Dear Client:
Consumer Edge Insight president David Decker outlined research on the category’s challenges at last week’s Beer Industry Summit. Among the more craft-centric highlights: They surveyed attitudes towards trade up and found that “Many people are disposed toward trading up to premium brands of beer”: 38% like to treat themselves to higher quality brands of beer, while 26% at least “believed higher priced brands are usually better than lower priced brands. ” Still, willingness to trade up is much less strong than in the spirits category, where over 80% of vodka consumers said they’d like to trade up to higher-quality brands. Amazing, considering it’s among the least flavorful bev alc products.
Reasons people are drinking more craft? By far – it’s because their “tastes are evolving (71%).” The No. 2 reason is new brands and flavors (63%). Reason No. 3 is growing availability (50%).
As for attitudes toward craft beer among craft drinkers: 40% “believe craft is worth the extra money.” About the same percentage of respondents are “likely to drink craft more” in future. But almost 50% said they were “open to new craft at [a] low price.” Lower prices (45%), better taste (22%), and better distribution would boost craft consumption. But the key to attracting women to craft? Reducing calories, said 22%.
ON-PREMISE TRENDS. Related company GuestMetrics is attempting to capture the on-premise picture via check detail collection from thousands of on-premise locations daily. David relayed a snapshot of their insights: Alcohol drives 28% of total retail sales on premise. Nearly half of all alcohol dollar sales come from spirits and cocktails, with the rest split by beer and wine. (Though the beer category showed the greatest acceleration in on-premise sales growth of total bev alc last year.)
Import and craft beers have a disproportionate presence in restaurants/bars compared to off-premise, at 32% and 28% share of beer dollars last year, respectively; premium lights were at 29%.
AB and MillerCoors control nearly half of beer retail sales on- premise, while the tail of 912 smaller suppliers has a 30 share. Still, craft has been taking share at the expense of imports and premiums. Biggest share winners among the smaller suppliers are Yuengling, New Belgium and Brooklyn Brewery, followed by Lagunitas, Kona, Ballast, Sweetwater, Half Acre. And the list goes on.
NEW BELGIUM ROLLING INTO ALASKA WITH ODOM
New Belgium sales chief Joe Menetre says they’ll enter the market March 18 with Odom, whose Washington location recently won regional recognition from the brewer’s new Distributor Awards. No word yet on who they’ll go with in Louisiana, another market they brewer has said they’ll open.
DESCHUTES DOES 18,000 CEs IN ILLINOIS MONTH ONE
To those who wondered if Wirtz Beverage Illinois, who assembled their craft team to bring Deschutes to market, could pull off a craft launch in the wild and wooly market, here are the first month numbers: They sold more than 18,000 case equivalents to 1,800 customer accounts statewide, and landed more than 550 new tap handles.
In other Deschutes news, we hear new brew Deschutes River Ale took a while to perfect, but the low-ABV session ale should play well in 3.2 states when it rolls in March. They’re not sure it will make the entire distribution network yet.
BEER BRIEFS:
Our condolences to the family and friends of Ash Rowell, founder of Duff Distributing, which recently sold to L&F in Houston. He was reportedly shot at his Houston home on Friday.
“Sympathy is two hearts tugging at one load.” â€- Charles Henry Parkhurst
Until tomorrow, Jenn
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