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Year of the Beer
2007 Is Shaping Up to Be A Comeback Year for The Beer Segment
Solid consumption figures bode well for beer in 2007, says Craig
Purser, CAE, president and CEO of the National Beer Whole-salers
Association.
“Beer is back,” he says. Not only are beer shipments up for 2006
compared to 2005, but there is more good news for brewers and for
wholesalers and retailers as well in an upward tick in beer sales in 20
states. “Beer is going to be the segment for 2007.”
Signs of Success
Sales for Anheuser-Busch in the first quarter of last year were up by 5
percent. And from market innovations such as Coors Brewing Co.’s focus
on the cold factor to the success Stella Artois has had with branded
glassware as part of the beer experience, to Miller Genuine Draft’s
“Beer Grown Up” advertising themes, Purser says the beer industry is
gearing up to give the spirits and wine segments a run for their money.
“You are going to see the market for beer as to production, packaging and marketing continue to get better.”
Such brewing prognostications get no argument from Beer Institute
President Jeff Becker, who agrees with Purser that 2007 is shaping up
to be a breakout year for brew.
“Beer’s share of alcohol is now almost 60 percent compared to wine and
liquor,” Becker says. “I believe we will see a continuation of the
trends that began in 2006, such as more beer brands and innovative
styles, including the introduction of more seasonal products and
varieties. Brewers and importers also have brought variety
to the beer market, and beer drinkers have responded.”
The signs of success are everywhere, Becker says. “For example, in
addition to growing brands such as Corona, consumers will also purchase
other Mexican as well as European imports in a variety of retail
establishments. The structure of the industry has been changing rapidly
as the major domestic brewers have entered joint ventures or purchased
U.S. distribution rights for popular international brands.
(Anheuser-Busch with Grolsch, Tiger and Harbin, Miller with Pilsner
Urquel and Peroni, Coors with Molson Canadian)
In addition to these diverse brand offerings and special segments
emerging in the market, Becker says another harbinger of beer segment
growth ahead is the continued success of high-end and light beers, such
as Heineken Premium Light and Sam Adams Light.
“The combined strength of U.S. and international light beer brands has
pushed that category to well over half of the beer market, “ he says.
Premium On Demand
Perhaps no beer conglomerate is better suited to capitalize on the
import craze driving consumers today than InBev USA. With a portfolio
that of 100 percent import brands, including Stella Artois, a Belgian
beer that grew by 65 percent last year, Becks, Bass and LaBatts, InBev
is betting that demand for premium beers and authentic beverage
experiences will continue.
Vice President of Marketing David van Wees predicts a 6.5 percent rate
of growth for the imported beer category in 2007, as the trend toward
drinking better beers continues. “Imports represent 80 percent of the
growth while they comprise only 12 percent of the category. There is a
move to premium ness in everything from soap to cars to clothing,” van
Wees says. “The American beer palate has evolved.”
While imports already are doing well versus domestics, as the numbers
show, van Wees says retailers looking to capitalize on the much higher
ring of import sales haven’t seen anything yet. “The reason (the trend
toward drinking imports) it will continue is because the import
category is grossly untapped.”
Another bright spot in the beer category is the craft beer segment.
“Craft beer is leading the charge for the beer industry,” says the
Craft Brewers Association’s Ray Daniels. “We’ve got the strongest
growth numbers of any segment ... Craft beer is where the flavor and
diversity are, and that is what consumers seem most interested in right
now.” NCB
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