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: https://read.dmtmag.com/i/705687
Category Trends www.beveragedynamics.com July/August 2016• Beverage Dynamics 23 Cider exploded in 2014 to over 28 million 2.25-gallon cases. Last year, it continued to outpace the beer market as a whole, increasing 9.6% to 30.8 million cases. Those gains, and all the new craft ciders they have supported, owe much to Boston Beer's Angry Orchard. When the craft beer giant released its own cider line, the category gained the muscle necessary to grab market share. Angry Orchard sales were up 14.3% last year (16.3 million cases), helping raise the profile of hard cider. (The second-best selling cider was Crispin, at 1.99 million cases and up 5%.) Hard sodas have also been hot lately. At the forefront of this movement is Not Your Father's Root Beer, which generated more than $104 million in off-premise sales last year. The sudden success of this brand has mainstream suppliers releasing their own versions, including MillerCoors' Henry's Hard soda line and Anheuser-Busch's Best Damn hard sodas. Both cider and hard soda have specific advantages with consumers. They are both refreshing alternatives to higher ABV products. And both categories appeal across genders. Their demographics are nearly a 50/50 split between men and women. Hard soda also fits into the retro trend sweeping through many industries. These drinks evoke the flavors of youth, and also fit into certain classic cocktails that have recently increased in popularity. EXPERIMENT AND LEARN So many categories and brands on the rise speaks to the modern consumer's willingness to experiment. Looking within categories, wine drinkers are the most ex- plorative: 19% have bought 10 or more wine brands in the past year. That's compared to 15% for overall beer drinkers, and just 5% for spirits. What drives consumers to buy across brands and categories? Part of it owes to the adventure of trying something new — a hallmark of the younger LDA generation. That's behind the recent surge of flights on on-premise menus. Sampling multiple brands and styles allows con- sumers to experiment, while also pinpointing their personal preferences. Education also plays a large role. Today's consumers love to learn. They want to know more about the background of what they're drinking: the history, how it's made, where it's from and the people behind it. And it goes beyond specific categories. Today's consumers actively expand their knowledge about the industry overall. This is why tourism has exploded at breweries, wineries and distilleries. "One thing I've noticed is that instead of having, say, wine from start to finish, consumers will now have all kinds of drinks in one sitting," Velez says. "The consumer is much savvier now." BD Source: 2016 Handbook Advance from the Beverage Information Group 2.3% 3.6% 3.8% 13.2% 24.5% 40.3% 12.3% 5% 10% 15% 20% 25% 30% 35% 40% 45% ST. MICHELLE WINE ESTATE WEIBEL VINEYARDS MOET HENNESSY USA BROWN-FORMAN BEVERAGES CONSTELLATION BRANDS E & J GALLO WINERY OTHERS DOMESTIC SPARKLING WINE MARKET (SHARE BY SUPPLIER, 2015)