Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Imported beer market driven by rising prices, brand expansion
- Regular beer controls 91% of total import volume sales
- Light imported beer sales benefit from brand extensions, price increases
- Mexican beer expansions are driving total import growth
- Convenience stores gaining market share to threaten liquor stores
- Supply threats may cause higher price points, rate slowdown
- Consolidation narrowing control of market share
- Imported beer consumers—who they are and what they’re drinking
- Beer preferences and loyalty
- Changes in beer consumption
Insights and Opportunities
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- Create a craft Mexican brand extension to appeal to premium drinkers
- Create and promote lower-priced imports to cost-conscious consumers
Fast Forward Trends
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- Trend: Carnivore, herbivore... locavore
- Pressure is mounting for food to go local, not global
- Imports: a decidedly non-local product
- How can imports compete?
- Regional impact
- Trend: Menaissance—return of the manly man
- Farewell metrosexual, hello (once again) retrosexual
- No girls allowed
Market Size and Forecast
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- Key points
- Total off-premise sales and forecast of domestic and imported beer
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- Figure 1: Total U.S. retail sales of beer, off-premise, at current prices, 2003-13
- Figure 2: Total U.S. retail sales of beer, off-premise, at inflation-adjusted prices, 2003-13
- Comparing the markets: domestic and imported
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- Figure 3: Total U.S. retail sales of beer, off-premise, domestic vs imported, at current prices, 2003-13
- The off-premise imported beer market
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- Figure 4: Total U.S. retail sales of imported beer, off-premise, at current prices, 2003-13
- Figure 5: Total U.S. retail sales of imported beer, at inflation-adjusted prices, 2003-13
- Wal-Mart sales
Competitive Context
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- Quality, taste value of craft beer threatening appeal of imported brands
- Corona’s tropical image, taste loses edge to Miller Chill, Bud Light Lime
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- Figure 6: Volume sales of super-premium and craft beer vs. imported beer, 2003-07
- Wine sees market share increases, potentially affecting beer sales
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- Figure 7: Total beverage alcohol sales, on- and off-premise, by beer, wine and spirits, 2002-08
- Figure 8: On-premise beverage alcohol sales, by beer, wine and spirits, 2002-08
Segment Performance
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- Key points
- Beer sales by volume
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- Figure 9: U.S. retail volume sales of beer, total vs imports, 2003-07
- Regular beer dominates import market
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- Figure 10: Volume sales of imported beer, segmented by type, 2005 and 2007
- Mexico leads volume sales of imported beer
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- Figure 11: Imported beer sales, by country of origin, 2005 and 2007
Segment Performance—Regular Beer
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- Key points
- Regular imported beer volume sales driven by Mexican brand expansions
- Volume sales of imported regular beer
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- Figure 12: Total U.S. volume sales of imported regular beer, 2003-07
Segment Performance—Light Beer
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- Key points
- Additional brand extensions drastically increase imported light beer sales
- Lime beer war among domestic light beers may threaten import leaders
- Volume sales of imported light beer
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- Figure 13: Total U.S. volume sales of imported light beer, 2003-07
Retail Channels
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- Key points
- Convenience stores gaining major traction to threaten liquor stores
- Liquor stores, food stores, show least growth despite dominance
- Sales of import beer, by channel
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- Figure 14: U.S. retail sales of imported beer, by channel, 2006 and 2008
Retail Channels—Liquor Stores
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- Key points
- Antiquated state regulation negatively affects liquor store beer sales
- Liquor store beer sales to decline slightly, lose share to convenience stores
- Liquor store consumers prefer beer over other liquors, plan purchases
- Liquor store sales of imported beer
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- Figure 15: U.S. Liquor store sales of imported beer, at current prices, 2003-08
Retail Channels—Convenience Stores
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- Key points
- Convenience stores provide faster, easier ways to purchase imports
- Convenience stores cater to impulsive, late-night beer purchasing
- Convenience store sales of imported beer
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- Figure 16: U.S. convenience store sales of imported beer, at current prices, 2003-08
- Number of convenience stores in the U.S.
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- Figure 17: U.S. convenience store count, Dec. 2007
Retail Channels—Food Stores
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- Key points
- Beer the fourth-largest sales category at food stores
- Food stores often battle with liquor stores over government regulation
- Food store sales of imported beer
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- Figure 18: U.S. food store sales of imported beer, at current prices, 2003-08
Retail Channels—Supercenters & Warehouse Clubs
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- Key points
- Supercenters, warehouse clubs cater to consumers buying beer in bulk
- Costco-branded beer experiment a potential threat to imports
- Supercenters and warehouse club sales of imported beer
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- Figure 19: U.S. supercenters & warehouse club sales of imported beer, at current prices, 2003-08
Market Drivers
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- U.S. Hispanic population growth drives interest in Mexican imports
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- Figure 20: Population, by race and Hispanic origin, 2003-13
- Perfect storm of agriculture, environmental shifts damaging production
- Independents most affected, industry giants more insulated
- What it means
- Companies consolidating to cut costs, control global distribution channels
- InBev and Anheuser-Busch
- SABMiller and Molson Coors
- Molson Coors and Foster’s Group
- Efforts to expand international portfolio of import brands increasing
- SABMiller and Grolsch
- SABMiller and South American, Polish brands
- Heineken USA and Newcastle Brown Ale
- Anheuser-Busch and Czechvar Premium Lager
- Troubled economy to drive sales of inexpensive beer, benefit off-premise
- Wine, spirits threaten future growth rates of import beer
Leading Companies
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- Key points
- Crown Imports dominates market, but Molson Coors has greatest growth
- Manufacturer volume sales of imported beer
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- Figure 21: Manufacturer volume sales of imported beer in the U.S., 2005 and 2007
Brand Share—Regular Beer
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- Key points
- Corona continues lead as top import, but competition tightens
- Mexican brands receiving significant push to win over U.S. consumers
- Blue Moon fastest-growing beer of 2007; campaign targets craft drinkers
- Regulatory efforts force Labatt USA sale to avoid New York state monopoly
- Manufacturer and brand sales of regular imported beer
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- Figure 22: Selected brand sales and market share of regular imported beer in the U.S., 2005 and 2007
Brand Share—Light Beer
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- Key points
- Heineken’s Premium Light innovates imported light beer market
- Corona Light bypasses Amstel Light to dominate light beer segment
- Labatt and Beck’s see market share fall following Heineken Premium Light
- Molson Canadian Light only brand suffering volume sales loss
- Manufacturer and volume sales of imported light beer
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- Figure 23: Selected brand volume sales and market share of imported light beer in the U.S., 2005 and 2007
Brand Qualities
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- Tsingtao rebuilds brand to reach wider consumer base of premium drinkers
- Blue Moon uses word-of-mouth, presentation to build phenomenal growth
- Inclusiveness creates buzz among beer connoisseurs
- Presentation connects brand to premium aesthetic of wine, spirits
- Flavor extensions, participation in craft competition, maintain brand authenticity
- Heineken Premium Light uses packaging, image to stress wellness
Innovation and Innovators
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- Dominican beer Presidente uses heritage to set stage for wider expansion
- Negra Modelo transitions Mexican beer from bottle, can to draft
- Heineken USA positions Amstel Light with Thanksgiving holiday
- Name notoriety creates immediate profile for brewer eyeing U.S. expansion
- Non-beverage line extensions promote long-term brand loyalty
Advertising and Promotion
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- Overview
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- Figure 24: Alcoholic beverage advertising spending trends, beer vs wine and spirits, 2003-07*
- Internet spending increases 102% as spending rates for traditional media declines
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- Figure 25: Beer advertising spending trends, 2003-07
- Mexican imports breaking barriers by marketing through bilingual ads
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- Figure 26: Total print and broadcast advertising expenditures for beer, by leading import companies/brands, 2006 and 2007
- Leading imports struggle to create campaigns with relevant messages
- Viral advertising allows beer companies to push boundaries, interaction
- Commercial television spots
- Beach life focus of Mexican beer; Pacifico updates while Corona is stale
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- Figure 27: Corona Extra television ad, 2008
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- Figure 28: Pacifico Clara Lager pepper roulette television ad, 2008
- Figure 29: Pacifico Clara Lager underwater television ad, 2008
- “Most Interesting Man” campaign helps break Dos Equis from the pack
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- Figure 30: Dos Equis lager television ad, 2008
- Heineken brands position tradition against holistic wellness
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- Figure 31: Heineken Regular Lager television ad, 2008
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- Figure 32: Heineken Premium Light Lager television ad, 2008
- European couture, culture
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- Figure 33: Amstel Light television ad, 2008
Beer Consumption
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- Key points
- Incidence of imported beer consumption remains steady despite economic downturn
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- Figure 34: Incidence of personal beer consumption, by type of beer, 2004-08
- Men drink more alcohol and beer is the preferred beverage of many
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- Figure 35: Past 30 day alcohol consumption, by type of drink, by gender, August 2008
- Young adults drink more than their older counterparts
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- Figure 36: Past 30 day alcohol consumption, by type of drink, by age, August 2008
Brand Usage
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- Key points
- Affluent 25-44 year-old males from the West and Northeast form the core of the consumer market
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- Figure 37: Incidence of imported beer drinking, by key demographics, February 2007-March 2008
- Most popular imported beers have a relatively light taste and broad lifestyle appeal
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- Figure 38: Brands of imported beer drunk, by age, February 2007-March 2008
- Guinness has higher appeal to the affluent while lower-income consumers over-index on Tecate use
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- Figure 39: Brands of imported beer drunk, by household income, February 2007-March 2008
Beer Preferences
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- Key points
- Preference for imported beer most salient among 21-24 year-olds
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- Figure 40: Domestic vs. imported beer preference, by age, August 2008
- Nearly four in 10 female beer drinkers mostly drink light imported beer
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- Figure 41: Frequency of light imported beer consumption, by gender, August 2008
- Baby Boomers significantly more likely to report drinking light imported beer “all the time”
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- Figure 42: Frequency of light imported beer consumption, by age, August 2008
- Young adults more likely to persuaded by taste and premium nature of imports
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- Figure 43: Attitudes towards imported vs. domestic beer, by age, August 2008
Loyalty to Types and Brands of Beer
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- Key points
- Those who drink imports are somewhat less brand loyal but most stick to one of a few brands
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- Figure 44: Brand loyalty, by preference for domestic vs. imported, August 2008
- 25-34 year-olds most likely to experiment
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- Figure 45: Brand loyalty, by age, August 2008
- Import drinkers more likely to experiment with various types of beer
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- Figure 46: Beer type loyalty, by preference for domestic vs. imported, August 2008
- Drinkers in the Midwest and South more likely to be brand loyal
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- Figure 47: Beer type loyalty, by region, August 2008
Most Important Attributes of Beer
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- Key points
- Import drinkers driven more by taste than concerns about calories or price
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- Figure 48: Beer importance attributes, by preference for domestic vs. imported, August 2008
- Young adults more likely to cite low price, high alcohol content and differentiated taste as important attributes of their favorite beer
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- Figure 49: Beer importance attributes, by age, August 2008
- Beer attribute preferences vary by region
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- Figure 50: Beer importance attributes, by region, August 2008
Changes in Beer Consumption
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- Key points
- Young adults drinking more beer, lower-income cutting back
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- Figure 51: Beer consumption compared to last year, by age, August 2008
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- Figure 52: Beer consumption compared to last year, by HH income, August 2008
- Desire to reduce drinking and improve health most commonly cited reasons for drinking less
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- Figure 53: Reasons for drinking less beer than last year, by gender, August 2008
Beer Purchasing Habits
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- Key points
- Most purchase at supermarkets and liquor stores
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- Figure 54: Beer purchase locations, by age, August 2008
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- Figure 55: Beer purchase locations, by region, August 2008
- Western shoppers more likely to want variety and shop for promotions
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- Figure 56: Beer shopping habits, by region, August 2008
Beer Selection Habits and BYOB Trends
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- Key points
- Most young adults drink the same type and brand as their friends
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- Figure 57: Beer selection habits, by age, August 2008
- BYOB has low appeal overall but some affluents and young adults appreciate the option
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- Figure 58: BYOB attitudes and behaviors, by HH income, August 2008
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- Figure 59: BYOB attitudes and behaviors, by age, August 2008
Race and Hispanic Origin
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- Key points
- Hispanics more likely to report recent increase in beer consumption
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- Figure 60: Beer consumption compared to last year, by race/Hispanic origin, August 2008
- Hispanics more likely to report drinking beer as well as other beverages
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- Figure 61: Past 30 day alcohol consumption, by type of drink, by race/Hispanic origin, August 2008
- Imported beers have higher appeal to minorities
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- Figure 62: Domestic vs. imported beer preference, by race/Hispanic origin, August 2008
- Hispanics more likely to drink imported beer
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- Figure 63: Incidence of imported beer drinking, by race/Hispanic origin, February 2007-March 2008
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- Figure 64: Brands of imported beer drunk, by race/Hispanic origin, February 2007-March 2008
- Hispanics more likely to drink same type and brand as friends
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- Figure 65: Beer selection habits, by race/Hispanic origin, August 2008
- Hispanics more likely to cite differentiated flavors as an attribute of their favorite beer
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- Figure 66: Beer importance attributes, by race/Hispanic origin, August 2008
- Taste and desire for premium key drivers among Hispanics
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- Figure 67: Attitudes towards imported vs. domestic beer, by race/Hispanic origin, August 2008
Cluster Analysis—Least Loyals; Flavor-full Fans; Low, Low, Lows
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- Least Loyals
- Who they are
- Opportunity
- Flavor-full Fans
- Who they are
- Opportunity
- Low, Low, Lows
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 68: Imported beer drinker clusters, August 2008
- Figure 69: Past 30 day alcohol consumption, by imported beer cluster, August 2008
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- Figure 70: Domestic vs. imported beer preference, by imported beer cluster, August 2008
- Figure 71: Frequency of light imported beer consumption, by imported beer cluster, August 2008
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- Figure 72: Brand loyalty, by imported beer cluster, August 2008
- Figure 73: Beer type loyalty, by imported beer cluster, August 2008
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- Figure 74: Beer importance attributes, by imported beer cluster, August 2008
- Figure 75: Beer purchase locations, by imported beer cluster, August 2008
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- Figure 76: Attitudes towards domestic vs. imported beer, by imported beer cluster, August 2008
- Figure 77: Beer selection habits, by imported beer cluster, August 2008
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- Figure 78: BYOB attitudes and behaviors, by imported beer cluster, August 2008
- Cluster demographics
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- Figure 79: Imported beer drinker clusters by gender, September 2008
- Figure 80: Imported beer drinker clusters by age, September 2008
- Figure 81: Imported beer drinker clusters by household income, September 2008
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- Figure 82: Imported beer clusters by race/Hispanic origin, August 2008
- Methodology
Custom Consumer Groups
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- Young, energetic and affluent males heaviest users of imported beer
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- Figure 83: Incidence and frequency of imported beer use, by custom consumer group, August 2008
- Young men and affluent whites more likely to use stout and pale ale
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- Figure 84: Incidence stout and pale ale use, by custom consumer group, August 2008
- Women and married import drinkers often prefer light beers
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- Figure 85: Attitudes towards imported vs. domestic beer, among females by age, presence of children in HH, marital status and income, August 2008
Appendix: Other Useful Consumer Tables
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- Figure 86: Brands of imported beer, by gender, February 2007-March 2008
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- Figure 87: Brands of imported beer, by region, February 2007-March 2008
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- Figure 88: Frequency of light imported beer consumption, by HH income, August 2008
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- Figure 89: Domestic vs. imported beer preference, by HH income, August 2008
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- Figure 90: Domestic vs. imported beer preference, by gender, August 2008
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- Figure 91: Domestic vs. imported beer preference, by region, August 2008
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- Figure 92: Attitudes towards imported vs. domestic beer, by HH income, August 2008
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- Figure 93: Attitudes towards imported vs. domestic beer, by gender, August 2008
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- Figure 94: Attitudes towards imported vs. domestic beer, by region, August 2008
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- Figure 95: Beer selection habits, by preference for domestic vs. imported, August 2008
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Appendix: Trade Associations
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