by Todd Antz » Fri Jun 04, 2010 12:29 pm
As big an advocate of craft beer as I am, being on the retail side of this business, I feel the economy is taking a bigger toll. While we have surely seen an increase in craft and import sales, and we have seen more bars and restaurants add better beers to their tap and bottle lists, the average beer drinker is still loyal to their brands. The big beer companies have continued their yearly price hikes on both their premium (their words not mine) brands and their economy brands that they are pricing their core brands out of the range of the average consumer. I've seen an average of a 10% hike in their prices every year for the past 5 years. At a certain point, you just hit a wall on how much you can spend on beer. The big brands have tried making different packages (18 packs for one) that are priced right around what you used to buy a case (24 pack) of the year before. With that, I've seen a large surge in 18 pack vs 24 pack sales over the past few years.
As for craft beer, it is definitely taking a bite out of domestic beer sales. I love the challenge of taking a macro drinker and bringing them over to the right side of the beer universe. Its been a slow movement, but slowly but surely its taking a bite out of their market share. I feel the trend will continue. Its a younger market that is taking the mantle of the craft beer, so we can hope that their buying trends continue.
Keg Liquors
Keeping Kentuckiana Beer'd since 1976
http://www.kegliquors.com617 E. Lewis & Clark Pkwy
Clarksville, IN 47129
812-283-3988
4304 Charlestown Road
New Albany, IN 47150
812-948-0444