Beverage Dynamics

Beverage Dynamics - September/October 2016

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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20 Beverage Dynamics • September/October 2016 www.beveragedynamics.com FAST TRACK BRANDS Indicative of the overall trends in the beer market, our lineup of Fast Track brands this year includes three IPAs, two ciders and a shandy. Fast Track domestic brands must have exceeded 9 million 2.25-gallon cases in 2014, and imported brands/ microbrews must have exceeded 1.5 million cases with double- digit growth over the past four years. The leader, Angry Orchard hard cider, moved over from the Rising Stars list this year. Launched in 2011 by Boston Beer Co., it's the top-selling cider brand in the U.S. Angry Orchard posted annual compound growth of 349.6% from 2011 to 2015, reaching 16.4 million 2.25-gallon cases in 2015. But the brand's year-over-year growth rate has slowed considerably from 81% in 2014 to 14.3% in 2015, perhaps an indication that the cider category is maturing The other cider brand, Heineken USA's Strongbow, grew nearly 52% to 1.9 million cases in 2015. The company, which brought Strongbow to the U.S. in 2013, introduced a Cherry Blossom expression this past March, which joins its lineup of Gold Apple, Honey, Red Berries and Ginger fl avors. Ballast Point Sculpin American IPA grew 13.1% over 2014, hitting 1.92 million cases in 2015. But the brand's annual compound growth from 2011 to 2015 was 73.6%. Ballast Point's grapefruit-infused version of the Sculpin IPA, introduced in 2013, has been a smash hit as well, and led pineapple and habanero Sculpin spinoffs. Look for its growth and innovation to continue, as San Diego-based Ballast Point was acquired last year by Constellation Brands. Sierra Nevada Torpedo, an extra IPA or as the company calls it, a "year-round hop bomb," slipped off of the list in 2015. The brand did post 7.9% growth in 2015, but fell just shy of the double-digit growth requirement for a Fast Track, and it was just under the 3 million 2.25-gallon case mark to qualify for an Established Growth brand award. ESTABLISHED GROWTH BRANDS Established Growth brands are top-selling beers that have grown moderately or substantially in the past four years and that exceeded 2 million 2.25-gallon cases in 2015. Many of the biggest brands have been challenged to grow and therefore aren't on the list. Dos Equis moves over from the Fast Track to the Established Growth Brands list; the Mexican lager grew 9.0% to reach 28.3 million cases in 2015. The brand this past spring announced it has decided to retire its "Most Interesting Man" ad campaign after nearly nine years. Corona Extra, from Constellation Brands, remains the leading Established Growth Brand. The Mexican pale lager grew 8.3% in 2015, reaching 116.6 million cases. That's an improvement over its 5.2% increase over 2014. Constellation's Modelo Especial is catching up to Corona, however. It increased 19% last year, to 71.3 million cases. The biggest year-over-year increase goes to another Mexican lager-style, Tecate Light, which was up 44.6% over 2014 to reach 4.9 million cases. Why are the Mexican beer brands so strong? A growing Hispanic population coupled with the perception that Mexican brews are synonymous with relaxation, beaches and vacation has enabled these key brands to grow, Velez says. Of the non-Mexican Established Growth brands, Michelob Ultra, Stella Artois and Rolling Rock—all from A-B InBev— posted double-digit growth. comeback brands The lone Comeback Brand this year is the venerable American brew Pabst Blue Ribbon. Comeback Brands have rebounded in sales to at least the previous level after a recent decline. After FAST TRACK BRANDS: Domestic Brands must have exceeded 9 million 2.25-gallon cases in 2015, and imported brands/microbrews must have exceeded 1.5 million 2.25-gallon cases in 2015, with double-digit growth over each of the past four years. 2014-2015 2011-2015 Brand Supplier 2011 2012 2013 2014 2015 % Change ACGR Angry Orchard Cider Boston Beer Co. 40 1,700 7,900 14,300 16,351 14.3% 349.6% Leinenkugel's Summer Shandy MillerCoors 2,300 4,350 5,440 6,350 7,377 16.2% 33.8% Lagunitas IPA Lagunitas Brewing Co. 970 1,750 2,925 4,425 5,681 28.4% 55.6% Ranger IPA New Belgium Brewing 958 1,181 1,323 1,600 2,001 25.1% 20.2% Ballast Point Sculpin American IPA Constellation Brands 406 654 980 1,701 1,923 13.1% 73.6% Strongbow Heineken USA 750 880 960 1,250 1,898 51.8% 20.4% ACGR Annual Compound Growth Rate. ++ Greater than 100%. (000 2.25-Gallon Cases) BEER GROWTH BRANDS

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