|
|
 |
|
Viewing report
|
|
|
|
Alcoholic Drinks in the US
Euromonitor International, Dec 2009, Pages: 115
The “Alcoholic Drinks in the US” market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Why buy this report:
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage: Beer; Cider/Perry; RTDs/High-Strength Premixes; Spirits; Wine
Executive summary
US economic slowdown halts the trading-up trend
Over the review period, the US alcoholic drinks industry was at the forefront of the trading-up trend with premium beer, wine and spirits gaining sales shares at the expense of economy and standard offerings. Similarly, wine and spirits, which generally are considered to be more premium alcoholic drinks, gained shares at the expense of the more utilitarian positioned beer. With the US economy experiencing a dramatic slowdown in 2008 and 2009 sales of formerly declining economy spirits, wine and beer grew for the first time in several years while premium spirits, wine and beer found growth difficult to achieve.
As on-trade sales falter, off-trade picks up the slack
Until 2008, volume and value sales consistently grew faster in the on-trade channel. The general sense of economic well being encouraged more US consumers to eat outside the home leading to increased beverage sales. Concurrently, manufacturers of premium alcoholic drinks stimulated on-trade consumption by heavily promoting new products and brand relaunches in American bars and restaurants. As the US economy soured many consumers saw their disposable (and non-disposable) incomes shrink and they looked to limit non-essential spending such as on-trade alcohol consumption. In 2008, on-trade volume sales of alcoholic drinks underperformed, declining for the first time since 2001. Retail volume and value sales continued to grow in 2008 and 2009.
Mergers and acquisitions shake-up the US alcoholic drinks industry
In 2008, the US alcoholic drinks industry underwent a series of consolidations that further concentrated power among the nation’s top beer manufacturers, while companies that missed out on key acquisitions left themselves vulnerable in the global alcoholic drinks market. The merger of Anheuser-Busch Cos Inc and InBev had a limited impact on the combined company’s US portfolio, yet it made the new firm almost twice as big as its main global competitor and provided it with unrivalled bargaining power with global suppliers. Meanwhile the MillerCoors LLC venture concentrated the fledgling Molson Coors Brewing Co and Miller Brewing Co portfolios and made the combined entity a much stronger domestic competitor to Anheuser-Busch InBev NV. Meanwhile Fortune Brands Inc, which lost out on the V&S Vin & Sprit AB bid, had to give up the US distribution of a leading global premium vodka brand thereby precariously limiting in its presence outside the US.
Distribution remains tied to archaic post-Prohibition regulations
With the defeat of Costco Wholesale Corp’s challenge to Washington State’s alcohol distribution laws, the US’s three-tiered distribution system remains firmly in place. Most alcoholic drinks sold in the US, dating back to the years immediately following Prohibition, must go through an independent distributor. Large national retailers such as Wal-Mart cannot negotiate preferential terms directly with manufacturers and they are required to strike regional and local deals with independent distributors, negating the cost advantages of large national retail operations. Furthermore, retail sales of alcoholic drinks in the US remain under the control of state and municipal governments leading to a mass of local regulations that govern when and what type of alcoholic drink can be sold on a county-by-county basis.
Premium alcoholic drinks are expected to drive industry growth
The US alcoholic drinks industry is very mature with limited volume sales growth on the horizon. The number of 20-29-year-old Americans, who consume the bulk of alcoholic drinks in the US, is expected to flatten out or decline, leading to a slower demand for alcoholic drinks. With limited volume growth and prospects of an economic recovery, manufacturers are expected to stimulate demand for premium alcoholic drinks to maintain healthy value sales growth.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
