BUMP Williams Consulting Beer Segment Case Share & Trends

Report
Topics for Today
Current State of the Beer Union.
.
Where do I start with this crazy craft beer thing?
Pairing Beer and Food.
Beer and Food Centric programs.
Promotions.
The next level of Beer “o” logy.
Introduction
• Bios'
• Adam Lambert
– VP Sales Dogfish Head Craft Brewery
• Zach Houlahan
– Mid West East Regional Manager
• Senovia Ramirez
– Beer Centric Food Guru
Current State of the Beer Union
• Courtesy of:
• Bump Williams Consulting
• Guest Metrics
• IRI / Nielsen's
• Brewers Association
Beer Segment 2013 Trends
On-Premise
Y/Y Growth (%) – by beer segment
Y/Y Growth (% ) -- Units
Craft
Premium Light
Import
Premium Regular
Premium Plus
Cider
Other Tertiary Segments
Total Beer
Y/Y Growth (% ) -- Retail $ Sales
Craft
Premium Light
Import
Premium Regular
Premium Plus
Cider
Other Tertiary Segments
Total Beer
Y/Y Growth (% ) -- Price/Mix
Craft
Premium Light
Import
Premium Regular
Premium Plus
Cider
Other Tertiary Segments
Total Beer
BUMP Williams Consulting
2013
3.8%
-10.9%
-6.1%
-7.4%
-7.0%
48.9%
-3.2%
1Q13
3.7%
-10.2%
-7.3%
-6.5%
-6.7%
50.2%
-2.6%
13 weeks thru:
2Q13
3Q13
6.0%
2.6%
-8.8%
-12.4%
-4.4%
-6.0%
-5.8%
-8.8%
-6.4%
-7.2%
56.1%
50.2%
-0.3%
-3.7%
-4.0%
-4.3%
-1.9%
2013
7.1%
-8.4%
-3.9%
-5.0%
-4.5%
48.9%
-0.2%
1Q13
6.9%
-7.6%
-5.1%
-5.1%
-4.2%
49.3%
0.3%
13 weeks thru:
2Q13
3Q13
9.6%
5.6%
-6.1%
-10.0%
-2.3%
-3.7%
-3.2%
-6.2%
-4.1%
-4.8%
56.3%
50.0%
3.2%
-0.6%
4Q13
6.2%
-9.9%
-4.7%
-5.5%
-4.9%
41.7%
-3.8%
11/3/13
7.2%
-8.6%
-3.6%
-4.0%
-3.6%
43.5%
-2.4%
4 weeks thru:
12/1/13
7.5%
-9.9%
-3.6%
-4.7%
-4.5%
44.3%
-3.0%
-0.7%
-1.1%
1.6%
-1.9%
-0.7%
-1.1%
-3.9%
2013
3.3%
2.5%
2.1%
2.4%
2.5%
-0.1%
3.1%
1Q13
3.2%
2.6%
2.2%
1.4%
2.5%
-0.9%
2.9%
13 weeks thru:
2Q13
3Q13
3.6%
3.0%
2.7%
2.4%
2.0%
2.2%
2.5%
2.6%
2.3%
2.4%
0.2%
-0.3%
3.4%
3.2%
4Q13
3.2%
2.3%
2.0%
3.2%
2.9%
0.5%
2.8%
11/3/13
3.0%
2.4%
1.9%
3.1%
2.8%
0.3%
2.7%
4 weeks thru:
12/1/13
3.3%
2.1%
2.1%
3.1%
3.0%
0.7%
3.0%
12/29/13
3.3%
2.6%
2.0%
3.4%
3.2%
0.7%
3.1%
3.3%
3.2%
3.5%
3.3%
3.2%
3.4%
3.5%
-4.8%
-1.5%
3.3%
4Q13
3.0%
-12.2%
-6.7%
-8.6%
-7.8%
41.2%
-6.6%
-5.2%
11/3/13
4.2%
-10.9%
-5.5%
-7.2%
-6.4%
43.2%
-5.0%
4 weeks thru:
12/1/13
4.2%
-12.0%
-5.7%
-7.8%
-7.5%
43.6%
-6.0%
12/29/13
1.0%
-14.1%
-9.0%
-11.3%
-9.7%
37.6%
-8.8%
-3.9%
-4.5%
-7.3%
12/29/13
4.3%
-11.5%
-6.9%
-8.0%
-6.5%
38.3%
-5.7%
Dollar Sales Trends
YTD Ending December 29, 2013
TOTAL U.S. - MULTI
OUTLET + CONV
TOTAL U.S. - FOOD
TOTAL U.S. - DRUG
TOTAL U.S. - CONV
RMA-Sum of TTL
LIQUOR
BEER
$$
$$
$$
$$
$$
Sales
Sales
Sales
Sales
Sales
Dollar Sales
Dollar Sales
Dollar Sales
Dollar Sales
Dollar Sales
% Chg
% Chg
% Chg
% Chg
% Chg
YA
YA
YA
YA
YA
$29,858,283,001
3.2% $9,150,427,801
4.0% $1,245,144,520
3.3% $16,386,297,617
1.3% $559,858,949 12.1%
PREMIUM
$13,653,259,201
0.0% $3,392,352,887
-0.4%
$566,824,526
1.2% $8,332,439,324
-0.7%
$170,748,433
4.4%
SUB PREMIUM
$5,019,470,304
-3.7% $1,127,989,034
-4.1%
$207,616,171
-3.6% $3,208,766,732
-5.2%
$36,397,108
-2.8%
IMPORT
SUPER
PREMIUM
CRAFT
$4,397,827,977
5.7% $1,740,966,941
2.5%
$286,039,766
5.1% $1,872,779,829
7.4%
$144,558,662
9.2%
$2,593,123,979
8.7%
$958,039,134
7.2%
$86,628,057
3.5% $1,182,876,729
7.5%
$45,445,730
16.0%
$1,893,742,117
19.2% $1,227,521,086
17.0%
$56,354,457
16.1%
$460,580,999
25.3%
$131,144,708
28.8%
PAB
$1,464,232,260
21.0%
$376,001,381
21.0%
$30,000,532
85.0%
$880,260,046
16.6%
$14,196,238
19.4%
MALT LIQUOR
$491,180,543
-3.9%
$78,810,412
-2.8%
$6,927,875
-5.3%
$394,537,627
-4.8%
$3,093,059
-6.5%
CIDER
$212,708,824 101.2%
$142,084,701
76.8%
$3,407,129 266.1%
$44,498,760 206.6%
$11,102,245
56.5%
NON ALCOHOLIC
$101,266,014
$76,676,338
-2.8%
$1,271,248 -10.0%
-2.1%
$9,131,826
-2.5%
$3,154,224
11.8%
18.9%
$764,332,020
7.6%
4.1% $1,598,910,005
11.8%
STILL WINE
$8,974,477,964
5.6% $6,231,858,836
3.6%
$579,540,211
7.7%
$716,216,324
TTL SPIRITS
$5,435,933,860
5.6% $3,075,579,800
5.3%
$757,953,462
6.0%
$697,082,627
9.3%
0.4%
$3,497,345
31.4%
$24,732,257
COOLERS
$140,850,800
BUMP Williams Consulting
$64,707,871
8.6%
$2,119,139
4.6%
Source: IRi Advantage YTD Ending Dec 29, 2013
Beer Segment Case Share & Trends
Total U.S. Multi Outlet + Conv
Beer Category Case Sales % Chg YA = +0.2%
Case Share of Total
Beer Category Chg YA
Case Share of
Total Beer Category
CRAFT
4.0%
PAB
3.1%
MALT LIQUOR
2.0%
CIDER
0.4%
NON
ALCOHOLIC
0.3%
PREMIUM
SUB PREMIUM
SUPER
PREMIUM
6.8%
(0.7)
(1.2)
IMPORT
0.4
SUPER PREMIUM
IMPORT
11.1%
0.3
PREMIUM
48.6%
CRAFT
0.6
PAB
MALT LIQUOR
SUB PREMIUM
23.5%
(0.1)
CIDER
NON ALCOHOLIC
BUMP Williams Consulting
0.5
0.2
(0.0)
Source: IRi Advantage YTD Ending Dec 29, 2013
Top 10 Craft Styles
Total U.S. Multi-Outlet + Convenience
Craft Dollar Sales % Chg YA = +19.1%
Dollar Share of
Total Craft Segment Chg YA
Dollar Share of
Total Craft Segment
IPA
ALL OTHER CRAFT
STYLES
21.4%
SPEC
RELSE/SPECLTY/C
OLL
1.7%
3.2
IPA
18.5%
SEASONAL
PALE ALE
OTHER PALE
LAGERS
1.8%
-0.7
-0.4
VARIETY
AMBER ALE
0.0
-1.2
WHEAT BEER
3.4%
SEASONAL
17.8%
BOCKS
4.4%
AMBER LAGER
5.8%
AMBER ALE
6.1%
PALE ALE
11.5%
AMBER LAGER
-0.4
BOCKS
-0.3
WHEAT BEER
-0.2
OTHER PALE LAGERS
0.3
VARIETY
7.7%
SPEC RELSE/SPECLTY/COLL
0.1
Source: IRi Advantage, 52 Wks Ending 01/05/2014
BUMP Williams Consulting
Current State of Craft
• There are more than 2,700 craft breweries operating in the U.S.,
the highest total since the 1880s.
• In 2012, the most recent figures available, the industry provided
an estimated 108,440 jobs in the country, according to the
Brewers Association.
• Craft brewer retail dollar value in 2012 was an estimated $11.9
billion.
• Craft breweries have a few things working in their favor,
perhaps the most important of which is a customer base that's
financially well off. Nielsen reports that 58.9 percent of craft
beer drinkers have annual incomes of $75,000 or more
Where do I start with this crazy craft beer thing?
– Starting small or diving in head first
• Easing into things (The simple approach)
– Couple of beers
– Right Pricing
• A little more complicated (Dipping in all your toes)
– Few Breweries
– Few styles
– Few states
• Going all in (Take the bull by the horns!)
– Dedicating Handles
– Expanded bottle menu
– More Styles, States, Breweries and Collecting
Where do I start with this crazy craft beer thing?
– What package size should I carry?
• Draft
– Pro’s
– Con’s
• Bottles and Cans
– Small Format (12oz)
» Pro’s
» Con’s
– Large Format (22oz and 750 ml)
» Pro’s
» Con’s
Where do I start with this crazy craft beer thing?
– What gives with all these styles and ABV’s
• IPA’s, Pales, Amber’s Seasonal, Lagers, Wheat’s
• Why care about ABV?
• What’s working?
– How do I tell them I have craft beer?
• Point of Sale Support
– Glassware
– Signage
– Menu’s
Pairing Beer and Food
• Choosing craft beer pairings that enhance
one another requires attention to the
dominant taste and flavor elements in
each. When approaching pairing, success is
often found by identifying the characteristics
(taste elements, flavors, intensity and
sensations) of the craft beer you plan to pair
with.
Pairing Beer and Food
Pairing Beer and Food
• The dominant craft beer taste elements will contrast against the
food’s taste elements, so that the beer and food flavors shine.
– Sweet calms sweet - (allowing other flavors rise to the surface).
Examples: peas and carrots; milk and cookies; stout and vanilla ice
cream floats.
– Acidic calms salt – (acid cuts the salt and balances flavor to create a
“cleanness”). Examples: ceviche and tortilla chips; tomatoes and
mozzarella cheese; pickles and a corned beef sandwich.
– Bitter calms sweet – (allowing other flavors rise to the surface).
Example: the sweet of malted barley is calmed and balanced by the
bitterness of hop alpha acids. Think: An India pale ale’s bitterness
calms the sweetness of the icing on a carrot cake.
– Umami complements umami. Examples: mushrooms on fettuccine
alfredo; parmesan cheese on spaghetti and meatballs; an aged old
ale and holiday fruitcake.
Pairing Beer and Food
Beer and Food
•
•
Look for flavor bridges, where the flavors of craft beer can bridge to the flavors in
a food dish
This list represents a tiny sampling of common flavor groups, offering a suggested
pairing to help make the connections.
– Group: Rosemary, juniper, pine, spruce Pairing: American pale ale and rosemary-dusted
creamed chicken
– Group: Brown sugar, butter, caramel, maple syrup, vanilla, coconut,
toffee Pairing: English-style barley wine and blonde brownie with butterscotch sauce
– Group: Mint, dill, basil, endive, coriander, fennel, parsley, lemongrass, bay leaves,
oregano Pairing: Belgian-style saison and white fish with lemon and dill
– Group: Cinnamon, cumin, pepper, cardamom, ginger, clove Pairing: Ginger porter with
Moroccan clove and ginger beef shish kebabs
– Group: Date, fig, raisin Pairing: Belgian-style strong dark ale and bacon wrapped dates
– Group: Pineapple, tangerine, clementine Pairing: American-style India pale ale and
orange chicken stir fry
– Group: Chocolate, truffle, cocoa powder Pairing: Milk stout and double chocolate cake
•
Match strength with strength. Craft beer and food pairings are most successful
when the intensity of the beer matches that of the dish. You don’t want the craft
beer to outweigh the food and vice versa.
Beer and Food Centric Programs
– Pairings
• Simple
• Spring Board
• Swan Dive
– Beer in food
• Doing your own thing
• Breweries doing their thing:
– Cheeses
– Brats
– Soups
– Condiments
– Breads
Beer and Food Centric Programs.
– Beer Dinners (In no order)
•
•
•
•
•
•
•
•
•
•
•
•
Style
Themed (Tapas, Samplings)
Chef’s Choice
Progressive
Brewery
Farm to table-Seasonality
Collaborations
Family Style-Blind Tasting
Breakfast, Lunch, Dinner, Desert
Social Media Dinners
AV Media Dinner
Wine vs. Beer Dinners
Beer Promotions.
• Why Promotions
• Ideas (In No Order)
•
•
•
•
•
•
•
•
•
•
•
Breweries
Style
States
Glassware
Beer Dinners
Beer Weeks
Tools of the trade (Randall’s, Mini Randall’s)
Collaborations
Music
Interactive
Flights
The next level of Beer “o” logy
• Vintage
–
The Art of buying old beer and serving it.
• Aging
–
Stashing your stash.
• Blending
–
Mixing different beers to make new flavors.
• Mixing
–
Craft spirits and craft beer.
Questions?
• Many thanks for your time and energy!
•
•
Cheers
Adam, Zach and Senovia

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