The global craft beer revolution - IBD Asia Pacific Convention...
Transcript of The global craft beer revolution - IBD Asia Pacific Convention...
The global craft beer revolution
Dr Ina Verstl
Brauwelt International
Sydney 2016
10,000 craft breweries world-wide
Alltech
Top 10 countries withcraft breweries
What is a craft beer?
For the consumer:
• ‘real’, ‘pure’, with no chemicals or preservatives added
• authentic story that can be researched online
• more flavoursome, different and special
• priced as super-premium
Appeal of craft beer
Challenges to Big Beer
• U.S. in structural decline
• Western Europe in structural decline
• Russia in decline
• Brazil, China in cyclical decline
• Mexico, Africa and Asia are growing
Challenges to Big Beer
• further market fragmentation
• new entrants
• more competition
• brewers’ mainstay brands becoming more and more irrelevant
• market share loss
Challenges to Big Beer
Big Brewers and craft beer
“The big breweries are off-trend there, volumes are declining but it's still a very small and slow decline - it's only about 1% a year - it's a death by a thousand cuts.”
Investment research firm Morningstar
Oct. 2015
Craft beer revolution in the U.S.
Craft beer revolution in the U.S.
Brewers Association
U.S. craft beer segment by styles
Craft beer revolution in the U.S.
Craft beer is hurting Big Brewers
AB-InBev‘s beer shipments in U.S.
Beer Marketers Insights
Pareto‘s rule: 20% of vol = 80% of profit
Top 15 global beer brands
Rabobank 2016
Craft beer takes over
2013
Craft beer dollar sales in the U.S. in 2015, by city
Statista
Build or buy?
For MillerCoors Blue Moon and Leinenkugel are craft beer brands
Beer Marketers Insights
Banking over brand building - TCCC
Banking over brand building - TCCC
• 2014: Monster Beverage (USA)
• 2014: Tonicorp dairy (Ecuador)
• 2014: Keurig Green Mountain (USA)
• 2015: China Culiangwang (China)
• 2015: Suja juices (USA)
Serial acquirer: AB-InBev has bought the most craft brewers (2011-2015)
Country Date Acquirer* Acquired FoundedUK February 2011 Molson Coors Sharp’s, Cornwall 1994USA March 2011 AB-InBev Goose Island, Chicago 1988
Australia 2012 Lion (Kirin) Little Creatures 2000Ireland January 2013 Molson Coors Franciscan Well, Cork 1998
Australia April 2013 Asahi Cricketers Arms, Melbourne 2005
USA October 2013 Duvel Moortgat Boulevard, Kansas 1989Norway November 2013 Hansa Borg Nøgne Ø 2002USA February 2014 AB-InBev Blue Point, New York 1997
USA May 2014 AB-InBev 10 Barrel, Portland 2006USA December 2014 Mahou San Miguel Founders, Michigan 1997USA January 2015 AB-InBev Elysian, Seattle 1995Brazil February 2015 AmBev** Wäls, Minas Gerais 1999Colombia May 2015 AmBev** Bogota Beer Company 2002
UK May 2015 SABMiller Meantime, London 1999USA July 2015 Duvel Moortgat Firestone Walker, California 1996
Brazil July 2015 AmBev** Colorado, Sao Paulo 1995USA September 2015 AB-InBev Golden Road, Los Angeles 2011
USA September 2015 Heineken Lagunitas, California 1993USA September 2015 MillerCoors Saint Archer, San Diego 2013
Australia September 2015 Asahi Mountain Goat, Melbourne 1997
Canada October 2015 Labatt** Mill Street, Toronto 2002USA November 2015 Constellation Brands Ballast Point, California 1996
USA December 2015 AB-InBev Breckenridge, Colorado 1990
USA December 2015 AB-InBev Four Peaks, Arizona 1996UK December 2015 AB-InBev Camden Town, London 2010
Craft beer deals: heady pricesAcquirer Acquired Price (estimated)
AB-InBev Goose Island USD 38 mio
AB-InBev Blue Point USD 24 mio
AB-InBev 10 Barrel USD 50 mio
AB-InBev Elysian USD 60 mio
AB-InBev Breckenridge USD 70 mio
AB-InBev Four Peaks USD 70 mio
Duvel Moortgat Boulevard USD 100 mio
Duvel Moortgat Firestone Walker USD 250 mio
Heineken Lagunitas USD 500 mio
Constellation Brands Ballast Point USD 1000 mio
Big growth in small beers
Beer Marketers Insights
AB-InBev entering all tiers
Craft, crafty and corporate craftbeer brands
Definition of craft beer
- Ingredients
- Size
- Ownership
Ownership becomes key
Steve Hindy, the founder of Brooklyn Beer, mused on 18 December 2015 on BeverageDaily.com:
“I think the interesting numbers to look at in the next decade will be independent craft versus big company-owned craft beer. We’ll see how that plays out. We’ll see if independence really matters to the consumers.”
„Independence is the new craft“ BrewDog
“Nailing our colours to the mother fucking mast” BrewDog 22 December 2015
“We [at BrewDog] believe independence is massively important to great beer. We believe the lack of [an] overbearing parent company is key to being able to make fantastic beer. We believe that the evidence massively shows mega corporations taking over former craft brewers is horrifically bad for the beer, for the consumer, and for the industry overall. And we love all 3 of these things.”
www.beermonopoly.net
www.brauweltinternational.com