Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/128596
for prestige and status badge can be a threat to growth. If there are more brands to choose opportunities as well as certain from, but consumers are drinktaste profiles that imports have ing less beer overall, then each and craft beers can't replicate." brand's share could potentially "People are definitely willing suffer. And some have. to pay more for brands with rich The bad news first: despite a heritage and authentic stories," recent report out of St. Louis that said Rick Oleshak, VP, imports, A-B InBev's beer shipments in crafts and specialties at Anheuser2012 rose a modest 0.7%, the Busch InBev. "Consumers want company's first gain since 2008, that back story, that unusual bit of mainstream domestic beer brands history or brewing arcana that are still struggling. Most of the Heineken debuted its Star bottle earlier they can tell their friends about. increase in beer volume last year this year. The second best-selling Within our space at A-B InBev was due to the continued strong imported beer also features in-store we have a good mix of high-end growth of craft beer. The good pos materials, like this promotion highimports and crafts." news: imported beer is back on a lighting a chance for consumers to win "Wherever beer is growing," positive growth track, and that prizes. said Scott Blazek, VP, sales, at bodes well for the industry. Heineken USA, "upscale beer is The import category showed mixed results last driving that growth. Over the past four years, the year, but total category sales were up 1.2%. More upscale segment has contributed $1.25 billion in growth; importantly, many mainstream import brands—often 1.5 times that of the mainstream and value segments the hardest hit in a recession—showed strong growth in combined. Trends indicate 2012. The top ten brands, which account for about 78% that consumers have an of import volume in the U.S., experienced growth of increased willingness to trade 5.3%, compared to an 11.3 percent decline of all others. up to affordable, quality luxuThat's good news because it means consumers are ries which uniquely positions not as concerned about the economy as they have been upscale imports for future for the past few years and are beginning to trade back up growth." to imports, at least the somewhat more moderately priced mainstream brands. Concerned enough, though, Broad-Based Appeal at the end of last year and into 2013 about the fiscal cliff, mports, especially global brands, also play well sequestration and other economic news, consumers were across broad demographic slower to spend money on more expensive brands. "Consumers still have less money to spend on things groups and ethnicities. Newly like beer," said Bill Hackett, president of Crown emigrated consumers, no Imports, LLC. "Net disposable income after the first of matter what part of the world the year [when the payroll tax returned to normal levels] they come from, have seen was a real shock to many consumers, so it was a tough many of these brands in their first quarter. It's a real challenge for the category and the own countries. And no matter how many generations an industry as a whole." ethnic group has been in the High-End Viable U.S., the status and heritage Over the past two he craft segment has driven growth in the industry of imports offers a lot of years Guinness has recently, largely due to consumer interest in both appeal. successfully added variety and the unique character of so many craft That's all well and good, two new expresbeer styles and brands. That trend, to a degree, has but what about the fact that sions to its iconic inured beer consumers to high-end beer prices, making more beers are vying for the brand: Guinness Foreign Extra and imports a relatively easy sale. same shelf space and a Guinness Black "There's a lot of resurgence at the top tier," said smaller share of stomach? Lager. Doug Campbell, Guinness brand director. "Crafts are Proliferation, while it's still booming in double digits, but imports are back as occurring in all segments of the industry, has come well. Consumers are not drinking more, but they're primarily from the craft segment. The sheer number drinking better and want brands they trust with heritage, of breweries has exploded in the past few decades, giving consumers, particularly young consumers, plenty quality and substance to back them up." "There's definitely an overlap between craft and of variety and novelty. "Kids don't just sit and watch TV anymore," import drinkers," said Ryan Verschoor, import brand Hackett said. "They also have an iPad and iPhone in director at Tenth & Blake, "but consumers are looking I T Beverage Dynamics • www.beveragedynamics.com • May/June 2013 • 43