Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Beer Is Losing Ground in Alcohol Market
AP (via Yahoo) ^ | 1/11/05

Posted on 01/11/2005 9:16:33 PM PST by Mr. Mojo

ST. LOUIS - If you sometimes find yourself ordering a glass of wine or a mixed drink when you used to order a beer, you're not alone.

Wines and distilled spirits continue to gain a bigger share of the alcoholic beverage market, at the expense of the beer industry.

It's a trend that has been going on since the late 1990s and continued in 2004. Analysts who follow the alcoholic beverage industry don't see it stopping anytime soon.

"We believe there is an overall image crisis with beer," Smith Barney Citicorp analyst Bonnie Herzog said.

As baby boomers age, they are more willing to buy wine and spirits instead of beer. And the wine and spirit companies are successfully targeting younger drinkers with advertising and promotions.

"Our wholesaler contacts have told us through a survey we conducted recently that beer has lost its 'sexiness' and 'appeal to young consumers,'" Herzog said. "We continue to believe the road ahead is a long one for the beer industry."

Beer remains, by far, the most popular alcoholic beverage in the United States. But its share of the alcohol market has slipped.

Beer Marketer's Insights, a trade publication, estimates that beer accounted for 59.5 percent of the absolute alcohol content sold in its peak year, 1995. That had fallen to 56.7 percent in 2003.

The spirits industry began its big push in 1999, when it had 28.6 percent of the market. In 2003, its share had risen to 29.7 percent. Wine went from 12.6 percent to 13.6 percent.

The totals for 2004 aren't in, but it was "more of the same," said Benj Steinman, president of Beer Marketer's Insights.

The spirits industry spent almost $100 million on broadcast advertising in 2004, compared with "almost zero" in 1999, said Frank Coleman, a senior vice president at the Distilled Spirits Council of the U.S. in Washington.

August Busch IV, president of Anheuser-Busch Cos. brewing unit, has said that wine and spirits represent "a threat" to his company and the rest of the beer industry.

Miller Brewing Co. President Norman Adami said, "The single biggest threat facing the American beer business today is the possibility that we will allow the American consumer to get bored with beer."

So what are the brewers doing about it?

For one thing, they are spending more money on promotions, including what they call on-premise spending. That means mostly bars and restaurants, but also hotels, clubs, and concession stands.

On-premise sales, as opposed to store sales, account for only 25 percent of all beer volume in the United States, but 48 percent of all beer retail dollars, making it an important battleground.

Wine and spirits companies have promoted themselves aggressively in bars and restaurants, increasing their sales, Legg Mason analyst Mark Swartzberg said.

Anheuser-Busch, the brewer of Budweiser and Bud Light, has said it plans to spend an additional $30 million for on-premise promotions in fiscal 2005, a 150 percent increase.

Milwaukee-based Miller Brewing also has increased spending.

"Miller is spending about 40 percent more on advertising and promotion than 18 months ago," Swartzberg said.

And a little generational rebellion must be overcome, as well, Swartzberg said. Younger drinkers may choose wine and cocktails because their parents chose beer.

"Any given generation wants to be different than its parents," he said. "It's the natural ebb and flow."


TOPICS: Culture/Society
KEYWORDS: beer
Navigation: use the links below to view more comments.
first previous 1-2021-4041-60 last
To: MarkL
The Sammy Smith's beers are all good too. Newcastle, however, has become a watered-down mess.
41 posted on 01/11/2005 9:57:28 PM PST by Jokelahoma (Animal testing is a bad idea. They get all nervous and give wrong answers.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: tlb
How can belching and excessive peeing be losing its appeal to the young ?

You forgot barfing. :-P

42 posted on 01/11/2005 10:01:11 PM PST by uglybiker (The most popular guy at a nudist camp can carry 2 cups of coffee and a dozen doughnuts)
[ Post Reply | Private Reply | To 6 | View Replies]

To: xm177e2
Sierra Nevada Pale Ale is great. I also like Harp lager (brewed by Guiness). Not too heavy, and reasonably priced
43 posted on 01/11/2005 10:04:26 PM PST by fhayek
[ Post Reply | Private Reply | To 7 | View Replies]

To: lmr

As a Malting Specialist at Coors, I thank you.


44 posted on 01/11/2005 10:08:10 PM PST by RandallFlagg (FReepers, Do NOT let the voter fraud stories die!!!! (Magnetic bumper stickers-click my name))
[ Post Reply | Private Reply | To 20 | View Replies]

To: Robert Lomax

Amen to that friend, if Anheuser Busch wants to sell beer they should start to produce it.


45 posted on 01/11/2005 10:12:18 PM PST by Natchez Hawk
[ Post Reply | Private Reply | To 2 | View Replies]

To: monkapotamus

The Czech Budweiser (Budvar) has nothing to do with the familia Annheiser Busch mega-brew.

I'm a big fan of Czech beer, particularly Staropramen Velvet. Hard to come by in the states.


46 posted on 01/11/2005 10:17:11 PM PST by Callahan
[ Post Reply | Private Reply | To 40 | View Replies]

To: exnavychick
Is a Belgian beer similar to a lambric?

Some lambics are Belgian.

If you're looking for lambics, this might be the best place to start (I've never used them before, so I can't vouch for it)

Unfortunately, there might be restrictions against shipping alcoholic beverages direct to your state, so you could try this store Vintage Cellar. It's in Virgina... but you'll need to hit a big store like that to find a style of beer that isn't very common.

Maybe take a weekend trip up, try one bottle, and grab a hundred if you like it what you find...

I wonder also if you can order beer from a local liquor store or wine store... I have no clue if they would do that for you... you'd probably have better luck trying a big (or fancy) wine store. I've never done it, so I have no idea if they would offer that service. Then you wouldn't have to drive so far.

47 posted on 01/11/2005 10:17:28 PM PST by xm177e2 (Stalinists, Maoists, Ba'athists, Pacifists: Why are they always on the same side?)
[ Post Reply | Private Reply | To 9 | View Replies]

To: exnavychick
Okokokok - enough! Pardon my rudeness, but somebody has to clue you in before you embarrass yourself in public, my dear.

It's "lambic".

48 posted on 01/11/2005 10:19:35 PM PST by Hank Rearden (Never allow anyone who could only get a government job attempt to tell you how to run your life.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: xm177e2

Hmmm. Food for thought. Thanks for the link. I've got plenty of time to look around...I can't drink right now, anyway. *sigh*

LOL


49 posted on 01/11/2005 10:20:55 PM PST by exnavychick (There's too much youth; how about a fountain of smart?)
[ Post Reply | Private Reply | To 47 | View Replies]

To: Hank Rearden

LOL...it's too late, my friend. I've already fallen flat on my face. :)


50 posted on 01/11/2005 10:21:28 PM PST by exnavychick (There's too much youth; how about a fountain of smart?)
[ Post Reply | Private Reply | To 48 | View Replies]

To: Callahan
The Czech Budweiser (Budvar) has nothing to do with the familia Annheiser Busch mega-brew.

I know.

51 posted on 01/11/2005 10:25:36 PM PST by monkapotamus
[ Post Reply | Private Reply | To 46 | View Replies]

I drink whatever is more obscure and specialized than the other beers on this thread, either before or after my post.


52 posted on 01/11/2005 10:25:58 PM PST by KneelBeforeZod ( I'm going to open Cobra Kai dojos all over this valley!)
[ Post Reply | Private Reply | To 48 | View Replies]

To: xm177e2

As I mentioned in my previous post, I have had a thirst for a Czech beer called Velvet ever since I first sipped it in Prague a few years ago. I've never seen it in a liquor store and, as far as I know, there's is only one website where you can mail order it. Any knowledgable Freepers know where I can score some in the States or how to homebrew a similar beer?


53 posted on 01/11/2005 10:29:31 PM PST by Callahan
[ Post Reply | Private Reply | To 47 | View Replies]

To: exnavychick
After reading the link you provided, I realize that it was actually Geuze/Gueuze that I had and loved so much.

Actually, that is a kind of lambic (probably the most popular of the subtypes).

If you're looking for a sour beer, I don't think you'll be satisfied with the other kinds of Belgian beer. In fact, lambics are just about the only thing like that.

54 posted on 01/11/2005 10:32:29 PM PST by xm177e2 (Stalinists, Maoists, Ba'athists, Pacifists: Why are they always on the same side?)
[ Post Reply | Private Reply | To 37 | View Replies]

To: KneelBeforeZod

I know. I used to goof on beer snobs all the time, then I sort of became one with age. But I'll always save space in my bloated liver for Pabst on tap.


55 posted on 01/11/2005 10:32:29 PM PST by Callahan
[ Post Reply | Private Reply | To 52 | View Replies]

To: xm177e2

What the heck. I like those silly frou-frou drinks (as Mr. Ex so delicately puts it) so I might not mind trying out some of the others listed there. They sounded a lot like dessert wines. I think they are called that, anyway. I refuse to expose myself to further embarrassment by claiming that for certain. :)

That being said, the lambic/geuze -whichever it was, was about the best darn thing I've ever tasted, alcohol-wise.


56 posted on 01/11/2005 10:36:44 PM PST by exnavychick (There's too much youth; how about a fountain of smart?)
[ Post Reply | Private Reply | To 54 | View Replies]

To: Callahan
I have had a thirst for a Czech beer called Velvet

Would this be it?

Most of the ratings for that beer come from Europe, so it's probably much easier to find over there.

Unfortunately, the BevMo.com web site is down right now, but when it goes back up you could check them for it.

Here is the Staropramen Velvet web site.

57 posted on 01/11/2005 10:56:54 PM PST by xm177e2 (Stalinists, Maoists, Ba'athists, Pacifists: Why are they always on the same side?)
[ Post Reply | Private Reply | To 53 | View Replies]

To: Callahan

Heineken?? F--- that sh--!! PABST BLUE RIBBON!! Thats what I drink!

58 posted on 01/11/2005 11:06:29 PM PST by KneelBeforeZod ( I'm going to open Cobra Kai dojos all over this valley!)
[ Post Reply | Private Reply | To 55 | View Replies]

To: weegee

jack is too good for my liver.
cheap burn like a gut shot grizzley sour mash WHOOOSKIE
is the only drink for me.
i get off in 16 minutes and will be applying the anesthetic as soon as i get home.


59 posted on 01/11/2005 11:15:15 PM PST by 537cant be wrong (no kittie! thats my pot pie!)
[ Post Reply | Private Reply | To 33 | View Replies]

To: Mr. Mojo
It works like this: Those, who are easily lead, are taken in by the ads and partially seduced by social pressure, and they drink the stuff for awhile. Somehow they begin to lose interest in the experience. Once drinking the product isn't accompanied by an overriding social experience, the actual pi$$ poor quality of the Miller and Busch beverages becomes apparent. Subconciously they begin to realize they are not enjoying it and quietly quit, looking for something more authentic. And, there's lot of good authentic beers available representing excellent competition for the watery swill that is being manufactued by the large domestic brewers.

"In heaven there is no beer. That's why we drink it here." (sung by Frankie Yankovic.)

60 posted on 01/12/2005 1:36:26 AM PST by Banjoguy ("The business of the Church is business"......)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-60 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson