2014: A More-Refreshing Aftertaste According to Beer Institute data, 2014 retail sales from all channels totaled $107.7 billion, a 2.0% increase. Off- premise channels increased their share 0.5% to 47.2%, causing the on-premise share to decline to 52.8%. Based on data from Information Resources Inc. (IRI), Beverage Industry magazine reported total 2014 beer volume sales increased 1% and dollar sales increased 3.5%, compared to increases of 0.1% and 3.1%, respectively, for 2013. According to Beer Marketer’s Insights, there were 214,656,000 barrels shipped during 2014, increasing 0.8%. Categories include tax paid, no alcohol, cider, import and tax-free (exports, no alcohol exports and Puerto Rico).

2015: Late-Year Rebound Although Beverage Industry projected a 1.5 to 2% increase in volume sales and 4 to 4.5% increase in dollar sales for 2015, the Beer Institute, as of September 2015, expected full-year shipments to decrease 0.5%. The National Beer Wholesalers Association’s Beer Purchases’ Index was 54 during October 2015, compared to 52 for October 2014, indicating that volume increased. Convenience Store and Fuel News reported during mid-December 2015 that beer dollar sales had increased 5.6% for the past 12 weeks and 5.4% for the past four weeks, with a 2.1% increase in unit sales and 3.2% increase in dollar sales.

Domestics’ Declining Dominance Although domestic beer brands account for the largest share of the total US market, dollar sales and case sales decreased for 3 of the top brands for all of 2014 and 2 of those 3 experienced sales decreases for the 52 weeks ending May 17, 2015. The big news in the beer industry is the early October 2015 tentative agreement for Anheuser Busch InBev (AB InBev), the #1 global beverage company, to acquire SABMiller, the #6 company. Their combined 2014 sales were $69.3 billion. A lawsuit has been filed in Oregon to stop the merger because the plaintiffs contend the US market will be less competitive, increasing prices and lowering quality because the bigger AB InBev would have a 71% share of the US market.

Craft Consumption Continues The table on page 1 clearly demonstrates the growing popularity of the craft beer segment during 2014. During early November 2015, Mintel forecast a 22% dollar-sale increase for the craft beer segment for all of 2015. Technomic estimates that craft beer’s share of total beer volume will reach 9.0% for 2015, following only light beers, 46.6%; imported, 15.0%; and premium domestic, 9.8%. The top 5 US craft beer brands by dollar sales and for the 52 weeks ending July 12, 2015 were Samuel Adams, Sierra Nevada, New Belgium, Shiner and Lagunitas. Lagunitas, Stone (#7) and Sweetwater (#9) had the largest percent change from the previous 52 weeks.

Mexican Brands Boost Imports As many other imported beer brands performed sluggishly during 2014, Mexican brands were primarily accountable for the segment’s excellent performance, as indicated in the table on page 1. An overall increase among German brands also contributed. Case volume for Mexican imports increased 11%, specifically Modelo Especial and Dos Equis XX Lager Especial, with dollar-sales increases of 26.0% and 22.0%, respectively, for the 52 weeks ending December 28, 2014. Although Heineken’s sales increased 3.4% during 2014, Dutch beers’ share of the import market decreased 1.1%. Stella Artois Lager helped to boost Belgian imports, with dollars sales increasing 11.7% for the brand.

Beer-Drinking Demographics Although 58% of US adults, 25 years of age and older, drink beer, the total number of beer consumers has been declining, from a peak of 113.4 million during fall 2013 to 110.61 million during spring 2015. According to late-2015 research from Mintel, 49% of women drink beer compared to 73% of men; however, for craft beers, it’s 14% of women and 20% of men. Women are more likely to drink seasonal craft beers than men. A March 2015 study from CivicScience found that TV commercials are most likely to influence can and bottled beer drinkers, 52% and 47%, respectively, while social media influences draft drinkers, at 43%.

Advertising Strategies Although local craft breweries may not be able to afford Super Bowl advertising, explain the value of a TV flight in associated programming during the prior week as well as other sports broadcasts and general programming that attracts a similar audience. Draft beer drinkers are big fans of NCAA Basketball, so recommend TV-based promotions prior and during March Madness for both local craft breweries and sports bars and restaurants where draft beers are served. Based on the demographic comparison of draft, bottled and can beer drinkers on the bottom of page 3 of the Profiler, help appropriate advertisers create promotions directed at each group and with spots aired in programming that matches those demographics.

Social Media Strategies Since Millennials are big users of social media and drinkers of craft beers, advertisers can create content about the specifics of craft beers they sell or serve: ingredients used, brewing process, brewer story, podcast or video interview with brewery owner, etc. Restaurants, sports bars and other drinking establishments should be primary advocates of safe alcohol consumption, providing data on social media about limits, sharing content from MADD and other organizations about drunk driving and listing cab services and Uber drivers. Supermarkets, convenience stores and other retail outlets selling beer should consider using Pinterest and Instagram to show how to pair brands of beer, especially craft beers, with specific recipes/food items.