Tuesday, January 10, 2012

The World Outside Craft Beer

Although the standing in world rankings remain the same with Anheuser-Busch InBev solidly at #1, SAB Miller in second place, followed by Heineken and Carlsberg; the dynamics in the USA are changing. While it is still true that ABInBev (AKA "the king of beers" ) still commands first place for it's Bud Lite brand, as well as over all beer sales, it has recently been nudged and perhaps awoken.  For the first time in recent memory, the flagship brand with the familiar white, red, and blue label which had enjoyed second place, was just passed by Coors Light (18.2Million barrels-over 250Million cases versus the Budweiser label at 17.7Million barrels-nearly 245Million cases).  I might make note of the fact that since 1988, shipments of Budweiser's 'go to' beer has slipped a whopping 60%. AB (now known as the King of Beer - drop the final s for losing market Share) has controlled the number one and two spots for over 20 years. 


Research indicates that Budweiser has witnessed a sales drop of 4.6% overall last year for all brands, and 2009 and 2010 were no picnics for the company.  In fact, all the big beer companies are losing sales. Many of the premium imported beers are down as well. The shining star in the USA is the craft beer breweries - with double digit growth. 


Many forecast that the  Bud-Miller-Coors breweries will begin to focus on the growing craft beer market; however, the reality is they are already playing in this field - note Blue Moon, Goose Island, Leinenkugel, Red Hook, Kona, Rolling Rock, Alexander Keith's, Killian (the list goes on). This strategy does not appear to be working.  Maybe more multi-million dollar Super Bowl advertisements or additional acquisitions in a current successfully operating micro brewery? 
Truly, this is a turn of events. 
Could the Boston Brewing Company, brewer of Sam Adams,  become the next King of Beers?
Comments?

2 comments:

Anonymous said...

Although the trend is not looking to good for ABI, they still have a long way to go before becoming dethroned! AND, the craft beer owners have a long way to go before anyone of these companies become knighted. Long live craft beer ... 5% today - I'm hoping for 10%+ in my lifetime.

Anonymous said...

Guess the fact that craft beer doing well illustrates USA beer drinkers have good taste!!!!!!!!!!