The Craft Beer Craze
Americans drank some 6.3 billion gallons of beer last year. There's just over 28 gallons per year for every American of legal age.
And while that may seem like a lot...
- ...Beer consumption in the US fell for four years during the recession.
- Millions of barrels consumed per year: 1) 2008 - 214 million; 2) 2009 - 210 million; 3) 2010 - 209 million; 4) 2011 - 205 million.
But things are turning around...
- Beer shipments in the US rose 1.9% in the first eight months of 2012 (↑1.9%).
...And tastes are changing
- Much of the rebound is being driven by small-batch craft brewers.
- During the same period, craft brewers did much better despite their relatively higher price: 1) Sierra Nevada Brewing Co. - ↑7.8%; 2) Magic Hat Brewing Co. - ↑14.8%; 3) New Belgium Brewing Co. - ↑18%.
Momentum in the industry isn't slowing...
- Lagunitas Brewing Co. more than doubled its brewery's capacity this spring to 600.000 barrels and its sales were up 40% in 2012 (↑40%).
- Craft breweries account for 98% of all breweries in the United States.
- The beer business added more than one brewery per day last year.
- The number of brewers in the US topped 2.000 in 2012 for the first time since the late 19th century. Number of breweries in the US: 1) 1887 - 2.011; 2) 1920 - 1.179; 3) 1921-1933 (prohibition) - 0; 4) 1934 - 703; 5) 1978 - 89;
6) 2012 - 2.216.
Consumer interest in craft beer is at its peak...
- ...And there is unlimited potential for growth as more craft brewers enter the marketplace.
- An additional 1.300 craft breweries are in planning stages in the United States.
So where does Big Beer, an American mainstay for years, fit in all of this?
- While craft beer saw a 13% increase in volume in 2011, overall US beer sales were down 1.3% during that same period.
- "It's simple: people are drinking less and drinking better. There's not much more to it than that" - Jim Koch, CEO Sam Adams.
So what has Big Beer done to keep up?
- In addition to acquiring small breweries and storied traditional brands, big brewers are increasingly working the craft beer craze with faux "crafty" beers.
- Anheuser-Busch's Shock Top and Miller Coor's Blue Moon appear to be created by small time operations, despite being produced by the world's largest brewers.
- Blue Moon expanded barrel production by 12% in 2012 while Shock Top grew by an amazing 99%: 1) Blue Moon - 2011-2012 (↑12%); 2) Shock Top - 2011-2012 (↑99%).
- In fact, these "crafty" beers are all made by bif beer: 1) Brew - Widmer Brothers, Redhook, Kona; 2) Bud - Stella Artois, Beck's, Leffe, Hoegaarden, Shock Top; 3) Tap - Killian's Irish Red, Blue Moon, Leinenkugel's, Pilsner Urquell,
So now that the lines have been drawn, who will win?
- Graham Mackay, CEO SAB Miller says: "Let the consumer decide".
Do you think Big Beer can cash in on the craft brewing craze?
- Here some other big players in the beer industry: 1) Samuel Adams - The Boston Beer Company, Inc; 2) AmBev - Companhia of Bebidas Das Americas;3) Diageo - Diageo PLC.
Brough to you by Kapitall | Sources: http://www.whec.com/news/stories/S2798650.shmtl?cat=566; http://www.beerinstitute.org/br/beer-statistics/latest-statistics; http://online.wsj.com/article/SB10008723963904440833045780161
93481145184.html; http://wallstcheatsheet.com/breaking-news/recession-proof-why-the-alcohol-industry-is-thriving.html; http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/number-of-breweries;
http://www.beerinsights.com/index.php?option=com_php?ltemid-17&18195; http://m.csnews.com/mtop-story-beer_category_up_against_declining_consumption-61947.html; http://management.fortune.cnn.com/2012/12/12/
sabmiller-big-beer-craft-brewers; http://business.time.com/2012/12/27/trouble-brewing-the-craft-beer-vs-crafty-beer-cat-fight; http://www.beerinsights..com/index.php?option=com_php<emid=17&aid=17926&pagesize=20&record
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