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/41523
" We continue to increase our investment behind our core brands, because even in a difficult economy, you want to win on the occasions when consumers are choosing to pur- chase beer." —Dave Peacock, president of Anheuser-Busch drinkers' selections, comprising seven out of the ten top domestic brands, even as sales for the light category fell by 1.9% overall. Among standard light beers, Coors Light and Keystone Light showed modest growthith all other top-selling lights showing sales declines. The two "micro-lights" headed in opposite direc- tions: MGD Light 64, introduced in 2008, reversed its good 2009 fortunes, and suffered a 10.0% loss; newer Budweiser Select 55 grew by 120% to 11 million 2.25 gallon cases. This volatility hints that the audience for super-low calorie beers may be rather fickle, moving on to something new when it comes to market Among superpremiums, Michelob Ultra Light, the category leader, showed barely positive numbers. Blue Moon, Coors' reliably successful interpretation of the Belgian wit beer style, was a steady winner again with growth of 30.4%; Shock Top Belgian White, A-B's much newer offering in the same style, continued growing at 25.0%. The value of novelty was felt by both winners and losers: Miller Chill and Bud Light Lime—highly suc- cessful new launches of 2007 and 2008—suffered losses of 33.2% and 10.1%. Bud Light Golden Wheat—A-B's 2009 roll- out—enjoyed an 100.0% increase in sales. Seasonal offerings from Blue Moon and Leininkugel underscored the appeal of variety, with growth of 22.4% and 35.3%. Sales of sub-premium or "pop- ular" beers fell in 2010 by 4.1%, suggesting that losses in premium beer sales are not generally being picked up by sub-premium alterna- tives. Major brands suffered across the board, with the exception of Pabst Blue Ribbon, which contin- ued to ride its hipster credibility to a volume growth of 16.9%. Brand The imported beer category returned, barely, to positive numbers after two years of negative growth. Losses in volume sales by leaders Corona and Heineken were offset by the double-digit growth enjoyed by Modelo Especial, Dos Equis, and Stella Artois. Those three beers have little in common beyond the fact that they are brewed outside the U.S., and they cultivate different audiences. At the end of the list of categories are the smallest but most vigorous classes. Unique among beer categories, craft beer has enjoyed positive growth every year since 2003. In 2010, the category returned to double-digit growth with a 12.6% increase (data from SymphonyIRI Group (IRI), a Chicago-based market research firm). Boston Beer's flagship Sam Adams Boston Lager gained 7.7% to 14 million 2.25 gallon cases, according to Beverage Information Group. Other growing well- known craft brands include Sierra Nevada Pale Ale (up 9.0%) and New Belgium's Fat Tire Amber ale (upa 15%). Indeed, 18 of the top 20 "craft families" experi- enced positive growth (IRI). At a 17.1% increase, so-called "progressive adult beverages" (PABs) were 2010's fastest-growing beer cat- egory, though representing an even smaller niche than craft. Starting in 2006 and 2007, the Four Loco and Joose brands shook up the category by adding caffeine and other stimulants to high alcohol, fruit-flavored beers. Under scrutiny from federal agencies, legislators and universities, the companies reformulated the brands late in 2010, clearing the way for PAB perennial Mike's Hard brand family to lead the category. Finding Beer's Place O nce again in 2010, trends in wine and spirits sales outpaced beer. Industry analyst Harry (000 2.25 Gallon Cases) Brewer 2009 2010 % Chg Bud Light . . . . . . . . . . . . . . .AB InBev . . . . . . . . . . . 555,000 . . . .543,500 . . . . . .-2.1% Budweiser . . . . . . . . . . . . . .AB InBev . . . . . . . . . . . 275,000 . . . .253,000 . . . . . .-8.0% Coors Light . . . . . . . . . . . . .MillerCoors . . . . . . . . 248,800 . . . . .251,300 . . . . . . .1.0% Miller Lite . . . . . . . . . . . . . .MillerCoors . . . . . . . . 228,000 . . . .220,000 . . . . . .-3.5% Natural Light . . . . . . . . . . . .AB InBev . . . . . . . . . . . 131,000 . . . . .127,000 . . . . . .-3.1% Busch Light . . . . . . . . . . . . .AB InBev . . . . . . . . . . . . 96,400 . . . . .94,500 . . . . . .-2.0% Busch . . . . . . . . . . . . . . . . .AB InBev . . . . . . . . . . . . 89,000 . . . . .83,000 . . . . . .-6.7% Miller High Life . . . . . . . . . .MillerCoors. . . . . . . . . . 71,500 . . . . .69,500 . . . . . .-2.8% Keystone Light . . . . . . . . . .MillerCoors . . . . . . . . . 64,000 . . . . .65,500 . . . . . . .2.3% Michelob Ultra . . . . . . . . . .AB InBev . . . . . . . . . . . . 43,500 . . . . .43,600 . . . . . . .0.2% Total Leading Domestic Brands Others Total Domestic Beer 40 • Beverage Dynamics • www.beveragedynamics.com • September/October 2011 1,802,200 1,750,900 -2.8% 715,500 708,900 -0.9% 2,517,700 2,459,800 -2.3%