Going With the Flow
Domestic Brew Sales Should Benefit From Surge in Imports and New Marketing

Imported beer sales continued to skyrocket through 2006, while domestic sales remained relatively stagnant, according to figures from The Beer Institute.
    By September of 2005, 137,600,000 gallons of domestic beer had been sold in the United States. In comparison, by that point in 2006,139,525,000 had been sold. While that’s obviously an increase, it’s only by about 1.4 percent, which pales in comparison to imported beer’s percentage increase of 10.4 percent (from about 19,000,000 to about 21,000,000).

Big Three Holding Ground
    However, domestic breweries still outsell imports by about seven times the volume in the Unites States. This is indicative of a strong showing by Anheuser-Busch, Coors Brewing Co. and Miller Brewing Co., who continue to drive sales through strong advertising campaigns, corporate sponsorships, sports sponsorships and brand loyalty.
    While Coors has focused its advertising strategy on professional football, Miller has scored with its “Man Law” advertising, hoping to attract the young male drinking demographic. Anheuser-Busch continues to lead the pack.

Category Strengthening
    The numbers on the big three go as follows: Anheuser-Busch is up 1.1 percent, Miller is down 2.5 percent, and Coors is up 2 percent. While the news of continued spikes in import sales isn’t great at face value for domestic brewers, the overall health of beer has benefited from the profileration of options and the renewed interest that these imports bring to the category.
    Consider that import sales have gone from 12.4 percent to 14.4 percent in only one year, coupled with a 10 percent increase for crafts and a 1 percent increase for domestics, and we arguably have one of the strongest beer markets we’ve seen in years in the United States.
    What this means in practical terms is that bar owners should continue to promote their beer sales and availability. You obviously can’t go wrong with your import selection, but pay special attention to domestic promotions. Remember that though exciting new imports help inspire beer trial and sales, the price points for domestics are still a strong selling point.
    Bud, Miller and Coors will still work hard with distributors to insure your bar is selling its fair share of their products, and now is a great time to take full advantage of this.            NCB

All figures used in this report were provided by The Beer Institute.