UBS released a report outlining the recent trend for a declining USA beer market. They commented that the key demographic target for overall American beer drinkers is one that is 21-34 years old; typically male; has a clerical or blue collar job; is a minority; and also that has been successfully employed ... and now finds himself … unemployed.
The USA beer consumption declined nearly 3% in May 2011 alone, and over 1% for all of 2010, and sales were down 2% in 2009 (a decline is forecast for 2011 as well) - note: this is the first three year consecutive decline in beer sales since the prohibition! The obvious thought is because this group has been hit hard by high unemployment and, accordingly, their buying power has severally been reduced. This group, more than others, has lost a great deal of confidence in a stronger future economy and just stopped spending money. UBS went on to say ABInBev sales for all of 2011 would be flat to down slightly, and predicted a decline of over 1% for SABMiller.
On a more positive note, UBS forecasted a continued yearly growth for the micro crafted beer brands and that the mass produced operators will begin to enjoy a transition to growth toward the end of 2012. The report also commented on the "Bud / Miller / Coors " breweries must now take a serious review of penetrating the craft segment more effectively. The craft market, while less than 5% of all the beer drinkers, has been enjoying double digit growth. The craft beer target market, mainly white males, still feel craft beer is an affordable luxury and a good alternative to wine and spirits.
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