Discount retailer Aldi US has resisted the downward trend in US alcohol sales, with double-digit growth, according to media reports.
Total beverage alcohol volumes fell by 2.8% in the first seven months of 2024, according to the latest data from IWSR.
Price-conscious shoppers have altered their shopping habits and turned to private labels in discount stores, as they seek extra value from their purchases.
This trend is believed to have worked in favour of Aldi, which sells alcoholic beverages in approximately 2,000 stores in the US.
Arlin Zajmi, director of national buying at Aldi US, told CNN that the chain is witnessing double-digit sales growth for alcoholic beverages.
Zajmi added that customers have seen “the value proposition, which is the quality and price.”
More than a quarter of US households now shop at the discount chain, which is twice compared to six years ago, the report noted.
According to Bryan Roth, editor of the alcoholic beverage newsletter Sightlines+, the discounter timed its expansion accurately, as a US$8 or US$9 six-pack at Aldi was “almost revolutionary”, after shoppers became accustomed to seeing prices for craft at US$12 and above in large grocery store chains.
IWSR Report
All major categories except RTDs (volumes up by 2%) shrank in the January-to-July period, with beer volumes falling by 3.5%, spirits down by 3%, and wine declining by 4%, the data showed.
“Across the board, these declines are slightly worse than what was forecast at the start of the year,” stated Marten Lodewijks, president of IWSR’s US division.
“The slight recovery that was expected has failed to materialise, indicating that the difficult trading environment has not eased, and that consumers are still feeling the pinch of higher prices.
“Nonetheless, a successful second half of the year could still undo some of these losses – but it does make the job that much more difficult.”