Imported Beer and Flavored Alcoholic Beverages - US - December 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Resources used for the consumer sections
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• In a nutshell
• Competitive context
• Consumers "trading up" their alcoholic beverage choices
• Craft beer an emerging threat to import cache
• Supplier alliances spur growth and set positive stage
• Reasons for drinking less beer today, compared to a few years ago
• Reasons for drinking more beer today than a year few years ago
• Retail distribution
• Beer purchase driving attributes at retail
• Demographic drivers
• Hispanics drive growth
• Adults aged 21-34
• Players, by segment
• Major players
• Regular imported beer
• Innovation highlight: Heineken DraughtKeg
• Light imports
• Targeting the consumer
• Women under-penetrated; potential for growth exists
• Resolving the age dilemma
• Growing the base while maintaining loyalty
• Experimenting with beer pairing
• Leveraging quality taste, taste differentiation, and variety
• Leveraging country of origin
• Beer energy drinks--the rise of a new segment
• Market Drivers
• Consumers "trading up" their alcoholic beverage choices
  • Figure 1: Distribution of households, by income, 1999 and 2006
• Competition from other alcoholic beverages: domestic beer, wine, and distilled spirits
  • Figure 2: Volume sales and market share for domestic beer, imported beer, distilled spirits and wine, 2001-06
• Craft beers present tough competition for the market
  • Figure 3: Total U.S. volume sales of craft beer, 2004-07
• Young adults aged 21-34--the key growth-driving demographics
  • Figure 4: Incidence of personal consumption of beer, by age, May 2006-June 2007
  • Figure 5: Numbers of beers drunk last month, by age, May 2006-June 2007
  • Figure 6: Numbers of imported, regular domestic, and light beer drunk, by age, 2007
  • Figure 7: U.S. population of adults aged 21 and over, 2002-12
• Hispanics drive growth
  • Figure 8: U.S. population, by race and Hispanic origin, 2002-12
  • Figure 9: Incidence of drinking Mexican brands, by race and ethnicity, 2003 and 2007
• Light imported beers, with premium moniker, inject growth in the market
• Market Size and Trends
• Market size
• Overview--all beer
  • Figure 10: Total U.S. retail dollar sales of beer, on and off premises, at current and constant prices, 2002-07
  • Figure 11: Total U.S. retail volume sales of beer, 2002-07
• Imported beer
  • Figure 12: Total U.S. retail dollar sales of Imported beer, at current and constant prices, 2002-07
  • Figure 13: Total U.S. retail volume sales of imported beer, 2002-07
• Market trends
  • Figure 14: New beer product releases, 2002-07
• Luxury light beers
• DraughtKeg arrives in the U.S.
• Market Segmentation
• Introduction
  • Figure 15: Volume sales of imported beer, segmented by type, 2005 and 2007
• Regular imported beer
  • Figure 16: Total U.S. volume sales of regular imported beer, 2002-07
  • Figure 17: Regular imported beer sales, by country of origin, 2004 and 2006
  • Figure 18: Top ten regular imported beer brands, 2004 and 2006
• Light imported beer
  • Figure 19: Total U.S. volume sales of light imported beer, 2002-07
  • Figure 20: Top four light imported beer brands, 2004 and 2006
• Supply Structure
• Foreign trade
  • Figure 21: U.S. beer imports*, by country of origin, 2002-07**
• Alliances and acquisitions
• Companies and brands
  • Figure 22: Manufacturer sales of imported beer in the U.S., 2004 and 2006
• Regular imported beer
  • Figure 23: Selected brand sales and market share of regular imported beer in the U.S., 2004 and 2006
• Light imported beer
  • Figure 24: Selected brand sales and market share of light imported beer in the U.S., 2004 and 2006
• Advertising and Promotion
  • Figure 25: Total beverage alcohol advertising spending trends, 2002-06
  • Figure 26: Selected advertising expenditures for imported beer, by company/brand, 2005 and 2006
• Heineken USA
• Heineken Premium Light
  • Figure 27: Heineken Premium Light, slim can packaing--TV ad, 2007
• Amstel Light
  • Figure 28: Amstel Light, Live Tastefully--TV ad, 2007
• Heineken
  • Figure 29: Heineken, DraughtKeg--TV ad, 2007
  • Figure 30: Heineken, Casino Royale--TV ad, 2006
• Dos Equis
  • Figure 31: Dos Equis, Most Interesting Man in the World--TV ad, 2007
• Crown Imports
  • Figure 32: Corona Extra--TV ad, 2007
• Corona Light
  • Figure 33: Corona Light--TV ad, 2007
• Diageo-Guinness USA
  • Figure 34: Guinness Stout, Alive Inside--TV ad, 2007
  • Figure 35: Red stripe, Boo Unexpected Room of Evil--TV ad, 2007
• InBev USA
  • Figure 36: Beck' s--TV ad, 2007
• Stella Artois
• Retail Distribution
• Introduction
  • Figure 37: Choice of retail channel to purchase beer, by beer type, October 2007
  • Figure 38: U.S. retail sales of imported beer, by channel, 2005 and 2007
• On-premise
  • Figure 39: On-premises places to drink beer, October 2007
  • Figure 40: U.S. on-premise sales of imported beer, at current and constant prices, 2002-07
• Beer, wine, and liquor stores, and mass merchandisers
  • Figure 41: U.S. beer, wine, and liquor store sales of imported beer, at current and constant prices, 2002-07
• Convenience stores
  • Figure 42: U.S. convenience store sales of beer, at current and constant prices, 2002-07
• Supermarkets
  • Figure 43: U.S. supermarket sales of beer, at current and constant prices, 2002-07
• The Consumer: Usage and Frequency of Use
• Summary
• Trends in beer drinking
• Personal beer consumption
• Trends in frequency of use
• Amount of beer drunk, by type of beer and demographics
• Trends in beer drinking
  • Figure 44: Incidence of personal consumption of beer, 2003-07
• Personal beer consumption
  • Figure 45: Incidence of personal consumption of imported, light and regular domestic beer, by key demographics, May 2006-June 2007
• Trends in frequency of use
  • Figure 46: Frequency of drinking different types of beer, 2003-07
• Amount of beer drunk, by type of beer and demographics
  • Figure 47: Frequency of drinking different types of beer, by key demographics, May 2006-June 2007
• The Consumer: Brand Preferences
• Summary
• Incidence of drinking beer by brands
• Favorite brand of beer
• Incidence of drinking beer by brands
  • Figure 48: Incidence of drinking beer by imported and domestic brands, by gender, October 2007
  • Figure 49: Incidence of drinking beer by imported and domestic brands, by age, October 2007
  • Figure 50: Incidence of drinking beer by brands, by race/ethnicity, October 2007
• Favorite brand of beer
  • Figure 51: Favorite brand of beer, by gender, October 2007
• The Consumer: Behavior and Attitudes
• Summary
• Interest in flavored and energy-based beer
• Beer-drinking behavior
• Beer purchase driving attributes at retail
• Importance of brands, flavors and taste and types of beer in purchasing beer
• Incidence of drinking more or less beer compared to a year ago
• Reasons for drinking less beer today, compared to a few years ago
• Reasons for drinking more beer today than a year few years ago
• Attitudes towards beer
• Choice of alcoholic beverages while eating out
• Importance of the country of origin for imported beer drinkers
• Interest in flavored and energy-based beer
  • Figure 52: Interest in flavored and energy-based beer, by domestic and imported beer drinkers, October 2007
  • Figure 53: Interest in flavored and energy-based beer, by race/ethnicity, October 2007
• Beer-drinking behavior
  • Figure 54: Beer-drinking behavior, by domestic and imported beer drinkers, October 2007
• Beer purchase driving attributes at retail
  • Figure 55: beer purchasing habits and preferences, imported vs. domestic, October 2007
• Importance of brands, flavors and taste and types of beer in purchasing beer
  • Figure 56: Attributes and brand preference when purchasing beer, by age, October 2007
• Incidence of drinking more or less beer compared to a year ago
  • Figure 57: Incidence of drinking more or less beer compared to a year ago, by age, July 2007
• Reasons for drinking less beer today, compared to a few years ago
  • Figure 58: reasons for drinking less beer today than a few years ago, imported vs. domestic drinkers, October 2007
• Reasons for drinking more beer today than a year few years ago
  • Figure 59: reasons for drinking more beer today than a few years ago, imported vs. domestic drinkers, October 2007
• Attitudes towards beer
  • Figure 60: Attitudes towards beer, by type of beer and key brands drunk, October 2007
• Choice of alcoholic beverages while eating out
  • Figure 61: Choice of alcoholic beverage while dining at a restaurant, by type of beer and key brands drunk, October 2007
• Importance of the country of origin for imported beer drinkers
  • Figure 62: Selection of beer based on country of origin, by gender, October 2007
  • Figure 63: Selection of beer based on country of origin, by race/ethnicity, October 2007
• Future and Forecast
• Future trends
• Market growth through imported light beer expansion
• Craft beer an emerging threat to import cache
• Beer pairing
• Beer energy drinks--the rise of a new segment
• Alliances among suppliers will set the stage for growth through expansion in distribution channels
• Growth driving demographics--future implications
• Growth in beer consumption is likely to lag population growth
  • Figure 64: U.S. population of adults aged 21+, 2007 and 2012
  • Figure 65: Number of regular domestic and light beers drunk, by age, 2007 and 2012
• Hispanics present continued opportunity
  • Figure 66: Incidence of drinking beer per month, by type, by race/ethnicity, May 2006-June 2007
• Market forecast
• Imported beer
  • Figure 67: Forecast of total U.S. sales of imported beer, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Flavored Alcoholic Beverages
• Market size
  • Figure 68: FDM* U.S. retail sales of flavored alcoholic beverages, at current and constant prices, 2002-07
• Market Segmentation
• Introduction
  • Figure 69: FDM* sales of flavored alcoholic beverage market, segmented by type, 2005 and 2007
• Flavored malt beverages
  • Figure 70: FDM* sales of flavored malt beverages, at current and constant prices, 2002-07
  • Figure 71: Top five flavored malt beverage brands at FDM*, 2004 and 2006
• Flavored cocktails/coolers
  • Figure 72: FDM* sales of flavored cocktails/coolers, at current and constant prices, 2002-07
• Hard ciders
  • Figure 73: FDM* sales of hard ciders, at current and constant prices, 2002-07
• The Consumer
• Introduction
• Personal consumption of flavored alcoholic beverages
  • Figure 74: Incidence of personal consumption of flavored alcoholic beverages, 2003-07
  • Figure 75: Incidence of personal consumption of flavored alcoholic beverages, by key demographics, May 2006-June 2007
• Frequency of drinking FABs
  • Figure 76: Frequency of drinking flavored alcoholic beverages in last 30 days, 2003-07
  • Figure 77: Frequency of drinking flavored alcoholic beverages in last 30 days, by age, May 2006-June 2007
  • Figure 78: Frequency of drinking flavored alcoholic beverages in last 30 days, by gender, May 2006-June 2007
• Flavored alcoholic beverage consumption by brands
  • Figure 79: Personal consumption of flavored alcoholic beverages by brands, by age, May 2006-June 2007
• Appendix: Trade Associations