Drinking less; willing to spend more

For health and wellness reasons, consumers are drinking less alcohol, but when they do have a beer, they’re willing to pay more, according to a recent Nielsen survey, which was reported first in Brewbound.

“Value is outpacing velocity and volume in all categories,” Matthew Drummond, of Nielsen’s beverage alcohol team, said. “It goes to show the premiumization in the whole alcohol segment.”

According to Nielsen, this translates into consumers willing to pay more for local craft brands of beer, as opposed to paying for cheaper national or non-local choices.

But, while consumers are enjoying their local craft beer, the big players retain the lion’s share of sales. Nielsen’s top 10 growth brands by sales include five hard seltzers – all from White Claw and Truly – along with three light beers, Michelob Ultra, Michelob Ultra Pure Gold, and Corona Premier. 

Session beers are going strong, too — the top five new products released in 2019 from BA-defined craft breweries include Dogfish Head Slightly Mighty IPA, and Boston Beer Co.’s Marathon Brewing 26.2 Brew.

IPA remains the top-selling craft beer style, accounting for 30 percent of all craft dollar sales, and growing 10 percent in the survey period ending Sept. 7, 2019, according to Nielsen. Following IPA is more of the same with imperial, double, and triple IPAs comprising an additional six percent of craft sales and nine percent growth in the survey period.