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FASTEN YOUR SEAT BELTS2016 MID-YEAR BEER CATEGORY AND
CRAFT SEGMENT REVIEW
Dan WandelPrincipal, IRIBeverage Alcohol Practice AreaSeptember 1, 2016
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CRAFT BEER SUMMARY YEAR-TO-DATE 2016
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CRAFT SEGMENT TRENDSTOTAL U.S. MULTI-OUTLET + CONV AND TOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US Multi-Outlet + Conv and Total US FOOD, YTD and 4 weeks ending August 7, 2016
Craft is experiencing its lowest Dollar Sales percent increase at +9.6% in Supermarkets since 2004.
Craft sales trends have decelerated further in the latest 4 week period.
9.9%
6.2%5.8%
2.2%
Dollar Sales% Chg YA
Volume Sales% Chg YA
Total US MULC
YTD 08-07-16 4 Wks 08-07-16
9.1%
5.6%
4.0%
0.6%
Dollar Sales% Chg YA
Volume Sales% Chg YA
Total US FOOD
YTD 08-07-16 4 Wks 08-07-16
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COMPETITIVE THREATS ABOUND THROUGHOUT BEVERAGE ALCOHOL
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BEER CATEGORY & SEGMENT TRENDS AND SHARETOTAL U.S. MULTI-OUTLET AND MULTI-OUTLET + CONVENIENCE
Source: IRI InfoScan Total US Multi-Outlet and Total US Multi-Outlet + Convenience, YTD ending July 10, 2016
Cider sales trends are down significantly from the high double-digit percent sales increases they had during the same period in 2015.
Total US - Multi Outlet Total US - Multi Outlet + Conv
Dollar Sales % Chg YA
Dollar Share of Category
Volume Sales % Chg YA
Volume Share of Category
Dollar Sales % Chg YA
Dollar Share of Category
Volume Sales % Chg YA
Volume Share of Category
CATEGORY - BEER 4.5% 100.00 1.8% 100.00 3.9% 100.00 1.3% 100.00
CIDER -7.3% 1.81 -10.4% 1.12 -8.3% 1.17 -11.0% 0.73
TOTAL BA CRAFT* 11.2% 11.17 7.6% 6.93 12.2% 7.15 8.4% 4.38
CRAFT (IRI DEFINITION) 9.4% 17.23 5.8% 11.11 10.3% 10.94 6.7% 6.97
PREMIUM 1.2% 34.77 -0.4% 41.66 0.2% 40.15 -1.1% 44.64
SUB-PREMIUM -0.3% 12.41 -0.6% 18.97 -1.1% 16.56 -1.6% 23.72
SUPER PREMIUM 8.0% 6.71 7.7% 6.22 9.0% 6.68 8.4% 5.77
FMB's 18.6% 6.35 15.2% 4.20 14.7% 6.63 11.9% 4.42
IMPORT 5.8% 19.84 3.5% 15.95 9.5% 17.45 7.1% 13.37
NA's 1.4% 0.64 -1.4% 0.62 -0.4% 0.32 -3.3% 0.32
*Total BA Craft does not include the following Yuengling brands: Traditional Lager, Light Lager, Black and Tan, Premium, and Premium Light
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TOP 15 BEVERAGE ALCOHOL GROWTH SEGMENTS ACTUAL DOLLAR SALES CHANGE YA - TOTAL U.S. MULTI-OUTLET
Source: IRI InfoScan Total US Multi-Outlet, YTD ending July 10, 2016
Craft remains the top overall Beverage Alcohol Growth Segment.
$120,783,939
$103,876,505
$88,323,613
$81,227,527
$54,814,471
$49,816,304
$40,733,056
$36,541,372
$36,166,326
$32,832,622
$29,975,539
$27,391,062
$25,782,926
$19,009,671
$15,685,139
CRAFT - BEER
($11.00 - $14.99) TABLE WINE
IMPORT - BEER
FMB - BEER
WHISKEY
($8.00 - $10.99) TABLE WINE
SUPER PREMIUM - BEER
VODKA
($4.50 +) BOX TABLE WINE
PREMIUM - BEER
($20.00 - $24.99) TABLE WINE
($8.00-$12.99) SPARKLING WINE
($15.00 - $19.99) TABLE WINE
($13.00-$17.99) SPARKLING WINE
TEQUILA
Change vs YA % Change vs YA
Dollar Sales
9.4% $1,406,884,139
14.7% $809,390,823
5.8% $1,620,390,500
18.6% $518,354,008
6.4% $911,347,229
4.2% $1,229,647,595
8.0% $548,201,950
4.6% $834,239,219
22.5% $196,745,741
1.2% $2,839,600,874
27.1% $140,407,729
13.9% $224,167,437
10.3% $274,906,187
24.7% $96,032,618
8.3% $204,170,844
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BEVERAGE ALCOHOL SALES TRENDS INDIVIDUAL CHANNELS
Source: IRI InfoScan Total US FOOD, Total US Drug, Total US Convenience, and Sum of Total Liquor Stores RMA, YTD ending July 10, 2016
Total US - Food Total US - Drug Total US - ConvSum Of Total Liquor Stores-RMA - Liquor
Dollar Sales % Chg YA
Volume Sales % Chg YA
Dollar Sales % Chg YA
Volume Sales % Chg YA
D ollarSales % Chg YA
Volume Sales % Chg YA
Dollar Sales % Chg YA
Volume Sales % Chg YA
CATEGORY - BEER 4.1% 1.4% -1.2% -2.3% 3.4% 0.8% 1.4% -2.6%
CIDER -7.6% -11.1% -10.1% -11.6% -10.5% -12.4% -7.3% -11.0%
TOTAL BA CRAFT* 11.7% 8.4% 4.8% 2.2% 14.6% 10.7% 3.2% -2.2%
CRAFT (IRI DEFINITION) 9.6% 6.2% 4.4% 0.9% 12.7% 9.2% 3.9% -2.8%
PREMIUM 1.1% -0.3% -4.3% -3.9% -0.3% -1.7% -2.3% -4.7%
SUB-PREMIUM -1.7% -1.8% -5.5% -4.5% -1.5% -2.3% -5.5% -5.5%
SUPER PREMIUM 5.5% 5.3% 0.2% -0.1% 9.8% 9.2% 4.3% -0.6%
FMB's 19.1% 15.7% -2.5% -4.7% 11.9% 9.5% 13.0% 7.0%
IMPORT 3.9% 1.5% 5.2% 3.1% 13.8% 11.8% 3.0% 2.1%
NA's 1.5% -1.4% -14.1% -15.8% -13.6% -17.7% 4.5% -0.7%
TOTAL WINE 5.7% 2.7% 3.4% 0.2% 5.6% 3.6% 1.2% -0.9%
SPIRITS 5.1% 3.1% 0.3% -1.8% 10.3% 12.7% 4.3% 1.0%
COOLERS -2.7% 0.2% -11.1% -10.6% 13.0% 16.6% -0.2% -11.6%
*Total BA Craft does not include the following Yuengling brands: Traditional Lager, Light Lager, Black and Tan, Premium, and Premium Light
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SEGMENTS’ HISTORICAL DOLLAR SHARE OF BEERTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
FMB’s lead all Segments in Dollar Share growth this year at +0.5.
15.39 17.29 19.27 21.00 21.28
0.91 1.562.27 2.38 2.09
38.34 36.17 34.50 33.02 32.37
14.67 13.45 12.66 11.64 11.27
6.72 6.63 6.22 6.11 6.29
3.53 4.71 5.02 5.42 5.97
19.42 19.15 19.02 19.33 19.61
0.90 0.84 0.81 0.80 0.79
2012 2013 2014 2015 YTD 2016
NA's
IMPORT
FMB's
SUPER PREMIUM
SUB-PREMIUM
PREMIUM
CIDER
CRAFT
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TOP 15 BEER VENDORSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Only five of the Top 15 Vendors have managed to gain Share of Total Beer Category Dollar Sales this year.
ANHEUSER-BUSCH INBEV*
MILLERCOORS BREWING
CONSTELLATION BRANDS
HEINEKEN USA INC
BOSTON BEER CO
PABST BREWING CO
DIAGEO GUINNESS USA
MARK ANTHONY BRANDS INC
SIERRA NEVADA BREWING CO
D G YUENGLING & SON INC
NEW BELGIUM BREWING COMPANY
NORTH AMERICAN BREWERIES
CRAFT BREW ALLIANCE INC
THE LAGUNITAS BREWING COMPANY
THE GAMBRINUS COMPANY
Dollar SalesDollar Sales % Chg YA
Dollar Share
Dollar Share Chg YA
$1,951,436,712 2.1% 35.21 -0.70
$1,254,472,257 1.2% 22.63 -0.66
$506,408,977 10.7% 9.14 0.55
$301,991,386 -2.7% 5.45 -0.38
$162,449,756 -7.8% 2.93 -0.38
$128,538,282 17.0% 2.32 0.25
$101,628,137 2.8% 1.83 -0.02
$82,283,582 7.2% 1.48 0.04
$81,318,157 -0.4% 1.47 -0.07
$76,107,341 3.3% 1.37 -0.01
$65,809,941 4.6% 1.19 0.01
$52,234,002 -2.6% 0.94 -0.07
$51,176,170 -2.2% 0.92 -0.06
$48,861,570 14.2% 0.88 0.08
$35,546,909 -6.0% 0.64 -0.07
*Anheuser-Busch InBev data includes Four Peaks and Breckenridge
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TOP 15 BEER BRANDSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Michelob Ultra and Modelo Especial continue to be the top share gainers amongst the Top 15 overall Beer Brands.
BUD LIGHT
COORS LIGHT
MILLER LITE
BUDWEISER
CORONA EXTRA
MICHELOB ULTRA LIGHT
MODELO ESPECIAL
HEINEKEN
NATURAL LIGHT
BUSCH LIGHT
STELLA ARTOIS LAGER
CORONA LIGHT
MILLER HIGH LIFE
BUSCH
BLUE MOON BELGIAN WHITE ALE
Dollar SalesDollar Sales %
Chg YADollar Share
Dollar Share ChgYA
$649,171,043 1.1% 11.71 -0.36
$356,878,081 2.6% 6.44 -0.09
$308,708,380 3.0% 5.57 -0.06
$240,945,777 0.6% 4.35 -0.15
$229,286,804 3.0% 4.14 -0.04
$191,889,027 20.1% 3.46 0.46
$128,746,884 20.6% 2.32 0.32
$112,113,195 -2.2% 2.02 -0.13
$105,926,920 -1.2% 1.91 -0.10
$98,419,779 0.3% 1.78 -0.07
$83,357,643 14.4% 1.50 0.13
$77,884,905 6.1% 1.41 0.03
$68,255,517 -1.2% 1.23 -0.07
$61,007,443 -0.5% 1.10 -0.05
$60,746,494 3.2% 1.10 -0.01
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BEER VENDORS WITH NEW PRODUCT SALES > $1MMTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
New Beer Products Case and Dollar Sales have both increased this year compared to the 2.5MM Cases and $82.4MM Dollars generated through mid-year 2015.
$24,004,526
$16,589,106
$11,077,421
$6,356,511
$5,903,071
$3,234,056
$2,499,394
$1,492,546
$1,465,003
$1,368,329
$1,031,715
MILLERCOORS BREWING
ANHEUSER-BUSCH INBEV*
BOSTON BEER CO
NEW BELGIUM BREWING COMPANY
CONSTELLATION BRANDS
MARK ANTHONY BRANDS INC
SIERRA NEVADA BREWING CO
DIAGEO GUINNESS USA
BELLS BREWERY INC
PABST BREWING CO
NORTH AMERICAN BREWERIES
Dollar Sales
Total New Beer Products:
Case Sales = 2.8MM
Dollar Sales = $100.7MM
*Anheuser-Busch InBev data includes Four Peaks and Breckenridge
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TOP 16 NEW BEER BRANDSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
12 of the Top 16 New Beer Brands have a flavor element to them.
$14,018,409
$6,539,325
$5,616,099
$4,759,123
$4,341,787
$3,425,877
$2,477,481
$1,888,779
$1,883,308
$1,634,659
$1,558,801
$1,411,624
$1,346,743
$1,287,649
$1,049,296
$1,004,192
HENRYS HARD SODA ORANGE
HENRYS HARD SODA GINGER ALE
NEW BELGIUM CITRADELIC TANGERINE IPA
BEST DAMN CHERRY COLA
SAMUEL ADAMS REBEL GRAPEFRUIT IPA
ESTRELLA JALISCO
SIERRA NEVADA OTRA VEZ GOSE STYLE ALE
BALLAST POINT PINEAPPLE SCULPIN IPA
BUD LIGHT LIME STRAW BER RITA SPLASH
CERVEZAS CLASICAS
MIKES HARD PEACH LEMONADE
SAMUEL ADAMS NITRO COFFEE STOUT
BUD LIGHT LIME LIME A RITA SPLASH
SAMUEL ADAMS NITRO WHITE ALE
GOOSE ISLAND FOUR STAR PILS
SMIRNOFF ICE ELECTRIC BERRY
Dollar Sales
Year # of New
Brands
Total New Beer Brand Case Sales
Top New Beer Brand (Based on $ Sales)
YTD 2016 665 2,240,595 HENRYS HARD SODA ORANGE
2015 1150 4,881,824 Coney Island Hard Root Beer
2014 612 7,403,257 Bud Light Lime Mang O Rita
2013 530 5,473,905 Bud Light Lime Straw Ber Rita
2012 415 6,953,181 Bud Light Platinum Lager
Note: Includes brands with sales in December 2014 of $10K or less. Top seller Henry's Hard Soda Orange was given an exception given a December release but slightly over $10K in sales.
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TOP 15 NEW BEER BRANDS (EXCLUDING FMB’S)TOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
IPA’s continue to dominate the top new beer brands ranking.
Note: Includes brands with sales in December 2014 of $10K or less.
$5,616,099
$4,341,787
$3,425,877
$2,477,481
$1,888,779
$1,634,659
$1,411,624
$1,287,649
$1,049,296
$977,382
$851,290
$655,304
$554,711
$526,111
$517,662
NEW BELGIUM CITRADELIC TANGERINE IPA
SAMUEL ADAMS REBEL GRAPEFRUIT IPA
ESTRELLA JALISCO
SIERRA NEVADA OTRA VEZ GOSE STYLE ALE
BALLAST POINT PINEAPPLE SCULPIN IPA
CERVEZAS CLASICAS
SAMUEL ADAMS NITRO COFFEE STOUT
SAMUEL ADAMS NITRO WHITE ALE
GOOSE ISLAND FOUR STAR PILS
SAMUEL ADAMS NITRO IPA
BALLAST POINT WATERMELON DORADO DOUBLE IPA
BALLAST POINT MANGO EVEN KEEL SESSION IPA
NEW BELGIUM GLUTINY PALE ALE
ORCHARDS EDGE KNOTTY PEAR
FIRESTONE WALKER LUPONIC DISTORTION IPA
Dollar Sales
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NEW BEER PRODUCT SALES BY SEGMENTTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
New Craft Products account for over half of Beer’s total new product Dollar Sales. This is up from 42.6% in mid-year 2015.
New Product Dollar Sales by Segment
Share of Total New Product Dollar Sales
$52,947,652
$37,517,056
$5,699,529
$2,606,966
$1,314,014
$538,823
$92,319
CRAFT
FMB's
IMPORT
CIDER
SUPER PREMIUM
SUB-PREMIUM
PREMIUM
CRAFT
52.6%
FMB's
37.3%
IMPORT
5.7%
CIDER
2.6%
SUPER
PREMIUM
1.3%
SUB-
PREMIUM
0.5%
PREMIUM
0.1%
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INFUSED BEER, WINE & SPIRITS DOLLAR SHARETOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, Calendar Year 2012 and YTD ending July 10, 2016
31.2 32.5
7.312.2
1.3 0.90.0
10.0
20.0
30.0
40.0
2012 YTD 2016
Dollar Share of Infused within respective Category
Infused Spirits
Infused Beer
Infused Wine
• Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments.
• Infused Spirits include Flavored Vodka, Gin, Whiskey, Brandy, Rum (including Spiced), Cordials and Premixed Cocktails.
• Infused Wine includes Beverage, Chocolate and Fruit Flavored Wines
Infused Beers share of Total Beer Dollar Sales has increased by +4.9 since 2012. Infused Spirits share has increased by +1.3 since 2012.
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TOP INFUSED SPIRITS VENDORSTOTAL U.S. SUPERMARKETS
$130,330,673
$57,493,206
$55,247,402
$52,554,745
$37,993,485
$19,883,904
$19,664,370
$18,930,958
$17,838,356
$17,427,951
DIAGEO
PROXIMO SPIRITS
SAZERAC CO
PERNOD RICARD
BEAM SUNTORY
HEAVEN HILL DIST
BACARDI USA
SIDNEY FRANK
BROWN FORMAN
MOTTS LLP
Top Vendors - Dollar Sales
0.5%
0.5%
0.4%
0.3%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
PROXIMO SPIRITS
DIAGEO
BOSTON BEER
E & J GALLO
BOATHOUSE BEVERAGE
AMER BVRG MKTR
LEVECKE CORP
HEAVEN HILL DIST
TRES AGAVES
ZING ZANG CORP.
Top Dollar Share Gainers
Boston Beer is the #3 Spirits Vendor Dollar Share Gainer due to its Truly Spiked new hard seltzer products.
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Dollar Share Chg YA
0.5%
0.5%
-0.1%
-0.4%
-0.3%
0.1%
-0.6%
-0.2%
-0.1%
-0.3%
Infused spirits include Flavored Vodka, Gin, Whiskey, Brandy, Rum (including Spiced), Cordials and Premixed Cocktails.
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TOP 10 INFUSED BEER VENDORSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
*Anheuser-Busch InBev data includes Four Peaks and Breckenridge
$165,838,449
$131,618,865
$82,269,874
$77,116,784
$43,939,207
$42,671,063
$13,341,786
$12,092,706
$11,770,076
$5,617,533
ANHEUSER-BUSCH INBEV*
MILLERCOORS BREWING
MARK ANTHONY BRANDS INC
BOSTON BEER CO
PABST BREWING CO
DIAGEO GUINNESS USA
CONSTELLATION BRANDS
HEINEKEN USA INC
ALCHEMY AND SCIENCE
NEW BELGIUM BREWING COMPANY
Dollar SalesDollar share of Infused
Dollar Share Chg YA
24.6% -4.4%
19.5% 0.9%
12.2% -0.8%
11.4% -2.4%
6.5% 2.3%
6.3% -1.0%
2.0% 1.0%
1.8% 0.1%
1.7% 1.1%
0.8% 0.8%
Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments.
Pabst Brewing is the top gainer this year relative to share of Total Infused Beer Dollar Sales.
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TOP 15 HARD SODA BRANDSTOTAL U.S. MULTI OUTLET + CONVENIENCE
Source: IRI InfoScan Total US Multi-Outlet + Conv 4 Weeks Ending August 7, 2016
Total Hard Soda Dollar Sales thru YTD 2016 are $208,991,137 Total Hard Soda Dollar Sales in CY 2015 were $145,806,084.
$6,095,443
$5,205,734
$3,153,381
$2,090,292
$1,720,248
$1,346,613
$1,034,009
$602,204
$441,549
$417,765
$201,134
$164,087
$131,377
$56,811
$51,671
SMALL TOWN NOT YOUR FATHERS ROOT BEER ALE
HENRYS HARD SODA ORANGE
BEST DAMN ROOT BEER
BEST DAMN CHERRY COLA
HENRYS HARD SODA GINGER ALE
CONEY ISLAND HARD ROOT BEER
SMALL TOWN NOT YOUR FATHERS GINGER ALE
SMALL TOWN NOT YOUR FATHERS VANILLA CREAM…
CRABBIES GINGER
CONEY ISLAND HARD ORANGE CREAM ALE
CONEY ISLAND HARD GINGER ALE
HENRYS HARD SODA VARIETY PACK
SEAGRAMS HARD SODA VARIETY PACK
ROOT SELLERS ROW HARD ROOT BEER
THOMAS CREEK ISLANDER GINGER BEER
Dollar Sales
Share of Hard Sodas
Dollar Sales % Chg YA
4 Wk 08-07-16
4 Wk08-07-16
YTD 08-07-16
26.4% -43.2% 151%
22.5%
13.6%
9.0% 100018047%
7.4%
5.8% -35.9% 589%
4.5%
2.6%
1.9% -23.6% 13%
1.8%
0.9%
0.7%
0.6%
0.2% -58.2% 17%
0.2% 913.9% 1476%
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INFUSED BEERS BY SEGMENTTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Infused Craft Beer passed Cider in Dollar Sales earlier this year during the four-week period ending March 20, 2016.
$331,087,638
$130,330,610
$116,233,345
$80,890,279
$16,879,913
FMB's
CRAFT
CIDER
ALL OTHER
DOMESTIC
IMPORT
Dollar Sales
Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments.
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INFUSED CRAFT BEER SALES CONTINUE TO RISE TOTAL U.S. SUPERMARKETS
Infused Craft Beers have increased their share of Total Craft Dollar Sales by +2.1 to date.
Source: IRI InfoScan Total US FOOD, 13 week periods April 1, 2012 through June 26, 2016 and YTD ending July 10, 2016
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Dollar Sales and Share of Total Craft Dollar Sales *
Infused Craft beers are comprised of Fruit/Veggie/Spiced brands from Craft. Seasonals, Variety Packs and Special Releases are excluded from this analysis, except where all items are known to be flavored
*Share is based on 52 week data by year and YTD Ending July 10, 2016
6.7% 7.3% 7.5% 8.9%YTD
11.0%
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334MUSA Population 2020
THE U.S. SHOPPER IS BECOMING MORE DIVERSE
309MUSA Population 2010
3MWhite
10% growth
33MHispanic
53% growth
4MBlack
16% growth
4MAsian
15% growth
1MOther
5% growth
Hispanics will account for 53% of population growth
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GROWING FMCG PURCHASING POWER OF MILLENNIALS
$290B
% of FMCG Dollar Volume
B
O
O
M
E
R
S
M
I
L
L
E
N
N
I
A
L
S
+70% -16%17%
29%
2015 2020
38%
32%
2015 2020
*FMCG = Fast Moving Consumer Goods
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Millennials
Gen X
Baby Boomers
Seniors
28%
19%
27%
20%
33%
45%
13%17%
% US LDA POPULATION % BWS DOLLARS
INDEX
131
136
74
68
BABY BOOMERS REPRESENT MORE THAN THEIR FAIR SHARE OF BEV ALC DOLLARS, MAKING THEM A CRITICALLY IMPORTANT SEGMENT
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary.
SOURCE: IRI BWS Survey | July, 2016
66%
70%
75%
76%
26%
24%
26%
23%
Millennials
Gen X
Baby Boomers
Seniors
% DRINKING ONCE A WEEK OR MORE
THERE ARE LOTS OF OPPORTUNITIES TO CONNECT ACROSS GENERATIONS
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5556
55
35
Millennials Gen X Baby Boomers
Seniors
ALL BUT SENIORS ARE IN-STORE MORE THAN ONCE A WEEK
AVG. # TIMES BOUGHT PER YEARIN A PHYSICAL STORE
SOURCE: IRI BWS Survey | July, 2016
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Both Millennials and Gen X’ers …
Love trying all kinds of different alcoholic beverages.
Prefer bars & restaurants that put a creative spin on the alcoholic drinks they make.
Are always trying the newest alcoholic beverages/trends.
SOURCE: IRI BWS Survey | July, 2016
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21%Changed mind in-store
50%Bought a different brand than planned
SOURCE: IRI BWS P2P Survey | January, 2015
60%
Planned their BWSpurchases
IN-STORE IS IDEAL FOR CREATING ENGAGEMENT AND INFLUENCING AND ALSO FOR CREATING DISRUPTION
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HOME INVITES GREATER VARIETY AND CREATIVE EXPERIMENTATION
4.3
3.6
2.9
3.2
3.5
2.8
2.01.9
Millennials Gen X Baby Boomers Seniors
At Home | On Premise
AVERAGE # OF DIFFERENT TYPES OF ALCOHOL CONSUMED IN PAST 3 MONTHS
SOURCE: IRI BWS Survey | July, 2016
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42%40% 41%
35%
58%60% 59%
65%
Millennials Gen X Baby Boomers Seniors
I make my alcoholic drink decisions based on price
I make my alcoholic drink decisions based on quality
QUALITY IS CHOSEN OVER PRICE ACROSS ALL GENERATIONS
% Agreeing Very Much/Somewhat
SOURCE: IRI BWS Survey | July, 2016
PRICE
QUALITY
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57% 52%
23%
SOURCE: IRI BWS Survey | July, 2016
73%
BEER IS STILL KING AT HOME…
% Drinking Alcoholic Beverage type at home in the past 3 months
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IN RESTAURANTS AND BARS, MILLENNIALS’ EXPLORATORY NATURE REALLY SHINES
37%
24%
33%
13%
17%
13%
27%
16%
25%
8%
12%
6%
Craft Beer
FMB's or Cider
Vodka
Bourbon
Sparkling Wine
Champagne
Millennials | Gen X
% CONSUMED ON PREMISE IN PAST 3 MONTHS
SOURCE: IRI BWS Survey | July, 2016
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CRAFTING SUSTAINED SALES GROWTH
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THE LONG TAIL
• 1,045 Craft Vendors actively selling in Supermarkets• Top 46 Craft Vendors--based on Dollar Sales account for 80% of
Total Craft Dollar Sales
• 5,521 Craft Brands actively selling in Supermarkets• Top 397 Craft Brands account for 80% of Total Craft Dollar Sales
• 7,489 Craft Packages actively selling in Supermarkets• Top 684 Craft Packages account for 80% of Total Craft Dollar Sales
• 51% of Craft’s Dollar Sales Growth this year is attributed to New Products. This compares to 28% for the same period in 2015.
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CRAFT VENDORS VOLUME SALES BREAKDOWNTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
*Vendor Tiers assigned based on 52 week data for Total US FOOD. Actual data based on YTD ending July 10, 2016
Tier 1 Vendors collectively have lost 4.5 Volume Share points to date this year. Tiers 2 & 4 have been the beneficiaries of this share loss.
Craft Tiers*Volume Sales
Volume Sales Chg
YA
Volume Sales % Chg YA
Volume Share
Volume Share Chg
YA
> 1MM Cases (Tier 1) 19,406,259 261,538 -1.3% 58.7% -4.5%
500K - 999K Cases (Tier 2) 3,874,454 921,362 31.2% 11.7% 2.2%
100K - 499K Cases (Tier 3) 5,299,354 295,608 5.9% 16.0% 0.0%
< 99K Cases (Tier 4) 4,456,176 979,136 28.2% 13.5% 2.3%
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TOP 15 NEW CRAFT VENDORSTOTAL U.S SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Emerging new Craft Brewers continue to be more widely dispersed across the country in IRI tracked Supermarket sales.
$610,371
$338,057
$300,408
$154,361
$151,539
$102,415
$100,192
$70,265
$64,352
$63,841
$58,165
$37,639
$36,391
$36,235
$33,010
AUSTIN BEERWORKS
LIVE OAK BREWING COMPANY
8TH WONDER BREWERY
PLATFORM BEER CO
MELVIN BREWING COMPANY
TENNESSEE BREW WORKS
WOLFS RIDGE BREWING
SUNKEN CITY BREWING COMPANY
M I A BEER COMPANY
FORT POINT BEER CO
CRANE BREWING COMPANY
PUYALLUP RIVER BREWING COMPANY
HUSS BREWING COMPANY
TW PITCHERS BREWING COMPANY
PHILIPSBURG BREWING COMPANY
Dollar Sales
Location
Austin, TX
Del Valle, TX
Houston, TX
Cleveland, OH
Alpine, WY
Nashville, TN
Columbus, OH
Hardy, VA
Doral, FL
San Francisco, CA
Raytown, MO
Puyallup, WA
Tempe, AZ
San Francisco, CA
Philipsburg, MT
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TOP 15 IRI DEFINED CRAFT BRANDSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Almost half of the Top 15 Craft Brands are experiencing Dollar Sales declines vs Year Ago. Only four have managed to gain share this year.
BLUE MOON BELGIAN WHITE ALE
SIERRA NEVADA PALE ALE
LEINENKUGELS SHANDY SEASONAL
NEW BELGIUM FAT TIRE AMBER ALE
SAMUEL ADAMS SEASONAL
SHOCK TOP BELGIAN WHITE ALE
SAMUEL ADAMS BOSTON LAGER
LAGUNITAS INDIA PALE ALE
SHINER BOCK
SIERRA NEVADA TORPEDO EXTRA IPA
SAMUEL ADAMS VARIETY PACK
SIERRA NEVADA SEASONAL
FOUNDERS ALL DAY IPA
BELLS SEASONAL
FIRESTONE WALKER 805 BLONDE ALE
Dollar SalesDollar Sales % Chg YA
Dollar Share of Craft
Dollar Share Chg YA
$60,746,494 3.2% 5.1% -0.3%
$33,174,237 -2.9% 2.8% -0.4%
$32,886,795 -2.4% 2.8% -0.3%
$25,318,507 6.9% 2.1% -0.1%
$24,783,667 -17.4% 2.1% -0.7%
$24,020,767 -2.7% 2.0% -0.3%
$23,823,625 -7.7% 2.0% -0.4%
$22,003,663 12.7% 1.9% 0.1%
$18,216,387 6.0% 1.5% -0.1%
$16,719,650 -6.5% 1.4% -0.2%
$13,338,447 -10.5% 1.1% -0.3%
$11,230,572 5.7% 1.0% 0.0%
$10,797,146 92.3% 0.9% 0.4%
$10,628,115 29.1% 0.9% 0.1%
$10,587,195 94.9% 0.9% 0.4%
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TOTAL CRAFT KEY PACK SIZE DOLLAR SALES TRENDSTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Cans continue to increase their share of Total Craft Dollar Sales and are now up to a 15.4 share. This represents a +4.5 share gain vs year ago.
6 CT 11-12 OZ BOTTLE
12 CT 11-12 OZ BOTTLE
6 CT 11-12 OZ CAN
SINGLES 22 OZ BOTTLE
12 CT 12 OZ CAN
4 CT 11-12 OZ BOTTLE
4 CT 16 OZ CAN
15 CT 12 OZ CAN
SINGLES 25 OZ BOTTLE
SINGLES 11-12 OZ BOTTLE
24 CT 12 OZ BOTTLE
4 CT 12 OZ CAN
Dollar Sales % Chg YA
$529,651,426 7.4%
$346,851,142 -0.9%
$88,251,708 66.2%
$65,711,960 4.8%
$55,226,320 25.1%
$23,688,276 4.6%
$19,882,559 59.8%
$10,975,200 164.2%
$9,762,945 -3.6%
$9,671,922 21.2%
$3,866,319 9.0%
$2,614,421 101.7%
TOTAL CRAFT CAN
$ Sales % Chg YA
$181,596,331 54.86%
TOTAL CRAFT GLASS
$ Sales % Chg YA
$997,669,323 4.10%
$13,902,766
$10,411,005
$9,706,861
$9,472,450
$7,514,093
MILLERCOORS BREWING
FOUNDERS BREWING CO
SIERRA NEVADA BREWING…
BOSTON BEER CO
OSKAR BLUES BREWERY
Top 5 Craft Can Vendors YTD 2016
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TOP 10 CRAFT BEER STYLESTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
IPA’s account for over 28 percent share of Total Craft Dollar Sales in Supermarkets.
$332,485,547
$185,578,552
$115,451,357
$94,284,305
$82,673,205
$47,179,488
$43,102,484
$43,062,612
$35,301,265
$31,618,892
CRAFT IPA
CRAFT SEASONAL
CRAFT VARIETY
CRAFT BELGIAN WITS
CRAFT PALE ALE
CRAFT AMBER ALE
CRAFT AMBER LAGER
CRAFT FRUIT/VEGGIE/SPICED
CRAFT WHEAT BEER
CRAFT GOLDEN ALES
Dollar SalesDollar Sales % Chg YA
Dollar Share of Craft
22.8% 28.2%
-3.2% 15.7%
2.0% 9.8%
3.4% 8.0%
0.7% 7.0%
3.5% 4.0%
-1.3% 3.7%
41.7% 3.6%
-0.1% 3.0%
42.9% 2.7%
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CRAFT IPA SUB-STYLES OVERVIEWTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Fruit/Veggie/Spiced IPA’s remain the fastest growing IPA Sub-Style.
$205,404,963
$60,604,301
$23,256,891
$22,806,069
$10,248,716
$6,793,466
$1,987,378
$1,383,763
American
Imperial
Session
Fruit/Veggie/Spiced
English
Belgian White
Other
Black
Dollar Sales
Dollar Sales % Chg YA
Dollar Share of Craft IPA
Dollar Share Chg
YA
15.8% 61.8% -3.7%
6.9% 18.2% -2.7%
32.4% 7.0% 0.5%
662.8% 6.9% 5.8%
55.3% 3.1% 0.6%
6.7% 2.0% -0.3%
33.3% 0.6% 0.0%
-15.6% 0.4% -0.2%
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CRAFT IPA SUB-STYLES # OF BRANDS SELLING TOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Total number of Craft IPA brands selling has exceeded 1,400. Session IPA’s are over 100 and Fruit/Veggie/Spiced IPA’s are over 60 brands.
439594
7851065
1353 1426
2011 2012 2013 2014 2015 YTD 2016
Total Number of IPA Brands
2011 2012 2013 2014 2015 YTD 2016
American 261 340 441 577 727 767
Imperial 117 160 209 277 330 336
Session 5 8 21 46 90 107
Fruit/Veggie/Spiced 5 18 43 62
Black 15 24 33 43 46 43
Belgian White 10 18 23 36 40 38
English 24 28 32 37 38 37
Other 7 16 21 31 39 36
TOTAL 439 594 785 1065 1353 1426
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TOP CRAFT IPA MARKETS MINIMUM $3MMIRI DEFINED MARKETS – FOOD CHANNEL
Source: IRI InfoScan IRI FOOD Markets, YTD ending July 10, 2016
The continued success of Craft IPA sales in its top markets appears to indicate that IPA’s have plenty of runway left to grow their share.
47.5%
37.7%
37.6%
35.3%
34.7%
33.6%
30.6%
30.5%
29.6%
28.8%
San Diego, CA - Food
San Francisco/Oakland, CA - Food
Portland, OR - Food
Seattle/Tacoma, WA - Food
Sacramento, CA - Food
Los Angeles, CA - Food
Philadelphia, PA - Food
Miami/Ft. Lauderdale, FL - Food
Baltimore, MD/Washington D.C. - Food
Raleigh/Greensboro, NC - Food
Craft IPA dollar share of Total CraftShare of Craft
Chg YA
4.7%
2.6%
3.3%
3.0%
2.8%
4.6%
3.5%
4.6%
2.9%
4.0%
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CRAFT STYLE PROFILE: GOLDEN ALESTOTAL U.S. SUPERMARKETS
Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016
Golden Ales are the #10 Ranked Craft Style based on Dollar Sales and are up +43% compared to year ago or +$9.5MM.
$10,587,195
$6,049,332
$1,331,714
$752,952
$643,309
$571,905
$505,979
$498,619
$437,765
$348,706
FIRESTONE WALKER 805 BLONDE ALE
KONA BIG WAVE GOLDEN ALE
REAL ALE FIREMANS #4 BLOND ALE
SAINT ARNOLD FANCY LAWNMOWER ALE
DESCHUTES RIVER ALE
RHINEGEIST COUGAR BLONDE ALE
ATWATER DIRTY BLONDE ALE
SOUTHERN STAR BOMBSHELL BLONDE ALE
DEEP ELLUM DALLAS BLONDE ALE
SAINT ARCHER BLONDE ALE
Dollar Sales
$6,037,375
$1,755,045
$1,604,309
$1,327,945
$1,076,133
Los Angeles, CA
Houston, TX
San Fran/Oakland, CA
San Diego, CA
Sacramento, CA
Top 5 IRI Markets - Food Channel
$163,223
$159,242
$151,521
$110,278
$71,600
NEW BELGIUM GLUTINY GOLDEN ALE
8TH WONDER DOME FAUXM CREAM ALE
AUSTIN BEERWORKS PEACEMAKER ANYTIME ALE
APPALACHIAN MNTAIN BOONE CREEK BLNDE ALE
GRIFFIN CLAW CLUBHOUSE CREAM ALE
Top 5 New Golden Ales
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BEER AND CRAFT DOLLAR SALES TRENDS IRI FOOD REGIONS
Source: IRI InfoScan IRI FOOD REGIONS, YTD ending July 10, 2016
Craft Dollar Trend
10.7%
4.3%
12.1%8.9%
11.8%
9.9%
11.4%
11.3%2.1%
4.2%7.4%
10.2%
3.6%
4.2%
4.6%
0.9%
Beer Dollar Trend
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TOP 10 MARKETS FOR CRAFT SALES IRI DEFINED FOOD MARKETS
Source: IRI InfoScan IRI FOOD Markets, YTD ending July 10, 2016
San Diego has the largest share gain amongst Craft’s Top 10 Markets this year.
Top 10 IRI Tracked Food Markets for Craft
Dollar Sales Dollar Share of Category
Current Change vs YA CurrentChange vs
YA
Los Angeles, CA – Food $65,449,768 $8,553,366 15.75 2.03
Portland, OR – Food $47,592,575 $2,133,219 44.61 1.14
Seattle/Tacoma, WA – Food $46,718,800 $428,478 40.92 0.78
San Francisco/Oakland, CA – Food $41,873,458 $1,945,234 35.81 1.20
New England – Food $35,456,525 $1,677,037 29.89 1.02
Chicago, IL – Food $33,520,938 $2,196,450 23.09 1.25
San Diego, CA – Food $33,124,957 $5,081,559 37.42 3.83
Baltimore, MD/Washington D.C. – Food $29,478,786 $2,968,216 33.94 1.50
Houston, TX – Food $26,377,923 $2,740,622 16.11 0.45
Detroit, MI - Food $23,092,101 $3,638,459 27.52 2.11
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LOCAL CRAFT VS OTHER CRAFT VENDORSMICHIGAN STATE SUPERMARKETS
Source: IRI InfoScan IRI Michigan State FOOD, Quad weeks January 25, 2015 through July 10, 2016
Local Craft Vendor sales continue to outpace Other Craft Vendor sales.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Dollar Sales
Total Michigan Local Craft Total Non-Michigan Craft
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LOCAL CRAFT VS OTHER CRAFT VENDORSMICHIGAN SUPERMARKETS
Source: IRI InfoScan IRI Michigan State FOOD, Calendar Years 2012 through 2015 and YTD ending July 10, 2016
Local Craft Vendors have gained 17.5 share of Total Craft Dollar Sales since 2012.
38.4% 39.9%
47.1%
51.4%55.9%
61.6% 60.1%52.9%
48.6%44.1%
2012 2013 2014 2015 YTD 2016
Dollar Share of Craft
Total Michigan Local Craft Total Non-Michigan Craft
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LOCAL CRAFT VS OTHER CRAFT VENDORSMICHIGAN SUPERMARKETS
Source: IRI InfoScan IRI Michigan State FOOD, Calendar Years 2012 through 2015 and YTD ending July 10, 2016
Local Craft Vendor Dollar Sales continue along at a very healthy double-digit percent increase clip.
36.8%
22.1%
38.6%
27.5% 26.4%28.5%
14.8%
3.3%
7.5% 9.1%
2012 2013 2014 2015 YTD 2016
Dollar Sales % Change Year Ago
Total Michigan Local Craft Total Non-Michigan Craft
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• Craft Brewers: Please continue to send me your new UPC information and high-resolution product images to insure your products are being tracked by IRI.
• Please E-mail me at [email protected]