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« Beer Advocate...the mag | Main | Zymurgy's Best Commercial Beers in America »

July 23, 2007

Craft Brew Kicking Ass and Taking Names - Part 2

Pour_in_glass According to a recent report by AC Nielsen, craft beers are gaining share in supermarkets thanks to increased distribution.  Craft brews increased their share by 0.7 share points compared to the prior year for the 4 week period ending 7/7/07.  And its not just this one 4 week period that has been strong.  This was the 6th consecutive 4 week period of growth!  I know I have been buying a lot lately, but that isn't just me helping to increase performance.  According to the report, supermarkets are devoting more shelf space to craft style beers (note they include Sam Adams and other large brewers within the craft category) with the average supermarket carrying 22.5 percent more craft items during the latest four week period.  This increased availability is being credited as one of the main drivers of share growth.  That could be trouble for the big brewers if people continue to develop a taste for fuller flavored beer.  In fact, I also recently read that supermarket scanner data has shown a number of people buying both an economy light beer (Keystone, Natty Light, Best, etc.) and a craft style beer in the same trip to the grocery store.  Wow!  Here's how I read that....the consumer has decided that if they are going to drink a light American lager then they are going to go cheap.  Then they will treat themselves to a craft style beer rather than the macro brewed American "Premium" that may have been the normal purchase in the past.  That could spell trouble for mass beer marketers looking to differentiate through branding.  The consumer is seeing less differentiation between economy beers and Bud Light, Miller Lite, and Coors Light as the full flavored crafts have helped to change the definition of "different".  Now of course this is on a smaller scale....right now.  Will it ever reach critical mass?  Probably not, but I do expect it to be enough of a problem for the big three to take notice.  After all...craft beer just tastes so gooooood!     

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