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/64274
brands are experiencing strong growth. Category growth, to a degree, is still dependent on how the overall economy performs. "The macro- economic factor that most affects us is employment," said Herb Heneman, imports director at Tenth & Blake. "With unemployment still high we're not out of the woods yet, and it's affecting all beer sales not just imports. It's a matter of disposable income. But the cat- egory also ranges from a Labatt Blue to Chimay, so it's unfair to say all imports go the way of the category." That maturation of the category, so that it now includes brands that appeal to just about every consumer taste and price point, brings up another reason for the mixed results among brands. The traditional progres- sion from beer to spirits and wine and from domestic beer to imported beer as consumers' get older has changed. Changing Tastes mported beer has competition from craft beer and microbrews as well as wine and spirits. That may seem like a no-brainer — competition among different types of beverage alcohol has always existed — the competition now is coming from unlikely places. I First off, entry level drinkers — those marketers sometimes call the "Millennials" — have been into spirits in a big way for nearly a decade. Rather than start with domestic beer and move to more flavorful products, young consumers have opted to make their drinking more occasion-based. Flavored spirits and a renewed cocktail culture have spurred spirits sales to new heights. When they choose to drink beer, they often choose micro or craft beers. Older consumers, while they have developed a palate for more flavorful beers and often have the money for higher end products like imports, tend to drink more wine and spirits. "We have to be focused on con- sumers, and if the consumer is making choices outside the beer category, we have to pay attention and do something about it," said Bill Hackett, president of Crown Imports, LLC. "Wine and spirits have been relatively aggressive in find- ing new consumers with different flavors and experiences. We can't just throw styles and flavors out there. We have to build the brands we have and make sure we're where consumers are when they opt to drink beer." "I'm definitely more concerned Crown Imports had good suc- cess with its launch of the Corona Familiar bottle last year. The brand is also highlighting its beach-themed marketing across many different media venues. about wine and spirits than other beers," Heneman said. "Wine and spirits have done a better job of helping con- sumers shop by 'intrinsics.' Beer has to do a better job of demonstrating what styles pair well with different foods — an ale with a hamburger, or a crisp lager with cala- mari, for example. We have to take an example from Amazon and tell consumers, 'If you like that then you might like this.' Or rank beers on a bitterness scale. "We offer a better value proposition than wine or spir- its, so it's a question of how we get share of stomach back." The good news is that many import brands, at least, are attracting consumers, including older consumers, back to the category. "It's a battle for younger consumers with crafts and spirits and mixed drinks," said Jeff Coleman, president of Paulaner/HP USA, "but with older consumers, 26 to 49, we're seeing a resurgence of imported beer drinking along with a move into wine." Finding A Niche Y Dos Equis and Tecate, from Heineken USA, are featuring this co-branded case card highlighting Cinco de Mayo. 30 • Beverage Dynamics • www.beveragedynamics.com • May/June 2012 ounger consumers, because they consume more on more occa- sions, are still the prize, and import marketers know that attracting their attention is no easy task these days. They're savvy, sophisticated and more knowledgeable than their counterparts from decades past. The Internet has put a wealth of information at their finger- tips and social media has enabled them to trade both information and opinion instantly. Importers have found it increasingly important to understand their target audiences and play to their brands' strengths. As the economy improves and consumers loosen their wallets, brands are fine-tuning their pitches to take advantage of growth opportunities.