Akerna Flash Report: Liquor Sales are Up 10% Year-over-Year

Rhea-AI Summary

Akerna (Nasdaq: KERN) reports a 10% year-over-year increase in liquor sales, with red wine leading in sales volume at 18%. Premium beer and whiskey follow at 15% and 13%, respectively. Gin sales have seen a decline after a 55% surge in March during the pandemic. The ready-to-drink beverage segment is thriving, showing a 40% growth year-over-year. As Father's Day approaches, premium beer claims 18% of sales, with red wine at 14%. This shift indicates changing consumer preferences, suggesting a potential decrease in whiskey's market position.

Positive

• Liquor sales increased 10% year-over-year.
• Red wine leads in sales volume with 18% share.
• Ready-to-drink beverages showing significant growth of 40% year-over-year.

Negative

• Gin sales have declined after a prior surge of 55% in March.
• Red wine's emerging popularity suggests a decrease in whiskey's traditional market share.

DENVER, June 12, 2020 (GLOBE NEWSWIRE) -- Business intelligence from Akerna (Nasdaq: KERN), a leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®) in collaboration with *Ample Organics, shows year-over-year, liquor sales are up 10%. In terms of sales volume, red wine beats out premium beer and whiskey.

**Sales Leaders Based on Total Sales by Volume:

• Red Wine 18% 
• Premium Beer 15%
• Whiskey 13%

“We’ve talked a lot about the recession resilient nature of both the alcohol and cannabis industries. In April, at the height of the global COVID-19 pandemic, we reported Gin sales topped year-over-year sales growth in spirits with an increase of 55% in March,” said Ostap Rapeyko, business intelligence analyst, Akerna. “Now, at the mid-year point, it is interesting to see Gin sales have slipped, and red wine is emerging as the sales leader.”

In the last five months, Gin sales have slowed. In terms of percentage growth ready to drink beverages have seen the most significant increase, reaching 40% year-over-year.

“Anecdotally, the ready to drink market has been helped by the trend in lower-calorie beverages. Consider, for example, 123 calories are in a regular bottle of red wine, and 73 calories are in a bottle of Gin, a ready to drink beverage, with a single measure of Gin, contains as few as 54 calories,” said Rapeyko.

Going into the week before Father’s Day, June 14-21, data shows premium beer is the beverage of choice, with 18% of sales during a similar time frame in 2019.

**Sales Leaders Based on Total Sales by Volume Going into Father’s Day:

• Premium Beer 18%
• Red Wine 14%
• Whiskey 12%

“While it’s no surprise premium beer is a market leader going into Father’s Day, what is interesting is red wine sales are greater than whiskey sales,” said Rapeyko. “At one time, whiskey was considered synonymous with Father’s Day. It was common to see things like whiskey gift-giving guides and sales offers related to Father’s Day. Now it seems, red wine is among the gifts of choice.”

About Ample Organics

In December 2019, Akerna announced its acquisition of Ample Organics. Founded in 2014, Ample Organics is adopted by more Canadian Licensed Holders than any other cannabis software solution. A complete ecosystem for cannabis businesses, the technology platform makes compliance easy by tracking individual plants from seed to consumer and reporting every detail of the growth, production, and sales processes. Ample’s team of cannabis industry and technology experts designed the platform to facilitate compliance and transparency while enhancing overall business efficiency and operational intelligence.

About Akerna

Akerna is a global regulatory compliance technology company. Akerna’s service offerings include MJ Platform®, Leaf Data Systems®, solo sciences, and Trellis. Since its establishment in 2010, Akerna has tracked more than $18 billion in cannabis sales. Akerna is based in Denver. For more information, please visit www.akerna.com and follow us on Twitter @AkernaCorp.

About The Akerna Flash Report

Flash Report is a look at buying trends in the cannabis market as captured by Akerna’s MJ Freeway subsidiary. MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna’s family of companies, including Ample Organics, Leaf Data Systems, solo sciences, and Trellis.

**Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Reporting data is obtained from operators using Akerna’s MJ Platform solutions. Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna’s family of companies.

Forward-Looking Statements

Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding sustained increases in demand for cannabis and the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna’s ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna’s filings with the U.S. Securities and Exchange Commission, including those under “Risk Factors” therein.  You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna’s industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

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45%; width:45%; min-width:45%;">Akerna Media Relations D. Nikki Wheeler Nikki.Wheeler@Akerna.com 303-514-2012

55%; width:55%; min-width:55%;">Akerna Investor Relations Jason Assad JAssad@akerna.com 678-570-6791

FAQ

What are the latest sales trends reported by Akerna (KERN)?

Akerna reported a 10% year-over-year increase in liquor sales, with red wine leading at 18% by volume.

Which alcoholic beverages are currently leading in sales volume according to Akerna (KERN)?

Red wine leads at 18%, followed by premium beer at 15% and whiskey at 13%.

How have gin sales performed according to Akerna's latest report?

Gin sales have declined after experiencing a 55% increase in March during the pandemic.

What sales figures did Akerna (KERN) report for ready-to-drink beverages?

Ready-to-drink beverages have shown a significant growth of 40% year-over-year.

What trends are apparent as Father's Day approaches in terms of beverage sales?

Premium beer accounts for 18% of sales leading into Father's Day, while red wine holds 14%.