Blog: Chris Brook-CarterSpirited advance

Chris Brook-Carter | 11 November 2003

There were further suggestions this week that beer is losing share to spirits in the all-important US market. In a research note sent out by investment analysts Legg Mason, analyst Mark Swartzberg highlighted data that indicated that spirits have been taking share from beer for a period of years and that the trend has increased considerably in 2003.

“This is an unfavourable trend for beer, which we expect to continue. But we also expect beer to rebound over the next 12 months, returning to a much smaller decrement versus spirits growth,” he said.

The major factor, Swartzberg believes, is that the current generation of young adults drinks less beer per capita than prior generations, favouring spirits instead. He pointed to data from Miller Brewing, which estimates that the US population of 21- to 27-year-olds drinks 72% more beer than the average adult. However, this population's per capita consumption will decline approximately 1.1% per year for the period 2002-2007.

He also believes that the spirits category is less susceptible to adverse weather and potentially less impacted by a weak economy than beer, though both categories have similar exposures to the more economically sensitive on-premise sector.

BLOG

The brutal truth behind India's temperance movement

Some people in India believe alcohol should be more difficult to purchase. Last month, the state of Bihar halted all alcohol sales as its chief minister made good on an election promise. ...

BLOG

How to test Heineken's sense of humour

Greetings from Zurich. Here as a guest of Heineken's Amstel brand, I'm due to sit down later today with the group's senior global director for international brands, Walter Drenth....

BLOG

Which spirits category is the next big thing?

Drinks companies spend a lot of money on trying to predict trends. At last night's Worshipful Company of Distillers City debate, any strategists in the audience got a bit of forecasting for free....

BLOG

Aperol Spritz - Just the one. A large one?

I'll admit to being partial to an Aperol Spritz now and again, more usually in the summer months, sitting outside, shades on, slowly turning more golden/rusty....

just-drinks homepage



Forgot your password?