USA: Anheuser- Bush steps into the craft beer segment, small breweries share divergent opinions

Anheuser-Busch's forays are drawing attention from craft brewers, most of whom operate small businesses that each sells a fraction of the beer produced by the nation's Big Three brewers: Anheuser-Busch, Milwaukee-based Miller Brewing Co. and Molson Coors Brewing Co, Wichita Eagle posted August 08.

Some craft brewers worry that Anheuser-Busch, which controls around half the nation's beer market, could shove them aside in the battle for shelf space and tavern taps.

Others say there's little to fear, and that Anheuser-Busch could actually help lure more drinkers from mainstream beers to lesser-known craft brews.

"The more big brewers play around in craft brewing, the more it lends credibility to the segment," said Deb Carey, president of New Glarus Brewing Co. in Wisconsin.

Along with launching its own seasonal and local craft beers, Anheuser-Busch in May paid $82 million for Rolling Rock, a mainstream, nationally distributed beer that carries a craft image.

Also, Goose Island Beer Co. in June announced an agreement to sell its craft beers through Anheuser-Busch's network of wholesale distributors.

"We recognize that consumers are looking for more variety," said Dave Peacock, Anheuser-Busch vice president of business and finance operations. "The successful player in any industry is the one that provides more choices to consumers."

The choices offered by Anheuser-Busch are escalating as the craft beer segment outperforms the overall U.S. beer industry.

America's craft brewers recorded a 9 percent increase in sales volume in 2005 over the previous year, according to the Brewers Association, the Colorado-based trade group for craft brewers.

Overall beer industry sales dropped an estimated 0.3 percent in 2005. That included a 1.8 percent decline for Anheuser-Busch and a 0.8 percent decline for Miller Brewing, according to trade publication Beer Marketer's Insights.

The craft beer segment - composed of more than 1,300 smaller breweries, including brew pubs - accounted for just 3.5 percent of the total U.S. beer market in 2005, reports stated. But the segment's market share is growing, up from 3 percent in 2000.

Anheuser-Busch's attempts to crash the party include the launching of several small brands, such as Beach Bum Blonde Ale, that are sold seasonally.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .