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Beer - US - December 2013

Published By :

Mintel

Published Date : Dec 2013

Category :

Beer

No. of Pages : 143 Pages

Undoubtedly, the biggest competitive threat to beer brands is the likelihood that drinkers will opt for wine or spirits instead of beer. This presents beer brands with a challenge to attract drinkers who may otherwise select a different type of alcohol. Doing so will, in part, entail taking a few pages from wine and liquor marketers to better appeal to the most likely wine and spirit drinkers: younger consumers.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations

Executive Summary

A flat market in search of fizz
Figure 1: Total US dollar sales and fan chart forecast of beer, at current prices, 2008-18
Figure 2: Total US unit sales and fan chart forecast of beer, in millions of 2.25-gallon cases, at current prices, 2008-18
Demographics drive sales
Domestic volume sales far outweigh imported volume sales
Off-premise accounts for 76% of volume sales
Key players
The consumer
Respondents more likely to report drinking wine or spirits than beer
Figure 3: Any consumption, alcoholic beverages, September 2013
Consumers looking for mid-tier prices, light beer, standard alcohol content
Figure 4: Attributes influencing beer choices, September 2013
Respondents are very likely to drink different alcoholic drinks on different occasions
Figure 5: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, September 2013
What we think

Issues and Insights

Can beer brands win over young drinkers opting for wine and liquor?
The issues
Insights: Take marketing cues from the competition
How can premium brands capture the momentum of craft brands?
Issues
Insights: Go with small-batch, special occasions and new flavors
Is the craft beer segment a bubble headed for a pop?
Issues
Insights: Focus on quality, a shake-out is coming

Trend Applications

Trend: Many Mes
Trend: Prove It
Mintel Futures: Human

Market Size and Forecast

Key points
Small gains in 2012 and 2013 after declines between 2008 and 2011
Volume sales forecast to grow slowly into 2018
Volume sales and forecast of beer
Figure 6: Total US volume sales and forecast of beer, 2008-18
Sales and forecast of beer
Figure 7: Total US sales and forecast of beer, at current prices, 2008-18
Figure 8: Total US sales and forecast of beer, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 9: Total US unit sales and fan chart forecast of beer, in millions of 2.25-gallon cases, at current prices, 2008-18
Figure 10: Total US dollar sales and fan chart forecast of beer, at current prices, 2008-18

Market Drivers

Key points
Respondents aged 22-54 most apt to drink beer
Figure 11: Adult consumption of light/low-calorie, imported, or domestic beer, by age, May 2012-June 2013
Men remain the primary target for advertisers
Figure 12: Adult consumption of light/low-calorie, imported, or domestic beer, by gender, May 2012-June 2013
Racial demographics drive sales of specific segments
Figure 13: Adult consumption of light/low-calorie, imported, or domestic beer, by race/Hispanic origin, May 2012-June 2013
Higher household income means higher consumption
Figure 14: Adult consumption of light/low-calorie, imported, or domestic beer, by household income, May 2012-June 2013
High calorie count, unhealthy halo cause many to scale back consumption
Figure 15: Reasons for drinking less beer, hard cider, or malt liquor, September 2013

Competitive Context

Wine and spirits markets keep pace with beer market
Figure 16: Reasons for drinking less beer, hard cider, or malt liquor, September 2013
Innovations in wine packaging and marketing
Spirits brands employ hybrid products to appeal to cross-category drinkers

Segment Performance

Key points
Domestic far outsells imported, but grows more slowly
Imported beers capitalize on demand for premium, prestige brands
Domestic set to increase 0.5% in 2014; imported will grow by 1.4%
Volume sales of beer, by segment
Figure 17: US volume sales of beer, segmented by type, 2008-18

Segment Performance – Domestic Beer

Key points
Domestic volume sales grow fractionally in 2013
Volume sales and forecast of domestic beer
Figure 18: Total US volume sales and forecast of domestic beer, 2008-18
Light beer leads domestic segments by volume
Figure 19: Total US volume sales of domestic beer, by type, 2008-13
Light beer has highest consumption frequency; malt liquor has lowest
Figure 20: Adult volume consumption of light or low-calorie beer, May 2012-June 2013
Figure 21: Adult volume consumption of regular domestic beer, May 2012-June 2013
Figure 22: Adult volume consumption of microbrewed beer, by gender, May 2012-June 2013
Figure 23: Adult volume consumption of malt liquor, May 2012-June 2013
Craft beer/microbrew consumption frequency increases
Figure 24: Adult volume consumption of microbrewed beer, April 2008-June 2013

Segment Performance – Imported Beer

Key points
Slight volume sales gains as consumers look for wider selection
Volume sales and forecast of imported beer
Figure 25: Total US volume sales and forecast of imported beer, 2008-18

Retail Channels

Key points
Off-premise comprises three quarters share
Retail focus: craft beer
On-premise outpaced by off-premise
Volume sales of beer, by channel
Figure 26: US volume sales of beer, by channel, 2008-13
Imported beer has most menu incidence, domestic close behind
Figure 27: Top menu items of beer, Q3 2012-Q3 2013
Domestic beer menu incidence jumps at quick serves and fast casuals
Figure 28: Domestic beer growth, by restaurant segment, Q3 2012-Q3 2013

Leading Companies

Key points
Bud Light leads the entire market but drops 1.4% in volume sales
Coors Light improves volume sales by 2% in 2012
Corona Extra tops imported brands by volume sales
Top 20 beer brands by volume sales
Figure 29: Top 20 beer brands, 2011-12

Brand Share – Domestic Beer

Key points
Premium, craft-style brands gain big
PBR rides a wave of retro nostalgia
Top 20 domestic beer brands by volume sales
Figure 30: Top 20 domestic beer brands, 2011-12

Brand Share – Imported Beer

Key points
Modelo Especial, Dos Equis, Stella Artois register highest volume growth
Newcastle Brown Ale increases 7.9% with No Bollocks campaign
Top 11 imported beer brands by volume sales
Figure 31: Top 11 imported beer brands, 2011-12

Innovations and Innovators

Seasonal, limited-edition, premium product claims grow rapidly
Figure 32: Top 10 beer product claims, 2008-13
Seasonal brews
Special-edition releases
Flavored brews add spice to the market

Marketing Strategies

Overview of the brand landscape
Overview
Figure 33: Beer advertising expenditures by media, 2011-12
Figure 34: Advertising expenditures by top 10 beer brands, 2011-12
The impact of digital presence
Theme: Sports fans love beer
TV spots: Bud Light
Figure 35: Bud Light television ad, 2013
Figure 36: Bud Light television ad, 2013
Figure 37: Bud Light television ad, 2013
Theme: The life of the party
TV spots: Miller Lite
Figure 38: Miller Lite television ad, 2013
Figure 39: Miller Lite television ad, 2013
TV spot: Bud Light Platinum
Figure 40: Bud Light Platinum television ad, 2013
Theme: Celebrity spokespersons
TV spots: Coors Light
Figure 41: Coors Light television ad, 2013
Figure 42: Coors Light television ad, 2013
TV spot: Budweiser
Figure 43: Budweiser television ad, 2012

Changes in Alcoholic Beverage Consumption

Key points
Respondents likely to be drinking more wine and spirits than beer
Figure 44: Changes in alcoholic beverage consumption, September 2013
Men more likely to drink beer, wine, and spirits
Figure 45: Any consumption of alcoholic beverages, by gender, September 2013
22-34s report much more likelihood to drink than older respondents
Figure 46: Any consumption of alcoholic beverages, by age, September 2013
Less than $50K report lowest consumption
Figure 47: Any consumption of alcoholic beverages, by household income, September 2013
Beer drinkers predisposed to also drink wine, spirits
Figure 48: Any consumption of alcoholic beverages, by any consumption of alcoholic beverages, September 2013
Figure 49: Any consumption of alcoholic beverages, by any consumption of alcoholic beverages, September 2013

Reasons for Drinking Less Beer, Hard Cider, Malt Liquor

Key points
Calories, price, drinking wine/liquor contribute to less beer consumption
Figure 50: Reasons for drinking less beer, hard cider, or malt liquor, September 2013
Women most apt to cite drinking wine instead
Figure 51: Drinking less domestic and imported beer, by gender, September 2013
Less than $75K drinking less imported beer because it is too expensive
Figure 52: Drinking less imported beer, by household income, September 2013

Attributes Influencing Beer and/or Malt Liquor Choices – Promotions, Types, Brand 
Awareness

Key points
Low price important for all beer types
Figure 53: Attributes influencing selection of beer and/or malt liquor choices, September 2013
22-34s most likely to look for low-priced domestic beer
Figure 54: Attributes influencing selection of domestic beer, by age, September 2013
22-34s look to happy hours to influence their selection of imported beer
Figure 55: Attributes influencing selection of imported beer, by age, September 2013
Imported beer style matters most to $50K+
Figure 56: Attributes influencing selection of imported beer, by household income, September 2013
$150K+ most likely to say beer style important when selecting craft beer
Figure 57: Attributes influencing selection of craft beer, by household income, September 2013

Attributes Influencing Beer Choices – Alcohol Content, Calorie Content, Price Level

Key points
Roughly four in 10 look for light beer; women most
Figure 58: Attributes influencing beer choices, by gender, September 2013
Seniors most apt to choose light beer
Figure 59: Attributes influencing beer choices, by age, September 2013
$150K+ most apt to select regular, standard alcohol content
Figure 60: Attributes influencing beer choices, by household income, September 2013

Attitudes and Behaviors Toward Beer, Hard Cider, and Malt Liquor

Key points
More than six in 10 use different types of alcohol for different occasions
Figure 61: Attitudes and behaviors toward beer, hard cider, and malt liquor, September 2013
Women more apt to go for variety based on drinking occasion
Figure 62: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, by gender, September 2013
22-34s most likely to try new alcoholic drinks
Figure 63: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, by age, September 2013
$150K+ most likely to enjoy different drinks for different occasions
Figure 64: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, by household income, September 2013

Race and Hispanic Origin

Key points
Hispanics report highest overall consumption of liquor, wine, beer
Figure 65: Any consumption of alcoholic beverages, by race/Hispanic origin, September 2013
Hispanics most likely to look for coupons for domestic beer
Figure 66: Attributes influencing selection of domestic beer, by Hispanic origin, September 2013
Hispanics say happy hours, variety packs are important when choosing imported beer
Figure 67: Attributes influencing selection of imported beer, by Hispanic origin, September 2013
Hispanics less likely than non-Hispanics to express opinions about craft beer
Figure 68: Attributes influencing selection of craft beer, by Hispanic origin, September 2013
Hispanics most likely to drink different beverages per occasion
Figure 69: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, by race/Hispanic origin, September 2013

Appendix – Market Drivers

Consumer confidence
Figure 70: University of Michigan’s index of consumer sentiment (ICS), 2007-13
Unemployment
Figure 71: US unemployment rate, by month, 2002-13
Figure 72: US unemployment and underemployment rates, 2007-13
Figure 73: Number of employed civilians in US, in thousands, 2007-13
Food cost pressures
Figure 74: Changes in USDA Food Price Indexes, 2011-14
Obesity
Figure 75: American adults, by weight category as determined by body mass index (BMI), 2008-October 28, 2013
Childhood and teen obesity—highest in decades
Figure 76: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Racial, ethnic population growth
Figure 77: US population, by race and Hispanic origin, 2008, 2013, and 2018
Figure 78: Households with children, by race and Hispanic origin of householder, 2012
Shifting US demographics
Figure 79: US population, by age, 2008-18
Figure 80: US households, by presence of own children, 2002-12

Appendix – Other Useful Consumer Tables

Changes in alcoholic beverage consumption
Figure 81: Any consumption of alcoholic beverages, by gender and age, September 2013
Figure 82: Any consumption of alcoholic beverages, by presence of children in household, September 2013
Reasons for drinking less beer, hard cider, or malt liquor
Figure 83: Drinking less imported beer, September 2013
Figure 84: Drinking less domestic and imported beer, by age, September 2013
Attributes influencing beer and/or malt liquor choices: promotions, types, brand awareness
Figure 85: Attributes influencing selection of domestic beer, by gender, September 2013
Figure 86: Attributes influencing selection of domestic beer, by household income, September 2013
Figure 87: Attributes influencing selection of imported beer, by gender, September 2013
Figure 88: Attributes influencing selection of craft beer, by gender, September 2013
Figure 89: Attributes influencing selection of craft beer, by age, September 2013
Figure 90: Attributes influencing selection of malt liquor, by gender, September 2013
Attitudes and behaviors toward beer, hard cider, and malt liquor
Figure 91: Agreement with attitudes and behaviors toward beer, hard cider, and malt liquor, by presence of children in household, September 2013
Race and Hispanic origin
Figure 92: Drinking less domestic beer, by Hispanic origin, September 2013
Figure 93: Attributes influencing beer choices, by race/Hispanic origin, September 2013
Reasons for drinking hard cider
Figure 94: Reasons for drinking hard cider, by gender, September 2013
Figure 95: Reasons for drinking hard cider, by age, September 2013

Appendix – Trade Associations

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