BMO Holiday Report: Wine, beer, liquor sales on track to set record in December
BMO Capital Markets Economics predicts sales of wine, beer and spirits will hit record highs, both annually and for this holiday season, in Canada.
Total annual alcohol sales in Canada are on pace to pass $19 billion, while December alcohol sales typically surge 40% over average monthly volume.
“Over the first nine months of 2012, Canadian consumers spent almost half a billion dollars more on alcohol than they did over the same period last year – an increase of 3.6 per cent. If this healthy growth holds up through the holiday season, that would set the stage for record retail sales of more than $19 billion in 2012,” said Aaron Goertzen, Economist, BMO Capital Markets.
David Rinneard, National Manager, Agriculture, BMO Bank of Montreal explained that, “Despite some market challenges, our breweries have a long tradition of sourcing quality ingredients, including barley, wheat and hops produced here by Canadian farmers. While there has been a rise in the price of many commodities, consumers can be confident that the Canadian food products that go into the making of their favourite beer continue to be among the best tasting, safest and highest quality in the world.”
According to the BMO report, the brewing industry currently faces some the following challenges and growth opportunities:
- Between 1995 and 2011, as wine rose from 18 per cent to 30 per cent of Canadians’ total alcohol consumption, beer fell from 53 per cent to 45 per cent
- Traditional brewers face intensifying competition from wine and craft brewers. Since the 1990s, imports have tripled their market share in both Canada and the U.S., and domestic craft brewers have doubled production since 2003.
- Potential opportunities for growth include the virtually untapped female demographic, underscoring the importance of product specialization and branding that targets females – including low-calorie options and lighter flavoured beer-based beverages. At present, males account for approximately 80 per cent of beer sales
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