Anchor Sell Out
Bad Millennials
Thinking of opening a craft brewery or a bar?
You might want avoid targeting millennials in
your marketing – and definitely cut back on the
beer.Goldman Sachs recently downgraded the
stocks of two major brewers – Boston Beer
Company (the makers of Sam Adams and
Angry Orchard cider) and Constellation Brands
(the third-largest beer company in the United
States, and one known for importing Corona
and Modelo) – due to “sluggish sales.”  The
culprit? Yeah, it’s the millennials. Apparently,
younger generations aren’t drinking as much
beer as they used to. The data shows they now
prefer wine and spirits instead. Research firm
Nielsen showed a slight decline in beer
penetration across the United States compared
to 2016, although wine and spirit  s penetration
stayed about the same. But Goldman’s research
revealed a shift away from beer to wine and
spirits amongst those 35-44. Goldman Sachs is
predicting a sales decline in the overall U.S. beer
market in 2017 but we don't believe it.  Beer-
Nesux says craft will grow albeit a lower rate.
The long-rumored sale of San Francisco’s pioneering
Anchor Brewing Co. to Asia’s top beer brewer, Sapporo,
became a reality this month, setting off a new round of
questions about the future of America’s craft-beer
industry.   Anchor, the brewery has been looking for
funding to help fuel growth for at least a year, as sales
have been faltering. They’ve remained a strong brand,
but the many new beers they’ve been releasing haven’t
all done as well as hoped, and it’s been widely
rumored that capacity has been down.

Capacity is the maximum amount of beer a brewery can
brew in a year, and the closer to 100 percent a brewery
is, the more profitable it is.  According to Anchor’s
president, Keith Greggor, they’re currently operating at
between 55 and 60 percent.

None of the beers will change; they’ll still be brewed on
Potrero Hill; the current management team will remain at
the helm for now.. Because of the sale the Brewers
Association will not allow the use its seal on its Anchor
labels. All of which is sad since Anchor is credited with
starting the entire movement t
Brewery Combo- The New York based Brooklyn Brewery has taken minority
stakes in both San Francisco’s 21st Amendment Brewery and Fort Collins,
Colorado’s Funkwerks. The trio is creating a combined sales team

New Legal Size -  A new line has begun appearing on a standard English pint
glass. Traditionally thee is a 10-oz, line but some have added a 13-oz, two thirds
glass since two thirds of a pint is now a legal measure, in the UK.

Good News -  A new study of data from 333,247 participants done by  
Shandong University School of Public Health in China showed that moderate
drinking was associated with a 13 %t and 25 % decreased risk of all-cause
mortality, and 21 p% and 34 % decreased risk of cardiovascular disease mortality,
respectively, in both men and women

Biggest Drinkers - Asia still tops the world in beer consumption, making up
34 % of global beer guzzling, followed by Europe at 27 % North America accounts
for 14 %and Africa just 7 % according to the new Kirin study. By nationality,
Czechs were No. 1 in per capita consumption of beer. Americans ranked No. 20.
New Numbers Are In

New data firom market research firm Nielsen confirms what many beer executives have
long feared: The beer category is continuing to cede sales to wine and spirits.
On-premise volume sales of beer over the 52-week period ending August 2017 were
down more than 2 percent, according to a new report outlining the latest beverage
alcohol trends. During the same period, however, on-premise volume sales for wine and
spirits were up 1.5 percent and 1.6 percent, respectively.

The report found that on-premise visitors are seeking out new experiences and outlet
styles, with brewpubs, tasting rooms and tiki bars especially popular among younger
millennials. Among on-premise establishments themselves, Nielsen said growth rates
within restaurants and bars were under “even more pressure.”“Given that on-premise
visits continue to be rooted in ‘experience’ rather than a ‘habit,’ it has never been more
important for suppliers and retailers to understand, and activate against, specific
consumer needs, occasions and repertoires,” concluded the report.

Nielsen also said off-premise volume sales of beer were up just 0.1 percent during the
52-week period, compared to 1.4 percent and 2.2 percent growth for wine and spirits.
Danny Brager, Nielsen’s senior vice president of beverage alcohol, speculated that e-
commerce could be to blame for decelerating off-premise growth rates, as more
consumers shift to online shopping.“E-commerce may be impacting beverage alcohol in
the traditional off-premise channel in a couple of different ways,” he explained. “One is
online purchasing of alcohol increasingly taking the place of traditional store purchasing.
The other is the indirect impact of less store trips impacting more discretionary
categories, like adult beverages, where a significant percentage of purchasing has
traditionally been impulse driven.”Brager also believes brick-and-mortar retailers who do
not currently offer online alcohol sales could be giving up selling opportunities.
“E-commerce in beverage alcohol, while still relatively small in comparison to many
other categories, will continue to expand,” he said. “Off-premise retailers will need to
deal with a growing segment of consumers who may wish to ‘buy,’ but who may not
need or see the need to visit the store to do so.”Within the craft segment, growth
rates have “decelerated sharply in both channels over the past year,” Nielsen reported.
In wine and spirits, Nielsen said off-premise sales of Rosé have been “out of this world,”
while pointing to cognac, Irish whiskey and tequila as “growth categories.”


Send contributions for On Tap to webmaster@beernexus.com
QUICK HITS
Beernexus.com
FLASH NEWS - FLASH NEWS - FLASH NEWS
Edited by Jim Attacap

BeerNexus