Today’s infographic is about The Business Of Beer, and provides “a look into today’s beer industry,” and includes some interesting factoids. It was created by SteadyServ, which is “a mobile, SaaS-based inventory and order management system for the beer industry.”
Today’s infographic is local to me, and concerns my home county of Sonoma. Entitled Sonoma County Gets Crafty With Beer, it shows how Sonoma has been growing lately in terms of the number of breweries and their overall production. Even though the infographic was created in 2013, two more have actually opened and we now have 20 breweries within our borders. I recently sat on a panel discussion at the Sonoma County Beer, Cider & Spirits Conference, which was put on by the county’s economic development board. We certainly live in a great place for beer.
Today’s Black Friday infographic, which for the start of the traditional holiday shopping season, is a “Holiday Gift Guide For Craft Beer Lovers” brought to you by Lets Pour, an online beverage retailer. All of the items on the gift guide are stocked by them. So instead of braving the absurd crowds today you can do all of your holiday beer shopping from the comfort of your home, with a beer in your hand.
Today’s infographic is yet another pair of slides from a Powerpoint presentation on the Beer Industry by Christian Adeler and Jon Bjornstad in 2011. The first shows that worldwide, the beer industry is dominated by four global conglomerates, ABI, Heineken, SABMiller and Carlsberg.
The second slide shows the market share for each of the four companies in the major regions of the world.
Today’s infographic is titled “Marketing & Advertising,” but it’s really all about shelf placement and the fight for prime real estate on store shelves. It was also created for a Powerpoint presentation on the Beer Industry by Christian Adeler and Jon Bjornstad in 2011. In my experience, craft brewers do pay attention to this, especially the regional brewers, but the big boys have honed it down to a fine science, and use computer software to maximize their efforts.
According to a new report by the Beverage Information Group, “the beer industry saw gains in both dollar and volume in 2012 after a three-year downturn.” Their conclusion was that “well-marketed new products and slight improvements in the unemployment rate contributed to the beer industry’s overall growth.” Here’s the group’s press release with additional findings:
Super-premium, Craft, Imported and Flavored Malt Beverages out-performed the industry overall, as there is increasing demand for higher-priced beer. Super-premium and Premium increased 1.6%, and Craft increased 13.7% to reach 185.2 million 2.25-gallon cases. This is the largest increase for Craft beer in more than a decade.
Imported beer also increased for a third year, even though major brands such as Bass, Beck’s and Red Stripe were removed from the category because they are now domestically brewed. This 1% increase is largely due to consumer demand for a wider selection of products.
Innovations in the Light Beer category, such as the launch of Bud Light Platinum, were not enough to turn things around for the category. Light beer declined for the fourth year in a row. Popular and Malt Liquor also lost volume.
Although the beer industry saw positive changes in 2012, challenges still remain. According to the Beer Handbook, the beer industry will still see increases in the higher-priced categories such as Super-premium, Craft and Imported beer. It remains to be seen if these gains will help the beer industry maintain 2012’s positive direction.
“Today’s consumer no longer sees beer as their only drink option,” says Adam Rogers, senior research analyst, Beverage Information Group, Norwalk, Conn. “Spirits and wine marketers have been savvy in targeting consumers with flavored vodkas, rums and whiskies, as well as sweeter wines which have continued to take share away from the beer industry.”
For a mere $790, you can buy a copy of their annual Beer Handbook.
Today’s infographic is titled “Production Margins,” and it’s a pie chart showing the Cost Breakdowns for a Large Breweries. It was created for a Powerpoint presentation on the Beer Industry by Christian Adeler and Jon Bjornstad in 2011. Not surprisingly, the raw materials to make the beer is the lowest percentage, while packaging and taxes eat up over half of the costs alone.
Rumors and discussions of a possible merger between Anheuser-Busch InBev and SABMiller are nothing new, it’s been talked about by the business press off and on for a number of years now. But it had been quiet lately, most likely because of the deal by ABI to buy Grupo Modelo. But yesterday Reuters fanned the flames of merger once again, in a piece of speculation: Bets on for mega brewer merger as virgin ground shrinks.
With the acknowledged bullet points that “Asia main area with assets left to buy,” and that the ABI and SABMiller would combine the “growth markets” of Africa and Latin America,” they put the price for ABI to buy SABMiller at at least $100 billion. According to Reuters:
Now, with AB InBev planning to return to a comfortable pre-deal debt-to-EBITDA ratio of below two next year, industry experts are betting on a combination of its Budweiser and Stella Artois brands with SABMiller’s Peroni and Grolsch. Some expect a deal within a year.
“It’s more a question of when, not if,” said a banker who has worked on drinks deals. Others, also speaking on condition of anonymity, cited AB InBev’s record as a serial acquirer and the need for a target to match or surpass its $52 billion purchase of Anheuser Busch in 2008.
Asia, they claim, is the next frontier, though many of the bigger breweries are state-owned (which means expensive). Interestingly, while they admit that SABMiller would also be expensive the Reuters’ business analysts believe “a tie-up would be straightforward with antitrust issues relatively easy to fix and immediate benefits of scale.” Other analysts, however, do see potential problems with the merger from “regulators is in the United States and China” because of the market overlap in those countries.
Price, not surprisingly, is the elephant in the room, and the estimated $100 billion ticket price would make such a deal the “fifth-largest corporate acquisition ever.” Reuters places the current value of SABMiller at $84.5 billion and believes it’s in ABI’s best interest “to move fast before SABMiller gets more expensive.” But would SABMiller be interested in selling? “SABMiller’s two top shareholders — cigarette maker Altria Group and the Santo Domingo family of Colombia, which own 27 percent and 14 percent, respectively — ‘may think this is as good as it gets,’ said another banker.” So that suggests that the people behind the curtain might be amiable to the buyout. A couple of years ago, writing about this very possibility of a merger, I recalled that when the AB/InBev merger went down, someone joked that eventually there would be just one international beer company and it would just be called “Beer.” I remember laughing at the time, but truth really is stranger than fiction. So who knows? It should be an interesting year.
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