Beer_in_the_US

7/24/2019 Beer_in_the_US

1/17

BEER IN THE US

Euromonitor International

June 2015


2/17

B E E R I N T H E U S P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLESHeadlines ..................................................................................................................................... 1

Trends ............................................................ .............................................................. ................ 1Production, Imports and Exports ....................................................................... ........................... 2Competitive Landscape ........................................................................................................... ..... 2Prospects ..................................................................................................................................... 4Category Background ........................................................ ........................................................... 4

Lager Price Band Methodology ................................................................................................ 4

Summary 1 Lager by Price Band 2014 ............................................................ ................ 4Table 1 Number of Breweries 2009-2014 ................................................................. 5

Category Data .............................................................................................................................. 5

Table 2 Sales of Beer by Category: Total Volume 2009-2014 .................................. 5Table 3 Sales of Beer by Category: Total Value 2009-2014 ..................................... 6Table 4 Sales of Beer by Category: % Total Volume Growth 2009-2014 .................. 6Table 5 Sales of Beer by Category: % Total Value Growth 2009-2014 ..................... 7Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2009-2014 ........................ 7Table 7 Sales of Beer by Off-trade vs On-trade: Value 2009-2014 ........................... 7Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2009-2014 ....... 7Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2009-2014 .......... 8Table 10 GBO Company Shares of Beer: % Total Volume 2010-2014 ....................... 8Table 11 NBO Company Shares of Beer: % Total Volume 2010-2014 ....................... 9Table 12 LBN Brand Shares of Beer: % Total Volume 2011-2014 .............................. 9Table 13 Production, Imports and Exports of Beer: Total Volume 2008-2013 ....... ... 10Table 14 Imports of Beer by Country of Origin: Total Volume 2008-2013 ................. 10Table 15 Imports of Beer by Country of Origin: Total Value 2008-2013 .................... 11Table 16 Exports of Beer by Country of Destination: Total Volume 2008-2013 ........ 11Table 17 Exports of Beer by Country of Destination: Total Value 2008-2013 ........... 12Table 18 Forecast Sales of Beer by Category: Total Volume 2014-2019 ................. 13Table 19 Forecast Sales of Beer by Category: Total Value 2014-2019 .................... 13Table 20 Forecast Sales of Beer by Category: % Total Volume Growth 2014-

2019 ............................................................. .............................................. 14Table 21 Forecast Sales of Beer by Category: % Total Value Growth 2014-

2019 ............................................................. .............................................. 14


3/17

B E E R I N T H E U S P a s s p o r t 1


BEER IN THE US

HEADLINES Total beer volume sales in the US rise by 1% in 2014, amounting to 24.4 billion litres

Craft beer thrives at the expense of mid-priced and economy domestic lagers

Ale sees the fastest total volume growth in 2014, increasing by 12% to 1.4 billion litres

The average unit price of beer increases by 2% in 2014

Anheuser-Busch maintains its strong lead in beer with a 45% volume share

Total beer volume is expected to decline by 1% over the forecast period

TRENDS Craft beer in the US continued to agitate the beer market in the US. Driven by the millennial

generation, consumers are shifting their tastes from affordable domestic lagers to premiumcraft beers. Craft beers, most abundant in ale, weissbier/weizen/wheat, and stout styles, have

been able to capture consumer attention through high-quality products typically produced

locally. Growing parallel to craft beers are changing consumption habits, with craft beer

drinkers opting for lower total beer volume consumption if it means drinking a higher-quality,

more expensive product. These shifts are most recognisable within domestic mid-priced

lagers and domestic economy lagers, which exhibited total volume declines of 1% and 3%,

respectively, in 2014. As a result, these combined domestic lagers lost total beer volume

share, which declined from 69% in 2013 to 67% in 2014.

Euromonitor International has informally adopted the same definition the US Brewers

Association uses to define a craft brewery. As such, a craft brewer is defined as a brewery

with production of less than six million barrels per year, that is independent (less than 25%

ownership of another alcohol beverage industry member), and traditional. By these

definitions, the Boston Beer Co is considered a craft brewer whilst Yuengling Brewery is not.

Additionally, perceived craft beer brands like Blue Moon and acquired craft brewers like

Goose Island are not considered craft beers in the US, but rather craft-like beers.

Total volume growth was barely up by 1% in 2014, slightly better than the historic period

CAGR, which was flat and sl ightly negative, despite a growth in the population of Americans

21 years of age or older by 1% in 2014 and 1% CAGR over the historic period. Flat volume

sales of beer are a result of consumers shifting from high volume consumption to high value

consumption. Whereas in the past consumers favoured light domestic lagers which can be

consumed in high volumes, Americans today are forgoing high volume consumption for

premium-quality, heavy craft beers. As such, total litres of beer consumed per legal drinking

person in the US declined from 113 in 2009 to 105 in 2014. Of the various beer categories, ale grew the fastest in 2014, gaining 12% in total volumes

sales to reach 1.4 billion litres. Ale is the beer category most representative of the craft beer

market tracked by Euromonitor International, with more than half of all craft beer volume

estimated to fall under ale and craft beer representing approximately 75% of ale volume

sales.

Driven by premium-quality beers, the average unit price of beers rose by 2% in 2014, to

US$4.12 per litre. Strong unit price gains in dark beers and stout, 3% and 4%, were offset by

lager unit prices which gained only 1% in 2014. The high unit price of dark beer and stout

relative to other beers, US$7.80-8.10 per litre compared to an average unit price for lagers of


4/17



US$3.80, is a result of the high prevalence of craft beers in these beer styles, as well as

higher on-trade consumption.

The largest category in terms of volume sales continued to be mid-priced standard lager,

which accounted for a 45% share of total US beer volume sales in 2014. In fact, the top four

brands in the beer category are all standard lagers Bud Light, Coors Light, Budweiser andMiller Lite. However, this category has been in decline since the recession and a trend toward

polarisation continues, where consumers either buy cheaper economy beers or more

expensive premium beers. Younger millennials are also a cause for concern, as they are

avoiding drinking what their parents drink (ie, standard lagers) and are open to other

beverage choices.

Aside from several of the larger craft breweries, craft beers in the US are typically regionally

distributed in the area surrounding their brewery. Whilst the genesis of craft brewing in the US

is often attributed to states like Oregon and Colorado, craft breweries have materialised

across the US, but remain more common in urban areas.

Brands identified as light or lite in Euromonitor Internationals beer brand shares aggregate

to 46% of total US beer sales by volume. Whilst certainly still representing a strong share of

total beer, light/lite beer has lost 4% share since 2009 when it represented 50% of total beer

volume and sales declined at a CAGR of -2% over the same period to reach 11 billion litres in

2014.

Off-trade sales accounted for 73% of total beer sales by volume in the US in 2014. Whilst this

share is relatively stable at the total beer level, there are evident inconsistencies when beer is

a viewed by category, which are hidden by the size and consistency of lagers. Craft beers

have a dramatically different split of beers sold between on-trade and off-trade as they

typically rely on bars and pubs for draft beer consumption much more so than mass-produced

beers. As such, beer categories with a strong presence of craft beers are skewed much more

towards on-trade consumption. For example, in 2014 48% of ale volume was sold in the off-

trade. However, as craft brewers grow in size and become more established, they are able to

expand distribution through more retail channels, and consequently these categoriesexperience a shift in volume sales towards the off-trade.

PRODUCTION, IMPORTS AND EXPORTSAround 93% of all beer purchased in the US is produced at a domestic facility as of 2013. As

the country is one of the heaviest consumers of beer, it is cheaper for manufacturers to

produce and ship the product from within the US. Mexico is the largest beer exporter to the

US, accounting for nearly 58% of all imported beer. Mexican brands do not need to travel

overseas to reach US consumers, a factor which helps to keep prices low. In addition,

Mexican beers have an aura of vacation and relaxation that appeals to many US consumers.

Euromonitor Internationals data is generally in line with the US governments apparent

consumption data and beer manufacturers shipment data. Alcohol, including beer, is a highly

taxed item, subject to state, federal and import taxes. Due to the heavy scrutiny from tax

revenue, beer sales are typically well tracked in the US. A delay in shipment might explain

slight discrepancies.

COMPETITIVE LANDSCAPEAnheuser-Busch InBev (A-B InBev) is the largest US beer manufacturer, accounting for a

45% share of total volume sales in 2014. Two of the companys brands Bud Light and

Budweiserare still amongst the top five beer brands in the US, whilst Natural Light slipped


5/17



to the sixth position in terms of volume sales in 2013. Although A-B InBev is very strong in the

US market, its sales declined by 11% over the review period, falling to 11.0 billion litres. The

company has been affected by the overall decline of the beer category and the popularity of

craft beers. Real growth for the company is coming from other categories such as cider/perry

and malt-based RTDs, with its continued diversification strategy paying off. Anheuser-Buschshowed volume growth in cider/perry, whilst its malt-based RTD brand Bud Light Lime-a-Rita

was a star performer in RTDs/high-strength premixes.

The Brewers Association made a splash in February 2015 when it changed what constituted

traditional in its craft beer definition. Previously, the Brewers Association stated that beers

brewed using adjuncts of maize, corn, or rice were not traditional, but this specification has

been removed. The Brewers Association stated that it felt the exclusion of these ingredients

as adjuncts placed restrictions on brewing ingredients, and was therefore not in line with the

spirit of craft beer production which often includes experimentation with different ingredients to

elicit unique sensory profiles. The change in interpreting traditional launched Yuengling

Brewery to the number one position in craft brewery ranking by volume. Whilst meeting the

Brewers Association specifications on volume production and independence, labelling

Yuengling as craft beer is controversial as popular perception typically does not includeYuengling in craft beer.

Lagunitas Brewing Co, one of the largest US craft brewers by volume produced, experienced

68% volume sales growth in 2014. The brewery, founded in Lagunitas, California in 1993, and

moved to nearby Pentaluma in 1994, opened a new brewery in Chicago, Illinois in April 2014.

The new brewery added 600,000 barrels to the companys brewing capacity and cut costs

associated with distribution to the Midwest and Eastern US. Much of Lagunitas 2014 volume

gains can be attributed to increased production and distribution capabilities created by the

new Chicago brewery, but the companys well-regarded beers and reputation have also

contributed to growth.

Lager, a beer style where craft beers are less prevalent, has been, generally speaking,

segmented into growing imported lagers and declining domestic lagers. This distinction is

especially identifiable amidst Mexican imported lager, largely dominated by Constellation

Brands, which owns Corona, Modelo and Pacifico brands. In 2014, Constellation Brands grew

by 8% to reach 2.2 billion litres and represented 7% of total beer volume sales. Heineken

USAs Mexican imported lager Tacate Light and Dos Equis XX similarly experienced

astounding growth of 50% and 20%, respectively. Mexican lagers in the US have found

resonance in the space between craft beers and traditional domestic lagers as they are

oftentimes considered more premium and appeal to both the growing Hispanic-American

population and consumers looking for a slice of paradise.

In 2015, mass-produced beers from Anheuser-Busch InBev and MillerCoors became hard to

brew. In a highly charged 2015 Super Bowl advertisement, A-B InBev was dismissive towards

craft beers, touting its Budweiser brand as a macro beer for people who have no interest in

analysing the finer aspects of their beer. Possibly the most controversial part of thecommercial was the claim that Budweiser is brewed the hard way, which invited heavy

criticism from the craft beer industry. MillerCoors similarly claimed that its namesake beer,

Miller Lite, is one of the hardest beers in the world to brew. Whilst the commercials claims

have been disputed by many, the companies may have fulfilled their purpose by attracting so

much attention and starting a lot of conversations.

Historically, the number of breweries in the US has been steady, with 100 or so small

breweries opening and closing each year. However, due to the popularity of craft beers over

the last decade, the number of new microbreweries and brewpubs has been rapidly

expanding, with business owners wanting to capitalise on the trend. In 2014, there were 3,464


6/17



operational breweries in the US. This is an increase of 19% from the year before and 41%

from the year prior. This number is likely to continue to grow over the forecast period as there

are more than a thousand new craft breweries in the planning stages across the nation.

PROSPECTS Craft beer has the most room for innovation and the strongest potential for growth in the US.

Consumers with their increasingly global palates are demanding diverse offerings and in-

depth flavours from local and regional breweries. Craft brewers differentiate their beers by

creating genuine relationships with their consumers through storytelling and loyalty building.

They focus on the general desire of consumers to connect with the local. IPAs are considered

the most popular craft beers and they are expected to continue to do well, however, other

beer styles are expected to experience more rapid growth as consumers look to differentiate

and explore flavour profiles they are unfamiliar with. Whilst distributors worry about significant

additional investments in warehouse space, equipment, inventory and personnel for craft

beers, they also point to the fast-growing number of brands and SKUs as a potential problem.

Forecast period CAGR of total beer volume is expected to be flat, slightly negative, in line with

the historic period CAGR. Gains in styles commonly attributed to craft beers are expected to

offset declines experienced in domestic economy and mid-priced lagers. Ale is expected to

show the fastest volume forecast CAGR, 8%, to reach 2 billion litres in 2019 whilst domestic

economy lager total volume will decline at a CAGR of -3%.

The largest threat to forecast growth comes from other alcoholic drink types. Whilst craft beer

is currently the driver of growth in beer volume, this growth could fall flat as the craft beer

market reaches saturation and consumers look to other areas for craft innovation. Spirits

poses the greatest threat of craft substitution and is already a high focus area, albeit in a

stage of infancy. Currently, craft spirits are reminiscent of craft beers five years ago in that

they exist and consumers are aware of them, yet consumption is not yet at the point where it

is a threat and dominating growth. The on-trade versus off-trade split is typically 25%-75% in terms of volume sales, with value

sales relatively even due to high on-trade prices. These splits are set to remain fairly stable

over the forecast period as the US beer industry is a mature one and no major shake-ups are

expected. If there are recessionary concerns, the off-trade channel is likely to benefit.

CATEGORY BACKGROUND

Lager Price Band Methodology

The top four beer brands in the USBud Light, Budweiser, Coors Light and Miller Lite are

all positioned within the mid-priced band, making this the most competitive segment in the

country. Each product is priced at around US$5.00-6.00 for six 12fl oz (355ml) bottles, with

systemic price increases and discounts built in around the popular summer beer drinking

months. Historically, Budweiser and Bud Light were priced at a premium compared to other

standard lager offerings due to strong brand equity. However, beer price wars have

essentially eliminated any differences.

Summary 1 Lager by Price Band 2014

Category Price range per litre US$

Premium US$2.40-4.84


7/17



Standard US$1.46-2.40

Economy US$0.84-1.45

Source: Euromonitor International from official statistics, trade associations, trade press, company research,store checks, trade interviews, trade sources

Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors thatare considered in classification

Table 1 Number of Breweries 2009-2014

Year2009 2010 2011 2012 2013 2014

Craft 1,596 1,754 1,995 2,401 2,863 3,418Non-Craft 57 59 38 55 54 46TOTAL 1,653 1,813 2,033 2,456 2,917 3,464

Source: US BrewersAssociation

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2009-2014

million litres2009 2010 2011 2012 2013 2014

Dark Beer 1,029.7 1,188.4 1,328.8 1,510.8 1,773.3 1,971.4- Ale 759.1 829.6 920.8 1,039.9 1,235.5 1,387.5- Sorghum - - - - - -

- Weissbier/Weizen/ 270.6 358.7 408.0 470.9 537.8 584.0Wheat BeerLager 23,543.8 22,854.9 22,465.1 22,649.2 22,211.9 22,114.7- Flavoured/Mixed Lager 426.6 383.7 359.7 339.3 302.7 281.7- Standard Lager 23,117.2 22,471.2 22,105.4 22,309.8 21,909.2 21,832.9-- Premium Lager 4,398.2 4,450.3 4,587.7 5,074.5 5,210.3 5,424.3--- Domestic Premium 1,467.9 1,468.8 1,557.2 1,922.7 1,963.2 2,011.0

Lager--- Imported Premium 2,930.3 2,981.6 3,030.5 3,151.8 3,247.1 3,413.3

Lager-- Mid-Priced Lager 12,476.6 11,924.6 11,662.1 11,522.4 11,223.7 11,085.9--- Domestic Mid-Priced 12,476.6 11,924.6 11,662.1 11,522.4 11,223.7 11,085.9

Lager--- Imported Mid-Priced - - - - - -

Lager

-- Economy Lager 6,242.3 6,096.3 5,855.6 5,712.9 5,475.3 5,322.7--- Domestic Economy 6,242.3 6,096.3 5,855.6 5,712.9 5,475.3 5,322.7

Lager--- Imported Economy - - - - - -

LagerNon/Low Alcohol Beer 108.9 106.4 104.0 100.9 99.1 99.3Stout 161.5 173.4 186.1 201.0 217.3 229.8Beer 24,843.9 24,323.1 24,083.9 24,461.9 24,301.6 24,415.2



8/17



Table 3 Sales of Beer by Category: Total Value 2009-2014

USD million2009 2010 2011 2012 2013 2014

Dark Beer 7,835.8 8,870.4 9,888.6 11,242.3 13,349.4 15,283.7- Ale 5,912.9 6,440.7 7,160.3 8,132.4 9,747.2 11,250.7- Sorghum - - - - - -- Weissbier/Weizen/ 1,922.9 2,429.8 2,728.3 3,109.9 3,602.2 4,033.0

Wheat BeerLager 82,334.1 80,499.4 79,966.9 83,795.9 82,872.4 83,142.0- Flavoured/Mixed Lager 1,906.7 1,710.7 1,608.1 1,529.9 1,215.5 1,036.4- Standard Lager 80,427.4 78,788.7 78,358.8 82,266.0 81,656.9 82,105.6-- Premium Lager 24,867.7 25,035.2 24,664.5 27,564.8 28,191.1 29,159.6--- Domestic Premium 8,041.7 8,018.3 7,259.9 9,215.7 9,997.1 10,481.4


Lager-- Mid-Priced Lager 39,210.3 37,206.9 37,080.5 37,976.1 37,200.4 37,011.3

--- Domestic Mid-Priced 39,210.3 37,206.9 37,080.5 37,976.1 37,200.4 37,011.3Lager--- Imported Mid-Priced - - - - - -

Lager-- Economy Lager 16,349.4 16,546.7 16,613.9 16,725.1 16,265.5 15,934.7--- Domestic Economy 16,349.4 16,546.7 16,613.9 16,725.1 16,265.5 15,934.7


LagerNon/Low Alcohol Beer 433.9 422.6 408.4 402.1 398.0 397.6Stout 1,165.1 1,266.3 1,394.1 1,527.8 1,700.2 1,862.7Beer 91,768.9 91,058.6 91,658.0 96,968.1 98,320.0 100,686.1


Table 4 Sales of Beer by Category: % Total Volume Growth 2009-2014

% total volume growth2013/14 2009-14 CAGR 2009/14 Total

Dark Beer 11.2 13.9 91.5- Ale 12.3 12.8 82.8- Sorghum - - -- Weissbier/Weizen/Wheat Beer 8.6 16.6 115.8Lager -0.4 -1.2 -6.1- Flavoured/Mixed Lager -6.9 -8.0 -34.0- Standard Lager -0.3 -1.1 -5.6

-- Premium Lager 4.1 4.3 23.3--- Domestic Premium Lager 2.4 6.5 37.0--- Imported Premium Lager 5.1 3.1 16.5-- Mid-Priced Lager -1.2 -2.3 -11.1--- Domestic Mid-Priced Lager -1.2 -2.3 -11.1--- Imported Mid-Priced Lager - - --- Economy Lager -2.8 -3.1 -14.7--- Domestic Economy Lager -2.8 -3.1 -14.7--- Imported Economy Lager - - -Non/Low Alcohol Beer 0.2 -1.8 -8.8Stout 5.7 7.3 42.3Beer 0.5 -0.3 -1.7


9/17




Table 5 Sales of Beer by Category: % Total Value Growth 2009-2014

% local currency, current value growth

2013/14 2009-14 CAGR 2009/14 Total

Dark Beer 14.5 14.3 95.0- Ale 15.4 13.7 90.3- Sorghum - - -- Weissbier/Weizen/Wheat Beer 12.0 16.0 109.7Lager 0.3 0.2 1.0- Flavoured/Mixed Lager -14.7 -11.5 -45.6- Standard Lager 0.5 0.4 2.1-- Premium Lager 3.4 3.2 17.3--- Domestic Premium Lager 4.8 5.4 30.3

--- Imported Premium Lager 2.7 2.1 11.0-- Mid-Priced Lager -0.5 -1.1 -5.6--- Domestic Mid-Priced Lager -0.5 -1.1 -5.6--- Imported Mid-Priced Lager - - --- Economy Lager -2.0 -0.5 -2.5--- Domestic Economy Lager -2.0 -0.5 -2.5--- Imported Economy Lager - - -Non/Low Alcohol Beer -0.1 -1.7 -8.4Stout 9.6 9.8 59.9Beer 2.4 1.9 9.7


Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2009-2014

million litres2009 2010 2011 2012 2013 2014

Off-trade 18,307.8 18,040.4 17,739.8 17,915.6 17,867.0 17,936.6On-trade 6,536.0 6,282.7 6,344.1 6,546.3 6,434.6 6,478.6Total 24,843.9 24,323.1 24,083.9 24,461.9 24,301.6 24,415.2


Table 7 Sales of Beer by Off-trade vs On-trade: Value 2009-2014

USD million2009 2010 2011 2012 2013 2014

Off-trade 42,713.3 42,849.8 42,630.1 44,869.3 45,597.3 46,591.0On-trade 49,055.6 48,208.8 49,027.9 52,098.8 52,722.7 54,095.1Total 91,768.9 91,058.6 91,658.0 96,968.1 98,320.0 100,686.1


Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2009-2014


10/17



% volume growth2013/14 2009-14 CAGR 2009/14 TOTAL

Off-trade 0.4 -0.4 -2.0

On-trade 0.7 -0.2 -0.9Total 0.5 -0.3 -1.7


Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2009-2014

% current value growth2013/14 2009-14 CAGR 2009/14 TOTAL

Off-trade 2.2 1.8 9.1On-trade 2.6 2.0 10.3

Total 2.4 1.9 9.7Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 10 GBO Company Shares of Beer: % Total Volume 2010-2014

% total volumeCompany 2010 2011 2012 2013 2014

Anheuser-Busch InBev NV 48.9 48.0 47.1 46.0 45.3SABMiller Plc 16.2 15.8 15.1 14.5 14.3Molson Coors Brewing Co 13.4 13.7 13.8 14.0 13.6Constellation Brands Inc - - - 6.4 7.0

Heineken NV 4.0 4.0 4.0 4.0 4.2S & P Co 2.9 3.0 3.1 3.1 3.1Yuengling Brewery 1.2 1.4 1.6 1.6 1.7Boston Beer Co Inc, The 1.0 1.1 1.2 1.3 1.3Diageo Plc 0.7 0.7 0.7 0.7 0.6Florida Ice & Farm Co SA - - 0.6 0.5 0.5Sierra Nevada Brewing Co 0.3 0.4 0.4 0.4 0.5New Belgium Brewing Co 0.3 0.3 0.4 0.4 0.4Craft Brew Alliance Inc 0.3 0.3 0.3 0.3 0.3Gambrinus Co, The 0.2 0.2 0.2 0.2 0.2Lagunitas Brewing Co 0.0 0.0 0.1 0.1 0.2Sapporo Holdings Ltd 0.1 0.1 0.1 0.1 0.1Modelo SA de CV, Grupo 5.4 5.7 5.9 - -North American 0.3 0.3 - - -

Breweries IncFoster's Group Ltd 0.2 - - - -FEMSA (Fomento - - - - -

Economico Mexicano SAde CV)

Scottish & Newcastle Plc - - - - -Anheuser-Busch Cos Inc - - - - -Redhook Ale Brewery Inc - - - - -Widmer Bros Brewing Co - - - - -High Falls Brewing Co - - - - -InBev NV SA - - - - -McKenzie River Corp - - - - -Independent Brewers - - - - -


11/17



UnitedOthers 4.6 5.1 5.6 6.4 6.6Total 100.0 100.0 100.0 100.0 100.0


Table 11 NBO Company Shares of Beer: % Total Volume 2010-2014

% total volumeCompany 2010 2011 2012 2013 2014

Anheuser-Busch InBev NV 48.2 47.3 46.8 45.7 45.0MillerCoors LLC 29.8 29.4 28.9 28.5 27.9Crown Imports LLC 5.5 5.8 6.0 6.5 7.1Heineken USA Inc 4.0 4.0 4.0 4.0 4.2Pabst Brewing Co 2.9 3.0 3.1 3.1 3.1Yuengling Brewery 1.2 1.4 1.6 1.6 1.7Boston Beer Co Inc, The 1.0 1.1 1.2 1.3 1.3North American 0.9 0.9 0.9 0.9 0.8

Breweries IncDiageo-Guinness USA 0.7 0.7 0.7 0.7 0.6Sierra Nevada Brewing Co 0.3 0.4 0.4 0.4 0.5New Belgium Brewing Co 0.3 0.3 0.4 0.4 0.4Craft Brew Alliance Inc 0.3 0.3 0.3 0.3 0.3Gambrinus Co, The 0.2 0.2 0.2 0.2 0.2Lagunitas Brewing Co 0.0 0.0 0.1 0.1 0.2Sapporo USA 0.1 0.1 0.1 0.1 0.1Miller Brewing Co - - - - -

Anheuser-Busch Cos Inc - - - - -Labatt USA LLC - - - - -Redhook Ale Brewery Inc - - - - -Scottish & Newcastle - - - - -

ImportersMolson USA LLC - - - - -Widmer Bros Brewing Co - - - - -Barton Beers Ltd - - - - -Barton Beers Ltd - - - - - -

Gambrinus CoFoster's USA LLC - - - - -High Falls Brewing Co - - - - -Molson Coors Brewing Co - - - - -InBev USA - - - - -McKenzie River Corp - - - - -Others 4.6 5.0 5.6 6.3 6.6Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 12 LBN Brand Shares of Beer: % Total Volume 2011-2014

% total volumeBrand (Global Brand Company 2011 2012 2013 2014

Owner)

Bud Light Anheuser-Busch InBev NV 19.2 18.7 18.3 18.3Coors Light (Molson MillerCoors LLC 9.3 9.5 9.6 9.3

Coors Brewing Co)


12/17



Budweiser Anheuser-Busch InBev NV 8.9 8.3 8.1 7.8Miller Lite MillerCoors LLC 7.1 6.9 6.5 6.5

(SABMiller Plc)Corona Extra Crown Imports LLC - - 3.7 3.9

(Constellation

Brands Inc)Natural Light Anheuser-Busch InBev NV 4.0 3.8 3.6 3.3Busch Light Anheuser-Busch InBev NV 3.2 3.1 3.2 3.2Busch Anheuser-Busch InBev NV 2.9 2.7 2.5 2.4Modelo Especial Crown Imports LLC - - 1.9 2.2

(ConstellationBrands Inc)

Miller High Life MillerCoors LLC 2.4 2.4 2.2 2.1(SABMiller Plc)

Corona Extra Crown Imports LLC 3.5 3.5 - -(Modelo SA de CV,Grupo)

Others Others 39.6 41.1 40.5 41.0Total Total 100.0 100.0 100.0 100.0


Table 13 Production, Imports and Exports of Beer: Total Volume 2008-2013

million litres2008 2009 2010 2011 2012 2013

BeerApparent 26,412.1 25,726.0 25,676.3 25,437.3 25,775.7 25,217.6consumption

BeerProduction 23,406.9 23,105.9 22,835.5 22,593.0 22,970.0 22,484.0BeerImports 3,368.0 3,037.1 3,185.2 3,207.7 3,251.9 3,231.2BeerExports 362.8 416.9 344.4 363.3 446.2 497.6

Source: GTIS, Euromonitor InternationalNote: - indicates data not available

Table 14 Imports of Beer by Country of Origin: Total Volume 2008-2013

million litres2008 2009 2010 2011 2012 2013

BeerMexico 1,596.1 1,534.1 1,605.3 1,676.8 1,787.3 1,869.4BeerNetherlands 771.7 666.1 655.8 604.5 615.5 572.2BeerCanada 367.7 284.5 316.8 286.3 249.5 237.4BeerBelgium 123.0 101.2 130.0 164.6 181.9 180.8BeerIreland 109.7 101.8 100.3 115.9 110.8 108.2BeerGermany 137.8 124.7 143.3 139.5 92.9 82.8BeerUnited Kingdom 116.8 90.8 94.3 84.3 82.2 76.0BeerItaly 19.5 20.0 22.4 23.1 25.3 19.2BeerPoland 12.5 10.8 11.7 11.4 12.8 12.2BeerDominican Republic 15.0 15.5 14.3 13.4 15.1 11.6BeerCzech Republic 15.7 11.8 11.6 10.8 10.2 8.2BeerChina 7.5 7.3 6.8 6.7 7.2 6.1BeerEl Salvador 6.3 7.8 6.7 7.3 5.5 4.0BeerKorea, South 2.7 3.0 3.0 3.0 3.7 3.9BeerJapan 1.8 1.8 2.4 3.1 2.8 3.7BeerThailand 2.9 3.8 3.7 3.3 3.7 3.5BeerDenmark 3.4 2.7 3.3 3.3 3.4 3.1


13/17



BeerFrance 2.3 1.8 2.5 3.0 2.9 2.8BeerGuatemala 1.3 1.3 1.8 3.0 2.4 2.1BeerNew Zealand 4.2 3.1 2.9 2.8 2.4 2.0BeerSpain 0.5 0.5 0.9 1.4 2.0 2.0BeerAustria 0.6 0.7 0.9 1.2 1.9 1.9

BeerTrinidad & Tobago 1.9 1.5 1.7 1.6 1.7 1.5BeerRussia 1.9 1.8 1.9 1.8 1.8 1.4BeerIndia 1.4 1.3 1.2 1.2 1.4 1.2BeerOthers 43.7 37.7 39.6 34.3 25.7 13.9BeerTotal 3,367.9 3,037.1 3,185.2 3,207.7 3,251.9 3,231.2


Table 15 Imports of Beer by Country of Origin: Total Value 2008-2013

USD million2008 2009 2010 2011 2012 2013

BeerMexico 1,576.6 1,534.7 1,617.1 1,684.0 1,824.6 1,924.7BeerNetherlands 1,061.4 962.4 952.1 868.4 883.7 849.3BeerBelgium 146.6 122.2 163.7 211.0 235.2 239.8BeerCanada 301.5 194.9 219.0 203.2 190.6 184.3BeerIreland 157.1 144.5 137.4 164.4 167.0 170.7BeerUnited Kingdom 124.2 110.1 128.6 125.5 125.3 118.3BeerGermany 137.6 129.4 150.4 149.5 114.0 101.2BeerItaly 25.0 25.5 28.9 31.1 31.5 22.5BeerDominican Republic 20.8 22.0 20.1 21.6 23.5 12.5BeerPoland 11.6 8.4 8.9 9.1 9.5 9.3BeerCzech Republic 15.7 11.1 10.7 10.5 10.0 7.3BeerJapan 3.8 3.8 4.9 6.6 6.7 6.6BeerChina 5.7 5.2 5.9 6.2 7.0 6.4BeerThailand 4.1 5.2 6.0 4.9 6.8 5.2

BeerDenmark 3.7 3.5 4.9 5.7 6.0 5.1BeerFrance 2.3 1.9 2.8 3.5 4.4 4.0BeerNew Zealand 5.8 4.1 4.2 3.9 4.3 3.5BeerEl Salvador 4.4 5.7 5.0 5.5 4.3 3.2BeerSpain 0.9 1.0 1.6 2.6 3.1 3.0BeerAustria 1.1 1.2 1.3 1.9 2.7 3.0BeerKorea, South 1.9 2.3 2.1 2.2 2.7 3.0BeerIndia 2.3 2.3 2.1 2.2 2.5 2.3BeerGuatemala 1.1 1.1 1.5 2.7 2.0 1.9BeerTrinidad & Tobago 1.8 1.6 2.0 1.9 2.0 1.8BeerJamaica 39.1 33.0 33.8 27.5 16.4 1.6BeerOthers 18.6 16.8 18.7 19.2 19.8 18.9BeerTotal 3,674.7 3,353.8 3,533.8 3,574.9 3,705.8 3,709.5

Source: GTIS, Euromonitor International

Note: - indicates data not available

Table 16 Exports of Beer by Country of Destination: Total Volume 2008-2013

million litres2008 2009 2010 2011 2012 2013

BeerMexico 121.7 113.8 108.1 119.4 124.9 154.1BeerCanada 113.4 187.6 106.6 81.3 88.0 88.9BeerChile 2.6 3.8 12.1 21.0 48.3 57.0BeerPanama 12.7 15.2 18.8 20.1 25.4 33.0


14/17



BeerParaguay 10.8 6.2 14.7 24.2 30.5 25.1BeerAustralia 11.7 15.3 7.4 7.4 19.0 15.8BeerHonduras 2.3 4.2 3.3 4.5 7.3 10.4BeerTaiwan 14.2 11.6 9.7 9.5 9.0 9.6BeerKorea, South 13.5 8.7 10.3 9.8 9.4 8.9

BeerUnited Kingdom 13.6 4.4 4.9 4.6 6.0 8.9BeerSweden 3.5 2.9 2.2 3.6 5.3 8.5BeerChina 0.2 0.2 0.5 3.5 2.3 6.9BeerColombia 1.4 1.8 2.6 3.2 4.8 5.6BeerUnited Arab 4.1 3.3 3.7 3.8 3.7 3.6

EmiratesBeerHong Kong 5.0 3.9 4.3 4.2 3.6 3.5BeerJapan 1.8 2.1 2.2 2.8 2.9 3.5BeerDominican Republic 1.3 1.3 1.7 2.1 1.9 3.4BeerCosta Rica 0.2 0.5 0.9 2.2 2.9 3.3BeerTrinidad & Tobago 0.2 0.2 0.4 0.5 0.9 3.1BeerBahamas 3.2 3.1 2.4 2.5 2.6 2.5BeerSint Maarten - - - 1.7 2.5 2.4BeerSingapore 1.6 0.7 0.7 1.1 2.6 2.4BeerGuatemala - - - 1.0 5.5 2.4BeerMalaysia 0.4 0.4 0.5 1.1 1.6 2.4BeerEcuador 0.9 1.0 1.4 3.2 4.2 2.3BeerOthers 22.4 24.7 25.0 24.9 31.3 29.9BeerTotal 362.8 416.9 344.4 363.3 446.2 497.6


Table 17 Exports of Beer by Country of Destination: Total Value 2008-2013

USD million2008 2009 2010 2011 2012 2013

BeerCanada 103.6 177.5 188.4 133.7 144.5 163.7BeerMexico 86.0 84.8 84.6 95.6 102.0 126.8BeerChile 2.5 3.5 9.0 14.4 31.8 41.2BeerParaguay 7.7 6.2 15.6 26.8 38.5 30.3BeerPanama 7.0 9.2 11.4 11.9 15.8 20.4BeerAustralia 11.0 14.6 5.9 6.6 15.3 15.0BeerSweden 2.7 3.0 3.6 5.4 8.4 14.0BeerChina 0.2 0.2 0.5 4.0 2.9 9.3BeerUnited Kingdom 7.5 3.8 5.1 4.8 6.4 9.2BeerTaiwan 10.9 9.6 8.3 8.2 8.1 8.5BeerHonduras 1.7 2.9 2.4 3.4 5.3 7.7BeerKorea, South 9.1 5.0 5.3 5.2 5.7 6.7BeerColombia 1.0 1.5 2.1 2.8 4.2 4.5BeerJapan 1.5 1.8 2.2 2.9 3.3 4.3

BeerUnited Arab 3.9 3.3 3.8 4.0 3.6 3.9EmiratesBeerDominican Republic 1.3 1.4 1.8 2.3 2.0 3.3BeerBahamas 3.1 3.1 2.5 2.7 2.8 2.9BeerSingapore 1.5 0.7 0.8 1.1 2.6 2.6BeerHong Kong 2.9 2.4 2.6 2.6 2.5 2.4BeerCosta Rica 0.2 0.4 0.7 1.4 2.0 2.3BeerMalaysia 0.4 0.4 0.5 1.1 1.5 2.2BeerItaly 0.2 0.3 0.3 0.4 1.0 2.1BeerSint Maarten - - - 1.3 1.9 2.1BeerTrinidad & Tobago 0.2 0.2 0.3 0.4 0.6 1.9BeerBrazil 0.0 0.1 0.4 3.2 1.7 1.8BeerOthers 21.3 22.4 23.3 23.3 34.1 31.2


15/17



BeerTotal 287.3 358.2 381.1 369.5 448.4 520.5


Table 18 Forecast Sales of Beer by Category: Total Volume 2014-2019

million litres2014 2015 2016 2017 2018 2019

Dark Beer 1,971.4 2,179.4 2,351.1 2,518.3 2,662.6 2,774.3- Ale 1,387.5 1,539.3 1,678.1 1,807.9 1,916.9 2,000.4- Sorghum - - - - - -- Weissbier/Weizen/ 584.0 640.1 673.0 710.4 745.7 773.9

Wheat BeerLager 22,114.7 21,821.0 21,539.3 21,324.7 21,161.5 20,966.5- Flavoured/Mixed Lager 281.7 270.1 260.2 250.2 243.0 241.1- Standard Lager 21,832.9 21,550.9 21,279.1 21,074.5 20,918.6 20,725.4-- Premium Lager 5,424.3 5,551.8 5,685.6 5,816.4 5,950.7 6,070.3--- Domestic Premium 2,011.0 2,055.6 2,102.3 2,148.0 2,189.0 2,225.0


Lager-- Mid-Priced Lager 11,085.9 10,842.6 10,600.0 10,420.5 10,285.6 10,116.9--- Domestic Mid-Priced 11,085.9 10,842.6 10,600.0 10,420.5 10,285.6 10,116.9

Lager--- Imported Mid-Priced - - - - - -

Lager-- Economy Lager 5,322.7 5,156.5 4,993.5 4,837.5 4,682.3 4,538.2--- Domestic Economy 5,322.7 5,156.5 4,993.5 4,837.5 4,682.3 4,538.2


Lager

Non/Low Alcohol Beer 99.3 99.1 98.7 98.3 97.3 97.1Stout 229.8 244.1 259.5 271.5 280.6 285.8Beer 24,415.2 24,343.6 24,248.6 24,212.8 24,202.1 24,123.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,trade sources

Table 19 Forecast Sales of Beer by Category: Total Value 2014-2019

USD million2014 2015 2016 2017 2018 2019

Dark Beer 15,283.7 17,209.4 18,864.8 20,507.5 21,995.3 23,275.0- Ale 11,250.7 12,674.0 13,974.8 15,212.4 16,291.8 17,202.5- Sorghum - - - - - -- Weissbier/Weizen/ 4,033.0 4,535.3 4,890.0 5,295.1 5,703.4 6,072.5

Wheat BeerLager 83,142.0 83,189.5 83,210.8 83,392.8 83,527.4 83,714.1- Flavoured/Mixed Lager 1,036.4 1,001.6 972.4 941.5 919.5 919.0- Standard Lager 82,105.6 82,187.9 82,238.4 82,451.4 82,607.9 82,795.1-- Premium Lager 29,159.6 30,061.2 30,831.3 31,606.3 32,392.1 33,146.9--- Domestic Premium 10,481.4 10,860.2 11,118.6 11,407.4 11,674.9 11,935.3


Lager-- Mid-Priced Lager 37,011.3 36,556.7 36,159.3 35,895.9 35,579.7 35,308.1


16/17



--- Domestic Mid-Priced 37,011.3 36,556.7 36,159.3 35,895.9 35,579.7 35,308.1Lager

--- Imported Mid-Priced - - - - - -Lager

-- Economy Lager 15,934.7 15,570.1 15,247.8 14,949.2 14,636.2 14,340.1

--- Domestic Economy 15,934.7 15,570.1 15,247.8 14,949.2 14,636.2 14,340.1Lager

--- Imported Economy - - - - - -Lager

Non/Low Alcohol Beer 397.6 399.1 399.4 400.3 398.6 399.6Stout 1,862.7 2,035.1 2,215.8 2,369.7 2,501.9 2,609.3Beer 100,686.1 102,833.1 104,690.7 106,670.3 108,423.1 109,998.0


Table 20 Forecast Sales of Beer by Category: % Total Volume Growth 2014-2019

% total volume growth2014/15 2014-19 CAGR 2014/19 Total

Dark Beer 4.2 7.1 40.7- Ale 4.4 7.6 44.2- Sorghum - - -- Weissbier/Weizen/Wheat Beer 3.8 5.8 32.5Lager -0.9 -1.1 -5.2- Flavoured/Mixed Lager -0.8 -3.1 -14.4- Standard Lager -0.9 -1.0 -5.1-- Premium Lager 2.0 2.3 11.9--- Domestic Premium Lager 1.6 2.0 10.6--- Imported Premium Lager 2.2 2.4 12.7-- Mid-Priced Lager -1.6 -1.8 -8.7--- Domestic Mid-Priced Lager -1.6 -1.8 -8.7

--- Imported Mid-Priced Lager - - --- Economy Lager -3.1 -3.1 -14.7--- Domestic Economy Lager -3.1 -3.1 -14.7--- Imported Economy Lager - - -Non/Low Alcohol Beer -0.3 -0.5 -2.3Stout 1.8 4.5 24.4Beer -0.3 -0.2 -1.2


Table 21 Forecast Sales of Beer by Category: % Total Value Growth 2014-2019

% local currency, constant value growth

2014/2015 2014-19 CAGR 2014/19 TOTAL

Dark Beer 5.8 8.8 52.3- Ale 5.6 8.9 52.9- Sorghum - - -- Weissbier/Weizen/Wheat Beer 6.5 8.5 50.6Lager 0.2 0.1 0.7- Flavoured/Mixed Lager -0.1 -2.4 -11.3- Standard Lager 0.2 0.2 0.8-- Premium Lager 2.3 2.6 13.7--- Domestic Premium Lager 2.2 2.6 13.9


17/17


--- Imported Premium Lager 2.4 2.6 13.6-- Mid-Priced Lager -0.8 -0.9 -4.6--- Domestic Mid-Priced Lager -0.8 -0.9 -4.6--- Imported Mid-Priced Lager - - --- Economy Lager -2.0 -2.1 -10.0

--- Domestic Economy Lager -2.0 -2.1 -10.0--- Imported Economy Lager - - -Non/Low Alcohol Beer 0.2 0.1 0.5Stout 4.3 7.0 40.1Beer 1.5 1.8 9.2


Documents

Beer_in_the_US