February spirits sales in the Control States improved versus January, with 9L volume declining -1.4% and sales decreasing -3.4%, resulting in a -2.0% price mix, National Alcoholic Beverage Control Association reports. Performance was impacted by six fewer selling days in Utah, with no other states experiencing calendar shifts. On a rolling 12-month basis, spirits finished down -1.4% in 9L volume and -3% in sales, yielding a -1.6% price mix.

Category performance remains consistent with prior months, as Cocktails (driven by Canned RTDs) and Tequila continued to deliver positive 9L volume growth. The key exception in February was Scotch, which grew +4.5% in 9L volume, driven primarily by New Hampshire (+152%) supported by strong promotional activity.

Wine sales slowed in February, with 9L volume down -4.7% and sales declining -6.0%, resulting in a -1.3% price mix, partially due to the six fewer selling days in Utah. On a rolling 12-month basis, wine trends continue to stabilize, with 9L volume at -5.3%, sales off 3.9%, and price mix improving to +1.4%.

The On-Premise channel posted a mixed result. Nine-liter volume declining -1.2% and sales were also down -1.2%, as only four of the 14 reporting states recorded declines. Rolling 12-month On-Premise performance is now flat in 9L volume and -1.9% in $Vol, resulting in a -1.9% price mix.

On-Premise wine posted similar monthly results to retail sales, with 9L volume declining -4.6% and $Vol decreasing -7.1%, generating a -2.5% price mix. On a rolling 12-month basis, On-Premise wine finished at -4.3% in 9L volume and -3.3% in $Vol, yielding a +1.0% price mix.

Kane's Comment: The result of strong promotion of Scotch in New Hampshire in particularly noteworthy. One has to wonder whether the weakness in bev/al sales has been a result on anti-alcohol activity, health concerns, generational shifts in drinking or a result of Big Alcohol failing to adequately promote their products and the category as a whole.

We've published recent studies which indicate that young drinkers still drink, they just drink differently that Baby Boomers and Millennials, including the willingness to have one drink during lunch. The other thing that strikes us as different from the past is the whole-hearted shift to social media as an advertising medium.

Just to play the devil's advocate, social media permits targeted advertising. The question we have is, does it target your current drinker at the expense of targeting someone who might be your future drinker? Are you preaching to the choir, but failing to evangelize?