U.S. brewers tangle in a tough year; It’s a rain forest out there, people!
(Follow us on Twitter at http://www.twitter.com/stljmac)
The U.S. beer business is getting tougher. In industry parlance, the “pie” does not seem to be growing. Sales are lackluster, and industry types are wondering if this will lead to more intense competition as mega-brewers tussle.
A recent edition of Beer Marketer’s Insights slices the numbers, which are not pretty. Forsooth:
- U.S. beer shipments to wholesalers are now down 1.2 million barrels or 1.7 percent in available data so far this year.
- Total beer business in food/drug/convenience stores turned down sharply recently. Sales dropped 0.7 percent for the six weeks through May 31, including the key Memorial Day period. What’s to blame? Insights mentions several suspects, including fears that the economy is finally catching up with the beer business and that marketing is a little lackluster these days.
How are things playing out on the ground? At least in the very short term, Anheuser-Busch appears to be giving a little ground to arch-rival MillerCoors. According to Insights, A-B is losing market share for the first time since Bud Light Lime was introduced last spring.
Both competitors have things they could brag about: A-B has Bud Light Lime, which is doing well. MillerCoors has Coors Light, which is kicking some tail. But on the flip side, A-B’s top brand, Bud Light, saw its sales and market share drop in recent periods. The beer is getting pressured as people switch to cheaper beer or to Bud Light Lime. Some observers, including Beer Marketer’s Insights, argue that Bud Light’s “drinkability” campaign is not gaining traction.
Meanwhile, up in Chicago, MillerCoors is not immune to trouble. It is saddled with bad results for Miller Lite, which is down 5-6 percent in recent periods. Miller Genuine Draft is down in the teen percentages and Milwaukee’s Best is down by double digit percentages, according to Beer Marketer’s Insights, which quoted data from Information Resources Inc.
Both big rivals have serious issues they need to address. We will find out soon enough who does a better job.
(No Ratings Yet)
Loading ...
Jeremiah McWilliams is a native Virginian who came to the Post-Dispatch in early 2007 to cover beer and other consumer products. He previously covered manufacturing for the Virginian-Pilot newspaper in Norfolk, Va. He is a graduate of Washington and Lee University. 
Beer sales in my household have been slacking by about a case a month. I started brewing my own last fall, and have made 6 cases, so far, this year. 5 gallons yields about 2 cases of beer, so a 5 gallon batch every 2 months yields me a case of beer a month.
that should read ‘beer sales from my household’
or maybe beer purchases? Whatever. You get the idea.
Beer Marketer’s Insights, argue that Bud Light’s “drinkability” campaign is not gaining traction. Lager Heads posters has been saying it for months! And we do it for free…………………………..
………..The delicate brewing balance of PBR works well for me, artfully combining both drunkability and cheapability.
Exactly jim63129! BLL is cannibalizing BL. “Drinkability” is asinine. Everyone seems to get it except AB Inbev. Who is the VP of Marketing down there anyway?
I’ve increased my beer buying over the last three months. This has been mostly Coors Banquet, Miller Genuine Draft, and Budweiser. I would expect these numbers to improve after 4th of July weekend.