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– Guidelines – Beer Trends and Trendy Beverages People who peruse cooler doors stocked full of beer cannot help but notice a number of trends. One trend we like to see is the greater incidence of craft beer and the better selection of imported beer at retailers who previously only stocked the highly advertised and thus popular mass-market SKUs. But if you really study the selection, you must have noticed the generous amount of shelf-space devoted to malternatives and energy drinks. In fact, in many of these outlets there are more SKUs of these products then there are for the craft and imports, which is interesting because there are far more breweries in the world let alone in the USA than there are producers of alternative beverages. Malternatives and energy drinks are a new phenomenon that has really taken off in the last decade. It would appear there are a lot of consumers who want the buzz but do not want the beer experience. They are more of a pop culture, preferring sweet flavors and electric colors to those of barley and hops. If we go back a few decades the beer shopper witnessed a change from 100 percent mass-market brand name products to shelves stocked with a gradually increasing selection of microbrews. Before the influx of micros, which actually had the side effect of increasing consumer awareness of imports, the majority of the shelves represented brands from six brewing giants. The big six, Anheuser-Busch, Miller Brewing, Stroh Brewery Company, G. Heileman Brewing Company, Adolph Coors Company, and Pabst Brewing Company, controlled 92 percent of all the beer sold in America. Different regions also had a few other brands with local followings, but with only 80 breweries in the USA operated by 51 brewing concerns in 1983, the selection across America was largely the same. Before the low mentioned above, there was a much broader selection, but with each passing decade that selection fell. Traveling back through recent history, in 1970 the US had 142 breweries, in 1960 there was 229, in 1950 we had 407, and in 1940 there were 498 breweries in operation. Of course in 1930 there was none. Before Prohibition the selection was far greater still, with more breweries in America then we have today. The peak for the number of breweries in the US was in 1873, when America had 4131 operating breweries, most of them small and selling only to local establishments, they were essentially microbreweries whose beers were consumed on draught. Along with the changes in the number of breweries, were changes in brewing process, equipment, packaging, marketing, distribution, and of course how and where the beer is consumed. All of these factors worked in conjunction to reduce the number of breweries while at the same time increase volume produced. The point is beer is not a static product, it is constantly changing. With a few exceptions, like Lambic, classic styles we consume today share little with their original ancestors. So it really should come as no surprise that the malternative alcopops take up so much space in the glossy magazines and cooler doors. They simply reflect this moment in a constantly changing pattern of popular beverages. While beer has been around for thousands of years, we have seen and will continue to see new products emerge and compete for the consumer's attention and their dollars. There are other trends worth mentioning, like the effort to somehow make drinking more healthful. The health concept is not a new one. Stout, and milk stout in particular, was marketed as healthful and invigorating, often prescribed to nursing mothers and invalids. Just before Prohibition, beer was positioned as a beverage of moderation. In recent times “light” beer promised a less fattening alternative and quickly became the market segment leader-interesting that obesity in America has not diminished. Beer with reduced carbohydrates was the next logical extension from low calorie, again a promise of a healthy alternative. Of course federal government laws prohibit health claims on beer labels, so I wonder, if light beer and low carb beer are not marketed as healthy alternatives, what are they? Then there is the greening of beer and the brewing industry. Organic has been around a long time. The first organic beer I recall was from Pinkus-Muller in Germany and imported to the USA by Merchant du Vin in Washington. Pinkus-Muller dates back to 1816, but they made a commitment to go organic in 1980, almost 30 years ago. Back in 1816, their beer was organic as well, but then so was everyone elses. In 1997 the USDA established the National Organic Program and American craft brewers began marketing organic beers, generally with poor results. In 2006 Anheuser-Bush entered the organic beer market, taking organic beer mainstream. There is even a North American Organic Brewers Festival held annually in Portland, OR. About half of Portland's 80 breweries produce an organic product. The event is not just organic, but green as well. The NAOBF is powered by biodiesel, composts food waste, uses only biodegradable tasting cups, and features sustainability oriented vendors, and local and organic food. Last year's event featured 75 organic beers and attracted 15,000 people. This year's event is scheduled for June 27-28. Admission is free, but consumers must buy a reusable, yet compostable, tasting glass made from cornstarch for $5.00 and samples are $1.00 each. The latest edition of Beverage World (January 15, 2009), a beverage trade periodical, includes their “2009 Forecast Report.” Like every edition of late, the ads are amazing. VPX Muscle Power (protein drink), Redline (energy drink), Performance (energy drink), Lean Body (nutrition drink), Monster Hitman (energy shooter), and a new segment called relaxation drinks (Purple Stuff and Drank). New product introductions include Zen (Green Tea Liquor), Alo (aloe vera pulp), I.O. (organic Blood Orange juice from Italy), and Casquena (Peruvian all malt beer) launched by MillerCoors. Interesting that only one new beer was picked up by the periodical. Beverage World forecasters see double digit increases in functional beverages (enriched water and sport drinks) and Organic drinks (mostly coffee, milk, and soy), decreases in bottled water and energy drinks, and more cans (in more shapes). The landfill shelf-life of plastic bottles used by the bottled water industry may be a part of the reason for the projected decrease, bringing new meaning to “drink responsibly.” Add it all up and we are going to continue to see shelf space and cooler doors change like Michigan weather. The funny thing to me is beer has always done it all. All beer was organic until recent history. Beer was the first energy drink, made and served to builders of pyramids, farm hands, porters, students and soldiers. Beer was the first health drink, providing many of the vitamins, minerals, protein, carbohydrates, and calories people needed for millennia. Beer is a relaxing beverage and even serves as an aphrodisiac. Brewers have put all kinds of ingredients into beer including herbs, spices, fruits, vegetables, cocao, coffee, electrolytes, and even some disgusting things, like oysters and roosters. Most of beer is bottled water and some beer does not even taste like beer. So while all else comes and goes, here's to beer, the superhero of all beverages. RGH |
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