BMI Archives Entry

BMI Archives Entry

In midst of most impressive run of growth since AB in 80s (and late 90s), Constellation Brands changed it up in orderly transition that nevertheless raised questions for some. Constellation named Bill Hackett chairman of Beer. So Bill moves away from running day-to-day operations. In his 20+ year tenure as prexy of Barton, then Crown, then Constellation, Bill presided over dramatic, at times explosive growth of Modelo portfolio. And Constellation Brands Beer Division never hotter than in recent mos. So why change? It's the "right time, Bill said. Business is good, Bill ready to move on, his team of execs ready to grow and he'll still be around for advice and guidance. Bill recently turned 65. And so Bill will be "stepping back" but not "stepping away," he told INSIGHTS.

Bill will continue to report to Constellation ceo Rob Sands and remain member of Exec Comm. New Beer prexy is Paul Hetterich, 20-yr Constellation vet, most recently sr veep running deals and operations, "including biggest projects going on globally" in beer, Paul told INSIGHTs, i.e. buildout of Nava and new brewery in Mexicali. Paul adds "oversight for the commercial functions" of beer biz in addition to ops, but he won't be running M&A anymore. Paul a star within Constellation. Beer over half of Constellation's earnings. Even with expanded role, Paul remains in Rochester, not moving to Chi. Meanwhile, Bruce Jacobson promoted to chief commercial officer. Oversees sales, mktg, pricing, strategy. Bruce takes on much of Bill's role. Taking Bruce's old role will be Bill Renspie, formerly sr veep, South.

Constellation's been on such a roll that there were few questions, mostly just belief. But new moves raise questions, sources said. Bill has best distrib relations and best results of any beer exec. Distribs enjoy working with Bill and would do whatever he asked. Bruce clearly a strong sales leader (and works closely with Bill) but now he will "be managing the company's relationships" with distribs. Can Bruce develop similar loyalty and allegiance with Gold Network? (Bill will stay active in this area). Then too, cmo Jim Sabia producing industry-leading mktg for Constellation. Until these moves, he and Bruce were peers. Now Jim reports to Bruce. Could this create friction? Bruce sez he and Jim will work closely together as they have for yrs. Finally, Bill key to creating Crown's culture of success. Paul, however talented, not mainly a beer guy, didn't work these brands for decades. "Without Bill setting the cultural tone," one observer wondered if there's increased risk of "cultural shift" and what effect that might have on results.

Constellation gained 3.7 mil bbls and 2 share last 3 yrs. Add in 277K bbls from Ballast Point acquisition and Constellation starts 2016 at 16.25 mil bbls. That's 4 mil bbls bigger than 3 yrs ago. And it grew double-digits last 2 yrs. Recall, depletions up a stunning 16.5% in latest qtr thru Nov. Because of calendar effects, Constellation didn't have great Jan, tho not as soft as others. Constellation still soaring in scan. Up high teens and gained over 1 share in latest 4 wks thru Jan 23 in Nielsen all-outlet data. As long as great growth continues, these questions may not matter. Yet any slowdown would be endlessly scrutinized by the Street. HSBC analyst Carlos Laboy recently put a "sell" rating on stock, even tho he expects "extraordinary" growth to continue (models 8% per yr in flat zbiz). Current valuation implies 11% growth per yr, he sez.  
A dozen or so AB distribs from across US may not be scientific sample, but these insightful vets from AB system agreed on most major issues from SAMCOM and had interesting responses to mtg. On key mktg piece, Bud Light Party, most takin' wait-and-see attitude. They kinda like platform, think it has promise, but none thought it reached "remarkable" goal and most not overly impressed with early efforts ("not funny" said one, bluntly, adding "it better be funny" goin' forward). So "jury's out" and "depends on how they activate locally." In contrast, nuthin' but enthusiasm for Bud work, especially focus on quality theme ("they got it nailed down really, really well"). Lotsa likes for Mich Ultra and High End presentations too ("they get this now!" "extremely well done by Andy [Goeler] as usual"). Mktg spend increases also embraced across board. Another positive: responding to distrib concerns about turnover, sales veep Alex Medicis announced that field folks will now spend minimum of 2 yrs in same spot. Any deviation has to be approved by him.

How about "fence mending" gestures and Joa?o's "top priority" to regain trust? Mixed bag, from "same old, same old" to "I think they really mean it." One distrib said during Q&A he senses AB execs "serious about building relationships based on trust," as we noted in Express. Another put it more tersely, hoping AB and distribs "can somehow get rid of the noise and get out and sell some beer." Not a lot of hammering about distribs adding competing brands, but one distrib said: "I know that if I take on [brands from big craft brewer], the dogs will be at the door." Another cautioned: "Our relationship has been going south for seven years. I sincerely hope AB doesn't think this can be repaired in one." So, while several distribs dubbed SAMCOM "the best one since the new ownership took over," and each highly praised at least some aspects, still work to do before AB system reaches repeated goal of "winning together."  
No shortage of big goals, big bets and big commitments voiced from stage at AB's SAMCOM mtg this yr. Top execs pledged to: 1) regain distribs' confidence/trust; 2) jack cap ex (to expand aluminum bottle capacity and more); 3) gain share (new sales veep Alex Medicis' "1st, 2d and 3d priority"); 4) spend "more than ever" on Bud Light; 5) invest more across portfolio, from economy to High End. One key difference, noted prexy João Castro Neves in final comments: at AB InBev bd mtg last Jan, AB execs asked for and got bigger investment in AB brands in US. At this yr's board mtg, board asked: "why aren't you investing more?" And "attitude from the Board" was "be bold, you guys can do more, make it happen." In fact, AB "accelerating 5 years of investments into 2," as João put it. Success won't be too hard to measure, given specific emphasis on gaining share, overall and within segments, even if they're declining. "I will not high 5 or celebrate if we are losing less," Alex told distribs. Success in João's "top priority," regaining trust of distribs, harder to measure. That will be up to distribs to communicate back.

Wins and Losses in 2015 In opening comments, João acknowledged 2015 "below expectations." He ticked off wins and losses. Among the latter, Bud Light continued to lose volume and "lost touch with the new generation." Brand "did no worse, but no better" and must "reconnect" with current consumers. AB also slipped in FMBs, after it grabbed leadership position in segment that doubled 2009-2014. And "losses accelerated" in biggest channel, C-stores, 1/3 of AB biz. That "cannot continue," he vowed, (another measurable goal).

AB's "wins" last yr: 1) $100-mil pop in investments behind brands; 2) Bud trend improved in every region, gained share in 2; 3) Michelob Ultra gained more share than any other brand (IRI volume); 4) High End growth (up 2 mil bbls in 5 yrs), including 30%+ gain at Goose, Stella up 20%+, and craft acquisitions; 5) AB gained share on-premise "every quarter and accelerated" gains in back half (presumably using Beer Inst #s; GuestMetrics shows AB lost share). In 2016, AB will "change the way we look and act in order to re-energize Bud Light, reconnect to a new generation of consumers," João vowed. That begins with Super Bowl, which also includes 1st-ever Shock Top ad. Hispanic creative will be "fully integrated" into new campaign. AB will up spend behind core brands by 15%, boost high-end spend double-digits. At same time, AB tapped additional $80 mil for warehouse/logistics upgrades. Bottom line from João: "together with my team, I am 100% committed to working with you to return trust to our partnership and growth to our business."

AB to Re-Energize Bud Light by Being "Remarkable," "Finding Our Edge" Brand Bud had "best year in over a decade" as it "went macro," "stirred the pot" and created "agitation" with "Brewed the Hard Way" ad, said cmo Jorn Socquet. That "revitalized connection with consumers" and built distribs' trust. AB will "double-down" this yr on same theme. Showed two very well-received ads at SAMCOM. Indeed, distribs asked to have ads shown 2d time. But Jorn felt "frustration" AB didn't build same kind of "pride" with Bud Light work. He pointed to 2 models for new approach. First is Old Spice, which "cut thru clutter" years ago and took "old, sleepy brand" and "woke it up." Second is Nike, with edgy ads that honor athletes. (Ad agency Weiden & Kennedy has Old Spice, Nike and Bud Light.) AB "needed to find our edge" with Bud Light, said Jorn. That edge: Bud Light Party campaign in election yr. Ads not "political" but celebrate "America's common ground" with beer that "makes good times better." They're in Bud Light tradition of being "light-hearted, witty" and feature A-list celebs, led by Amy Schumer and Seth Rogen. Also on tap: bigger NFL programs, including team cans, NBA cans in some markets, more Hispanic emphasis and more music. Interestingly, while new Bud ads feature quality cues, Bud Light focused elsewhere. Nike ads "never talk about their product," Jorn pointed out. "For Bud Light to be remarkable, our consumers want to know what we are about. And what we're about isn't making beer for people to quench their thirst. Although … we probably do that better than anybody else." Rather, Bud Light going back to being "current," "light-hearted," etc, "the things that made us fall in love with Bud Light in the first place."

Mich Ultra to Get $50 Mil Boost; Other Brand Highlights Michelob Ultra will get $50 mil increase this yr as growth accelerated from 5-6% in 2012-13 to 8% in 2014 and 15%+ in 2015. AB wants to make it a billion-dollar brand. ... In High End, AB aims to turn around Shock Top, make it #1 craft brand, make AB #1 craft brewer and its partners #1 in their regions. High End success can mean incremental $80 mil gross profit for distribs. Shock Top's Q1 spending (with SB ad) alone will surpass last yr's support. AB will spend as much on Stella Artois as imports 2X its size(i.e. Heineken), aims to double, reach Heineken volume by 2020. Montejo got to 2 mil cases in 12 states last yr, a level it took Modelo Especial 6 yrs to get to, said Edison Yu, veep for Mich Ultra/Mexican brands. AB not rushing expansion of Montejo or new Estrella Jalisco (AB's "biggest" new brand launch this yr), but "we must participate" in Mexican segment, Edison said, and "get our fair share.". ... Craft honcho Andy Goeler enthused over "very, very busy, crazy fun, exciting yr" that ended with AB having 8 craft partners. AB grew share of craft with portfolio up 36%, per IRI: Goose Island up 30%+, 10 Barrel +35%, Elysian +34%, Blue Point +75%. Goose IPA "on fire," said Andy, +260% and now a top-5 IPA. Partners in different stages of integration; some adding capacity, some learning AB system as AB "learns their culture." ... AB's overall mkt share is highest where value beer share is highest, said Chelsea Phillips, sr director of US value brands. So "it's about damn time we give these brands the attention they deserve." Focus for 2016: stabilizing 12-pack biz, winning in singles.  
 Join us May 16-17 at the Ritz Carlton in Chicago for our annual spring conference. As usual, we'll provide a provocative program and plenty of quality networking time. But we're mixin' it up a bit this year. We're expanding the scope to include the current deal landscape (brewer and distrib) along with our annual focus on the high end. We're also adding presentations starting mid-afternoon Monday as well as all day Tuesday. On tap to speak: Constellation Brands Beer Div prexy Bill Hackett, HUSA prexy Ronald den Elzen and two top execs from Sierra Nevada, Brian Grossman and Joe Whitney. We'll also feature several key consolidation consultants: IBG's Joe Thompson plus partners Mark Hall and Randy Jozwiakowski of Paragon Bev Advisors. BMI publisher Benj Steinman will provide his annual overview with key stats and developments. More speakers will be added. Look forward to lotsa new insights into these two top-of-mind topics. Click here for details, here to sign up.
 It's the beginning of a new year and even if beer sales ended soft in 2015 and not starting strong this yr (because of how calendar falls), beer marketers are optimistically laying out their plans to transform their brands and improve results. Lots of change, including new campaigns for top 2 brands, tv for a hard soda launch, a Super Bowl ad for Shock Top and big changes for one of hotter imports of last decade.

First, Bud Light debuted new ad platform at presstime. Campaign features new slogan "Raise One to Right Now," new theme "The Bud Light Party" (in election year-get it?) and big celebs, comedians/movie stars Seth Rogen and Amy Schumer. Campaign will "bring light-hearted Bud Light perspective on timely cultural events," said release. Debuts on Super Bowl 50. "There will be a complete revival" of Bud Light brand this yr, mktg veep Jorn Soquet told Wall St Jnl, including first pkg makeover in 8 yrs and first work from new agency Weiden & Kennedy, its 5th agency in 5 yrs. Will this new work revive #1 brand?

Meanwhile, Coors Light will also debut a new campaign, perhaps as soon as football games this weekend. "New Coors Light TV spots when they arrive expected to have less of a 'frat house' style, with a somewhat softer, aspirational tone," noted Chi Biz Jnl. It kind of resembles Corona, suggests source who's seen new work, characterizing it as "find your mountain" (Corona tagline is "find your beach). New Miller Lite executions on its bodega campaign will also debut in very near future. Then too, MillerCoors will give "significant media support" to Henry's Hard Sodas, according to Ad Age, with campaign that "encourages drinkers to live 'Hard-ish,'" wrote Ad Age. "In what might be an alcohol marketing first, MillerCoors has put a baby monitor in a booze ad." With so many other hard sodas out there, MC "playing catch up," wrote Ad Age but "seeking an advantage by pouring more ad money behind Henry's than the competition." Meanwhile, AB will also give a surprising $5 mil Super Bowl slot to Shock Top, its "crafty" fighter brand that's slipped recently as AB looks to "relaunch, reignite and restage" the brand, Shock Top veep Jake Kirsch told Ad Week. New spokesman T.J. Miller (comedian who's on HBO show Silicon Valley) promises "The Greatest Super Bowl Ad of All Time." And coming soon, a major departure for Dos Equis brand, one of stars of last decade that's still up but at slower pace.
 Some eye-popping drops, even for former beer biz growth stars in tuff on-premise channel in 2015 GuestMetrics data (down 4.7% overall-see above). All while big 2 continued to struggle. Industry structure on-premise dramatically different than overall biz. In fact, you could say world flipped on its ear. Craft collectively by far biggest segment on-premise. At 34.5 share of $$ for full yr in GuestMetrics data. Up 0.8 share (of $$ and volume) last yr. That's even tho craft volume down 2.3%. What's more, at 35 share, craft almost as big as AB and MC combined. AB at 20.9 share of $$, down 0.4. And MC at just 15 share of $$, down 0.6. That's 35.9 combined. Since GuestMetrics doesn't capture full power of tasting rooms or even brewpubs and craft-centric accounts, this understates dominance of craft on-premise, especially local craft. Each of HUSA and Constellation got around 5 share of $$ and Boston got over 3 share while DGUSA over 2 share.

Only 1 of top 10 players grew volume on-premise. You guessed it: Constellation. And even Constellation only up 1% by volume, 4% by $$ in GuestMetrics. It gained 0.3 share of $$ to 5.2. Lagunitas was other biggest share gainer among top 20 players. Its volume up 18%, $$ up 20.5% and it gained 0.2 share to 1.1. Other than that: a lot of minus signs among top players. We mean a lot of minus signs. AB and MC volume down 6.6% and 7.5% respectively, while $$ down 3.8% and 5.5%. This in yr that AB touted its share gains on-premise during big chunks of yr. But lotsa other cos even softer than AB. HUSA down 8.5%, Boston Beer down 10.7% in 2015 in GuestMetric data, plus each of Yuengling and DGUSA down 10-11% too. On-premise biz is tuff. Meanwhile, Pabst off 5.6% (not including NYFRB), Gambrinus 10% and New Belgium 20%. Those are top 10 suppliers on-premise.

As much as top 2 have emphasized on-premise, the "power of premium lights" and the like, biggest brands still struggle mightily on-premise in GuestMetrics data. Bud Light down 9% in 2015, Miller Lite down 7% and Coors Light down 8%. They are the 3 largest brands and were still 25 share of units, but only 20 share of $$ on-premise in 2015. Co-rona is 4th largest on-premise brand, Blue Moon is #5. Bud is only 6th largest brand in GuestMetrics universe. It's down to 2.5 share of volume, 2 share of $$. And still down 7%. Two of the industry's hottest brands, Michelob Ultra and Corona, are barely up on-premise, less than 1%. Modelo Especial up 19%, but it's not even among top 20 brands. Stella actually down slightly in GM data, volume off 1.8%. Dos down 2.6%. Heineken down 8% and Guinness down 9%. Total import volume down 5% on-premise, basically held share.

Cautionary notes abound on craft in this data. Most of biggest craft brewers under water, some seriously. Look at top 3: Boston Beer down 10.7% (including Angry Or-chard), Sierra Nevada down 8% and New Belgium down 20%. Sure Lagunitas up 18% and Bell's up 2%. But most craft brewers down here and many down big. In descending order of size in GM data: SweetWater volume -11%, Duvel Moortgat USA -6%, Stone -7%, NAB -15%, Dogfish Head -6.5%, CBA -7.6%. Each of Brooklyn, Abita and Rogue down double-digits. Yet craft still gained share overall due to growth of even smaller brewers. This has symptoms of a classic squeeze. With so many local players emerging as forces all over US at same time as big brewers/importers buying craft and devoting more resources on-premise, how will many of these established craft brewers win again in on-premise channel?
 Top 18 craft players each shipped at least 200K bbls last yr, compared to just 6 in 2010. So a lot more craft brewers developed a lot more heft, at same time as there were a couple thousand new entrants since 2010. All in, we peg craft at about 22.5 mil bbls in 2015, up near 15% and grabbin' over 10 share of total shipments. Craft more than doubled in volume and share vs 5 yrs ago. During same period, imports up about 3.5 mil bbls, 13%, but mainstream domestic beers shed over 13 mil bbls, nearly 8%. Total biz about same as 5 yrs ago.

As craft slowed slightly late last yr, several top players struggled to grow. Indeed, we estimate Boston's beer biz down slightly; both IRI and Nielsen report Sam family down mid-single digits for the yr. Then too, New Belgium down 3%. And Craft Brew Alliance and Shiner each up 1% or less. So 4 of top 6 craft brewers up 1% or less. But 3 craft brewers up 150K bbls or more: Sierra Nevada, Lagunitas and Ballast Point. Another handful of solid gainers (double-digit %): Goose Island, Bell's, Stone, Founders, Fire-stone Walker and SweetWater. Brooklyn up near 10%; Dogfish Head and Matt up modestly; Harpoon down modestly. Longer term, 9 of these brewers at least doubled over last 5 years. Several skyrocketed: Lagunitas, Ballast Point and Founders.
Bbls - 000 Chg Craft Share Bbls Chg 2010-15
2015 2014 bbls % 2015 2014 2010 bbls %
Boston 2,525 2,550 -25 -1.0 11.2 13.0 2,010 515 25.6
Sierra Nevada 1,221 1,067 154 14.4 5.4 5.4 786 435 55.3
New Belgium 914 945 -31 -3.3 4.1 4.8 661 253 38.3
Craft Brew Alliance 800 791 9 1.1 3.6 4.0 585 215 36.8
Lagunitas 789 599 190 31.7 3.5 3.1 102 687 673.5
Spoetzl (Shiner) 605 600 5 0.8 2.7 3.1 431 174 40.4
Goose Island 450 375 75 20.0 2.0 1.9 126 324 257.1
Bell's 371 319 52 16.3 1.7 1.6 154 217 140.9
Deschutes 344 335 9 2.7 1.5 1.7 203 141 69.5
Stone 326 287 39 13.6 1.5 1.5 115 211 183.5
Brooklyn 277 252 25 9.9 1.2 1.3 108 169 156.5
Ballast Point 277 123 154 125.2 1.2 0.6 20 257 1285.0
Founders 270 193 77 39.9 1.2 1.0 25 245 980.0
Firestone Walker 265 208 57 27.4 1.2 1.1 80 185 231.3
Dogfish Head 237 228 9 3.9 1.1 1.2 121 116 95.9
Matt 222 218 4 1.8 1.0 1.1 182 40 22.0
SweetWater 218 193 25 13.0 1.0 1.0 77 141 183.1
Harpoon 204 209 -5 -2.4 0.9 1.1 150 54 36.0
Top 18 10,315 9,492 823 8.7 45.9 48.5 5,936 4,379 73.8
Others 12,135 10,098 2,037 20.2 54.1 51.5 4,764 7,371 154.7
Total Craft 22,450 19,590 2,860 14.6 10,700 11,750 109.8


Meanwhile, tail is waggin' the craft dog in earnest. While top 18 up 8.7% collectively, remaining players up about 20%, including about 800 newbies. And look at volume split. Top players up 820K bbls; got less than 30% of the growth with about 46 share of the volume. Remaining players posted over 2 mil bbls of growth, over 70% of it, with 54 share. Be very interesting to watch how that split develops in 2016.

Note: Boston and CBA are estimates; neither has reported yet and Boston doesn't give a beer-only number. Also, we've put Goose Island back into our craft figure, estimated its 2015 trend and adjusted totals. AB's and MC's acquired brewers still craft, we've decided. And we're not tossing Lagunitas, Founders or Ballast Point either, tho they no longer come under BA definition. Between BA, BMI, Nielsen and IRI, lotsa different num-bers floatin' around for "craft," and numbers keep changin', but that's disruption for you.

 Beer's 2015 performance picture fillin' in. And it mostly ain't pretty following several new data points in recent days. Domestic taxpaids still down, on-premise still soft and pricing power eroded in 2015. Beer Inst estimated domestic taxpaid shipments down 2.4 mil bbls, 1.4% for full yr, including over 900K-bbl, 2% drop in Q4. Official govt number often gets revised upwards as govt back-adjusts based on smaller brewer growth not fully visible. Imports up 1.3 mil bbls, 4.6% thru Nov. Looks like total US beer biz off slight-ly. Throw in exports, cider, revisions and picture brightens a bit.

Beer biz still putting up growth in off-premise channels, according to both Nielsen and IRI. Beer biz up 0.9% yr-to-date thru 12/26 in Nielsen all-outlet and up 2.1% in IRI multioutlet + convenience yr-to-date thru 12/27. Each data set presents a partial picture and measures different outlet universes. But 2% growth in IRI's off-premise data set seems robust, given that total US beer biz is flat at best.

Then again, beer down big again on-premise. Off 4.7% yr-to-date thru Dec 27 in GuestMetrics data. Even craft down 2% in GM data. Total on-premise biz likely trending better, given growth of local tasting rooms, etc (see below). Beer lost 1 full share to spirits on-premise in GuestMetrics data for 2015. That's a steeper drop than 2014.

Beer prices only up 0.6% for the yr, according to US govt's Consumer Price Index. That's smallest increase in ABI/MC era and first one under 1% in a long, long time. CPI for malt bevs up 3-4% in 2008-2009, averaged 1.6-1.8% for the next several yrs and up 1.3% in 2014. Looks like AB and MC gradually losing some pricing power. Avg prices for all beer up 2.6% in Nielsen data, mostly because of trade up. Besides ongoing share losses in beer, pricing pressure also stems from lack of pricing in wine and spirits. Wine and spirits pricing flat-to-down slightly since 2010. That trend continued in 2015 as spirits prices up 0.1%, wine down 0.3%. Pricing for all items up just 0.1% in 2015, sez CPI.

Like our brewer trends reported last issue, brand estimates still preliminary and will be revised. But key trends clear: top mainstream brands continued to shed bbls last yr at similar low-single digit rates as most of 'em have for yrs. Top 4 brands collectively -- 2 from AB, 2 from MC -- dropped over 11 mil bbls and over 5 share of total shipments in just last 5 yrs. Meanwhile, Corona not quite back to peak volume, but gettin' very close. Should reach new peak in 2016 after 3-yr decline. That's a feat no other big brand has accomplished. Modelo Especial and Michelob Ultra moved up in ranks. Neither even cracked top 10 in 2010. Natty Light slipped below Busch Light volume for 1st time, we estimate.

Bud Light down almost another 1 mil bbls, 2.5% we estimate. Its last gain was 2008, yr InBev bought AB. Last time Bud Light shipped less than 37 mil bbls: 2001. Since 2010, Bud Light off nearly 4 mil bbls, 2 full share. Coors Light down for 3d-straight yr. At just over 17 mil bbls, Coors Light about 1.5 mil bbls below 2012 peak. Slipped below 8 share of total shipments for 1st time since JV formed. Bud moderated dropoff pace slightly in 2015, but still down another half-mil bbls, 3% or so, we figure. Bud dropped to 15 mil bbls, off 20% in 5 yrs, even as ABI built Bud brand globally. Lite down 16% since 2010. Its 1% decline in 2015 was similar to 2014 trend and big improvement vs previous 6 yrs when it dropped 3-7% each yr. Corona Extra up for 5th-straight yr following soft patch 2007-2010. Corona just 25K bbls below peak, while each brand above Corona significantly below their respective peaks. Since Corona avg price in-dexes at 1.5X Miller Lite, it created almost as much revenue as Lite in 2015 and will pass it in 2016.

  Shipments (000) Chg Mkt Share Bbls    
  2015 2014 bbls % 2015 2014 2010 % Chg
Bud Light 36,700 37,650 -950 -2.5 17.0 17.5 40,650 -9.7
Coors Light 17,100 17,500 -400 -2.3 7.9 8.1 18,075 -5.4
Budweiser 15,000 15,450 -450 -2.9 7.0 7.2 18,650 -19.6
Miller Lite 13,400 13,575 -175 -1.3 6.2 6.3 15,875 -15.6
Corona Extra 8,440 7,840 600 7.7 3.9 3.6 7,170 17.7
Busch Light 6,675 6,700 -25 -0.4 3.1 3.1 6,850 -2.6
Natural Light 6,500 6,850 -350 -5.1 3.0 3.2 9,025 -28.0
Mod Especial 5,365 4,500 865 19.2 2.5 2.1 2,280 135.3
Mich Ultra 5,225 4,450 775 17.4 2.4 2.1 3,375 54.8
Busch 4,850 5,150 -300 -5.8 2.2 2.4 6,100 -20.5
Top 10 119,255 119,665 -410 -0.3 55.3 55.7 128,050 -6.9
All figures are BMI estimates, subject to revision.



Lotsa movement among the ranks below top 5. Busch Light, tho down slightly, out-shipped Natty Light for 1st time since Busch Light intro'd back in 1989. Natty Light had been #5 brand back in 2000, slipped below Corona in 2013 and dropped to #7 last yr. Natty's now nearly 3 mil bbls, 30% below its 2009 peak. Meanwhile, Busch Light steadied volume in 6.7-6.9 mil-bbl range over last 6 yrs.

Two brands passed Busch in 2015. Modelo Especial and Michelob Ultra each posted double-digit gains. Modelo grabbed #8 spot with 4th-straight gain in 20% range. It jumped from under 2.3 mil bbls in 2010 to over 5.3 mil bbls last yr. That's by far best growth of any major brand. Could catch Natty Light this yr and Busch Light in 2 yrs. Imagine, 2 of top 6 US beer brands could be Mexican imports in 2 yrs. Mich Ultra comin' on nearly as strong. Blew past 5 mil bbls last yr and up more than 50% over last 5 yrs. Busch erosion continued as it slipped below 5 mil bbls for 1st time in over 30 yrs. Only 3 brands between 3 and 4 mil bbls -- Heineken, High Life and Keystone Light -- and none likely to break back into top 10 this yr. As group, these top 10 lost about a half-share in 2015 vs previous yr. Slipped from nearly 60 share in 2010 to just over 55 in 2015. Actual top 10 brands in 2010 (High Life and Keystone Light in place of Modelo and Mich Ultra) had 62 share vs 55 share for top 10 now.  

American consumers' ambivalence about alc bevs likely to continue, given the mixed news, rhetoric and recommendations that keep coming about drinking. Latest is last week's release of 2015 Dietary Guidelines from US govt. Basic, highlighted recommendation unchanged: "If alcohol is consumed, it should be consumed in moderation - up to one drink per day for women and up to two drinks per day for men - and only by adults of legal drinking age." Same up front section points out "it is not recommended" that anyone start drinking "for any reason" and that "there are many circumstances in which individuals should not drink, such as during pregnancy."

Beer, Spirits and Public Health Each Can Claim Victories in Policy Battle New guidelines also add extensive appendix about alcohol not in earlier versions. Not likely a lot of consumers will bother with it, but it's where the "standard" drink battle between beer and spirits plays out. In brief, guidelines continue to define a drink as 0.6 fluid oz of pure alcohol, a win for spirits. They also now use phrase "drink-equivalents" numerous times, advise that different drinks vary in alcohol content and even include a table of "alcoholic drink-equivalents." Distillers have been pushing the word "equivalence" for decades. Table lists different bev and drink sizes and calculates the "drink-equivalent." Lists 5 different beer combos from 12oz at 4.2% as 0.8 drink to 12 oz at 9% as 1.8 drinks. There are 4 wine samples but only 2 spirits drinks, a single drink-equivalent and ">1 drink" defined as a "mixed drink with more than 1.5 oz of 80 proof spirits." There's also a note that light beer is a "substantial proportion" of alc bevs consumed in US and approx 0.8 "drink-equivalents."

So new guidelines incorporate something that resembles the Beer Inst's "Know Your Drink" recommendations which emphasize different drinks have different levels of alcohol. Appendix also includes a note that "drink-equivalents are not intended to serve as a standard drink definition for regulatory purposes." While consumers will likely scratch their heads over these words, that's good for beer because it suggests that taxes and other policy decisions should not be based on "drink-equivalents." Beer Inst prexy Jim McGreevy told INSIGHTS: "The 2015 Dietary Guidelines are a strong repudiation of the standard drink mythology. By pointing out the variability between beer and hard liquor the language puts the 0.6 standard reference into context and expressly states that the standard drink is not intended to serve as a guide for regulatory or legislative action."

Same appendix adds more warnings about heavy drinking, excessive drinking and those who should not consume, including those driving or planning to drive. Also important: while previous editions of the dietary guidelines have at least acknowledged benefits of moderate drinking, that language disappeared from current guidelines. So, advocates in beer, spirits and public health can all claim victory. All in: a pretty crabbed view of drinking from the govt, albeit one that few consumers will engage.