Boylan Bottling Company
800.289.7978
www.boylanbottling.com
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Beer remained the largest segment of the U.S. adult beverage industry in 2011, accounting for more than four-fifths of total alcohol volume, but was challenged by both economic and consumer trends, resulting in a 1.3 percent decline. According to market research firm Technomic’s 2012 Beer Trends in Adult Beverage Report, total beer volume for the year was 2.8 billion 2.25-gallon cases.
“The beer consumer is really at the heart of the trends shaping the beer market,” said Donna Hood Crecca, Senior Director for Adult Beverage Resource Group at Technomic. “The core consumers for the major domestic brands were among those most impacted by the recession, so their spending habits changed. At the same time, taste preferences evolved, especially among younger consumers, and we saw beer drinkers increasingly seeking different styles and more complex or varied flavor profiles. Both trends affected the powerhouse categories and brands, which resulted in the overall decline.”
Exemplifying this market shift, domestic light beer, which accounted for more than half of total beer volume, suffered a 2.6 percent volume decline, contributing to the industry’s overall contraction. Similarly, regular domestic beer generated one-fifth of total overall volume, and it declined 3.2 percent. In addition, ice beer and malt liquor also suffered severe contractions in sales volume. Further amplifying the impact on the beer industry is the fact that many of the brands experiencing the worst declines are among the largest and most mature in the business.
Still, sales gains were made in several evolving categories within the larger beer industry. Imported beer expanded in 2011 to reach 385 million cases, outperforming domestic beer. Mexican beers in particular dominated, finding favor with both Latino consumers and the larger public.
Craft beer grew 11.2 percent in volume, accounting for 5.5 percent of total beer volume. The category benefited from consumer interest in artisan and local products that feature unique styles and flavor profiles. Sales growth came as several craft brewers expanded production or distribution, while newcomers also entered the market for the first time. The number of craft brewers and microbreweries increased by nearly 200 facilities in 2011.
Cider also emerged as a bright spot within the industry. Although cider remains the smallest category within the beer industry, producers tapped into many of the same consumer trends driving craft beer and posted a large 31.3 percent gain.
Finally, super-premium domestic beer realized an 11.8 percent increase, sparked by product innovation and portfolio expansion by select labels. And flavored malt beverages experienced a 3.3 percent increase resulting from seasonal flavors and new drink introductions.
“These pockets of growth indicate the consumer palate is changing, which represents new opportunities for the beer industry,” said Crecca.
The two largest beer marketers, AB InBev and MillerCoors LLC, together generated nearly three-quarters of total beer volume. Each worked to tap into the emerging segments through product innovation, brand extensions and new brand introductions aimed at portfolio diversification. These efforts were often supported by strategic multi-faceted marketing campaigns.
Imported beer was led by Crown Imports LLC, which increased its share to 44.2 percent of the category on the strength of its Mexican portfolio. The company also grew its share of total beer.
Among craft brewers, D.G. Yuengling & Son jumped ahead of the Boston Beer Company to rank as the largest-volume craft brewer. Its flagship label also edged out Samuel Adams Boston Lager to be the largest-volume craft brand.
Technomic’s 2012 BeerTAB report includes beer industry, category and brand metrics, as well as economic and import/export trends, consumer insights and projections. BeerTAB is part of the Trends in Adult Beverage series. To purchase or learn more about WineTAB, SpiritsTAB and BeerTAB, as well as other industry reports and services for adult beverage suppliers, visit www.technomic.com.
*photo by Adam Fagen
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Have you checked out the latest November/December issue of Convenience Retailer yet? If not, what are you waiting for? The latest issue features:
*Marketing to a Hispanic demographic? Why it matters to c-store retailers.
*Retailers who are giving back this holiday season
*A look at the future of U.S. ethanol production
*Federal menu labeling guidelines. How will they affect c-stores?
*PLUS! Spot On Energy, Moon Pies, Aeroshot, Burrito Kitchens, Van Holten's Pickle in a Pouch, Kerusso, Rocky Mountain Popcorn, Pringles and dozens of other products you should consider bringing to your customers.
The November/December issue of Convenience Retailer is out now. Click on the image below and check it out now!
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With help from Michelle Obama’s Let’s Move program and television shows like The Biggest Loser, as well as extensive media coverage of the country’s growing obesity problem, healthy eating has come to the forefront of many consumers’ minds over the past several years. According to market research company Mintel, 67 percent of Americans are now choosing healthier foods in an overall attempt to improve personal wellness.
“Consumers are more aware than ever of their own nutritional deficits, and what poor eating habits can do in terms of their long-term health,” said John N. Frank, Category Manager for CPG Food and Drink Reports at Mintel. “As a result, today’s consumers are seeking out healthy food with greater urgency. However, skeptical or confused consumers aren’t likely to pay a premium for healthier food, making it hard for manufacturers to justify investment in nutritional/ingredient upgrades.”
Based on Mintel’s research, as age increases so does the likelihood that adults are maintaining a mostly healthy diet. Nearly half (48 percent) of Americans age 65 and over say they pay close attention to how they eat. This compares to just 32 percent of 18 to 24 year-olds. However, one fourth (24 percent) of the 65+ age group (the highest percentage of any demographic) say they do not exercise at all. This could be a principal reason for their healthier eating habits, as that is their main way of controlling their weight and health.
Mintel research also reveals that women seem to think more about healthy foods than do men. Some 67 percent of males think they are a good judge of healthy foods versus 76 percent of females. Sixty-four percent of women say they read nutritional information on products, while only 56 percent of men do the same. In addition, more women than men report that they attempt to promote healthy eating by their children. Sixty-seven percent of women and 57 percent of men claim to eat healthy food more often in an attempt to set a good example for their kids.
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Get ready to experience an exciting, new limited-edition flavor from Milky Way® Brand. Milky Way French Vanilla and Caramel Bar combines caramel, French vanilla-flavored nougat and milk chocolate for a rich, smooth and creamy taste sensation. This new offering expands the brand’s reach, enticing consumers to experience an exciting new flavor from a company they already know and enjoy. In consumer research, 70 percent of those surveyed said they would definitely or probably purchase Milky Way Brand French Vanilla and Caramel Bar when it is released. This new offering leverages the strength of the caramel segment, which is 16 percent of the overall chocolate category. It also capitalizes on the vanilla trend, helping to grow the vanilla flavor segment, which is outpacing growth in all other major categories. The introduction of Milky Way French Vanilla and Caramel Bar is supported by public relations as well as by a digital/social media campaign on Facebook. A variety of eye-catching point of purchase displays will attract consumers and drive sales for retailers. The product will be available to retailers in February 2013.
Mars Chocolate North America
908.852.1000
www.mars.com
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