Dear Client:
Technomic’s recently released “Dinner & Late Night Consumer Trends” says that beer is the most-frequently ordered beverage among late-night patrons, followed by mixed drinks and wine. But which segment of the category has the stronghold?
From an absolute volume perspective, premium light is always a huge driver, says Technomic VP David Henkes. Regardless, 17% of late night beer occasions include craft beer. “It’s not a share number, because an occasion could include a number of different types of beer [per patron] – Sam Adams, then Miller, and maybe a Heineken,” for example.
When you start targeting implications, those depend on whether one is talking about a bar or restaurant, says David, whose numbers show roughly 3% of total alcohol occasions are late night. For bars, the daypart accounts for roughly 31%. “Clearly there’s opportunity for craft within that late night occasion – particularly with bars. But as you look at more restaurants focusing on that occasion to drive incremental dollars, craft also needs to be part of the overall mix and promoted as a unique opportunity to upsell some of those consumers.”
ALSO: 40% of MILLENNIALS DRINK ONE OR MORE CRAFT BEERS A WEEK AWAY FROM HOME. The late-night daypart study focused heavily on Millennials, who reliably frequent the occassion. More than half of consumers under 35 make late-night restaurant visits several times a month, as compared to just a quarter of consumers over 35.
Millennials–Americans born between 1977 and 1992–are the largest demographic group since the Baby Boomers, according to Technomic, “and they’re coming of legal drinking age in droves. As they approach the bar or enter the store to purchase wine, beer or spirits, they’re bringing their penchant for authentic experiences (and brands).” We know that, right? But what about this: The company has been crunching a lot of numbers on this desirable demo lately. One of their recent surveys on Millennials shows that, of those who go out once a week or more often, 59% of males and 29% of females drink a craft while away from home. Some 19% of Millennials never order craft – 27% of females and only 8% of males.
MORE ON THE CRAFT BEER FESTIVALGOER: A MIDDLE-CLASS MILLENNIAL FEMALE?
Craft beer fest season is upon us, with the weather turning warm (at least in other years, when winter existed) and American Craft Beer Week set for mid-May. Yesterday we mentioned the touch-screen feedback SweetWater got on its 420 Fest-goers a few years back, and communications guru Steve Farace was kind enough to send the actual composite sketch from the poll, administered in 2008. It’s an interesting look into who really may be attending craft beer fests, as opposed to the general idea, as the craftgoer is usually painted as male. Could festivals be one of the keys to building female craft drinker numbers?
Behold – Georgina:
“Your typical attendee at the Sweetwater420 Festival this year was a young Caucasian female, living in the State of Georgia. She is between 21-35 years old; let us call her Georgina, just to give her an identity.
“Georgina earns somewhere in the $21 – $60,000 range and heard about the Sweetwater420 Festival through gossiping with her friends. She is enamored by all festivals and thought this particular one, (even though it was her first time), was as good as she expected any festival to be and is quite prepared to return to next year’s event.”
She also “firmly believes that festivals bring people together, and is looking to spend money to have a good time.” SweetWater did clipboard surveys again this year, for which the entries have not yet been tallied.
Partially informed by such feedback, 420 Fest has evolved over the years, with the main emphasis on upping the overall experience from talent to stage, adding a third day, mass transit support, and more than doubling the environmental and artist market vendors — expanding on the food offerings with a focus on healthier alternatives to typical festival food, says Steve.
BEER BRIEFS:
BW3 Q1 COMPS WAY UP DESPITE PRICE INCREASES. Good news for on-premise pricing and traffic: “Restaurant analyst David Tarantino at Robert W. Baird & Co. estimated in a research note that Buffalo Wild Wings’ 9.2-percent jump in same-store sales likely included 1.8 percent of increased menu pricing and an estimated 7.4 percent of traffic gains,” according to Nation’s Restaurant News.
SOUTHERN TIER EXPANDS TO 150,000 CAPACITY. Southern Tier Brewing Company of Lakewood, New York, will soon break ground on a 110-barrel brewhouse to increase capacity threefold, according to a company statement. With the addition of six, 660-barrel fermenters, the cellar will more than double in volume.
MORE ON CRAFT’S CONTRIBUTION TO THE COLORADO ECONOMY: As we reported yesterday, per a University of Colorado study, Colorado brewers contributed nearly $446 million in output in 2011. A release from the state brewers guild revealed they also generated an estimated additional $9 million going to the state with a special beer excise tax. “This tax burden is unique to Colorado brewers and is in addition to the other taxes all Colorado businesses pay,” it says. Colorado craft brewers create at least 5,800 jobs, with new job creation expected to increase.
Until tomorrow, Jenn
“Good luck has its storms.” – George Lucas
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