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Craft Beer - US - November 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Craft beer’s popularity rises as does number of new breweries
Figure 1: Total U.S. sales and fan chart forecast of craft and craft-style beer market, at current prices, 2007-17
Foam is rising: Drinkers are increasing craft beer consumption
Figure 2: Changes in craft beer consumption habits, July 2012
Craft beer not yet part of drinking routine for beer fans
Figure 3: Incidence and frequency of personal beer consumption, by type of beer, July 2012
Craft beer wins on taste, falls flat on value
Figure 4: Attitudes toward taste and value, domestic vs. craft beer, July 2012
Figure 5: Attitudes toward taste and value, imported vs. craft beer, July 2012
Taste, full-bodied flavor most important to craft beer drinkers
Figure 6: Important attributes when selecting craft beer, July 2012
Craft and craft-style brewers jockey for space in growing segment
Figure 7: MULO sales of craft and craft-style beer by leading companies, 52 weeks ending September 2012
New product releases fuel the segment’s expansion
Figure 8: New craft beers launched between Oct. 3, 2011, and Oct. 3, 2012, by company
Selection, education key to craft beer retailing
Figure 9: Craft and craft-style beer sales in supermarkets and other retail channel, by year
What we think
ISSUES IN THE MARKET
How many craft breweries are too many craft breweries?
What sets craft breweries apart from their beer competition?
What are the best ways to encourage trial among consumers?
How can craft beer tap into its feminine side?
INSIGHTS AND OPPORTUNITIES
Encourage trial with multiple packaging options
Promote craft beer as a more routine alcoholic beverage choice
Give craft beer fans a piece of the creativity
Reward craft beer loyalists with more insight into brewery, processes
Figure 10: The Craft of Beer, Crate and Barrel, Fall 2012
TREND APPLICATIONS
Trend: Carnivore, Herbivore…Locavore
Trend: Guiding Choice
2015 Trend: Access Anything, Anywhere
MARKET SIZE AND FORECAST
Key points
Craft beer proves to be a recession-resilient bright spot
Sales and forecast of craft and craft-style beer market
Figure 11: Total U.S. retail sales and forecast of craft and craft-style beer market, at current prices, 2007-17
Figure 12: Total U.S. retail sales, forecast, craft, craft-style beer market, inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 13: Total U.S. market and fan chart forecast of craft, craft-style beer market, current prices, 2007-17
MARKET DRIVERS
Key points
Evolving habits present consumption conundrums for alcohol marketers
Entire Millennial generation will be of legal drinking age in 2015
Figure 14: Population, by generation, 2012
Escalating obesity rates spur alcohol reduction
Figure 15: Obesity, by age group, 2008 vs. 2012
Rising food prices could squeeze craft beer budgets
COMPETITIVE CONTEXT
Key points
Domestic and imported beer remain an obstacle for craft beer
Figure 16: Consumption of beer by category in 000 of 2.25-gallon cases, 2010-11
Wine most successful at stealing share in the alcohol market
Figure 17: Wine consumption in 000 of 9-liter cases, 2010-11
Variety provided by spirits tempts drinkers
Figure 18: Distilled spirits consumption by category in 000 of 9-liter cases, 2010-11
Hard cider follows path blazed by craft beer
Figure 19: Leading brands of cider in 000 of 2.25-gallon cases, 2010-11
CATEGORY PERFORMANCE
Key points
Craft and craft-style beer continues growth amid recession
Dollar sales of craft and craft-style beer market
Figure 20: Total U.S. sales and forecast of craft and craft-style beer, at current prices, 2007-17
Case sales of craft and craft-style beer market
Figure 21: Total U.S. sales and forecast of craft and craft-style beer, in 000 of 2.25-gallon cases, 2007-17
RETAIL CHANNELS
Key points
Other channel far outsells competing off-premise retailers
Sales of craft and craft-style beer, by off-premise channel
Figure 22: Total U.S. dollar sales of craft and craft-style beer, by off-premise channel, 2007-12
On-premise segment takes second place in craft beer sales
Microbreweries attract consumers to their on-site brewed beers
RETAIL CHANNELS—ON-PREMISE
Key points
Beer is top on-premise alcohol choice, but faces “spirited” competition
On-premise sales of alcohol
Figure 23: On-Premise retail dollar sales of alcohol, 2006-11
Consumers most likely to increase on-premise craft beer orders
Figure 24: Alterations in beer consumption habits, by type of beer, July 2012
Restaurants make room for craft beer on menus
Figure 25: Ingredient by quarter for domestic beer, only brand is listed at buffets, chain restaurants, independents, non-commercial locations, top 100 chain restaurants, and top chefs, Q3 2012
Large beer selection encourages on-premise purchases
Playing matchmaker: Food and craft beer pairings proliferate
RETAIL CHANNELS—OFF-PREMISE
Key points
Specialty retailers corner craft beer market, supermarkets make inroads
Figure 26: Craft beer retail channel preferences, July 2012
Convenience a factor for all ages in choice of craft beer retailer
Figure 27: Craft beer retail channel preferences, by age, July 2012
Westerners most likely to buy craft beer in supermarkets
Figure 28: Top five retail channel preferences for craft beer, by region, July 2012
Supermarkets craft innovative beer strategies, private label
Craft brewers place emphasis on convenience stores
Liquor, specialty stores highlight craft beer selections
Figure 29: Binny’s Beverage Depot “The Beer Buzz” e-newsletter, Nov. 2, 2012
Ever-expanding craft selections in natural channel home to niche beers
Sales of craft beer in the natural channel
Figure 30: Natural supermarket sales of craft beer, at current prices, 2010-12*
Sierra Nevada, New Belgium lead natural channel sales
LEADING COMPANIES
Key points
Blue Moon, Leinenkugel’s lead MillerCoors’ dominance
A-B InBev growing its craft beer stable through Shock Top, acquisitions
Leading corporate-owned craft-style brands
Figure 31: Manufacturer case sales in 000 2.25-gallon cases, 2009-11
Boston Beer tops craft brewer ranks due to diverse portfolio
Sierra Nevada, New Belgium feed demand with East Coast brewery plans
Shiner, Bell’s see strong growth, Deschutes set to expand
Top craft brewing companies, 2009-11
Figure 32: Craft beer manufacturer case sales, in 000 2.25-gallon cases, 2009-11
BRAND SHARE—CRAFT-STYLE BRANDS
Key points
MillerCoors positions Tenth and Blake brands for growth
Figure 33: Henry Weinhard’s coupon flier, Nov. 4, 2012
Innovations from Shock Top grow A-B InBev’s craft-style portfolio
Vast portfolio benefits Craft Brew Alliance
North American Breweries transfers ownership
U.S. craft and craft-style beer sales
Figure 34: Multi-outlet aggregated (MULO) sales of U.S. craft and craft-style beer, 2011-2012
BRAND SHARE—TOP THREE CRAFT BREWERS
Key points
Boston Beer Company retains top spot among craft brewers
Figure 35: Boston Beer Company Shipments, 2006-11 in 000 of 2.25-gallon cases, 2006-11
Sierra Nevada looks to expand capacity to keep up with sales
Figure 36: Sierra Nevada Brewing Company Inc. Shipments, in 000 2.25-gallon cases, 2006-11
New Belgium’s growing portfolio spurs brewer to look eastward
Figure 37: New Belgium Brewing Company Inc. Shipments, in 000 2.25-gallon cases, 2006-11
BRAND SHARE—UP-AND-COMING CRAFT BREWERS
Key points
Gambrinus’ Shiner, BridgePort brands fuel sales growth
Figure 38: Gambrinus Company shipments, in 000 2.25-gallon cases, 2006-11
Deschutes Brewery continues modest expansion pace
Craft beer’s rising tide helps float many brewers across the country
Figure 39: Shipyard Brewing Company, television ad, 2012
Figure 40: Breckenridge Brewery, television ad, 2012
INNOVATIONS AND INNOVATORS
They put what in a beer? Craft brewers show no fear of experimentation
Teamwork: Collaboration beers capitalize on brewery loyalty, curiosity
Crowd-sourcing projects give craft beer fans a piece of the process
MARKETING STRATEGIES
Overview of the craft beer landscape
Brand analysis: Blue Moon
Online initiatives
TV presence
Figure 41: Blue Moon, television ad, 2012
Brand analysis: Leinenkugel’s
Online initiatives
TV presence
Figure 42: Leinenkugel’s, television ad, 2012
Brand analysis: Samuel Adams
Online initiatives
TV presence
Figure 43: Samuel Adams, television ad, 2012
Print and other
Brand analysis: New Belgium Brewing Company
Online initiatives
TV presence
Figure 44: New Belgium, television ad, year
Print and other
Brand analysis: Dogfish Head Craft Brewery
Event marketing and other initiatives
Online initiatives
Brand analysis: Stone Brewing Company
Event marketing and other initiatives
THE CONSUMER—USAGE, PURCHASE, AND OCCASIONS
Key points
Craft volume consumption in line with other beer segments
Figure 45: Volume consumption of beer, by type of beer, July 2012
More experienced 25-34 year olds lead craft beer consumption
Figure 46: Incidence and frequency of craft beer consumption, by age, July 2012
Young men most frequent craft beer consumers
Figure 47: Incidence and frequency of craft beer consumption, by gender and age, July 2012
Women more likely to consume fewer craft beers
Figure 48: Volume consumption of beer, by type of beer, by gender, July 2012
Figure 49: Frequency of beer consumption, by type of beer, by gender, July 2012
Consumers choose craft beer as a partner in social situations
Figure 50: Craft beer consumption occasion and location, by age, July 2012
Picket fence dwellers more likely to pour a craft brewed pint
Figure 51: Incidence and frequency of craft beer consumption, by area, July 2012
Premium-priced craft beer finds niche with $100K+ earners
Figure 52: Incidence and frequency of craft beer consumption, by household income, July 2012
Figure 53: Volume consumption of craft beer, by household income, July 2012
Increase in consumption more likely among younger men and women
Figure 54: Alterations in craft beer consumption habits, by gender and age, July 2012
Health the biggest reason for drinking less craft beer this year
Figure 55: Reasons for reducing craft beer consumption, July 2012
Wine, spirits represent beacons for bored beer drinkers
Figure 56: Reasons for reducing beer consumption, by beer types, July 2012
Men see taste advantage of craft beer, not quite sure of value
Figure 57: Attitudes toward taste and value, domestic vs. craft beer, by gender and age, July 2012
Figure 58: Attitudes toward taste and value, imported vs. craft beer, by gender and age, July 2012
West stakes claim as most popular region for craft beer
Figure 59: Frequency of craft beer consumption, by region, July 2012
Midwesterners stepping up craft beer pours
Figure 60: Alterations in craft beer consumption habits, by region, July 2012
THE CONSUMER—ATTITUDES AND BEHAVIORS
Key points
Craft brewers’ focus on taste resonates with fans
Figure 61: Important attributes when selecting beer, by type of beer, July 2012
Brand name remains top pull for craft beer drinkers
Figure 62: Attitudes and behaviors toward craft beer purchase, July 2012
Peer pressure less of a concern for craft beer loyalists
Figure 63: Beer drinking attitudes and behaviors, personal vs. peer, July 2012
Is curiosity a natural part of craft beer consumers’ habits?
Figure 64: Beer drinking attitudes and behaviors, beer discovery and recommendation, July 2012
Draft, freshness not as much of a preference for craft beer drinkers
Figure 65: Beer drinking attitudes and behaviors, draft and freshness values, July 2012
Promotion, price more of a concern for craft beer consumers
Figure 66: Important attributes on price and packaging when selecting beer, by type of beer, July 2012
Expense, desire for education pose barriers to craft beer consumption
Figure 67: Attitudes toward craft beer, July 2012
Craft beer + food = One happy couple
Figure 68: Beer drinking attitudes and behaviors, Beer pairing, by beer type, July 2012
Social settings might help more women consider craft beer
Figure 69: Craft beer consumption occasion and location, by gender and age, July 2012
Men care about brewery while women prefer flavors, beer claims
Figure 70: Factors influencing purchase of craft beer, by gender, July 2012
Millennials most opinionated about price and flavor
Figure 71: Important attributes when selecting beer, by generation, July 2012
Millennials, Gen X like craft beer’s taste, but give no points for value
Figure 72: Attitudes toward taste, domestic vs. craft beer, by generation, July 2012
Figure 73: Attitudes toward taste and value, imported vs. craft beer, by generation, July 2012
Quality appreciation more prevalent among Millennials
Figure 74: Attitudes toward craft beer, by generation, July 2012
Younger consumers also more interested in brewery details
Figure 75: Factors influencing purchase of craft beer, by age, July 2012
Interest in ingredients transcends age
Figure 76: Factors influencing purchase of craft beer, by age, July 2012
In the West, brewery’s role is best, Northeast is all about green
Figure 77: Factors influencing purchases of craft beer, by region, July 2012
Independence is valued in the country, while artisan favored in cities
Figure 78: Factors influencing purchases of craft beer, by area, July 2012
RACE AND HISPANIC ORIGIN
Key points
Asians, Hispanics among most frequent craft beer drinkers
Figure 79: Incidence and frequency of craft beer consumption, by race/Hispanic origin, July 2012
Hispanic consumers opt for six-pack or so of craft beer a month
Figure 80: Volume consumption of beer, by type of beer, by Hispanic origin, July 2012
Brewers should capitalize on Hispanics’ craft beer curiosity
Figure 81: Attitudes toward craft beer, by Hispanic origin, July 2012
Price, selection influence the retail choices of Hispanics
Figure 82: Retail channel preferences for craft beer, by Hispanic origin, July 2012
Blacks show least interest in craft beer segment
Figure 83: Attitudes toward taste and value, domestic vs. craft beer, by race/Hispanic origin, July 2012
Figure 84: Attitudes toward taste and value, imported vs. craft beer, by race/Hispanic origin, July 2012
APPENDIX—OTHER USEFUL CONSUMER TABLES
Figure 85: Alterations in craft beer consumption habits, July 2012
Figure 86: Attitudes toward taste and value, domestic vs. craft beer, July 2012
Figure 87: Attitudes toward taste and value, imported vs. craft beer, July 2012
Figure 88: Important attributes when selecting craft beer, July 2012
Figure 89: Incidence and frequency of personal beer consumption, by type of beer, July 2012
Figure 90: Natural supermarket sales of craft beer, at inflation-adjusted prices, 2010-12*
Figure 91: Incidence and frequency of craft beer consumption, by generation, July 2012
Figure 92: Volume consumption of craft beer, by age, July 2012
Figure 93: Volume consumption of craft beer, by urban area, July 2012
Figure 94: Volume consumption of craft beer, by age, July 2012
Figure 95: Retail channel preferences, by craft beer, by household income, July 2012
Figure 96: Beer consumption occasion and location by craft beer, by Hispanic origin, July 2012
Figure 97: Beer consumption occasion and location by craft beer, by generation, July 2012
Figure 98: Alterations in craft beer consumption habits, by generation, July 2012
Figure 99: Attitudes toward craft beer, by age, July 2012
Figure 100: Factors influencing purchase of craft beer, by generation, July 2012
APPENDIX—TRADE ASSOCIATIONS

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