Beers Americans No Longer Drink

Dec 15, 2014

(24/7WallSt) - American beer sales have been trending downwards in recent years. After peaking at nearly 219 million barrels in 2008, total U.S. shipments have declined since, reaching just 211.7 million barrels in 2013.

The recent drops in beer sales have been especially pronounced at many of the nation’s top brewers. Total shipments of both Anheuser-Busch InBev (NYSE: BUD) and MillerCoors have slumped as several of their major brands have lost substantial market share. According to data provided by Beer Marketer’s Insights, American sales of seven major brands, including Budweiser, declined by more than 20% between 2008 and 2013.

According to Eric Shepard, executive editor at Beer Marketer’s Insights, major beer brands can still point to the last recession as a contributing factor to their current slump. “The people that got hit hardest in the economic recession were your mainstream beer drinkers — lower- to mid-income males, 25 to 34 [years old],” Shepard said.

Another key factor in the weakening sales has been price dynamics. “Beer prices were increased more aggressively over the last five years than wine and spirits,” Shepard said. Many people in the industry believe that, as a result, some customers replaced buying beer with the now relatively less expensive wines and spirits, he explained.
Several other products were also gaining at the expense of big brand-name beers, Shepard noted. While some customers have been moving to wine and spirits, others were switching to imported beer, particularly Mexican imports. Indeed, in the five years through 2013, shipments of Mexican brands Dos Equis and Modelo Especial more-than doubled. Similarly, he added, “Some [drinkers] are moving to craft [beer]. Clearly, there’s been a trade-up in the industry.”

Craft beers have largely bucked the overall downtrend in beer sales. From 2008 to 2013, shipments of craft beer rose by 80.1% to a total of more than 16 million barrels, or 7.6% of the U.S. beer market. While the craft beer category now outsells Budweiser, it remains a relatively niche market. For comparison, the nation’s top-selling brand, Bud Light, shipped 38 million barrels in 2013, accounting for 18% of all beer shipped.

While the last few years have been difficult for many large brewers, they, too, have been introducing new products that combine well-known brand names with new concepts that appeal to consumers. In recent years, Anheuser-Busch has introduced Bud Light Platinum, a higher alcohol content beer with a sweeter flavor; Bud Light Ritas, a margarita-inspired malt beverage; and Shock Top, its own take on craft beer. As of last year, these three brands had captured 2% of the overall beer market.

To identify the seven beers Americans no longer drink, 24/7 Wall St. reviewed figures provided by Beer Marketer’s Insights for all brands with more than 1 million barrels shipped in 2008. All of these seven brands reported a 20% or more decline in shipments in the five years through 2013.

These are the beers Americans no longer drink...


Share: Delicious Digg StumbleUpon Reddit Furl Facebook Google Yahoo Twitter

Comments:

 
Leave a comment





Advertisement