6 minute read
Industry Trends
Beer consumption has always provided insights into shifts in demographic preferences and brand marketing. A new study conducted to measure brand preference based on demographics sought to identify trends in the beer industry. It found that Baby Boomers did not pass their own beer brand loyalties down to their Millennial children.
The study, published in the Marketing Science journal, is called “Millennials and the Takeoff of Craft Brands: Preference Formation in the U.S. Beer Industry.” It was written by researchers from Tilburg University in the Netherlands; the Centre for Economic and Policy Research in London; the University of Chicago; the National Bureau of Economic Research; and the University of Texas.
“We found that the differences between Millennials’ brand preferences when it comes to beer are based on their own experiences and broader range of choices when compared to members of the Generation X and Baby Boomer cohorts who did not ‘grow up’ with the same number of choices,” said the researchers. “Older generations built their brand preferences on the limited choices they had, which consisted primarily of brands sold by the major national consumer packaged goods companies.”
The researchers also found that, because Millennials came of age as beer consumers when craft beer emerged on the scene, they were more open to try and build brand loyalties around smaller, lesser known and more diverse brands. As this younger demographic built more fragmented loyalties among craft beer and smaller beer brands, the larger national beer brands saw a decline in market share specifically in this younger demographic.
“In our own case study of the changes in the beer industry, we saw a striking generational share gap with half (50%) of older millennials (25-34-year-olds) drinking craft beer in contrast to 36% of U.S. consumers overall,” said the researchers. “Millennials may value the perception of higher quality for craft beer since our study found 43% of Millennial and Generation X consumers said craft beer tastes better than the national brands. This was in contrast to only 32% of Baby Boomers who felt the same way.”
The researchers studied the geographic differences in the timing and speed of the availability of new craft beers based on location, and they assembled a novel database from various industry sources that tracked the history of all craft beer brands sold in the U.S. They used the unique universal product code (UPC) for tracking.
“For each UPC, we observed the product attributes, including beer style, alcohol content, launch date and
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INDUSTRY TRENDS
location of the brewer, and the eligibility of each brewery for official ‘craft’ designation going back to the 1970s when the first craft brewers entered the market,” said the researchers. “We were able to match this beer census with the NielsenKilts Homescan database, containing the 2004-2018 purchase activity for a national representative sampling of more than 100,000 U.S. households.”
The researchers found that, during that period, the craft beer segment collectively increased from 5.3% in 2004 to 20% in 2018. In 2018, Millennials accounted for 20% of total craft beer sales and allocated 34% of their beer spending to craft brands. This was 14% higher than the 20% Baby Boomers allocated.
A Little Red, White and Blue on the Menu
Add a little red, white and blue to your drink menu! Joree Weatherly, an IZO Spirits mixologist, can help you craft a delicious Cristalino bramble made with IZO Extra Añejo Cristalino Tequila. The fresh berries compliment the wellrounded barrel age on this tequila to make a cocktail that is balanced and refreshing.
INGREDIENTS
• 2 ounces of IZO Extra
Añejo Cristalino
Tequila • ¾ Ounce of Lime • ¾ Ounce of Agave
Syrup • Muddled Raspberries and Blackberries (or blueberries for a more festive look) • Soda Water
Brew Free! or Die Comes to Wisconsin
21st Amendment Brewery is bringing its California craft beers to Wisconsin. 21st Amendment beers will be distributed through Wisconsin Distributors, servicing 30 counties in southern Wisconsin with two warehouses located in Sun Prairie and Appleton. Shaun O’Sullivan, co-founder and brew master at 21st Amendment Brewery, says, “We have a deep respect for the centuries of brewing that have come before us and Wisconsin is certainly at the heart of it, and we are happy to have our beers amongst Wisconsin’s local beers.” honor for us to be able to make our beers available in the great cities of Wisconsin and the birthplace of American beer. Our full lineup of four different Brew Free! or Die IPA beers will be available, including the refresh of our flagship Brew Free! or Die IPA, the brand-new Hazy Brew Free! or Die, as well as Tropical and Blood Orange. But, of course, there’s no way we’d come to Wisconsin without Hell or High Watermelon Wheat!”
First-to-Market, Dealcoholized CBD Wine for Wine and Cannabis Lovers
The popularity of pairing alcohol and cannabis is growing, with Millennials and Gen X leading the consumer base, slowly followed by Gen Z. Plus, 21 states already permit the use of these goods for adult consumption. With that momentum, the 66° Beverage Company introduces a first-tomarket product — its CBD-infused, dealcoholized wines.
With Health Advance Inc. spearheading wine production, this alcohol-free beverage fuses cannabis and wine with 25 mg of broad-spectrum cannabidiol (CBD), specially formulated to take effect within 10 to 20 minutes of consumption. With 66° Beverage Company’s homegrown dealcoholization process and formulation, the wine further features lower calories, sugar and carbohydrates. According to the company, the lack of a hangover serves as the cherry on top.
Each 66° Beverage comes from non-GMO California grapes in a variety of flavors, including dealcoholized red wine, white wine and rosé, each with its own unique profile. The company is helmed by father-and-son duo and
wine connoisseurs David and Michael Katz who have over 40 years of experience in the field of food and beverage manufacturing.
Daviess County Kentucky Straight Bourbon Whiskey
Lux Row Distillers recently released its Daviess County Kentucky Straight Bourbon Whiskey finished in lightly toasted American oak barrels. A limited allocation of 3,000 six-pack cases have reached retail shelves across the country. Featuring a signature combination of ryed and wheated bourbon mash bills, Daviess County Lightly Toasted is aged four-plus years in charred-oak barrels and comes in at 96 proof (48% ABV). The lightly toasted barrel finish gives this limited-edition release a unique flavor profile.
“Finishing our traditional Daviess County bourbon in lightly toasted American oak barrels imparts aromas of caramel, vanilla and hints of oak on the nose, while delivering flavors of sweet caramel with notes of vanilla and coconut on the palate,” notes Lux Row Distillers master distiller John Rempe.
Daviess County Lightly Toasted is the first in a series of annually offered toasted-barrel finishes for the Daviess County brand family, which also includes perennial variants Daviess County Kentucky Straight Bourbon Whiskey, Daviess County Cabernet Sauvignon Finish and Daviess County French Oak Finish.
Founded in St. Louis in 1958 by the Lux Family, Luxco produces, supplies, imports and bottles beverage alcohol products. Its spirits portfolio includes brands from four distilleries: Lux Row Distillers (home of Ezra Brooks, Rebel, Blood Oath, David Nicholson and Daviess County), Limestone Branch Distillery (maker of Yellowstone Kentucky Straight Bourbon Whiskey, Minor Case Straight Rye Whiskey and Bowling & Burch Gin), Destiladora González Lux (producer of 100% agave tequilas, El Mayor, Exotico and Dos Primos) and Ross & Squibb (home of George Remus Straight Bourbon Whiskey and Rossville Union Straight Rye Whiskey). The brand portfolio also includes Everclear Grain Alcohol, Pearl Vodka, Saint Brendan’s Irish Cream, The Quiet Man Irish Whiskey, Green Hat Gin and more. Ansay & ASSOCIATES
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4603 DOMAIN DR., MENOMONIE, WI 54751 PH: (715) 235-2151 • (800) 472-2006
