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/172332
EDITOR'S NOTE Crafting a Strategy I n 2012, the beer industry saw a marginal 0.6% increase in consumption, according to statistics compiled by the Beverage Information Group. While modest, this gain was a lot better than the 1.3% loss in 2011, and maybe augurs that the economic rebound is finally making inroads among America's beer consumers. Still, the trends have not changed much: sales of domestic beers increased just 0.4%, while imports continued their rise, up 1.5% in 2012. Most impressive is the ongoing sales momentum among the many craft brews available to consumers locally, regionally and nationally: craft beer sales increased by 14.6% in 2012 and now comprise 7.3% of total U.S. beer sales volume. By now, craft dollar volume has most likely eclipsed 10% of total U.S. beer dollar volume. According to Boston Beer founder Jim Koch, interviewed for our 2013 State-of-the-Beer Industry Report (see page 30), "No one needs to worry whether craft beer is a fad. It is a permanent and increasingly important part of the beer landscape and is today the principal driver of energy and dollars." Amen to that. At the same time, it's only fitting to give a nod to the imported beer segment, which apparently keeps driving a sizeable number of consumers to the so-called "luxury" end of the business. Still, one has to be a fool to discount the combined power of A-B InBev and MillerCoors, which together control nearly 80% of the total U.S. beer market. For most retailers around the country, their mainstream light and premium offerings contribute a solid bottom line year in and year out. Significantly, however, these two behemoths are also players in the import and craft side of the business and a number of their latest releases appeal to the higher-end niche in the marketplace, as well as the burgeoning flavor dimension. What does this all mean for retailers? Obviously, each store or chain has its own demands based on size, marketplace, etc., however, this issue's Retailer Profile of Julio's Liquors, in Westborough, MA (see page 12) provides an inside view of a thoroughly modern beer retailing operation at this 36,000 square-foot store. As writer Gerry Khermouch noted, "Beer skus are nearing 1,500 items, with craft beers comprising more than half of the total mix. Mainstream beers like Corona and Bud Light no longer drive the business. Rather, they are 'a convenience thing for us: if you're throwing a large party, it's here,'" said Tom Welton, Julio's operations manager who also oversees the beer department. Apparently, it is working, for customers flock to the store from miles around to sample and purchase the many beers. In addition, "Julio's maintains an active calendar of in-store tastings…. Hoppy Fridays feature new releases and once a month are augmented to beerand-food tastings in the Metro Station events space downstairs…. The store has also come up with an interesting way to encourage trial, while also rewarding good customers, via a program called Wild Six." And these are just a few of the marketing and merchandising efforts that Julio's devotes to its beer sales. Executive Vice President and Group Publisher Charles Forman Tel: 845-426-6072 Fax: 845-426-6423 email: cforman@specialtyim.com Editor-in-Chief Richard Brandes Tel: 212-353-3832 Fax: 212-353-8214 email: rbrandes@specialtyim.com Contributing Editors Dan Berger Harriet Lembeck Melissa Niksic F. Paul Pacult Robert Plotkin Michael Sherer Vice President of Sales, Associate Publisher Anthony Bongiovanni tbongiovanni@specialtyim.com Senior Regional Sales Manager Mark Marcon mmarcon@specialtyim.com Senior Regional Sales Manager Debbie Rittenberg drittenberg@specialtyim.com Art Director Adam Lane Senior Research Analyst Adam Rogers List Rental Manager Cheryl Naughton R E TA I L E R E D I T O R I A L A D V I S O R Y B O A R D Charles Bailes III Ralph Bondon ABC Fine Wine & Spirits, Orlando, FL Berbiglia's, Kansas City, MO David Breitstein Duke of Bourbon, Canoga Park, CA Jim Shpall Applejack Liquors, Wheat Ridge, CO Hal Gershman Happy Harry's Bottle Shop, Grand Forks, ND Ron Junge Brown Derby Stores, Springfield, MO Ted Farrell Haskell's, Minneapolis, MN Burt Notarius Charles Sonnenberg Premier Liquors, Kemmore, NY Frugal MacDoogal's, Nashville, TN Beverage Dynamics is published by Specialty Information Media Editorial and executive offices at 17 High St., 2nd Fl., Norwalk, CT 06851 Telephone: (203) 855-8499 Fax: (203) 855-9446 Richard Brandes, Editor-in-Chief 4 • Beverage Dynamics • www.beveragedynamics.com • September/October 2013 E-mail: rbrandes@specialtyim.com