US Hispanic Beer Buying
U.S. Hispanics have a tremendous amount of buying power: $1.7 trillion, which is
higher than the GDP of Canada. The beer industry has realized this potential and
is increasingly targeting this market.
Bud Light and Mexican beer brand Estrella Jalisco, which was recently introduced into
the U.S. by Anheuser-Busch, both released ads this summer appealing to Hispanics.
A Nielsen study found that out of every dollar Hispanics spend on alcohol, 44 cents
goes to purchasing beer, which is more than Asian Americans (34 cents) or non-Hispanic
consumers (39 cents). According to Nielsen, “Hispanics prefer domestic light beers
and imported beers, with brands in those segments receiving more than their fair share
of Hispanic dollars.” Breweries have picked up on this preference, funding major
marketing pushes for Mexican beers like Estrella Jalisco, Dos Equis and Corona.
So far, this approach seems to be working, as sales of Mexican brews are currently
outperforming the rest of the U.S. beer market. Most Mexican brands looking to launch
in the U.S. opt to focus distribution on places with large Hispanic populations such as
California and Texas. Given that California and Texas are home to over 25 million U.S.
Hispanics (nearly half of the entire U.S. Hispanic population), it makes sense that
beer companies would choose to focus their advertising efforts there.
IPA Reigns Supreme Again
The prevalence of India Pale Ales and other hoppy, bitter beers continue to dominate the
craft beer market well into 2018, accounting for more than 25% of all beers sold. This still
holds true despite the beginnings of something of a backlash that has been building for a
while in some circles. In fact, some of that data from early 2018 suggests that
"lighter, crisper" beers are gaining more traction - lagers, ales, and the like. But those
styles are almost always still made with hops. So, in searching for new flavors, some
beer drinkers are going even further, rejecting hops altogether.
the crossroads of the beer world
More Athletes To Sell Beer
For decades, major sports organizations like the
National Football League, Major League
Baseball, and the National Basketball Association
have all held to a tradition of keeping their
actively-playing stars away from the spotlight of
alcohol advertisements. But recent agreements
between players unions for the NBA and MLB
and big beer company Anheuser-Busch InBev
are doing away with that separation.
As Ad Age reports, the two leagues' players
unions have recently struck deals with AB
InBev that would allow athletes to use their
celebrity to market alcoholic beverages.
Currently the NFL which prohibits players
from hocking booze altogether.
The one caveat to this is the oversight of the
Alcohol and Tobacco Tax and Trade Bureau
The federal organization is tasked with
monitoring and rendering judgments on whether
ads violate social responsibility norms, including
alluding to the notion that “consumption of the
alcoholic beverage will enhance athletic prowess,
performance at athletic activities or events,
health or conditioning.”
Lower Beer Prices In Atlanta
At most NFL venues, concession prices are
sky-high. However, that's not the case in
Atlanta. The Falcons had the lowest concession
prices in the NFL in 2017, and starting this
year, they're actually going to get even lower.
The team just announced that it will be cutting
an average of 12 percent off the price of its
most popular concession items. That Bud Burger
that cost you nine dollars last year?
It's only going to cost you eight dollars in 2018.
The best part of the menu isn't the food
prices though, it's the beer prices.
After selling 12-ounce domestic beers for just
five dollars last season, the team is now going
to include a five-dollar craft beer for 2018.
The Falcons will also be selling a 20-ounce craft
beer for just seven dollars. Basically, for just
$20, Falcons fans will be able to drown away all
their sorrows if the team does something
disastrous. And consider that five dollars for
a beer seems like a way better deal than the $35
the NFL was charging for a cocktail at Super
Bowl LII. Yes, that's $35!