Beverage Dynamics

Beverage Dynamics May-June 2012

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.

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ast year about this time, beer importers were cau- tiously optimistic about their fortunes. This year, you can almost hear the collective sigh of relief as they get ready for their busy summer selling season. The imported beer cate- gory isn't exactly on fire, but it survived the recession and has come out the other side in perhaps much better shape than the domestic beer business. "I think retailers have found it diffi- L cult," said Trevor Burnell, vice president of Moosehead USA. "When things go up it doesn't last forever, and they have to remember that when they go down it's the same. The economy has been unsettled for a prolonged period, so people get into a mindset. Certainly there have been some winners and losers the past few years, but if you look at craft and import beers together they now account for a 30 share in grocery outlets—20% imports and 10% craft beers. That's pretty good." "Imports and high-end beers have definitely bucked the trend of the over- all beer market," said Rick Oleshak, director of Belgian imports at Anheuser-Busch InBev. "Even though consumers are cutting out unnecessary spending, imported beers are an affordable experience. Consumers are still treating themselves on occasion." In a relatively flat industry, sales in the imported beer category rose 1.0% in 2011, according to the 2012 Handbook Advance, published by the Beverage Information Group. Even more telling was that the top 10 lead- ing brands, which account for 75% of total import sales, grew 1.8% last year, a strong showing compared to the overall industry. But that doesn't tell the whole story. Among Heineken's several initiatives is its "Summer Voyage"-themed program, which includes cross-merchandising offers as well as the chance for consumers to win one-of-a-kind festival and event experiences from around the world. In the past, imports tended to move as a group. In good times, a rising tide lifted all boats. In downturns, con- sumers cut back discretionary spending and purchased less imported beer as a result. Coming out of this recession, the maturing category perhaps now better reflects the industry as a whole. Once rock-solid brands have seen their sales and shares slip, and "newly discovered" Beverage Dynamics • www.beveragedynamics.com • May/June 2012 • 29

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