Beer growth brands: Beverage Dynamics identifies the hottest-selling beers in the U.S.While recent headlines focus upon the severity of current economic conditions, declining consumer confidence and spending, Americans actually began feeling the financial pinch in 2007. A look at beer consumption trends demonstrates that consumers started making subtle spending changes as early as last year. After several years gravitating toward pricier imported beers, in 2007 U.S. consumers shifted gears. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Beer Handbook 2008, recently published by Beverage Dynamics' parent company The Beverage Information Group, imports, which have seen double-digit percentage increases in recent years, expanded 2.8% in 2007 to reach 408 million cases, a significantly slower rate than the 12% gain posted by the category in 2006. For their part, domestic brews enjoyed a second consecutive year of growth, gaining a modest 0.9% to achieve 2,518 million cases and a market share of 86.1%. "The economy slipped in '07, and people started to feel it and change their habits," said Eric Schmidt, manager of information services See Information Systems. at The Beverage Information Group, based in Norwalk, CT. "At the same time, marketing of domestic brands by the major brewers This is a list of member brewers of the Brewers Association. Numbered
"There are more choices in beer today, and we see a migration to craft brews by imported beer consumers," Schmidt continued, noting that craft brew volume expanded 12% in 2007. Beer volume grew overall for the second consecutive year, ending 2007 at 2,927 million cases on a 1.2% increase. Total beer dollar volume expanded 5.9% to reach $98 billion. Last year saw Crown Imports settle in as the official importer of the Grupo Modelo Grupo Modelo is a large brewery in Mexico. It maintains a large part of the Mexican beer export market and produces top-selling imported beer in the United Kingdom, United States and Canada. portfolio; distribution was fairly unaffected by the shift. The InBev portfolio--including Stella Artois This article is about Stella Artois lager. For the tennis competition that the company sponsors, see Queen's Club Championships. Stella Artois (IPA pronunciation: [ˈstɛ. , Beck's, Bass, Hoegaarden and Leffe--also became well entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. in the Anheuser-Busch system. SAB SAB Spontaneous abortion. See Abortion. Miller and Molson Coors announced plans to combine their operations in October, but the deal was not completed until July 1 of this year. The potential seismic shift in the industry landscape resulting from the recently announced acquisition of Anheuser-Busch by InBev has, obviously, not yet been felt. Excitement continued in several beer categories. Light beer repeated its 2006 performance with another 2.3% gain in 2007. Premium light, the category spawned by the launch of Heineken Premium Light Heineken Premium Light is a light beer brewed by Heineken for the United States market. It was introduced in 2005. The beer has less calories, less carbohydrates, and less alcohol than lager beers such as the Heineken Pilsener. The beer has 3.3% alcohol by volume. in 2006, saw additional activity with the re-launch of Tecate Light and the ongoing success of light offerings from craft brewers, such as Sam Adams Light and Skinny Dip (Skinny Dual In-Line Package) A narrow, small DIP chip with pins on both of its long sides. See DIP. . Craft beers, although still a small segment, continued to charm American consumers, enticing them with varied styles and "local" appeal. Although premium domestic brews declined 3.8%, and popular-priced brew volume eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. 2.1%, certain brands flourished--such as Pabst Blue Ribbon blue ribbon denotes highest honor. [Western Folklore: Brewer Dictionary, 127] See : Prize , which is acquiring cult favorite status in some Midwestern markets--and a few Miller brands rebounded. Flavored malt beverage Malt beverage is an American term for both alcoholic and non-alcoholic fermented beverages, in which the primary ingredient is barley, which has been allowed to sprout ("malt") slightly before it is processed. volume continued to shrink, declining 11.7% in 2007, while malt liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. posted a 0.5% gain. Several of these trends are evident in this year's Growth Brands statistics, compiled by The Beverage Information Group's research division, which examines annual sales data to identify the brands that can be included into one of four categories: Fast Track Brands, Rising Stars, Established Growth Brands and Comeback Brands. Fast Track Brands Each of the four brands on the Fast Track list is an import, reflecting the ongoing growth in that category. Fast track brands are those imports or microbrews that have exceeded 1.5 million 2.25-gallon cases in 2007, with double-digit growth in each of the past four years; domestic brands must exceed 9 million cases to qualify. Three of the four Fast Track brands are making repeat appearances. Modelo Especial es·pe·cial adj. 1. Of special importance or significance; exceptional: an occasion of especial joy. 2. continues its upward surge with another 14.3% increase to reach 22.4 million cases. The Mexican import, now nationally marketed and distributed by Crown Imports, enjoyed a 24.7% annual compound growth rate (ACGR ACGR Annual Compound Growth Rate ACGR Americans for Comprehensive Government Reform ) from 2003 to 2007. Blue Moon, the wheat beer brewed in Canada by Molson Coors--now MillerCoors--delivered a whopping 63.9% gain in 2007, ending the year at 10 million cases. Word of mouth drove the brand in its early years; increased distribution and advertising, along with excitement around Blue Moon's seasonals--Rising Moon, Honey Moon, Harvest Moon harvest moon, full moon occurring nearest to the autumnal equinox, about Sept. 23. During harvest moon the retardation (later rising each night) of the moon is at a minimum because of the relation of the moon's path to the horizon. and Full Moon--continued its momentum in 2007. Stella Artois' growth surged in 2006, as it was put through the Anheuser-Busch system thanks to the distribution agreement the St. Louis, MO-based brewing brewing: see beer. giant reached with brand owner InBev. The good news continued in 2007, as the Belgian lager increased sales 20% for a total volume of 7.5 million cases. Stella Artois' ACGR is 47.9% since 2003. New to the Fast Track rankings is Smithwick's, the Irish red ale Red ale can refer to two styles of beer which are some shade of red or light brown in hue:
Rising Stars Eight brands qualified as Rising Stars, meaning they have been on the U.S. market less than five years and recently exhibited notable growth. Two imports, two flavored brews, two crafts--one of which is organic--a premium domestic and one flavored malt beverage earned Rising Star status, reflecting some of the major trends in beer. Heineken Premium Light continued its rapid rise in 2007 with a 25.3% increase, reaching 9.4 million cases in its second year on the market. The re-launch of Tecate Light, which first graced back bars in the early '90s, expanded the premium right category; the import moved 800,000 cases in the first year of its return. Premium domestic Landshark, the "island style lager" brewed by Margaritaville Brewing in Jacksonville, FL, debuted last year. Its Jimmy Buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal motif motif, in literature motif (mōtēf`), in literature, term that denotes the recurrent presence of certain character types, objects, settings, or situations in diverse genres and periods of folklore and literature. and the power of the Anheuser-Busch distribution system drove it to 2.5 million cases. Two brands from Fort Collins, CO-based New Belgium New Belgium can refer to:
The big headline-maker in the Rising Star category, and perhaps the industry overall, is Miller Chill Miller Chill is a brand of light lager beer brewed with lime and salt. Miller Chill is brewed by Miller Brewing Company of Milwaukee, Wisconsin, which is part of SABMiller plc, one of the world’s largest brewers. . The chelada-style brew moved 7 million cases in its freshman year, thanks to its hint of salt and lime, a fairly low calorie calorie, abbr. cal, unit of heat energy in the metric system. The measurement of heat is called calorimetry. The calorie, or gram calorie, is the quantity of heat required to raise the temperature of 1 gram of pure water 1°C;. content--110 per 12-ounce bottle--and a heavy marketing campaign. Another flavored beer Rising Star is the Budweiser Clamato Chelada and Bud Light Clamato Chelada duo. Substantial marketing by Anheuser-Busch targeting the Hispanic market helped drive the beer-and-spicy-tomato-cocktail brew to 2 million cases it its debut year. Flavored malt beverages are in decline overall, however, one brand made the Rising Stars roster. Introduced in 2006, Smirnoff Raw Tea hit 230,000 cases that year and grew more than 100% to bank 874,000 cases in 2007. Containing natural tea, Smirnoff Raw Tea is available in four flavors and targets the young adult consumer looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. convenient refreshment. Established Growth Brands Twenty-two brands qualified as Established Growth Brands, defined as brands with sales exceeding 3 million cases and delivering moderate or substantial growth in the past four years. These brands reflect the current trends in the overall beer market, with craft brews, lights, imports, premium and popular-priced domestics in the mix, as well as an ice beer and even a flavored malt beverage and a malt liquor. Three brands are new to the Established Growth Brand rankings: Samuel Adams Boston Lager, Sparks and Shiner shiner: see minnow. shiner Any of several small freshwater fishes (genera Notemigonus and Notropis, family Cyprinidae). The common shiner (Notropis cornutus) is a blue and silver minnow up to 8 in. (20 cm) long. Bock Noun 1. bock - a very strong lager traditionally brewed in the fall and aged through the winter for consumption in the spring bock beer lager beer, lager - a general term for beer made with bottom fermenting yeast (usually by decoction mashing); originally . Following the brand's decline early in the decade, Samuel Adams Boston Lager actually returns to the list; it achieved an ACGR of 7.2% from 2003 to 2007, and increased sales 15.9% last year to reach 12.4 million cases. Sparks, the flavored malt beverage Miller Brewing acquired from McKenzie River For rivers name "Mackenzie", see . The McKenzie River is a tributary of the Willamette River, 86 miles (138 km) long, in northwestern Oregon in the United States. It drains part of the Cascade Range east of Eugene into the southernmost end of the Willamette Valley. in 2006, is bucking that segment's declining trend. Containing caffeine caffeine (kăfēn`), odorless, slightly bitter alkaloid found in coffee, tea, kola nuts (see cola), ilex plants (the source of the Latin American drink maté), and, in small amounts, in cocoa (see cacao). , taurine taurine /tau·rine/ (taw´ren) an oxidized sulfur-containing amine occurring conjugated in the bile, usually as cholyltaurine or chenodeoxycholyltaurine; it may also be a central nervous system neurotransmitter or neuromodulator. and ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. and with 6% ABV ABV Above ABV Alcohol By Volume ABV Abuja, Nigeria (airport code) ABV Assault Breacher Vehicle ABV Accredited Business Valuation specialist ABV Auxiliary Building Ventilation ABV Annual Buy Value ABV Air Bleed Valve , Sparks appeals to energy drink fans; it grew 44.2 % in 2007. Sparks ended the year at 7.5 million cases. Thanks to increased distribution, Shiner Bock from Gambrinus also ratcheted up sales; it grew 8% to end the year at 4.4 million cases. Twelve domestic beers qualify as Established Growth Brands; four are light beers, six are craft-style brews, one is an ice beer and the other is popular-priced. Bud Light remains the volume leader among this group, as well as the top-selling brand in America, with 570 million cases coming from a 1.8% increase. Bud Light's ACGR from 2003 to 2007 is 2.5%. Light beers from Anheuser-Busch also hold the number two and three volume slots: Natural Light, with 125 million cases, and Busch Light, which produced 87.5 million. In fifth place on a volume basis is popular-priced Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. Light, now from MillerCoors. Pabst Blue Ribbon, the flagship of Pabst Brewing, benefited from its value positioning and retro [Latin, Back; backward; behind.] A prefix used to designate a prior condition or time. appeal to garner cult status in many Midwestern markets. The brand enjoyed 4.6% growth and broke the 20 million case mark. On the craft front, Pennsylvania darling Yuengling Traditional Lager delivered 23.4 million cases, achieved via a 7.6% increase. The brand now is distributed in 11 states. Sierra Nevada Sierra Nevada, mountain range, Spain Sierra Nevada (syā`rä nāvä`thä), chief mountain range of S Spain, in Granada prov., running from east to west for c.60 mi (100 km), parallel to the Mediterranean Sea. Pale Ale hit 7.7 million cases, while New Belgium Brewing's Fat Tire Amber Ale reported 4.8 million cases, a 5.5% increase. Fat Tire enjoyed an ACGR of 10.1% for the five years from 2003 to 2007. Widmer Hefeweizen held steady with 3.1 million cases, capping off 15.3% ACGR since 2003 with a 1.3% gain in 2007. With 69 million cases, Heineken leads the import segment of the Established Growth Brands in volume. The brand posted a 0.7% gain last year and an ACGR of 2.5% since 2003. Four Mexican brews grace the list. Tecate, marketed by Heineken USA, continued its steady growth with an 8.6% increase to end the year at 19.3 million cases. Also from Heineken USA, Dos Equis Dos Equis is a Mexican beer. It was first crafted in Mexico by the German brewmaster Wilhelm Hasse in 1897. Originally called "Siglo XX" ("20th century"), the brand was named to commemorate the arrival of the new century; since the Spanish language uses Roman numerals for grew 16% to reach 8.7 million cases. The Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. Light juggernaut Juggernaut, India: see Puri. Juggernaut (Jagannath) huge idol of Krishna drawn through streets annually, occasionally rolling over devotees. [Hindu Rel.: EB, V: 499] See : Destruction continues. Part of the Crown Imports portfolio, the brand broke the 12 million ease mark with a 10.5% gain last year; its five-year ACGR is 10.6%. Also from Crown Imports, the dark Negra Modelo Negra Modelo, brewed by Grupo Modelo, is a Vienna lager first brewed in Mexico by Austrian immigrants. It was first sold on draft in 1926. Negra Modelo comes in an unusually shaped, wide brown bottle with a trademark Gold Label. ended 2007 with 3.3 million cases, thanks to a 2.5% gain. Irish import Guinness Stout stout, alcoholic beverage: see beer. drove a 4.2 % increase to reach 12.6 million cases, while British brew Newcastle Brown Ale Newcastle Brown Ale is a brand of dark brown ale. It has been brewed in Newcastle upon Tyne, England, since April 1927 by Newcastle Breweries (now a part of Scottish and Newcastle). In August 2005, Scottish and Newcastle closed the Tyne Brewery. broke 7 million cases with a 10.3% jump. Steel Reserve rounds out the list, hailing from the malt liquor segment. Also part of the McKenzie River purchase by Miller in 2006, the brand continued its momentum with a 6.7% increase to reach 22.4 million cases. Steel Reserve grew 23.6% since 2003 on an ACGR basis. Comeback Brands Beer brands that declined in recent years but bounced back in 2007 to achieve sales equal to or greater than their previous level qualify as Comeback Brands. Brands from the Miller Brewing portfolio, now MillerCoors, make up the entire Comeback Brands list. Miller Lite Miller Lite is the name of a popular pilsner beer sold by Miller Brewing Company of Milwaukee, Wisconsin with a 4.2% ABV. Sibling beers include Miller Genuine Draft and Miller High Life. and Miller High Life improved sales 2.2% and 2.5% in 2007, respectively. Miller Lite ended the year with 252.1 million cases; Miller High Life had 68.4 million. Value-priced Milwaukee's Best Ice experienced a 1.6% gain, while malt liquor entry Mickey's rebounded to 4.6 million cases, a 9.5% increase. Overall, the Miller portfolio expanded 2.1% in 2007 following a 1.8% decline in 2006.
Fast Track BRANDS
Domestic Brands must have exceeded 9 million 2.25-gallon cases in
2007, and imported brands/microbrews must have exceeded 1.5 million
2.25-gallon cases in 2007, with double-digit growth over each of
the past four years.
(Thousands of 2.25 Gallon Cases)
Brand Supplier 2003 2004 2005
Modelo Especial Crown Imports 9,268 10,951 14,634
Blue Moon MillerCoors * 1,420 1,975 3,400
Stella Artois Anheuser-Busch 1,568 2,359 3,905
Smithwick's Diageo-Guinness USA 270 441 1,075
'06-'07 '03-'07
Brand 2006 2007 % Chg % ACGR
Modelo Especial 19,616 22,417 14.3% 24.7%
Blue Moon 6,100 10,000 63.9% 62.9%
Stella Artois 6,250 7,500 20.0% 47.9%
Smithwick's 1,379 1,807 31.0% 60.8%
* Merger of Miller Brewing & Molson Coors Brewing effective
July 1, 2008 ACGR Annual Compound Growth Rate.
Rising STARS
Brands less than five full years of age that have exhibited notable
growth over the past few years.
(Thousands of 2.25 Gallon Cases)
Brand Supplier 2003 2004 2005
Heineken Premium Light Heineken USA -- -- --
Miller Chill MillerCoors * -- -- --
Landshark Anheuser-Busch -- -- --
Budweiser & BL Chelada Anheuser-Busch -- -- --
Smirnoff Raw Tea Diageo-Guinness USA -- -- --
Tecate Light Heineken USA -- -- --
Skinny Dip New Belgium Brewing -- -- --
Mothership Wit New Belgium Brewing -- -- --
'06-'07
Brand 2006 2007 % Chg
Heineken Premium Light 7,500 9,400 25.3%
Miller Chill -- 7,000 --
Landshark -- 2,500 --
Budweiser & BL Chelada -- 2,000 --
Smirnoff Raw Tea 230 874 ++
Tecate Light -- 800 --
Skinny Dip 339 360 6.2%
Mothership Wit 2 101 ++
Established GROWTH BRANDS
Top-selling growth brands that have grown moderately or
substantially over the past four years. Brands must have
exceeded 3 million 2.25-gallon cases in 2007
(Thousands of 2.25 Gallon Cases)
Brand Supplier 2003 2004
Bud Light Anheuser-Busch 517,000 536,000
Natural Light Anheuser-Busch 115,000 115,800
Busch Light Anheuser-Busch 80,500 81,500
Heineken Heineken USA 62,500 63,125
Keystone Light MillerCoors * 39,800 40,400
Natural Ice 33,500 35,500
Yuengling Yuengling Brewery 18,097 18,757
Traditional Lager
Steel Reserve MillerCoors * 9,600 13,750
Pabst Blue Ribbon Pabst Brewing 14,900 17,400
Tecate Heineken USA 13,464 14,569
Guinness Stout Diageo-Guinness USA 10,536 10,840
Samuel Adams Boston Beer 9,400 9,500
Boston Lager
Corona Light Crown Imports 8,142 8,705
Dos Equis Heineken USA 5,337 5,865
Sierra Nevada Pale Sierra Nevada Brewing 7,165 7,314
Ale
Sparks MillerCoors * N/A 1,550
Newcastle Brown Ale Scottish & Newcastle 5,093 5,600
Importers
Labatt Blue Light Labatt USA 5,482 5,628
Fat Tire Amber Ale New Belgium Brewing 3,233 3,710
Shiner Bock Gambrinus 3,166 3,234
Negra Modelo Crown Imports 2,125 2,387
Widmer Hefeweizen Widmer Brothers Brewing 1,775 2,194
'06-'07 '03-'01
Brand 2005 2006 2007 % Chg % ACGR
Bud Light 536,700 560,000 570,000 1.8% 2.5%
Natural Light 114,700 124,000 125,200 1.0% 2.1%
Busch Light 82,700 84,700 87,500 3.3% 2.1%
Heineken 64,325 68,500 69,000 0.7% 2.5%
Keystone Light 40,600 44,250 49,000 10.7% 5.3%
Natural Ice 35,100 36,900 38,300 3.8% 3.4%
Anheuser-Busch
Yuengling 20,828 21,765 23,412 7.6% 6.6%
Traditional Lager
Steel Reserve 17,500 21,000 22,400 6.7% 23.6%
Pabst Blue Ribbon 18,300 19,400 20,300 4.6% 8.0%
Tecate 15,953 17,775 19,300 8.6% 9.4%
Guinness Stout 11,423 12,051 12,558 4.2% 4.5%
Samuel Adams 9,700 10,700 12,400 15.9% .7.2%
Boston Lager
Corona Light 9,586 11,027 12,183 10.5% 10.6%
Dos Equis 6,498 7,500 8,700 16.0% 13.0%
Sierra Nevada Pale 7,568 7,685 7,689 0.1% 1.8%
Ale
Sparks 3,725 5,200 7,500 44.2% --
Newcastle Brown Ale 6,090 6,779 7,477 10.3% 10.1%
Labatt Blue Light 6,087 6,300 6,525 3.6% 4.5%
Fat Tire Amber Ale 4,078 4,510 4,756 5.5% 10.1%
Shiner Bock 3,501 4,026 4,350 8.0% 8.3%
Negra Modelo 2,803 3,195 3,275 2.5% 11.4%
Widmer Hefeweizen 2,630 3,100 3,141 1.3% 15.3%
* Merger of Miller Brewing & Molson Coors Brewing effective July 1,
2008 ACGR Annual Compound Growth Rate.
Comeback BRANDS
Brands that have rebounded in sales to at least the previous
level after a recent decline.
(Thousands of 2.25 Gallon Cases)
Brands Supplier 2003 2004 2005
Miller Lite MillerCoors * 217,000 241,000 248,200
Miller High Life MillerCoors * 72,500 71,000 68,400
Milwaukee's Best Ice MillerCoors * 14,000 16,000 18,500
Mickey's MillerCoors * 4,500 4,000 4,300
'06-'01
Brands 2006 2007 % Chg
Miller Lite 246,700 252,100 2.2%
Miller High Life 66,700 68,400 2.5%
Milwaukee's Best Ice 18,400 18,700 1.6%
Mickey's MillerCoors * 4,200 4,600 9.5%
* Merger of Miller Brewing & Molson Coors Brewing effective
July 1, 2008
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