Beer writer Greg Kitsock had an interesting piece in the Washington Post recently, in which he tackled trickle-down economics as applied to the beer industry. It’s called Beer: Trickle-Down Economics and examines what’s going on with beer sales during the current recession, a topic I’ve been speculating on frequently myself. It’s worth a read.
I see these trends slightly differently. I believe that consumers are now more looking for value, less willing to buy into hype. In the case of Keystone Light, I doubt those consumers feel a great difference (besides marketing) between that and the Bud Light or MGD Light they had been buying. Hence, consumers are basically buying the SAME product for the cheaper price.
The increase in the craft segment is the result of a most obviously different product than status quo. The craft beers first look different, then they most certainly taste different…not merely a difference you need a Parker number to justify liking and spending mad cash on.
Beyond the products themselves, craft beer has the new frontier cache that everyone needs to help banish the mundane or dreary parts of their lives. Wine is dead! Liquor is so Bear Stearns!
Viva la differance!