BREWERIES - Q2 2022 Industry Update

Industry Update - Canadian Wholesale Sector

2022 - Quarterly Update

Value and Large Brands may benefit from Inflation

Some beverage industry watchers expect consumers to switch to lower-priced, legacy beer brands amid rising inflation. In March 2022, Canadianinflation rose 6.7% while the US inflation rose 8.5%, marking the fourth consecutive month of year-over-year high inflation growth. Over the last several years, higher-end craft beers have grabbed market share at the expense of legacy brands made by the likes of Molson Coors and Anheuser-Busch InBev. Because the alcoholic beverage industry is essentially recession-proof, during tough economic times, alcohol sales volumes tend to hold up, but consumers downshift to less expensive options, according to Seeking Alpha.

"Consumers are downshifting to less expensive option..."

Sales for the brewery industry are forecast to grow at a 4.3% compounded annual rate from 2021 to 2026, slower than the growth of the overall economy.

News Spotlight

Alberta brewers/distillers facing stiff challenges

Full Article - Toronto Start

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