are already proving to be over-optimistic since the disruption is only expanding further geographically and in terms of timelines. However, there are segments that are securing exceptionally strong growth rates , even in the context of such a bleak operating environment; RTDs, spearheaded by hard seltzer - are witnessing an explosive performance while online sales are skyrocketing.

A shift from the physical to the virtual

While initiatives embracing virtual tours or tastings, the, admittedly hesitant, rise of hometainment and the slow but steady rise in penetration rates for online and mobile sales of alcoholic drinks were all there before the crisis, circumstances have brought them to the forefront. They will provide the platform needed to maintain equity and a sense of community in the months ahead.