The One Percent Solution

Beer Trends for 2005 to Help You Reach Greater Pour Growth


By Andy Ashby


With the calendar turning rapidly to 2005, there is suddenly another year to fill with beer sales. With more beers available in America then ever, there are plenty of areas for sales to grow. Whether you're stocking your coolers with beers from small microbreweries, medium-sized craft beers or a domestic from one of the big three, it's a safe bet business will continue to grow this year.


The question is, by how much? As individual and or regional results from various parts of the country indicate, not all beer sales strategies are created equal. And the playing field is far from level. Some geographical areas enjoy a higher propensity for beer consumption over others.


Eric Shepard, executive editor of Beer Marketing Insight, says beer has been growing at about 1 percent for the past few years. In 2003, the growth was more. However, beer volumes have a distance to travel to equal the 3 to 4 percent growth each year for wine and spirits.


"Beer continues to be outperformed by spirits and wine," Shepard says. Of total beer volume, craft beers maintain a 3 percent share of the market. "They've been unable to build on that initial surge," Shepherd says.


Is Less Still More?

Of course sales and growth vary by geography. The Northwest has a much higher percentage of their beer sales belonging to craft breweries, compared to the Southeast, where the Big Three still apparently rule. But Keith Schlabs thinks that craft beers will continue to grow their sales across the country, even in the Southeast. It just depends on what they bring to the table.



Schlabs is the food and beverage director for The Flying Saucer (beerknurd.com), a string of 12 draught emporiums stretching from Texas to North Carolina. There are 200 beers at each location, and Schlabs is the resident beer guru for the company. "In my opinion, I think we'll see an increase in craft brewers who focus on details and have high quality assurance," he says.


That means companies like Sierra Nevada of Chico, Calif., and Fort Collins, Colo.'s New Belgium Brewing Co. will continue to grow. Also, he says to watch for Dogfish Head Breweries, a Delaware-based brewer, and North Coast Brewing Co. of Fort Bragg, Calif.


New Belgium, a brewer whose flagship beer is Phat Tire, isn't blazing across the country, but that's on purpose. "Their method is to focus on quality and slow growth," Schlabs says. "They focus on the markets they have and grow them properly."


The Flying Saucer sells Phat Tire at its Texas and Arkansas locations, stopping at the Mississippi River.


"These craft brewers will continue to grow," Schlabs says.


The Right to Brew

While New Belgium hasn't crossed the Mississippi River yet, the East is getting plenty of new beers all the time. There are three Summits Wayside Tavern locations (summits-online.com) serving good beverages to beer drinkers in the Atlanta area. Owner Andy Klubock sees the future of beer in the area and it rates at an all-time high — at least in alcohol content, that is. "The biggest trend is the Belgiums, and the strong beers, especially in Georgia," he says.


That's because Georgia recently changed state laws to allow for higher alcohol beers. His bars have been selling a lot of Hoegaarden from Belgium and Blue Moon from Golden, Colo. "Belgium whites and hefeweizens are hot," Klubock says.


There is another Belgium beer selling well, and not because of any extreme alcohol content or lifting of state laws. "Stella Artois is hot because of Interbrew," Klubock says. "They bring in a lot of marketing."

And Schlabs agrees. "It's Belgium's answer to the lager," he says.


Going South

Stella Artois has been introduced to Flying Saucer customers in Texas. And that's just the beginning, brew watchers predict. "It's going to penetrate every market and do well," Schlabs says.


Klubock says his line of microbeers and craft beers have been selling well. In the Atlanta area, there are either regional craft beers like Sierra Nevada or Rogue or smaller breweries, like one town's beer or a brewpub. Bass, he says, also has improved its marketability with customers through their focus on advertising.


In addition, with the slowing of the Atkins Diet and the rise of South Beach Diet, low carbohydrate beer is still going strong. "We sell a pretty good amount of Michelob Ultra and a bit of Rolling Rock Green Light," Klubock says. "It complements our menu. We do a significant business in low-carb and low-fat foods."


They also sell Aspen Edge from Coors Brewing Co. and low-carb imports like Rhinebecker and Dortmunder. He notes Miller and Amstel Light are pretty low in carbohydrates. "Miller Lite used a low-carb message, and Michelob Ultra was a big success last year," Shepard says.


For 2005. Schlabs sees less emphasis on low carb beers, but has seen the overall growth of beer on the rise. The Flying Saucer's concept is beer, and business has been good.


"The Flying Saucer has seen, in more stores, double digit growth," he says.

While the Big Three still have the lion's share of the market, it doesn't have to be that way. It amazes me that so many operators skew their offering to just allow pale lagers to dominate their menus," Schlabs says. "If they find where beer couples with food like wine, they might reconsider 10 beers with similar profile."


Having all light pilsners and domestics would be like having a wine list with all Chardonnays. It's good to sprinkle in micro beers and craft brews.


"You will get more money for it, and your customers will appreciate it," Schlabs says. NCB