A customer buys beer at a supermarket in New York on January 22, 2026.
Charlie Tribalew | AFP | Getty Images
US beer sales fell more than expected as new scanner data shows weakness in the category.
The economic slowdown has raised concerns on Wall Street that rising gas prices are weighing on discretionary spending, especially in convenience retail.
Volume sales of beer, flavored malt beverages (FMB) and cider were down 6.3% year over year on both a two-week and four-week basis through the week ending May 2, according to Nielsen tracking data. This is worse than the trend seen from November to mid-April, when the category decline was just 3%.
Analyst firm Bernstein said some volatility in beer sales was expected this year because Easter falls earlier than last year, but the breadth of the economic slowdown could indicate growing pressure on U.S. consumers.
The weak point is convenience channels, namely 7-Eleven, Wawa, shell and exxon — In the two weeks ending April 26, sales volumes were down about 9% year-over-year.
Analysts say convenience stores are highly sensitive to crowding at gas stations and impulse purchases associated with commuting and travel, both of which appear to be under pressure as the average U.S. gas price remains at about $4.51 a gallon, according to AAA.
“We find a negative correlation between the absolute price of gasoline in a given state today and the sequential change in beer/FMB/volume growth,” Bernstein analyst Nadeem Sarwat said.
The relationship is becoming more evident in the data, especially in markets with high fuel costs.
States with high gas prices
Average U.S. gasoline prices have increased about 52% since the start of the Iran war, according to AAA data.
Since then, data shows beer sales have declined in states with the highest gas prices, with California standing out as the weakest market. Sales in the state were down 16% in the four weeks starting May 2 and April 4, with the nation’s most expensive fuel market at about $6.16 a gallon. Arizona and Texas saw similarly notable slowdowns, with sales volumes down nearly 10% and 7%, respectively, and gasoline prices averaging $4.82 and $4 per gallon, respectively, during the same period.
The weakness appears to extend beyond beer, Bernstein said.
“The gradual decline in beer/FMB/cider appears to be manifesting itself in other beverage categories as well,” Sarwat said. “Perhaps it points to an intensification of cyclical pressures on U.S. consumers.”
The beer spending trend emerged after data showed U.S. consumer sentiment hit a new all-time low in May. In a high-profile University of Michigan survey, one-third of respondents cited gas prices as their top concern.
Despite widespread declines in beer spending, volume trends for specific breweries are mixed.
within AB InBevMichelob Ultra remains resilient with relatively flat volume, while Bud Light and Budweiser continue to report double-digit volume declines. boston beer While performance remains the weakest among major beer companies, Molson Coors We continue to lose market share.
constellation brand Despite the short-term weakness in the category as a whole, it continues to gain market share above its rivals.
