2. Suds Sales Still Satisfactory
Following a 2.0% increase in total 2014 malt beverage sales on- and off-premises, the Beer Institute announced in its 2015–2016 Annual Report that total 2015 sales increased 2.1% to $111.1 billion.
Of that total, $53.5 billion occurred in the off-premise channel (convenience, grocery, liquor stores, etc.), increasing 3.0% and accounting for a 48% share of dollars, but an 83% share of volume, at million barrels.
In the on-premise channel, restaurants accounted for the largest retail dollar amount and share of dollars; however, bars/taverns had the largest volume and was tied with restaurants for the largest share of volume.

3. Segment and Brand Performance
For the 52 weeks ending December 27, 2015, total dollar sales for domestic premium beers increased 1.2% on just an 0.5% increase in case sales.
The domestic super-premium beer category performed much better, with a 7.7% increase in dollar sales and a 6.5% increase in case sales.
Technomic forecasted during August 2016 that total on-premise beer sales would increase 2.0% for the year, with the lodging and fine dining segments leading the sector, with increases of 4.5% and 4.2%, respectively.

4. Craft Contraction and Hard Cider Run
According to Information Resources Inc. (IRI), craft beer sales for the 52 weeks ending September 4, 2016, increased 9.7%, after a 10-year run of double-digit increases.
Some industry analysts attributed the smaller increase to the record number of craft breweries, reaching 4,656 at the end of June 2016, causing market oversaturation.
Hard cider’s sales increase of 15.1% for the 52 weeks ending December 27, 2015 will be a recent peak, as the National Beer Wholesalers Association expects a total of 23.0 million domestic and imported cases for 2016, compared to 28.9 million for 2015.

5. Conveniently at Almost Every Corner
The convenience store channel’s #1 position in 2015 off-premise retail sales and volume continued into the first half of 2016, with a 3.1% sales increase. Microbrews/craft beers increased 22.9%, followed by imports, +16.4%, and super premium brands, +15.4%.
For the 12 weeks ending September 10, 2016, beer sales at convenience stores increased another 2.5%, but volume declined -0.2%. Dollar sales increased just 1.1% from mid-August through September 10th while volume decreased 1.0%.
For all of Q3 2016, however, beer sales rebounded, with domestic brands increasing 2.8%, import brands increasing 14.9% and craft brands increasing 11.1%.

6. Frequent Frosty Fans
It should come as no surprise that more men 18+ than women are frequent beer drinkers (or at least in Cleveland). The Media Audit’s summer 2016 survey of the Cleveland, OH GMA found 69.7% of men drank beer 6+ times during the past 2 weeks.
Although women were just 30.3% of frequent beer drinkers, a larger percentage had incomes of $35,000 or less than men, 48.7% and 26.3%, respectively.
Other interesting differences were 19.6% of African American women were frequent beer drinkers, compared to 8.5% of African American men, and 53.5% of all women had a high school degree or less education, compared to 35.4% of all men.

7. Impacts on the Industry
During Q3 2016, the two biggest mergers in the global beer industry were finalized: Anheuser-Busch’s (AB InBev) acquisition of SABMiller and Molson Coors’ acquisition of the Miller brand in all global markets, except the US and Puerto Rico.
Industry analysts predict that other significant mergers and acquisitions will occur, as competitors look to improve their market position and share.
A December-2016 report from Cowen & Company states that cannabis sales in Colorado, Oregon and Washington are having a negative effect on beer sales. Beer industry advocates don’t totally agree with the conclusion, but concede it may be a trend.

8. Advertising Strategies
Since men and women of various age groups are avid sports and outdoors enthusiasts, offer a coupon to anyone who presents a valid hunting/fishing license, a recent snow skiing lift ticket, etc. Ask them to post videos of their adventures to the stores’ social media page.
Reach the women 25–49 who are frequent beer drinkers and index much higher than men for regularly reading the newspaper’s sports section with ads on the paper’s sports page on its Website, featuring beer brands specifically appealing to women.
A restaurant and a package/liquor store can partner in a co-promotion. Anyone who orders a featured beer brand at the restaurant or buys a six-pack of the same brand at the liquor store receives a coupon/discount to enjoy the brand again at the other business.

9. New Media Strategies
Incentivize men and women with a coupon for a craft beer they haven’t tried in exchange for posting a video review of the craft beer brand.
Local craft breweries can create and post a series of videos showing the various steps in their brewing process with employees as the videos’ presenters.
Local craft breweries could partner with a restaurant and/or sports bar to co-promote “Be-A-Brewmaster-For-A-Day” contest. Patrons register at the restaurant or bar and/or via social media or an app and the winner spends a day at the brewery.