USA: Beer volume sales estimated to have declined by 0.4% last year

U.S. beer volume sales were roughly flat in 2017, according to retail data provider IRI Worldwide, Brewbound reported on January 16.

The market research firm, which tracks category-wide sales trends at off-premise retailers, reported that total U.S. beer dollar sales topped $34 billion in the firm’s multi-outlet and convenience (MULC) universe of stores (grocery, drug, club, dollar, mass-merchandiser and military). Through December 31, U.S. beer volume sales decreased 0.4 percent while total beer dollar sales increased 1.2 percent.

Dollar sales of domestic premium brands (Budweiser, Bud Light, Miller Lite, Coors Light and others), declined 2.9 percent (more than $398 million) to more than $13 billion while volume sales dipped 3.8 percent.

However, three segments — imports, craft beer and domestic super premiums — grew last year. Dollar sales of imported beer, the second largest segment, increased 8.4 percent to more than $6.5 billion.

Craft dollar sales increased 5.6 percent, to more than $4 billion, while volume sales increased 3.6 percent in 2017. And dollar sales of domestic super premiums — such as Michelob Ultra — increased 11.3 percent, to more than $2.5 billion, while volume sales were up 9.4 percent.

Meanwhile, sales of domestic sub-premium beer, flavored malt beverages, cider and non-alcoholic beer were all in decline. Dollars sales for those categories dipped 1.1 percent, 3.5 percent, 3.1 percent, and 0.7 percent, respectively.

According to IRI, the top selling “craft” brand in 2017 was Molson Coors-owned Blue Moon Belgian White, with off-premise dollar sales topping $280 million. Blue Moon volume sales also grew 5.3 percent last year.

Meanwhile, dollar sales of Sierra Nevada Pale Ale, the second largest craft brand, declined 8.1 percent (more than $10 million).

Volume sales of several other notable core craft brands also struggled in 2017. Among them, Sierra Nevada Pale Ale (-9.1 percent) and Torpedo Extra IPA (-5.5 percent); New Belgium Fat Tire Amber Ale (-12.5 percent); Shock Top (-7.5 percent); and Boston Beer Company’s Samuel Adams Boston Lager (-11.8 percent) and Rebel IPA (-23.1 percent).

Sales of Samuel Adams and Sierra Nevada seasonal SKUs also suffered sharp double-digit declines, down 21.4 percent and 18.3 percent, respectively.

Despite losing $15 million in off-premise sales, Boston Beer still finished 2017 as the top-selling craft beer manufacturer, with dollar sales in excess of $757 million.

Four other top craft producers posted declines in dollar sales: North American Breweries (-6.9 percent), the Gambrinus Company (-0.5 percent), Craft Brew Alliance (-5.4 percent) and Deschutes Brewery (-5.6 percent).

Meanwhile, three large craft beer suppliers were able to achieve single-digit growth in 2017, including Yuengling (3.1 percent), New Belgium (6.2 percent) and Lagunitas (9.4 percent).

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