2. Stale Suds Sales
Although the latest data from various industry sources are slightly different, they are in general agreement that the beer market continues to contract. IWSR, an industry tracking service, reported a sales decline of 1.6% during 2016.
Nielsen reported just a 0.2% increase in sales volume, but a 2.2% increase in dollar sales for the 52 weeks ending 12/31/16, with the domestic premium (-0.7%) and sub-premium (-1.3%) segments responsible for these flat performances.
Without the super-premium segment delivering an 8.1% increase in dollar sales, the total beer market would have been much worse. More-recent Nielsen data showed beer volume declined 1%, but sales increased 1.4% for the 52 weeks ending 12/16/17.

3. Imports Are the Bright Spot
Import beers were the best-performing off- premise segment, with volume increasing 6.8% and dollar sales increasing 9.1%, for the 52 weeks ending 12/31/16.
Imports were also the fastest-growing segment, according to Nielsen’s on-premise channel data, with a 3.7% increase in volume and 5.0% in dollar sales.
The top-5 selling import beer brands for the 52 weeks ending 12/25/16 were Corona Extra, Modelo Especial, Heineken, Dos Equis SS Lager Especial and Stella Artois Lager.

4. Craft Beers Concede Some Market Share
Craft beers sales are still robust, with total dollar sales of $3.84 billion (+7.7%) and total case sales of units (+4.7%) for the 52 weeks ending 12/25/16. The craft beer sub-category was expected to increase in the mid-single-digit range for 2017.
Craft beers’ “niche popularity” has suffered from a proliferation of new brands, which confuses consumers; and retailers are forced to eliminate some SKUs because of limited square footage and shelf space.
In addition, consumers haven’t been totally comfortable with large national and global brewers’ acquisitions of small craft breweries, creating a “craft-style/mass-craft” category. A 2017 poll find that 18% of consumers would drink this new category.

5. The Significance of Flavored Malt and Progressive Adult Beverages
Although hard cider sales continue to decline, the flavored malt beverage (FMB)/ progressive adult beverage (PAB) segment recorded a 7.4% increase in dollar sales for the 52 weeks ending 12/25/16, because of hard sodas and seltzers.
Hard sodas, despite accounting for a small portion of the FMB segment, are boosting the beer/malternative category, because most of hard sodas’ volume is being drawn from wines and spirits.
For many consumers, hard sodas may be the sweet replacement for cider/perry brands and an alternative to bitter craft beers. The FMB segment is forecast to increase at a compound annual growth rate (CAGR) of 4.6% from 2015 to 2020.

6. Beer and Convenience Stores Are a Synonymous Combination
In its Midyear Category Data Report 2017, IRI reported sales at convenience stores for the beer/ale/hard cider beverage sub-category decreased 1.2% for the 24 weeks ending 6/11/17, as many consumers were purchasing healthier beverages.
Convenience store owners appear to be more positive about their 2018 beer sales, as 52.6% expected 2018 beer volume to increase while 42.1% expected it to duplicate 2017’s volume, according to the 2018 Convenience Store News Forecast Study.
According to IRI data for the 52 weeks ending 7/2/17, consumers who purchased beer at a convenience store spent an average of $20.93, compared to $6.85 with no beer.

7. Market Insights
According to Nielsen’s Craft Beer Category Design Audit, 66% of American craft beer consumers said a beer’s package/label was “very” or “extremely” important to generate interest in the brand, while 60% said it was equally important to buy the brand.
Nielsen’s 2017 beer report revealed that Albuquerque/Santa Fe, NM; St. Louis, MO; and Little Rock/Pine Bluff, AR; had the largest increases in female beer drinkers; and Harlingen/Weslaco/Brownsville, TX; Houston, TX; and Cleveland, OH for men.
According to a late-2017 survey from Origin, more than 80% of Millennials, Gen Xers and Baby Boomers said they have a favorite beer. Among Baby Boomers, 30% prefer lager and light beer while 26.5% of all women didn’t have a preference.

8. Advertising Strategies
Since approximately 25% of women don’t seem to have a beer brand preference, consider producing and airing TV commercials featuring testimonials from female customers in which they share their favorite, and why they prefer it.
Convenience stores and similar retailers should use the table on page 3 of the Profilers to promote a bundle discount whenever a customer purchases beer and one or more of the highest index companion products.
Increase interest in flavored malt and progressive adult beverages by offering a discount or coupon to customers when they also buy their favorite beer brand.

9. New Media Strategies
Since the package/label is important to craft beer sales, on-premise and off-premise channels should feature the newest on social media and ask customers to vote for the most-creative. Offer a discount or special price for the winner the week following the contest.
Ask customers to post videos of them preparing their favorite dish that includes beer and/or their favorite dish/snack to serve with beer during major holidays: Memorial Day, Fourth of July, Labor Day, Super Bowl, etc.
Partner with a local graphics-design/arts college to have students create original designs for T-shirts and other promotional items for your pub, restaurant or store. Post them on social media, ask customers to vote for favorite and provide the student with an appropriate prize.