Trade News

Move Over, Rosé!

As Americans enjoy the summer season, there’s a new beverage chilling next to the Rosé. Hard seltzer is poised to assume a meaningful corner of the alcohol market, thanks to its light profile, convenient packaging and, perhaps most of all, the now established popularity of sparkling water. According to Macquarie Research’s Caroline Levy, the popularity of the seltzer drink – made from malted barley or fermented sugar, averages 100 calories or less and is about 5% alcohol – is because “it’s hitting a major trend, which is health and wellness.”

THIS MAP SHOWS THE MOST POPULAR BEER BRAND IN EACH STATE, ACCORDING TO A RECENT GOOGLE SURVEY BY ASKMEN. WE’RE PROUD TO SEE THAT BUDWEISER TAKES THE TOP SPOT IN NOT ONLY OHIO BUT 18.4% OF STATES. COORS LIGHT RECEIVED 13.7% (ALTHOUGH NOT IN ITS HOME STATE OF COLORADO) WHILE BLUE MOON, STELLA ARTOIS AND MILLER LIGHT MADE UP MOST OF THE REST – EXCEPT STAND-ALONE MIKE’S HARD LEMONADE, THE FAVORITE IN IDAHO.

Beer Distributors Add Jobs & Contribute to Nation’s Economy

While beer sales volumes have remained relatively flat, beer distributors have added jobs at a clip of nearly 19% over the last decade as the complexity, increased marketing and number of SKUs has skyrocketed for the average distributor. Most of those increases have no doubt been in warehouse picking, drivers, and salespeople in addition to specialized marketing execs for craft and imports. Beer distributors employ nearly 141,600 Americans.

That’s one of the many fascinating stats in the joint Beer Institute and NBWA Beer Serves America economic impact report. Additional good-news stats:
→ Brewers and beer importers directly employ 69,928 Americans. About 58 percent of brewing jobs are linked to large and mid-sized brewers and beer importers, which means they have a decent living wage and perks like health insurance.

→ Overall, the beer industry contributes nearly $328.4 billion in economic output which is equal to 1.6 percent of the U.S. Gross Domestic Product.

→ Suppliers to the brewing industry – enterprises that manufacture bottles and cans, cardboard case boxes, brewing equipment or marketing displays – generate nearly $102 billion in economic activity and are responsible for nearly 436,650 jobs alone.

→ All told, nearly $58.6 billion in tax revenues are generated by the production and sale of beer and other malt beverages. This is equal to nearly 40 percent of the retail price paid for these products by consumers.

Ohio Craft Brewers More Than Doubled Since 2015

The Ohio Craft Brewers Association reported in May that local craft breweries contributed an economic impact of almost $1 billion ($967 million) in 2018, up 39% from 2015 figures.

The organization also reported an exponential jump in the number of producers since then. There were 135 craft brewers operating in Ohio, producing roughly 1.2 million barrels of beer annually in 2015. “Today, there are 300 craft brewers producing an estimated 1.4 million barrels annually,” per report.

Craft Biz Daily noted that this is a microcosm of craft’s long-tail economics: While the number of craft producers in Ohio more than doubled over the last three-plus years, the industry has only added an extra 200,000 barrels. Jeff Hemminger of OCBA said that the majority of new brewers are taproom-oriented and that only a dozen or so Ohio craft breweries do NOT serve directly to consumers on premise. The OCBA estimates that 50 new local breweries opened last year, and another 65 are in planning.

Further, according to a recent survey of OCBA’s members, which was completed by approximately 140 brewers, more than 100 (over two-thirds of the survey respondents) stated that their brewery plans to expand production within the next two years and more than 80 (over half of respondents) plan facility expansions within the next two years.

Happy Birthday, Yuengling!

D.G. Yuengling & Sons is celebrating 190 years in business this year! The Pennsylvania-based, family-owned business produces 2.5 million barrels per year and is represented in Ohio by Heidelberg Cincinnati and Heidelberg Dayton. “Our family has persevered through some incredible moments in our country’s history, such as two world wars and Prohibition,” said VP of Operations Jen Yuengling. “To say today that we are ‘America’s Oldest Brewery’ and America’s largest craft brewery is incredibly humbling.”

Changes in Craft Brand Sales

The top ten craft brands in IRI’s multi-outlet and convenience channel A year ago, per IRI data to May 20, 2018, the top ten brands by dollar sales looked like this (bold type are brands carried by Heidelberg/Ohio Valley):

1.   Blue Moon Belgian White
2.   Sierra Nevada Pale Ale
3.   Shiner Bock
4.   Lagunitas IPA
5.   Shock Top Belgian White
6.   Leinenkugel’s Shandy Seasonal
7.   New Belgium Fat Tire
8.   Sam Adams Boston Lager
9.   Sam Adams Seasonal
10. Founders All Day IPA

Fast forward a year later, to the latest set of IRI data (May 19, 2019), and the top ten now looks like this:

1.   Blue Moon Belgian White
2.   Sierra Nevada Pale Ale
3.   Shiner Bock
4.   Lagunitas IPA
5.   Shock Top Belgian White
6.   Founders All Day IPA
7.   Leinenkugel’s Shandy Seasonal
8.   Elysian Space Dust IPA
9.   New Belgium Fat Tire
10. Sam Adams Boston Lager