Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Beer volume declines in 2009; dollar sales growth through price inflation
- Domestic beer outperforms imports
- Domestic light declines for the first time since its inception
- Domestic premium cedes share to domestic popular
- Craft beer continues to shine; super-premium suffer from trading down
- Imports suffer from the recession, competition from craft beer
- Marketing budget stable despite weakness in the economy
Insights and Opportunities—a Market-centric View
-
- Growing choices in craft beer—pros and cons
- Social media—a risqué marketing tool or a medium to court consumers
- Organic beer may require organic hops by 2013—ups and downs
Inspire Trends
-
- Trend: Extend My Brand
Market Size and Forecast
-
- Key points
- Beer demand declines; price increases fuel dollar sales growth
- Sales and forecast of beer
-
- Figure 1: Total U.S. retail sales and forecast of beer, at current prices, 2005-15
- Figure 2: Total U.S. retail sales and forecast of beer, at inflation-adjusted prices, 2005-15
- Figure 3: Total U.S. volume sales of beer, 2005-10
- Fan-chart forecast
-
- Figure 4: Fan-chart forecast for beer, at best-, worst-, and central-case scenario, 2005-15
- Figure 5: Fan-chart forecast for beer, at best-, worst-, and central-case scenario, 2005-15
Market Drivers
-
- High unemployment rate continues to impede consumer spending
-
- Figure 6: Employment status of the civilian non-institutional population 16 years and over, 2000-10
- Key beer consumers—men, Hispanics, and blacks, hit hard by unemployment
-
- Figure 7: Unemployment status among civilian non-institutional population, by gender and race/Hispanic origin, October 2009-October 2010
- Obesity rates steady, but still a cause of concern
-
- Figure 8: Percentage of population aged 20 and over who are overweight or obese* or extremely obese, 1988-2008
- Male population growth important to the market
-
- Figure 9: Population of men aged 21 or older, 2005-15
- At-home beer consumption on the rise due to the recession; on-premise consumption declines
-
- Figure 10: Influence of the recession on drinking behavior, by age, March 2010
- Alcohol consumption at bars/restaurants, by age
-
- Figure 11: Alcoholic beverage consumption at bars/restaurants compared to last year, by age, January 2010
- Hispanics and blacks offer growth opportunities
-
- Figure 12: U.S. Hispanic population aged 21+, 2005-15
- Figure 13: U.S. black population aged 21+, 2005-15
Competitive Context
-
- Spirits boast the biggest consumer base, outpaces beer in 2010
-
- Figure 14: Trends in beer consumption versus other alcoholic beverages, May 2005-June 2010
Segment Performance
-
- Key points
- Domestic brews take share from imports
- Domestic beers continue to raise prices; imported brews keep prices stable
-
- Figure 15: Price of domestic and imported beer in FDMx, 2005-10
- Total volume sales of beer, by segment
-
- Figure 16: U.S. volume sales of beer, by segment, 2005-10
- Figure 17: U.S. sales of beer, by segment and sub-segment, 2008 and 2010 (est.)
Segment Performance—Domestic Beer
-
- Key points
- Total volume sales of domestic beer
-
- Figure 18: U.S. volume sales of domestic beer, 2005-10
- Domestic beer—light beer
- Light beer volume declines; suffers from trading down and economic woes
- Innovation necessary to stimulate growth
- Total volume sales of light beer
-
- Figure 19: U.S. volume sales of light beer, 2005-10
- Domestic beer—premium beer
- Premium beers suffer from “death of the middle” trend
- Lack of innovation and decline in ad budget exacerbate segment’s woes
- Blacks, Hispanics, and young adults can be targeted through innovation
- Total volume sales of premium beer
-
- Figure 20: U.S. volume sales of premium beer, 2005-10
- Domestic beer—popular beer
- Unfavorable economy favors popular beer
-
- Figure 21: Top 10 domestic beer brands, by volume growth rate between 2008 and 2009
- Total volume sales of popular beer
-
- Figure 22: U.S. volume sales of popular beer, 2005-10
- Domestic beer—super-premium and craft beer
- Craft beer growth makes up for the decline in super-premium
- Craft has yet to tap women, blacks, and Hispanics
- Super-premium beers suffer from trading down, competition from craft
- Total volume sales of super-premium and craft beer
-
- Figure 23: U.S. volume sales of super-premium and craft beer, 2005-10
- Domestic beer—ice beer
- Ice beer volume sales decline owing to the economy and lack of advertising
- Growth potential by marketing to young adults and blacks
- Total volume sales of ice beer
-
- Figure 24: U.S. volume sales of ice beer, 2005-10
- Domestic beer—malt liquor
- Lack of universal appeal and advertising contribute to volume decline
- Blacks and young adults offer growth potential
- Total volume sales of malt liquor
-
- Figure 25: U.S. volume sales of malt liquor, 2005-10
Domestic beer—flavored malt beverages
-
- Segment fades amid distressed economy
- New FDA ruling may further bleed sales from the segment
- Total volume sales of flavored malt beverages
-
- Figure 26: U.S. volume sales of flavored malt beverages, 2005-10
Segment Performance—Imported Beer
-
- Key points
- Total volume sales of imported beer
-
- Figure 27: U.S. volume sales of imported beer, 2005-10
- Imported beer—regular imported beer
- Regular imports continue to dominate; face competition from craft
- Total volume sales of regular imported beer
-
- Figure 28: U.S. volume sales of regular imported beer, 2005-10
- Imported beer—light imported beer
- Light imports fail to sizzle despite strong obesity trends
- Innovation in premium domestic light poses stiff competition for light imports
- Total volume sales of light imported beer
-
- Figure 29: U.S. volume sales of light imported beer, 2005-10
Retail Channels
-
- Key points
-
- Figure 30: U.S. sales of beer, by retail channel, 2008 and 2010
Retail Channels—On-premise
-
- On-premise takes a hit during the recession; craft beer offers growth
-
- Figure 31: Total U.S. on-premise volume sales of spirits, 2005-10
- Figure 32: Total U.S. on-premise* dollar sales of beer, at current prices, 2005-10
Retail Channels—Off-premise
-
- Key points
-
- Figure 33: Total U.S. off-premise volume sales of spirits, 2005-10
-
- Figure 34: Total U.S. off-premise dollar sales of beer, at current prices, 2005-10
Retail Channels—Convenience Stores
-
- Convenience stores face growing competition from drug stores
- Craft brews offer growth opportunities
-
- Figure 35: U.S. sales of beer at convenience stores, 2005-10
Retail Channels—Liquor/Packaged Stores
-
- Organize events to educate/inform consumers; especially about craft brews
- Website communication
-
- Figure 36: U.S. liquor/packaged stores dollar sales of beer, 2005-10
Retail Channels—Supermarkets
-
- Craft brews selection and promotion can fuel growth
-
- Figure 37: U.S. sales of beer at supermarkets, 2005-10
Companies and Brands
-
- Key points
- AB InBev commands nearly half of total volume; needs a craft in portfolio
- MillerCoors grows market share despite weakness in flagship brands
- Pabst Brewing Company set to receive new life
- Heineken buys FEMSA
- Crown Imports loses market share as many Mexican brands decline
-
- Figure 38: U.S. beer sales of leading companies, by volume, 2008 and 2009
Brand Share—Domestic Light Beer
-
- Key points
- Top three brands post flat-to-declining sales
- Super-premium light brands suffer from trading down
- Value brands shine—take share from premium and super-premium brands
- Ultra-light brands—MGD 64 and Select 55—show promising growth
- Bud Light Lime posts strong growth despite the cut in ad dollars
- Manufacturer and brand shares
-
- Figure 39: U.S. brand sales by volume of domestic light beer, part 1, 2008 and 2009
- Figure 40: U.S. brand sales by volume of domestic light beer, part 2, 2008 and 2009
Brand Share—Premium Beer
-
- Key points
- Budweiser continues the downward slide
- Miller Genuine Draft—dismal performance
- Land Shark, Budweiser American Ale, and Coors Extra Gold post growth
- Manufacturer and brand shares
-
- Figure 41: U.S. brand sales of premium beer, by volume, 2008 and 2009
Brand Share—Popular Beer
-
- Key points
- MillerCoors’ popular portfolio turns in mixed performance
- AB InBev’s Busch gains
- Pabst Blue Ribbon and Schlitz exhibit stellar growth
- Manufacturer and brand shares
-
- Figure 42: U.S. brand sales of popular beer, by volume, 2008 and 2009
Brand Share—Super-premium and Craft Beer
-
- Key points
- Blue Moon continues to shine
- Yuengling maintains impressive growth
- Michelob faces stiff competition from craft
- Boston Beer and Sierra Nevada exhibit mixed performance
- “Other” craft brands exhibit impressive growth
- Manufacturer and brand shares
-
- Figure 43: U.S. brand sales of super-premium and craft beer, by volume, part 1, 2008 and 2009
- Figure 44: U.S. brand sales of super-premium and craft beer, by volume, part 2, 2008 and 2009
Brand Share—Ice Beer
-
- Key points
- Natural Ice and Bud Ice score big points
- Keystone Ice continues its growth streak
- Manufacturer and brand shares
-
- Figure 45: U.S. brand sales of ice beer, by volume, 2008 and 2009
Brand Share—Malt Liquor
-
- Key points
- Steel Reserve—the leading brand declines
- Most top brands do not get advertising budget
- Manufacturer and brand shares
-
- Figure 46: U.S. brand sales of malt liquor, by volume, 2008 and 2009
Brand Share—Flavored Malt Beverages
-
- Key points
- Diageo, MillerCoors, and AB InBev lose market share
- Mike’s Hard beverage shows impressive growth amid innovation
- Manufacturer and brand shares
-
- Figure 47: U.S. brand sales of flavored malt beverages, by volume, 2008 and 2009
Brand Share—Regular Imported Beer
-
- Key points
- Dos Equis is the star brand of 2009; brand outpaces all imports
-
- Figure 48: Dos Equis TV ad, The Most Interesting Man in the World, 2010
- Corona Extra and Heineken continue the downward slide
- Modelo Especial shows impressive gain
- Manufacturer and brand shares
-
- Figure 49: U.S. brand sales of regular imported beer, by volume, part 1, 2008 and 2009
- Figure 50: U.S. brand sales of regular imported beer, by volume, part 2, 2008 and 2009
Brand Share—Light Imported Beer
-
- Key points
- Tecate Light and Corona Light show gains
- Manufacturer and brand shares
-
- Figure 51: U.S. brand sales of light imported beer, by volume, 2008 and 2009
Brand Qualities
-
- Blue Moon—a journey toward becoming the most popular craft beer
-
- Figure 52: Blue Moon TV ad, artfully crafted, 2010
Innovation and Innovators
-
- Environmentally friendly packaging and seasonal brews top claims in 2010
-
- Figure 53: Claims in new beer products, 2010*
- Environmentally friendly packaging and brewing practices
- Seasonal and limited edition brews gain traction in new product launches
- All-natural and no-preservative claims resonate with current health trends
- Organic beer claims remain stable in 2010
Marketing Strategies
-
- Choice of diverse media for brewers
- Beer advertising budget remains stable
-
- Figure 54: Total beverage alcohol advertising spending, 2008-09
- Domestic brewers attempt to shore up declining light brands
-
- Figure 55: Advertising expenditure on domestic beer, by brewer and brand, part 1, 2008 and 2009
- Figure 56: Advertising expenditure on domestic beer, by brewer and brand, part 2, 2008 and 2009
- Bud Light and Budweiser
- Bud Light replaces MillerCoors’ brands as the NFL sponsor
- Bud Light Port Paradise cruise sweepstakes
- Bud Light offers good time
-
- Figure 57: Bud Light TV ad, Swat team, 2010
- Budweiser ads focus on young males and drinkability
-
- Figure 58: Budweiser TV ad, Budweiser used as a currency, 2010
- MGD 64
- MGD 64 takes on Michelob Ultra
-
- Figure 59: MGD 64 TV ad, MGD 64 has less calories in comparison to Michelob Ultra, 2010
- MGD 64 on Facebook
- Heineken’s advertising budget remains stable; Crown Imports’ down
-
- Figure 60: Advertising expenditure on imported beer, by brewer and brand, part 1, 2008 and 2009
- Figure 61: Advertising expenditure on imported beer, by brewer and brand, part 2, 2008 and 2009
- Heineken takes a humorous turn in TV ad
-
- Figure 62: Heineken TV ad, the guy ponders on hitting on bosses’ daughter, 2010
- Corona Extra continues with the beach fun
-
- Figure 63: Corona Extra TV ad, happy hour, 2010
Appendix—Trade Associations
Back to top