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
EDITOR'S NOTE Brewing Up Business few years ago dollar sales of craft beers accounted for approximately 4%-5% of the overall U.S. beer market; today, that number is 7% and growing, even as craft beer sales volume has also increased, up to 5% of the overall market, according to the Boulder, CO- based Brewers Association. In the first six months of 2011, the growth rate for craft brews rose 15% A following a 12% gain in the same period a year ago and a 9% gain in 2009. And while it's still a small percentage of the almost $100 billion U.S. beer market, a 2% gain in a market that size is not small change, by any means. At the same time, estimates for the entire U.S. beer industry is that consumption was off up to 0.9% for the first six months of 2011, continuing a troubling downward trend. Statistics for all of 2010 show that U.S. beer consumption fell by 1.9% overall, with domestic brands declining 2.3% and imported beers edging up 0.9%, according to the just-published Beverage Information Group's Beer Handbook 2011. Imports now comprise just under 13% of the total U.S. beer market. Clearly, most retailers are aware of these trends and have been moving aggressively to spur consumer interest in craft, specialty, seasonal and imported beers. Indeed, as writer Gerry Khermouch points out in our profile of the Annapolis, MD-based Bay Ridge Wines & Spirits (page 16), carrying a full inventory of mainstream domestics and imported beers is key, but the store also showcases a fairly wide variety of local, regional and even national craft brews. And many retailers we've spoken with during the past few years are using a similar strategy. In a sense, the expanded craft offerings confer a beer badge of honor, so to speak, a kind of street cred appealing to the area's beer aficianados, showing that the store is serious about the beers that it offers. Indeed, as the story was being researched, Bay Ridge owner Chuck Ferrar was preparing for a "major event" in the Maryland world of beer: the long-awaited arrival of New Belgium's Fat Tire, the renowned craft beer from Colorado. To leverage the Fat Tire launch with his beer fan base, Ferrar was planning a 6 a.m. tasting the first day the beer became available. Talk about creating excitement with an in-store event! Indeed, these dynamics have not been lost on the major domestic brewers. MillerCoors, which has successfully developed Blue Moon and also shepherded the Leinenkugel brand for years, recently created the Tenth and Blake Beer Company, a separate division specifically devoted to craft and imported beers. For its part, A-B InBev purchased Chicago-based Goose Island Beer earlier in the year, and has ownership stakes in other U.S.-produced craft beers. Indeed, in recent years, the company has made a push to import a lineup of craft and specialty beers as well as introducing "craft-like" and seasonal offerings in its Michelob portfolio. But that's only a part of what's going on in the beer industry. Turn to our State-of-the-Industry Report cover story (page 38), by Julie Johnson, to learn more. Executive Vice President and Group Publisher Charles Forman Tel: 845-426-6072 Fax: 845-426-6423 email: cforman@m2media360.com Editor-in-Chief Richard Brandes Tel: 212-353-3832 Fax: 212-353-8214 email: rbrandes@m2media360.com Managing Editor Jeremy Nedelka Contributing Editors Dan Berger Harriet Lembeck F. Paul Pacult Robert Plotkin Michael Sherer Cheryl Ursin Associate Publisher Anthony Bongiovanni Senior Regional Sales Manager Mark Marcon Senior Regional Sales Manager Debbie Rittenberg Senior Regional Sales Manager Jeanette Sims Art Director Adam Lane Vice President, Circulation and Collateral Services Joanne Juda-Prainito Research Director Eric Schmidt List Rental Manager Cheryl Naughton RETAILER EDITORIAL ADVISORY BOARD Charles Bailes III ABC Fine Wine & Spirits, Orlando, FL Ralph Bondon 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 Dan Manning Haskell's, Minneapolis, MN Burt Notarius Premier Liquors, Kemmore, NY Charles Sonnenberg Frugal MacDoogal's, Nashville, TN Greg Wonsmos Centennial, Dallas, TX M2MEDIA360 President/CEO Marion Minor Vice President, Finance & Operations Gerald Winkel Beverage Dynamics is published by The Beverage Information Group a division of M2MEDIA360 Richard Brandes, Editor-in-Chief 6 • Beverage Dynamics • www.beveragedynamics.com • September/October 2011 Editorial and executive offices at 17 High St., 2nd Fl., Norwalk, CT 06851 Telephone: (203) 855-8499 Fax: (203) 855-9446 E-mail: rbrandes@m2media360.com