Falling Beer Sales Have Brewery Mergers Over a Barrel

WSJ ^ | 01/21/2010 | David Kesmodel

[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.

[Pyro7480]

If you to the graphic at the link above, you notice that Boston Beer and Yuengling were the only two "big" brewers that increased beer shipments.

Hmmm, I wonder why? Could it be how they make decent products?

[a fool in paradise]

No crying in your beer (unless you like adding salt...)

[rarestia]

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.

[1rudeboy]

Boston Beer? Sam Adams? Probably a statistical anomaly. ;)

[Nervous Tick]

>> 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.

[Smogger]

Sam Adams is TERRIBLE, with the possible exception of their Winter Lager.

[AngelesCrestHighway]

Bush’s fault.....

[Made In The USA]

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.

[nralife]

Beer ping

[Toddsterpatriot]

Boston Beer? Sam Adams?

That was me.

[evets]

[newnhdad]

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.

[DogBarkTree]

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.

[Goldsborough]

Sam Adams is TERRIBLE, with the possible exception of their Winter Lager.

Totally agree with you there. SA is a fake microbrew.

[Smogger]

Of course I drink BEER — not Coors, Miller, Bud, Heineken, or any of those other “dog piss” imitations.

"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."

--- http://www.moderndrunkardmagazine.com/issues/01-05/0105-beer-snobbery.htm

[Nervous Tick]

I’ve had “arrogant bastard”. It’s pretty good but pricey. Is their IPA any good?

[Ruy Dias de Bivar]

***Of course I drink BEER — not Coors, Miller, Bud, Heineken, or any of those other “dog piss” imitations.***

I miss OLYMPIA, made with Tumwater!;-(

[Nervous Tick]

>> 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.

[1rudeboy]

People have less expendable income, libations are usually the first to go.

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.

[Allegra]

You're not slacking off, are you?

The beerconomy needs your help.