Skip to comments.Falling Beer Sales Have Brewery Mergers Over a Barrel
Posted on 01/21/2010 9:29:36 AM PST by Pyro7480
U.S. beer sales volumes fell 2.2% last year, the highest rate since the 1950s, with demand worsening late in the year in a sign of the pressures on big brewers to make their mergers pay off.
The decline, the industry's first since 2003, raises demands for industry leaders Anheuser-Busch InBev NV and MillerCoors LLC to come up with better advertising and to rethink recent price increases, said retailers and analysts.
But they must tread carefully, balancing price moves against a need to drive profits in the wake of the mergers that created the two.
The two giants increased prices by about 5% last year, fresh off InBev NV's acquisition of Anheuser-Busch Cos. and the move by SABMiller PLC and Molson Coors Brewing Co. to combine U.S. operations. Those increases, along with a weak job market and lackluster advertising, contributed to the sales drop, industry analysts said....
Anheuser, the maker of Bud Light, posted a 2.1% decline in shipments last year, its biggest drop since 1976, according to preliminary research by Beer Marketer's Insights. MillerCoors, which produces Coors Light and Blue Moon, had a 1.9% drop. Large suppliers specializing in imported beers fared worse, with Crown Imports LLC, importer of Corona, showing a 5% drop. The small-batch "craft" beer industry continued to represent an industry bright spot, with the biggest among the craft brewers, Boston Beer Co., showing a 1.7% increase.
(Excerpt) Read more at online.wsj.com ...
Hmmm, I wonder why? Could it be how they make decent products?
No crying in your beer (unless you like adding salt...)
I’ve gone over to liquor myself. With having to watch my weight and the price per ounce astronomically cheaper with liqour, it’s a no-brainer. I can make a handle of Bacardi stretch for a couple of weeks, while a 6 pack barely buzzes me on a Friday night.
Boston Beer? Sam Adams? Probably a statistical anomaly. ;)
>> U.S. beer sales volumes fell 2.2% last year
DON’T BLAME ME! I’m doing my part to keep sales up (we all have to make sacrifices but I’m happy to pitch in).
Of course I drink BEER — not Coors, Miller, Bud, Heineken, or any of those other “dog piss” imitations.
Sam Adams is TERRIBLE, with the possible exception of their Winter Lager.
Sam Adams is my favorite brew, glad to see they are still running strong. Glad to see at least a dozen Sam Adams variations at the Supermarket to.
As to the rest of the beer industry - I apologize for not continuing to properly support you. On or about 1/20/09 I seemed to have increased my consumption of whiskey.
That was me.
People have less expendable income, libations are usually the first to go. Starbucks and other coffee outlets had this problem a few years ago and they adjusted, offering more and making a less expensive option available. They managed to maintain their customer base and kept people walking in the doors.
Make a better product for less money, bottom line.
Sam Adams is my favorite but it’s gotten too expensive. Believe it or not Anheuser Bush’s American Ale is quite good and about 2.50 cheaper a 6 pack.
"It was perfectly natural then, with so many different beers to choose from, that a learned cadre of beer experts would appear to explain to the unsophisticated masses what is good beer and what has the nose and character of a harbor-town harlot with a penchant for walking into walls caked with manure. Thus arrived the beer snob."
I’ve had “arrogant bastard”. It’s pretty good but pricey. Is their IPA any good?
***Of course I drink BEER not Coors, Miller, Bud, Heineken, or any of those other dog piss imitations.***
I miss OLYMPIA, made with Tumwater!;-(
>> Thus arrived the beer snob
ROFL! I plead guilty.
Some of wifey’s friends are wine snobs and I rip on them all the time — but I’m just as bad about beer.
I don't believe that is true. Beer, especially, is relatively insulated from economic swings, and beer consumption may increase during recessions as consumers scale back their purchase of more expensive liquors.
The beerconomy needs your help.
How is American beer like making love in a canoe?
Because it’s [copulating] close to water!
Funny Yeungling increased the most. Smallest of the “major” breweries. A Family owned business that isn’t beholden to the stockholder. Oh and it is probably the best macro brew you can buy.
>> I miss OLYMPIA, made with Tumwater!
Years ago, when I was in the Navy in Bremerton, WA I drank a lot of Oly, because that’s what they stocked the barracks beer machine with. Then again, back then if it was “beer” I drank it, didn’t pay attention to brands.
Olympia (or Rainier, for that matter) is in the “dog piss” category IMHO. I never learned where Tumwater is and I don’t want to know... probably the Seattle district where the sewage treatment plant is located. ;-)
(Yet if you offered me a cold one on a hot day I’d drink it! Hard to beat free cold beer.)
I have actually crossed over and simply cannot tolerate the smell or taste of beer.
The beverage of choice is Scotch Whisky. Specifically, Tomatin 25 year old single malt. If not scotch, then Knob Creek Bourbon.
I don't know you,
But I think I love you. :)
Ya can’t send a few hundred thousand thirsty guys overseas without affectin’ beer sales.
When they come home, everything will be all right.
Great article! Except for spoiled beer of course, ALL beer is delicious!
It sure as hell wasn’t me!
I’m doing my part.
I down in central Mexico right now, and that’s my brand!
Not for nothing is the mascot of Budweiser a great, big horse.
What a great link! I love it when some 20-something snot nose tells me what defines a “great beer.” I’ve drunk more kegs of beer than he has drunk beers!
Rule 1: After the first two, they all taste the same.
Rule 2: The fresher the beer, the better. In other words, if it is local, it is probably more tasty.
Rule 3: If it has “orange motifs” and “a taste of dill pickle” it is being sold to snobs only.
Rule 4: Volume counts and so does price!
Put me on the ping list. I have my first ever batch of home brew in a jug in the closet. It’s due out tomorrow, and I’m getting ready to start my second batch. The first is Amber Ale, and next comes a Red.
Yuengling makes good beer. Great Lakes Brewing in Cleveland make a bevy of fine handcrafted beers. Many small batch local breweries around the country make good beer. Many European brewed and bottled beers are good.
Cost is not a factor for me. Taste is. I like a good beer. Forget the watery versions that Anheuser-Busch, Coors and the like call beer.
A really good beer can be enjoyable and be quite palatable at room temp (perhaps an acquired taste - I lived in Ireland for three years).
Yes - Homebrew. The ultimate DIY, and NO TAXES!
Some great kits here. An amazing variety - http://www.northernbrewer.com/brewing/recipe-kits
Happy Brewing !
Since zero took office I’ve switched from beer to whisky...only way I can handle it!
Boil the Hops, Not the Extract!
One of the last and largest of the American owned breweries too...
Yup. Homebrew. Have my Kolsch bottle-conditioning now. Will do a Breakfast Stout next and then a Bavarian Hefeweizen. Still on extract kits - full grain will have to wait, for now. I really want to get a keg setup put together, but that’s a big step funds-wise.