Beer Fragmenting in Supermarkets

Bud leads the way as top 20 brands lose share.

The fragmentation of the beer category is well underway in supermarkets, according to figures from Nielsen.

For the 13 weeks ended April 28, the top 20 beer brands commanded 72.3 percent of supermarket volume, according to beer sales statistics from Nielsen. That’s down a point and a half from 73.8 percent share in 20004.

The single biggest driver of that decline is Budweiser, according to Nielsen’s beer industry analysis. Bud accounted for 42.8 percent of the total decline. Michelob Ultra, another Anheuser-Busch beer, represented 22.1 percent of the drop.

Besides the long running decline of Bud, another factor in this fragmentation is the growth of import and craft brands. Indeed, imports have increased their shelf presence by 15.5 percent since 20004 and crafts by 38 percent over the past two years, according to Nielsen.

Clearly, the drivers for the beer business remain big brands such as Bud Light, Miller Lite and Coors Light. And retailers should maintain focus on these brands commensurate with their contribution.

But these numbers also demonstrate how worthmore brands are expanding their presence at retail.

That’s why Anheuser-Busch has embarked on the funnel strategy to give its restricted distributors access to imports and crafts. It’s why Molson Coors Brewing Company has been expanding distribution of Blue Moon.

And it’s why Miller has been expanding distribution of the Leinenkugel’s craft brand and the imports Peroni Nastro Azzurro and Pilsner Urquell. It’s also why Miller sees opportunity for niche import brands including Aguila, Cristal, Cusquena and Tyskie.