Last week I shared some of the highlights from the Brewers Association‘s bi-monthly Power Hour session that Ray Daniels tweeted about throughout the hour, whose topic was “Craft Brewing & Mid-Year Category Sales Review.” As a BA member, I also was able to look at the presentation after the fact and — with the Brewers Association’s permission — thought I’d share some more of the interesting statistics that SymphonyIRI revealed during their presentation.
During the First Half of 2010 …
Craft showed double-digit growth in all five types of stores that IRI tracks: Grocery (up 11.9% vol./13.2% $), Drug Stores (24.5%/25.3%), Convenience Stores (11.1%/13.3%), Liquor Stores (24.2%
/20.9%) and Big Box Stores (33.3%/34.1%)
Craft 6-pack cans were up 80% and 12-packs were up 49.4%
7 of the Top 15 new brands were Alcopops
Craft is up 13.2% $ vs. total beers sales up only 0.1%
Total Beer Sales minus Craft was down -1.0%
The #1 craft brand was Sierra Nevada Pale Ale, slightly edging out Samuel Adams Boston Lager.
The craft mix is more diversified; the top 10 craft brands account for 41% of the craft total, whereas the top 10 imports account for 68% and the top 10 macro brands 73.5%.
California, by volume, sold more beer than any other state, and in fact sold nearly twice as much as the next highest state, which was Washington.
Craft has a more than 20% market share of three key markets:
Portland, Oregon (29.9%)
Seattle/Tacoma, Washington (24%)
San Francisco/Oakland, California (20.3%)
And here’s a couple of graphs. The first shows the top ten craft brewing companies, with craft being defined more broadly by SymphonyIRI than the BA’s definition. Significantly, it shows that the purchase of Magic Hat/Pyramid/Portland breweries by North American Breweries catapulted them from #34 to #6.
The second compares sales by dollars between craft beer (in blue) and macro brands (in white) and divided by region of the country. The Southeast (24.6%) followed by the Great Lakes states (20.9%) experienced the greatest growth over last year. The big breweries saw their sales dip the most in the West (excluding California, at -3.7%) followed by the Southeast (-3.3%). Big brands actually had pretty good growth (9.2%) in the Northeast, though craft in that region was 15.9%, making it the third-highest region (along with the Plains states).
On KQED Radio this morning on the local show Forum with Michael Krasney held a defacto debate on the proposed Alcohol Mitigation Fee between San Francisco Brewers Guild president Rich Higgins and city supervisor John Avalos, who introduced the ordinance to tax alcohol sold in San Francisco. Rich held his own as best he could, but Avalos is a seasoned politician more used to dodging questions and spinning data his way. Plus, it seemed to me most of the callers were sympathetic to him and hostile to Rich, though most seemed more than a little uninformed (thanks local media). Same deal on the show’s web page, New Alcohol Fee for San Francisco?, where one commenter went so far as to call Rich unprepared because he didn’t know how to remedy the city’s financial problems, as if that’s his job. Unbelievable.
Perhaps most annoying was Michele Simon’s call. She’s an attorney and holds the position of Research & Policy Director for the Marin Institute, the organization that’s largely responsible for the proposed “fee” ordinance. She called to make it clear that their target was the big foreign alcohol companies and that she, too, likes beer or wine now and again so therefore the Marin Institute is not a neo-prohibitionist group, as she added that many of their critics have resorted to name-calling. Was she going for sympathy that anyone might have the temerity to be critical toward the organization? I call the Marin Institute a neo-prohibitionist because I sincerely believe that’s what they are, not because I’m on the playground in 5th grade. [Ms. Simon, in a comment (see below) also agrees that name-calling is a tired strategy. I would, however, counter that proper labeling of the character of any organization is useful, and even sometimes critical, to knowing their intentions. When I say the Marin Institute is a neo-prohibitionist group I do so not to simply lob a pejorative at them, but instead to characterize them as I indeed view them.]
Of course, their policies are what leads me to that conclusion. I know they keep saying they’re not anti-alcohol — and maybe they even believe it — but what they actually do is contrary to that. Actions speak louder than words. If it quacks like a duck, guess what it is? They may claim to be against just big alcohol, but their actions harm the small family breweries, wineries and distilleries far more than they ever hurt the big foreign corporations.
And they know it, too. Back when they were going after Alcopops, the big companies told them outright that if their legislation passed that every one of them would change the formula of their products so the new legislation would no longer apply to them. Who would it continue to apply to? All the small breweries who barrel-age their beers, that’s who. And they told the Marin Institute that fact directly to their face, in Sacramento. So they knew that their scheme would not do what they said it would and would instead directly harm people they claimed were not their target. What did they do? Crow about their hollow victory, that’s what.
Then there’s the fact that the Marin Institute gets at least a portion of its funding from the Robert Wood Johnson Foundation, which is most definitely not just a neo-prohibitionist group, but the neo-prohibitionist group. Read the Center for Consumer Freedom for their very different take on whether the Marin Institute is neo-prohibitionist or not. [Note: Ms. Simon writes that they no longer receive funding from the RWJF. The report I cited is from 2003, and it may well be they no longer do receive funding from them.]
I know that I’m not beloved in the halls of the Marin Institute, but that’s probably because they’re used to having most people, and particularly the media, swallow what they’re selling uncritically, often without examining it all. They enjoy widespread support because of the way they manipulate their information and shape propaganda to raise money from the faithful. Few politicians can stand up to them because of decades of demonizing alcohol on several fronts. And the media just seems to roll over rather than be seen as pro alcohol. That leaves mostly the industry to fight them, and they end up seeming too self-serving even if that’s not always the case. That’s how we got to where we are today, with alcohol paying more in taxes than any other consumer good — and still it’s not enough. It’s never enough.
Anyway, you can listen to the entire hour here, or you can go to the KQED archive and download it for later.
Still, overall I think Rich did much better than I would have done. I would have lost it on more than a few occasions. He at least kept his cool. Well done, Rich.
Here’s another interesting infographic that nicely shows both the production and consumption of beer worldwide. It’s interesting to see the relationship between the two for each nation side by side. You can then easily work out how much beer they export or how much beer is imported into each country. One caveat, it shows Europe producing more than Asia — which recently changed — suggesting the data may be at least older than this year.
The Turbo Tax Blog last month had an interesting post looking at the question of How Much Money Does The Government Make From Alcohol? It’s an overview, of course, and doesn’t include some of the dirty details that make alcohol the most taxed consumer good out there (though tobacco is pretty high, too), but there certainly is some interesting information contained in the rather large infographic.
An interesting international perspective was expressed in The Shout, an Australian trade publication covering “hotel, bar, club & liquor industry news.” The short piece, entitled “… as Specialist Hails Craft Beer Revival,” is about the International Beer Shop, a specialty beer store in Perth that carries 850 beers from around the world. The shop’s manager, [...]
If you’re a member of the Brewers Association, a trade organization for small breweries, you have the opportunity to listen in on the bi-monthly Power Hour, an on-line, interactive teleconference series. This morning’s topic was “Craft Brewing & Mid-Year Category Sales Review.” I didn’t listen in to this one, but happily Ray Daniels, he of [...]
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In a provocative article today, the business-oriented website, TheStreet.com, which describes itself as the “leading digital financial media company,” pondered whether Anheuser-Busch InBev might possibly be considering buying the Craft Brewers Alliance (CBA). The piece, by Miriam Reimer, entitled Anheuser-Busch Takeover Target: Craft Brewers Alliance?, certainly had the wags wagging on the blogosphere today. There’s [...]
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Marketwatch recently had a fun little video from the Great British Beer Festival about “U.S. independent beer brewers outpac[ing] their U.K. cousins and gain[ing] market share.” Interviewed in the video are UK beer writer Pete brown and also Bob Pease, COO of the Brewers Association.
While MillerCoors had already announced their intention to start up a new division dedicated to its smaller brands and imports, today they announced that Tenth and Blake Brewing Co. was open for business. There’s no website yet, but there is a Facebook page. Here’s the press release: Tenth and Blake Beer Company Opens for Business [...]
Ukiah’s Mendocino Brewing announced today that it’s acquired Butte Creek Brewing and “will be brewing these beers at its state-of-the-art brewery at Ukiah, CA.” Butte Creek was originally founded Chico, California, in 1998 by former brewers from Sierra Nevada Brewing Co. From the press release: Butte Creek Beer — “The Official Beer of Planet Earth.” [...]
I was one of 42 beer writers who contributed to this big 960-page book telling the stories of 1,001 world-famous beers. The book is now available at Amazon.com and other fine booksellers.