U.S. Beer Sales Drop 6.3% as $4.51 Gas Squeezes Convenience Spending

1 articles · Updated · CNBC · May 13

Beer, full malt beverage and cider volumes fell 6.3% year over year through May 2, a sharper slide than the roughly 3% declines seen from November to mid-April.
Convenience-channel volumes at chains such as 7-Eleven, Wawa, Shell and Exxon dropped about 9% in the two weeks since April 26, reinforcing analysts' view that high fuel costs are hitting commute- and impulse-driven purchases.
AAA put average U.S. gasoline at about $4.51 a gallon—up 52% since the Iran conflict—and Bernstein said higher pump prices increasingly track weaker beer demand, especially in expensive fuel markets.
California showed the steepest deterioration, with a 16% volume deceleration as gas averaged $6.16 a gallon; Arizona and Texas also slowed, with volumes down 10% and nearly 7%.
The weakness is now showing up beyond beer and comes as U.S. consumer sentiment hit a fresh record low in May, suggesting broader cyclical pressure on discretionary spending.

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