Craft Beer Growth in On-Premise Accounts

Discussion in 'Beer News' started by mtalley999, Dec 4, 2012.

  1. mtalley999

    mtalley999 Savant (405) Maryland Oct 6, 2011

    Good Morning all - Just read this today at work and thought many of you would find it interesting. Cheers.

    GuestMetrics Measures the rapid proliferation of craft beers in 2012

    Source: GuestMetrics
    December 3, 2012

    According to GuestMetrics, based on its proprietary database of POS transactions from restaurants and bars, there was a rapid proliferation in the number of craft brands carried in on-premise during 2012, which has been one of the largest drivers of the share losses being experienced by premium and import beers. "Comparing the first three quarters of 2012 against the same period in 2011, there was a massive expansion in the number of unique beer brands carried in restaurants and bars," said Bill Pecoriello, CEO of GuestMetrics LLC. According to Pecoriello, while there were approximately 2,500 unique beer brands carried in bars and restaurants last year, that number has grown 33% to nearly 3,400 brands in 2012.

    "While the largest 15 beer brands in on-premise large account for 61% of retail sales, they only make up 0.4% of the total number of brands carried in restaurants and bars," said Peter Reidhead, VP of Strategy at GuestMetrics. "This means the long 'tail' of nearly 3,400 smaller beer brands accounts for about 40% of sales in the on-premise space." According to data from GuestMetrics, the tail of brands gained nearly 2 points of share during 2012, coming directly at the expense of the top 15 beer brands. GuestMetrics has classified the brands in the tail into three broad buckets: the 60% of brands that were carried in on-premise both in 2011 and 2012, the 10% of brands carried in 2011 but then disappeared from on-premise in 2012, and the 30% of brands that appeared in on-premise for the first time in 2012.

    "In analyzing the long tail of over 3,000 smaller beer brands," said Pecoriello, "one quickly comes to appreciate how difficult it is for the large brewers to compete against such a diverse, fast growing, and rapidly evolving group. Of the 2 points of share that the top 15 beer brands lost in 2012, 50% of the share loss came at the hands of the 2,500 craft brands that were sold both in 2011 and 2012, and the other 50% came at the hands of the 800 new craft brands that appeared for the first time in 2012. It will be critical to closely monitor on a month-to-month basis the pace of proliferation of craft brands in on-premise, and the impact they have on share trends within the beer category."
     
    Bluecane, Levitation and YogiBeer like this.
  2. Nice article. I hope the trend continues.
     
  3. jeb5097

    jeb5097 Aspirant (30) Pennsylvania Jun 27, 2011

    Those are some very interesting numbers to see. Especially the Big Guys losting the same percent in 2012 to fewer craft brands.
     
  4. cavedave

    cavedave Champion (940) New York Mar 12, 2009

    Considering the big boys have been so universally condemned for their tactics in keeping craft beer from being sold at eating establishments one must conclude that when it comes to keeping craft beer off the menu, the big boys really suck at it.
     
    Lantern likes this.
  5. TheodorHerzl

    TheodorHerzl Savant (490) Indiana Mar 30, 2007

    At some point does too much choice and rotation hurt a smaller brewery? It is great for consumers and bars, but dedicated taps are real money and growth drivers. Smaller breweries are trying to get dedicated taps and keeping competiton off the taps is all part of the game. Tap takeovers are a good example. I'm just curious about the seedy side of craft beer tap conversations.

    As a consumer though I love the diversity and quality rotation.
     
  6. Here's an article that discusses that phenomenon -
     
    TheodorHerzl likes this.
  7. rlcoffey

    rlcoffey Savant (490) Kentucky Apr 20, 2004

    Universally? I hear much more about them hogging shelf space thru creation of new packaging. Not that they havent tried to keep craft off taps, but I think that war was lost (or won, depending on perspective) a decade ago.
     
  8. rlcoffey

    rlcoffey Savant (490) Kentucky Apr 20, 2004


    There is a place for both types of establishments: those that have consistent taps with a few rotating and those that have all rotating handles.

    Seems like whining to me.

    “Retailers who are focused on rotating draft handles aren’t focused on building brands,”

    It isnt the retailers job to build brand. This is a situation where 3 tier laws are messing things up again. Without them, the brewer could partner with the retailer in a way that builds brand for the brewer and benefits the retailer too.
     
    mackeyse likes this.
  9. If a brew pub has 8 different beers on tap does that count as 8 brands?
     
  10. if all the beers are from the same company no. the brewery itself is the brand
     
  11. rlcoffey

    rlcoffey Savant (490) Kentucky Apr 20, 2004

    I would say it is 8 brands, but brewpubs are an entirely different thing from what is being discussed.
     

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