Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Imported beer suffers from economic downturn and competition from domestic beer
- Regular imported beer continues to dominate, but loses share to light imported beer
- U.S. beer drinkers trade down amid economic uncertainty
- Convenience stores post declining sales; economy multipacks offer growth opportunity for retailers
- Men, affluents, adults aged 21-44, and Hispanics are primary imported beer consumers
- Growth in domestic craft beer poses stiff competition for imports
- Roughly 25% of big beer company adspend is on imported beer brands
Insights and Opportunities
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- Seasonal and variety pack imports could reinvigorate the import market
- Innovation and marketing could brighten the future of light imports
- Imports paired with food
- Imports that offer higher alcohol content could be viewed as a better value by some
Inspire Trends
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- Beer and cheese
- What’s it about?
- What we have seen
- Implication for imported beer industry
- Beer-tails
- What’s it about?
- What we have seen
- Implications for the imported beer industry
Market Size and Forecast
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- Key points
- Trading down and up in domestics
- Total beer dollar sales in 2009 are expected to remain flat
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- Figure 1: Total U.S. retail* sales and forecast of beer including imported and domestic beer, at current prices, 2004-14
- Figure 2: Total U.S. retail* sales and forecast of beer including imported and domestic beer, at inflation-adjusted prices, 2004-14
- Beer sales stifle as consumers drink less on-premise and sparingly at home
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- Figure 3: Total U.S. retail* volume sales of beer including imported and domestic beer, 2004-09
- Imported beer
- Historically strong import growth derailed by the U.S. recession
- Innovation and competitive pricing could improve future of imports
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- Figure 4: Total U.S. retail* sales and forecast of imported beer, at current prices, 2004-14
- Figure 5: Total U.S. retail* sales and forecast of imported beer, at inflation-adjusted prices, 2004-14
- Walmart sales
Competitive Context
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- Key points
- Beer is the most widely consumed alcoholic beverage
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- Figure 6: Trends in personal beer consumption versus other alcoholic beverages, 2004-09
- Domestic crafts pose stiff competition for imported brews
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- Figure 7: Total U.S. supermarket average items per store imported and domestic beers, September 2009
- Imports could rebound if domestic price increases continue, especially craft beer prices
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- Figure 8: Total U.S. supermarket beer average price per case increases, by segment, January 2006-Septemebr 2009
- Innovations in domestic light beer challenges for light imports
- Impact of consolidation on imported beer
- Imported beer shipments negative in 2009
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- Figure 9: Total malt beverages imported into the U.S., millions of barrels, by month, 2006-09
Segment Performance
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- Key points
- Room for a popular-priced tier of imports
- Light imports drive growth
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- Figure 10: Total U.S. volume sales of imported beer, by segment, 2004-09
- Figure 11: Total U.S. volume sales of imported beer, by segment, 2007 and 2009
Segment Performance—Regular Imported Beer
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- Key points
- Regular imports rule although share trickles to lights imports
- Shifts in production of some imports to the U.S. influence the segment
- Regular imports suffer similar fate as domestic premiums—trading up and down
- Unacculturated Hispanics are growth driver for regular imports
- Sales and forecast—regular imported beer
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- Figure 12: Total U.S. volume sales of regular imported beer, 2004-09
Segment Performance—Light Imported Beer
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- Key points
- U.S. obesity trends continue to benefit light beer
- Stiff competition from lower-priced domestic lights
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- Figure 13: Total U.S. volume sales of light beer, imported vs. domestic, 2004-09
- Trade down affects domestic lights as well as light imports
- Major imported light brands experience cut in marketing budget
- Sales—light imported beer
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- Figure 14: Total U.S. volume sales of light imported beer, 2004-09
Retail Channels
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- Key points
- Competition heating up for off-premise retailers
- Consumers elect value over convenience
- If it’s cold, it’s sold
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- Figure 15: U.S. sales of imported beer, by off-premise retail channels, 2007 and 2009
Retail Channels—Beer, Wine and Liquor Stores
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- Key points
- Liquor stores face greater challenges ahead as more channels and retailers get into beer business
- Beer, wine and liquor stores
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- Figure 16: U.S. sales of imported beer at beer, wine, and liquor stores, 2004-09
Retail Channels—Supermarkets
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- Key points
- Dollar sales of imported beer in supermarkets up since 2004
- Supermarkets benefit more from bigger multipacks
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- Figure 17: U.S. sales of imported beer at supermarkets, 2004-09
Retail Channels—Convenience Stores
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- Key points
- Dollar sales of imported beer went negative in 2008
- Modelo Especial new mid-size multipack for small format
- Corona Extra and Light respond to larger single-serve trends in c-stores
- Growing competition from domestic craft beer at convenience stores
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- Figure 18: U.S. sales of imported beer at convenience stores, 2004-09
Retail Channels—Supercenters, Mass Merchants and Warehouse Clubs
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- Key point
- Value channels hit a new high
- Fewer of the younger segments “join the club”
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- Figure 19: U.S. sales of imported beer at supercenters and warehouse clubs, 2004-09
Market Drivers
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- Key points
- U.S. consumers are likely to continue to watch their spending
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- Figure 20: Conference Board Consumer Confidence Index™, June 2008-November 2009
- Health trends suggest need for more imported light beer alternatives
- More than 25% of residents in 31 U.S. states considered obese
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- Figure 21: Percent of obese (BMI >30) adults in U.S., by state, 2008
- Watching/controlling diet incidence supports light beer trend
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- Figure 22: Attitude towards health, by agree, 2004 and 2009
- Weight loss is the top most reason for watching/controlling diet
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- Figure 23: Reasons for watching/controlling diet, 2004 and 2009
- Cholesterol-free
- Recession breaks imported beer’s growth streak
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- Figure 24: Exchange rates of the top most traded currencies, November 30, 2008-November 30, 2009
- Population shifts: growth is projected among 18-34 year olds over the next five years
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- Figure 25: U.S. population, by age, 2009-14
- Growth in Hispanic population offers opportunities in Mexican imports
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- Figure 26: U.S. population, by race and Hispanic origin, 2009-14
- Hispanics aged 21-34 are key for beer marketing over the next five years
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- Figure 27: Growth in the number of adults aged 21-34, by Hispanic and non-Hispanic, 2009-14
Leading Companies
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- Merger and acquisition activity changes competitive landscape
- Crown Imports and Heineken USA led imports, lost volume, and gained share in 2008
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- Figure 28: Total U.S. imported beer volume sales of leading companies, 2007 and 2008
Brand Share—Regular Imported Beer
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- Key points
- Mexican beers are 2008’s biggest regular import gainers
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- Figure 29: Top ten brands in the U.S. (domestic and imported), by volume, 2007 and 2008
- Corona Extra continues to be the top regular import, despite 5% sales dip
- Corona Extra is favorite beer of Facebook social media network
- Modelo Especial grows share; remains in third place with wide margin
- Can new advertising sustain Modelo Especial’s double-digit growth?
- Heineken USA and FEMSA’s extended relationship
- Heineken’s flagship brand exhibits decline
- A-B InBev and Diageo-Guinness only regular import company gainers
- Are regular imported beer volume sales down as much as they seem?
- Manufacturer and brand sales—regular imported beer
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- Figure 30: Selected manufacturer and brand volume sales of regular imported beer in the U.S., 2007 and 2008
Brand Share—Light Imported Beer
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- Key points
- Three highlights in 2008—Tecate Light, Corona Light, and Labatt Blue Light
- Corona Light still leads light import brands in 2008
- Heineken USA maintains lead in total volume of light imported beer
- Labatt Blue Light gained volume in 2008
- Almost half of light import brands had double-digit losses
- Heineken Premium Light loses volume after adspend cut in 2008
- Manufacturer and brand sales—light imported beer
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- Figure 31: Selected manufacturer and brand volume sales of light imported beers in the U.S, 2007 and 2008
Brand Qualities
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- Capitalizing on the historical legacy of brands; building on summer fun theme
- Most successful brands are often light-tasting lagers
- Successful brands have cultural appeal
- Tendency to “trade down” to less expensive imports drives the success of some brands
Innovation and Innovators
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- To date in 2009, new product levels way down from 2008 proliferation
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- Figure 32: Number of new product launches in U.S. beer, 2004-09
- Innovation could brighten the future of light imports
- Modelo Especial introduces draft beer and 18-can packaging
- Samuel Adams, German brewery team for beer
- Corona Extra and Corona Light introduce new 24oz single-serve can
- Food scientists work to extend shelf life of imports
- Potential shelf-life improvements—a game changer for imported brews
Advertising and Promotion
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- Overview
- Beer marketing budget up while that of wine and spirits down
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- Figure 33: Advertising expenditure, alcoholic beverages, by sector, 2004-08
- Three companies accounted for approximately 75% of 2008 adspend
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- Figure 34: Advertising expenditure on beer, by imported brewer and imported brand, 2007 and 2008
- Heineken USA
- Hispanic-targeted brands: change in Tecate ad tagline and increased budget behind Dos Equis
- Heineken USA 2009 holiday campaign suggests “Give in Good Taste”
- Guinness
- Global advertising campaign to celebrate the 250th anniversary
- Guinness Stout touts “Fortune Favors the Bold” in new 2009 ad campaign
- Corona Extra and Corona Light wish “feliz navidad” from the beach
- Crown Imports
- Modelo Especial
- Pacifico Beer unveils new packaging, ad campaign
- Television spots
- Stella Artois establishes its credibility while demonstrating the perfect pour
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- Figure 35: Stella Artois, Bartender cleans glass, then holds, pours, and prepares it the right way: The Ritual, September 2009
- Beck’s unwilling to compromise
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- Figure 36: Beck's, Woman wearing miniskirt & white go-go boots, March 2009
- Happiness is a walk-in cooler full of Heineken
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- Figure 37: Heineken, women scream over friend's walk-in closet, men scream over walk-in cooler, March 2009
- Heineken’s star cameo with Eva makes for a memorable commercial
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- Figure 38: Heineken, Two guys get seat upgrade next to Eva Longoria Parker / No LTBX, July 2009
- The Most Interesting Man in the World commercials feel episodic
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- Figure 39: Dos Equis, Most Interesting Man in the World can disarm you with his looks and his hands, June 2009
- Corona Extra portrays real-life situation with humor and classic lime squeeze
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- Figure 40: Corona Extra, Couple on beach, man watches woman as she passes by, September 2009
- Corona Light 15-second spot introduces 12oz slim tall can with trademark beach scene
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- Figure 41: Corona Light, Ocean view turns into top of can, August 2009
The Consumer: Beer Usage, Frequency of Use and Brands
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- Key points
- Incidence of drinking beer and other beverages
- Incidence of drinking imported beer remains stable, despite recession
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- Figure 42: Incidence of personal beer consumption, by type of beer, January 2005-March 2009
- Beer is the most popular alcoholic beverage in the U.S.
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- Figure 43: Trends in personal beer consumption versus other alcoholic beverages, 2004-09
- Mature and elderly American less likely to drink beer
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- Figure 44: Beer consumption versus other alcoholic beverages, by age, February 2008-March 2009
- Men and affluents key segments of the consumer market
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- Figure 45: Incidence of personal consumption of beer, by gender, age, household income, race/Hispanic origin, and region, February 2008-March 2009
- Imported beer consumption: regular vs. light
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- Figure 46: Incidence of personal consumption of regular vs light/low-calorie beer, by gender, age, household income, race/Hispanic origin, and region, February 2008-March 2009
- Frequency of drinking beer
- Frequency of import drinking remains flat during recession
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- Figure 47: Frequency of drinking different types of beer, January 2005-March 2009
- Young adults, men, and Hispanics tend to drink more per month
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- Figure 48: Frequency of drinking different types of beer, by gender, age, household income, race/Hispanic origin, and region, February 2008-March 2009
- Imported beer consumption by brand
- Women more likely to prefer light-tasting, Mexican brands
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- Figure 49: Top imported and top light imported beer brands, by incidence of consumption, by gender, February 2008-March 2009
- Affluents more likely to prefer stout
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- Figure 50: Top imported and top light imported beer brands, by incidence of consumption, by household income, February 2008-March 2009
Beer Preferences: Domestic vs. Imported
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- Key points
- Women somewhat more likely to prefer imports over domestic
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- Figure 51: Domestic vs. imported beer preference, by gender, August 2009
- Young adults more likely than older counterparts to drink imports
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- Figure 52: Domestic vs. imported beer preference, by age, August 2009
Loyalty to Types and Brands of Beer
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- Key points
- Affluents somewhat more likely to experiment with new brands
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- Figure 53: Brand loyalty, by household income, August 2009
- Affluents open to new types
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- Figure 54: Preference for drinking different types of beer, by household income, August 2009
- Boomers tend to be less adventurous than young adults
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- Figure 55: Preference for drinking different types of beer, by age, August 2009
Most Desired Attributes in Beer
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- Key points
- Women more likely to prefer light beers and flavored varieties
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- Figure 56: Importance of various beer attributes, by gender, August 2009
- Affluents somewhat more likely to prefer full and exotic flavors
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- Figure 57: Importance of various beer attributes, by household income, August 2009
Incidence and Reasons for Drinking More or Less Beer
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- Key points
- Young adults and affluents more likely to increase consumption, despite recession
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- Figure 58: Incidence of consuming more or less beer compared to a year ago, by age, August 2009
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- Figure 59: Incidence of consuming more or less beer compared to a year ago, by household income, August 2009
- New flavors and craft beers can drive increase in beer consumption
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- Figure 60: Reasons for drinking more beer compared to a year ago, by age, August 2009
- Cost is the primary driver of decreased consumption
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- Figure 61: Reasons for drinking less beer compared to a year ago, by household income, August 2009
Choice of Retail Channels to Purchase Beer
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- Key points
- Young adults more likely to shop across channels, including discount
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- Figure 62: Choice of retail channels to purchase beer, by age, August 2009
Beer-purchasing Habits and Influence of Recession
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- Key points
- About one in three drink less due to recession
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- Figure 63: Beer-purchasing habits and influence of recession, by age, August 2009
Attitude towards Domestic and Imported Beer: A Comparison
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- Key points
- Imported beer often viewed as expensive, but many enjoy the taste
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- Figure 64: Attitudes toward domestic vs. imported beer, by age, August 2009
Imported Beer and BYOB Attitudes
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- Key points
- Social influence plays a key role in decisions of young adults
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- Figure 65: Attitude towards beer, by age, August 2009
Race and Hispanic Origin
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- Key points
- Black and Hispanic Americans more likely to report change in consumption
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- Figure 66: Incidence of consuming more or less beer compared to a year ago, by race/Hispanic origin, August 2009
- Blacks and Latinos more likely to be very loyal to one brand
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- Figure 67: Brand loyalty, by race/Hispanic origin, August 2009
- Brand choices are partly a reflection of heritage and culture
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- Figure 68: Top imported and top light imported beer brands, by incidence of consumption, by race/Hispanic origin, February 2008-March 2009
- Light, crisp flavors somewhat more popular among whites
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- Figure 69: Brand loyalty, by race/Hispanic origin, August 2009
- Minorities somewhat more likely to purchase in convenience channel
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- Figure 70: Choice of retail channels to purchase beer, by race/Hispanic origin, August 2009
- Minorities somewhat more likely to report being influenced by social network
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- Figure 71: Attitude towards beer, by race/Hispanic origin, August 2009
Cluster Analysis
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- Importers
- Who they are
- Opportunity
- Homies
- Who they are
- Opportunity
- Variers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 72: Imported beer clusters, August 2009
- Figure 73: Domestic vs. imported beer preference, by imported beer clusters, August 2009
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- Figure 74: Brand loyalty, by imported beer clusters, August 2009
- Figure 75: Beer-purchasing habits, by imported beer clusters, August 2009
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- Figure 76: Attitude toward domestic vs. imported beer, by imported beer clusters, August 2009
- Figure 77: Attitude towards beer, by imported beer clusters, August 2009
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- Figure 78: Craft beer attitudes and behaviors, by imported beer clusters, August 2009
- Cluster demographics
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- Figure 79: Imported beer clusters, by gender, August 2009
- Figure 80: Imported beer clusters, by age, August 2009
- Figure 81: Imported beer clusters, by household income, August 2009
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- Figure 82: Imported beer clusters, by race, August 2009
- Figure 83: Imported beer clusters, by Hispanic origin, August 2009
- Cluster methodology
Custom Consumer Groups
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- Less acculturated Hispanics tend to prefer imported beer
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- Figure 84: Incidence of beer consumption among Hispanics, by language spoken at home, February 2008-March 2009
- Domestic and imported beer drinkers look for different attributes
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- Figure 85: Importance of various beer attributes, by preference for different types of beer, August 2009
- Age has more influence on beer consumption among Asians and whites
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- Figure 86: Incidence of beer consumption, by age and race/Hispanic origin, February 2008-March 2009
- Use seasonal line extension and price promotions to compete with craft beers
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- Figure 87: Attitude towards craft beer, by preference for different types of beer, August 2009
Appendix 1: Additional Age Comparisons
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- Figure 88: Top imported and top light imported beer brands, by incidence of consumption, by age, February 2008-March 2009
- Figure 89: Brand loyalty, by age, August 2009
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- Figure 90: Importance of various beer attributes, by age, August 2009
- Figure 91: Reasons for drinking less beer compared to a year ago, by age, August 2009
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Appendix 2: Additional Regional Comparisons
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- Figure 92: Domestic vs. imported beer preference, by region, August 2009
- Figure 93: Brand loyalty, by region, August 2009
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- Figure 94: Preference for drinking different types of beer, by region, August 2009
- Figure 95: Importance of various beer attributes, by region, August 2009
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- Figure 96: Incidence of consuming more or less beer compared to a year ago, by region, August 2009
- Figure 97: Beer-purchasing habits and influence of recession, by region, August 2009
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- Figure 98: Craft beer attitudes and behaviors, by region, August 2009
- Figure 99: Attitude towards beer, by region, August 2009
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- Figure 100: BYOB attitudes and behaviors, by region, August 2009
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Appendix 3: Additional Household Income Comparisons
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- Figure 101: Domestic vs. imported beer preference, by household income, August 2009
- Figure 102: Reasons for drinking more beer compared to a year ago, by household income, August 2009
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- Figure 103: Beer-purchasing habits and influence of recession, by household income, August 2009
- Figure 104: Attitude toward domestic vs. imported beer, by household income, August 2009
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- Figure 105: Attitude towards beer, by household income, August 2009
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Appendix 4: Additional Race/Hispanic Origin Comparisons
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- Figure 106: Domestic vs. imported beer preference, by race/Hispanic origin, August 2009
- Figure 107: Preference for drinking different types of beer, by race/Hispanic origin, August 2009
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- Figure 108: Reasons for drinking more beer compared to a year ago, by race/Hispanic origin, August 2009
- Figure 109: Reasons for drinking less beer compared to a year ago, by race/Hispanic origin, August 2009
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- Figure 110: Beer-purchasing habits and influence of recession, by race/Hispanic origin, August 2009
- Figure 111: Attitude toward domestic vs. imported beer, by race/Hispanic origin, August 2009
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- Figure 112: BYOB attitudes and behaviors, by race/Hispanic origin, August 2009
- Figure 113: Craft beer attitudes and behaviors, by race/Hispanic origin, August 2009
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Appendix 5: Additional Gender Comparisons
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- Figure 114: Beer consumption versus other alcoholic beverages, by gender, February 2008-March 2009
- Figure 115: Brand loyalty, by gender, August 2009
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- Figure 116: Preference for drinking different types of beer, by gender, August 2009
- Figure 117: Reasons for drinking less beer compared to a year ago, by gender, August 2009
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- Figure 118: Incidence of consuming more or less beer compared to a year ago, by gender, August 2009
- Figure 119: Reasons for drinking more beer compared to a year ago, by gender, August 2009
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- Figure 120: Beer-purchasing habits and influence of recession, by gender, August 2009
- Figure 121: Craft beer attitudes and behaviors, by gender, August 2009
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- Figure 122: Attitude towards beer, by gender, August 2009
- Figure 123: BYOB attitudes and behaviors, by gender, August 2009
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Appendix: Trade Associations
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