
Beer Marketer's Insights
Sure, it’s still tiny part of craft segment overall. At $5.8 mil in supers last yr, that was less than 1% of segment $$. But that’s up from $832 K just 3 yrs. So it’s grown by about 7x in just 3 yrs. In 2007, there were 28 craft can SKUs from 17 vendors. By 2010, there were 65 SKUs and 30 craft can vendors.
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02/16/2011
Tex, Fla, Mich (!) Coming on as Craft Mkts
Another interesting sign of how craft movement spreading. No surprise that craft gained most cases in Calif supers (249,000) and 2d most in Washington (197,000). But Fla craft up 175,000 cases, 23.4% and 3d biggest gainer. Tex up 168,000 cases, 9.5% and 4th. And craft even taking off in hard hit Mich; craft up 165,000 cases, 29% in Mich supers, 5th most in SIG data.
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Craft $$ gained 1.6 share to 15.9 in supers in most developed of SIG’s regions, the West, which includes both Rocky Mountain states plus Oreg and Wash. Craft $$ up 9% in West. That was only region where craft $$ up less than 10%. Also up 10% in Calif. West and Calif were about 40% of nationwide craft sales.
But craft’s fastest growth once again in smallest share region, Southeast (SC, Ga, Fla, Ala, Miss), where craft $$ up 24%. Gained 1.1 share to 5.2. Craft $$ also up more than 20% in Great Lakes region, where it climbed 1.2 share to 8. Craft at 13.8 of $$ in Northeast supers too.
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02/16/2011
New Belgium’s Ranger IPA Easily Top New Craft Brand Intro; Torpedo Triumphs; Boatload of IPAs
Ranger IPA at $5.5 mil in sales in supers, tracking at 0.7 share of segment for yr, just outside of top 15 craft brands overall (each of which had at least 1 share of segment). Only 1 other new brand tracked $1 mil in sales in supers. That was Sam Adams Latitude 48 IPA, not intro’d til late summer. But 6 of top 10 new craft brands were IPAs. And 53 IPAs intro’d in SIG supers in 2010.
The previous yr’s top new craft brand had also been a large craft brewer’s IPA: Sierra Nevada Torpedo Extra IPA (at $3.9 mil). It kept on trucking in 2010. Climbed 154% to $10.3 mil and #11 craft brand overall, while also becoming largest IPA, surpassing Redhook Long Hammer IPA.
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Total craft purchases in supers tracked by IRI amounted to $782 mil, up $97 mil, 14%. Top 4 craft vendors, each over $50 mil in sales in supers, were collectively up 13%. They held 50.8 share of segment $$, down 0.5. Craft brewers #5-11 ($10-50 mil in sales) grew $$ 8.7%, got 21 share of craft $$, but lost 1 share. Yet all other craft vendors (and there were over 300 with under $10 mil in sales tracked by SIG) up 20.7% and gained 1.5 share to 28.2. Interestingly, top 6 importers controlled 94.4%. So it’s much more concentrated segment. But same thing happening on smaller scale. Top 6 $$ sales down 1%, but all other importers up 4%.
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02/16/2011
Craft Off to “Torrid Start” in 2011
Craft $$ up 19% for 4 weeks thru Jan 30 in SIG supers and gained 1.5 share to 10.4. The $53.7 mil of total craft beer sales in supers up 64% from Jan just 4 yrs ago. Great Jan caused SIG’s Dan Wandel to tout “torrid start” for segment in 2011, adding that it appears craft won Super Bowl week too, with another 15% jump in $$ sales in week thru Feb 6.
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02/16/2011
Craft A “Model of Consistency”; 5 Yrs of Double Digit Gains, Up 4 Share of $$ in Supers, Sez Dan
Craft’s growing clout well-illustrated in typically informative Power Hour presentation for Brewers Assn from Symphony IRI Group’s sr veep Dan Wandel. Craft $$ sales up double digits for 5 yrs in a row in supers, including 14% in 2010, while total beer $$ dropped 0.5%. Craft jumped 4 share of $$ from 5.4 in 2005 to 9.4 in 2010. Five yrs ago, imports were almost 4x as large in $$ at 19.5 share. But last yr, imports held virtually identical 19.6 share as in 2005 and so a little more than twice as big as craft segment. In 2010, craft $$ share up 1.2 and passed superpremiums which dipped slightly to 9.1. Throw in PABs and all the above premium segments in supers over 41 share.
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02/10/2011
Cincy Beer Shrine Readies for Oct Opening
Beer lovers in Cincinnati will have one of the largest microbreweries and restaurants in the world to enjoy local brews when construction wraps up for anticipated opening of Moerlein Lager House in late Oct. The 15,000 sq ft, 2-story, $4 mil restaurant/microbrewery will employ staff of 150 and be able to serve 500 customers inside and another 600 at 2 outdoor beer gardens, according to Cincinnati.com. A “retractable awning that can be enclosed by a glass wall that rises from the floor,” will keep the beer garden hopping in bad weather. “The lager house will be something that is unique on a world-wide scale,” said Greg Hardman, ceo of Moerlein Brewing Co “When you walk into the Moerlein Lager House, you’re going to experience Cincinnati’s grand brewing tradition,” added Greg. Over past 5 yrs he has purchased rights to “revive” several of city’s “historic beer brands” that date back to 19th and early 20th century. Besides Christian Moerlein, he owns Hudepohl, Burger, Little Kings, Top Hat, Hauck and Windisch-Muhlhauser. The Lager House will serve “more than” 5,000 bbls of local Cincy beers annually.
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02/10/2011
Does Craft Play in Peoria Too? You Bet!
Since vaudeville days, Peoria has rep of America’s primo “test market” to discover whether given show or product will have mainstream appeal. For beer, Peoria perhaps especially key, since it’s midway between St Lou and Chi, biz centers for AB and MC. Not surprisingly, craft beer has passed Peoria test, according to Peoria Journal Star. Recent report quoted local distribs and retailers extolling the virtues of craft. Distrib Bob Jockisch, 2d generation at RJ Distrib, cited “total transition” in beer biz: “Beer is now more diversified…. Craft beer is now a huge player and growing steadily. So many different styles of craft beer out there. There’s a little bit of romance attached to that.” Meanwhile, 3d Jockisch generation, nephews Jack and Stoney, have set up separate Market Place Selections operation.
Peoria also home of Specialty Imports, started back in 1990, when owner Steve King sez “specialty beers in your neighborhood bar were St Pauli, Moosehead and Molson.” Now Specialty has 50 different craft brews, he told paper. Steve also organizes annual Peoria Jaycees International Beer Festival -- who sez craft limited to young hipsters? -- already in 19th yr. Last big brewer in Peoria was Pabst, which closed plant in 82. City has one microbrewer John S Rhodell. Owner of local Irish pub said he carries 100 beers and has 22 tap lines. “He’s wanted to add beer made” next door at Rhodell’s, Journal reports, “but that getting enough – beyond what Rhodell’s sells itself – is a problem.”
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Beer just as healthy, if not more so, than wine, claims dietician and American Dietetic Association spokesperson Andrea Giancoli in Winter 2011 edition of assn’s mag ADA Times. Article titled: “A Toast to Good Heath: Craft Brew Trends Bring New Attention to the Benefits of Beer.” In one of most positive media portrayals of beer and its benefits in years, especially in a health publication, Giancoli reminds readers that many health advantages often associated with just wine result from ethanol and therefore attached to beer as well. For instance, “moderate consumption of any alcoholic beverage,” (her emphasis) aids cardiovascular health, and perhaps reduces risk of gall stones and type-2 diabetes. Giancoli simultaneously argues that beer specifically could reduce incidence of kidney stones and questions human body’s ability to use wine’s oft-touted antioxidants and polyphenols.
Other reasons to raise a beer to your health include: beer’s high percentage of water, which “contributes to fluid intake more so than wine;” possible instance of as many as 3.5 grams of fiber per liter of dark beer, according to a 2009 study in Spain; existence of over a dozen helpful micronutrients, like Calcium and Vitamin B12, which are laid out in a table comparing their levels in beer and wine as well as their recommended daily intake for men and women. Not just focused on health though, Giancoli describes acceleration of craft beer segment and utilizes every opportunity to educate readers about craft beer culture by providing pictures from Discovery’s Brew Masters alongside comments by Sam Calagione, quotes from BA’s Julia Herz plus their Craft Beer and Food Pairing Chart, as well as brief description of brewing process. She even points out beer is “kind to the wallet” compared to pricey wines. And she sums up: “As interest in artisan brewing gains momentum and emerging research reveals unique nutrition properties, craft beer is finding redemption not only as a classy libation with deep roots in nearly all cultures, but as a bevy with benefits.” Can’t ask for more than that.
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