Beverage Dynamics Fall 2024 | Page 29

IPAs , NA Driving Beer Sales

by KRYSTINA SKIBO

Beer sales have been less than desirable as of late , to put it mildly . The U . S . beer industry ’ s volume consumption decreased 4.4 % in 2023 to 2.68 billion 2.25−gallon cases , according to the Beverage Information Group ’ s 2024 Industry Overview .

Just two beer segments — imported and flavored malt beverages ( FMBs ) — achieved any volume growth and that wasn ’ t enough to offset the significant decline of other domestic beer categories .
How much have things changed ? Anheuser-Busch ’ s Bud Light , long the top-selling brew , in 2023 slipped to number two , behind Modelo Especial , following a consumer boycott of Bud Light after a controversial marketing move . This past July , Bud Light fell to number three after Michelob Ultra took second place .
Craft beer sales have slowed with the rise of too many breweries , consumers not drinking as much beer , and those that do drink beer opting for less-expensive brews . It doesn ’ t help matters that the price of beer has skyrocketed , says Greg Winget , head brewer at Valparaiso , IN-based Sea of Monsters , a brewery owned by Journeyman Distillery .
“ Since beer is an agricultural product , when the economy shifts , the pricing for it ultimately has to follow suit ,” Winget says . “ But now this means as people walk into bars , they ’ re doing a value assessment and seeing that cocktails are closer in price to beer , so they ’ ll just choose the cocktail .
Another casualty of the huge proliferation of craft breweries “ is that many of them aren ’ t good ,” Winget continues . “ Customers go and try these poorly constructed beers that are very expensive , and so they think they ’ re wasting their money . It ’ s our responsibility to win back the affection of customers and show them we can make a well-crafted product with some intrigue behind it and is worthy of their money .”
The craft beer industry faced major challenges in 2023 : slower growth , increased competition , supply chain issues and climate change , says Katherine Benecke , general manager of Treadwell Park , a beer hall with two locations in New York . “ This pushed the industry to be smarter , more efficient and more cost effective with their offerings .”
Treadwell Park keeps business afloat amid slow beer sales by offering other beverage options on its menus , as well as stocking innovative flavors that stand out from other bars .
“ The secret to a great beer is character ,” Benecke says . “ Where you came from , who you are and your mission statement will ultimately set your beer apart from the rest and create a brand legacy . As brewers and operators , it ’ s up to us to get those stories across to our customers . Consumers are looking for transparency from brands . That kind of transparency builds trust , and that trust translates to sales .”
Some of the best-selling brands at Treadwell Park include large-scale craft breweries such as Sierra Nevada , Lagunitas and New Belgium , according to Benecke . “ Everyone already knows these brands , which makes them easy to sell ,” she says .
“ To highlight some smaller-scale brands that are booming right now , Talea , a women- and veteran-owned brewery in New York City , is on the rise . Back Home Beer , an Iranianand women-led brewery , has also quickly established a strong foothold in New York , and is available at most of my favorite bars in the city .”
At Lustig restaurant in Culver City , CA , owner and chef Bernhard Mairinger says “ the Trumer Pils ( classic pils ) and the Weihenstephaner Lager are our top sellers , followed closely by the Stiegl Radler ( grapefruit radler ) and K�stritzer ( dark lager ).”
Particularly for restaurants , Mairinger stresses the importance of offering a variety of beers to keep customers happy . www . beveragedynamics . com Fall 2024 • Beverage Dynamics 29