BEER POISED FOR A COMEBACK?

A recent article by Mike Beirne of Brandweek asserts the beer industry is starting to take share from spirits – something that’s been quite the opposite in recent years. As you likely know, consumers have shifted away from beer in favor of wine and spirits for most of this decade, thanks in particular to the millennial and boomer generations. However, says Brandweek, that trend is starting to change.

Since beer began losing share, the industry has fought back tooth and nail. For example, Heineken is running an ad where a consumer chooses a cold beer over a martini. We wouldn’t be surprised if more ads that directly challenge wine and spirits begin surfacing in the coming months.

At the same time, not everyone agrees that beer it up for a big comeback. In the article, Frank Walters of Impact Databank said he doesn’t see it, while Dave Ozgo of DISCUS said the growth in beer is not just coming from spirits, but low-end beers as well.

We think it’s fair to say that consumers are still trading up, whether it’s from low-end beer, wine and spirits to the high-end arena. High-end beer is a force to be reckoned with, true, but low-end beer, just like low-end wine, isn’t doing so hot. People want martinis, premium wine or crafts and imports - or in other words, something to make them standout.