BeerInstituteResearch

Washington,DC
DraftBeerIndustryUpdate,2012

LesterJones
ChiefEconomist
BeerInstitute,Washington,DC

BEERSERVESAMERICA,2012
ThebrewingindustryisadynamicpartoftheU.S.economywith$246.5billion
ineconomicoutputor1.6%ofUSGDP.
Bottomupapproach countingestablishmentsandjobs
Industrydirectlyorindirectlyemploy2millionAmericans
Employeesearn$79billioninwagesandbenefits
Everystateandvirtuallyeverycommunityinthecountrycontributestothe
brewingindustryinsomeway
TheBeerIndustrygeneratesover$49billionintaxeseachyear.
Theindustryandtheiremployeespay$39billionindirectbusinessand
personaltaxesatfederal,stateandlocallevels(Implan estimates)
Theconsumptionofbeergenerates$10.2billionintaxesincluding$3.7billion
infederalexcisetaxes,$1.7billioninstateexcisetaxesandanother$6.5billion
insalesandotherrelatedstatetaxes.(BIEstimates)
$49billion over40%oftheretailvalueofbeerispaidintaxes

Source:BeerInstitute,2013

DropsofDraftBeerTrivia
In2012
USbrewersproduced568.9milliongallonsofdraft
importersbroughtus75.6milliongallonsofdraft
totaldraftindustrywas644.5milliongallons

From2002to2012
Shareofdraftgrewfrom9.0%2002to10.0%in2012
Totaldraftvolumesgrew+1.2%CAGR
Totalindustryonlygrew0.2%CAGR

Flowrateof1min/gallonand644.5milliongallons
10.7millionhrs. 447,582days 1,226yearstoflow!
Ifall2012volumeswentthroughonetap,itwouldflowuntiltheyear3238!
Source:BeerInstitute,2013

PerCapitaConsumptionofMaltBeverages
UnitedStates1980to2012(totalgallons/totalpopulation)
1. 24.6in1981to20.5in2012

25.0

2. Demographics(babyboomermillenniums)

24.0

3. Increasedalcoholbeveragecompetition
4. Increasednonalcoholbeveragecompetition

23.0

5. PolicyChanges(21LDAand.08BAC)
6. Economic(YM2534)4millionoutofwork

22.0
21.0
20.0

18.0

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

19.0

Source:BeerInstitute,2013

Annual Draft Beer Statistics

2002 2012 (31 gallon barrels)

Domestic Import
Total
Industry
Draft
Draft
Draft
Share
Share

Total
Draft
Share

1,746

18,288

9.2%

7.6%

9.0%

16,944

1,903

18,847

9.4%

8.1%

9.3%

205,104

17,162

1,799

18,961

9.5%

7.5%

9.2%

25,566

205,210

17,106

2,101

19,207

9.5%

8.2%

9.4%

180,500

29,294

209,794

17,425

2,194

19,619

9.7%

7.5%

9.4%

2007

182,687

29,695

212,382

17,602

2,450

20,052

9.6%

8.2%

9.4%

2008

184,571

28,700

213,271

17,670

2,577

20,247

9.6%

9.0%

9.5%

2009

183,218

25,881

209,100

17,845

2,106

19,952

9.7%

8.1%

9.5%

2010

181,148

27,142

208,290

18,204

2,211

20,414

10.0%

8.1%

9.8%

2011

178,030

27,338

205,368

18,327

2,407

20,733

10.3%

8.8%

10.1%

2012

180,061

27,713

207,774

18,352

2,439

20,791

10.2%

8.8%

10.0%

Year

Total
Domestic
Supply

Total
Import
Supply

Total
Industry
Supply

Domestic
Draft

2002

180,400

23,079

203,479

16,542

2003

179,400

23,519

202,919

2004

181,254

23,850

2005

179,645

2006

Source:BeerInstitute,2013

Import
Draft

Source:BeerInstitute,2013

CAN VOLUME
BOTTLES VOLUME
REFILL VOLUME
DRAUGHT VOLUME

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

1968

1966

1964

1962

1960

1958

1956

1954

1952

1950

Millions of Barrels

US Malt Beverages, National Package Mix

1950 to 2012

200

150

100

50

DraftBeerShareofMarket
19502012

30

PercentageShareofmarket

The good old days of tavern and pub culture are long gone. Big TVs, packaged beer and
move to the suburbs shifted consumption away from bars and taverns and into homes.

25
20
15
10
5

Source:BeerInstitute,2013

2010

2007

2004

2001

1998

1995

1992

1989

1986

1983

1980

1977

1974

1971

1968

1965

1962

1959

1956

1953

1950

Source:BeerInstitute,2013

2010

2007

2004

2001

1998

1995

1992

1989

1986

1983

1980

1977

1974

1971

1968

1965

1962

1959

1956

1953

1950

Millions

TotalDraftGallons
1950t02012

900

800

700

600

500

400

300

200

100

PerCapitaConsumptionofDraftBeer
1950 2012
5.0
4.5
GallonsperPerson

4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5

Source:BeerInstitute,2013

2010

2007

2004

2001

1998

1995

1992

1989

1986

1983

1980

1977

1974

1971

1968

1965

1962

1959

1956

1953

1950

0.0

10.5%

GrowingUSDraftShare
2002 2012
Holdingsteadyat10sharein2012.

10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Imports
Source:BeerInstitute,TTBandUSDept.ofCommerce2013.

Domestic

Total

2012DraftShareofMarket

12% < share

9%< share < 12%
0%< share <9%
Source:TTBandBeerInstitute,2013

USAverage10%in2012
5.1billion16ozServings

DraftBeerGrowth2010to2012
DomesticandImportvolumegrowth
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2010

2011
Domestic

Source:TTB,CommerceDept andBeerInstitute,2013

Imports

2012
Total

2012ImportedDraftBeer
Country

2012Volume

Share

Cumulative
Share

Belgium

630,174

26%

26%

38,284

6.5%

Ireland

476,698

20%

45%

(19,339)

3.9%

Mexico

448,811

18%

64%

100,950

29.0%

Canada

271,058

11%

75%

(72,781)

21.2%

Germany

196,585

8%

83%

(6,945)

3.4%

UnitedKingdom

160,819

7%

90%

(9,486)

5.6%

Netherlands

154,213

6%

96%

286

0.2%

Italy

51,996

2%

98%

8,972

20.9%

CzechRepublic

15,154

1%

99%

425

2.9%

Denmark

9,376

0%

99%

371

4.1%

AllOthers

23,666

1%

100%

31,962

1.3%

2,438,550

100%

31,962

1.3%

Total

Source:CommerceDept.andBeerInstitute,2013

Change

Growth

DraftVolumeGrowth,2012

Growth 2.4% to 16%

Growth 0% to +2.3%
Growth -10% to 0%
Source:TTBandBeerInstitute,2013

USAverage+0.3%

2012Top10LargestDraftStates
State

2012 Draft
Volume

Draft
Share

Cumulative
Share

Change in Draft
Volumes

California

2,119,550

9.6%

10%

1.9%

Florida

1,501,510

11.7%

18%

2.4%

Pennsylvania
Texas
New York
Illinois
Colorado

1,453,924
1,394,250
1,113,584
860,979
720,105

16.6%
7.0%
10.6%
9.9%
19.4%

25%
31%
37%
41%
44%

-1.8%
2.3%
0.5%
-0.1%
-0.6%

691,046
652,348

14.2%
8.1%

48%
51%

-1.7%
-2.0%

Michigan
Top 10 States
Others

630,241
11,137,537
9,474,653

10.1%
10.5%
9.5%

54%
54%
46%

-2.7%
0.3%
0.4%

Total US

19,985,467

10.0%

100%

0.3%

Wisconsin
Ohio

Top10LargestStateshave54%ofUSVolume
Source:BeerInstitute,2013

Onvs.OffPremise
576,000establishmentsthatsellbeerinUSin2012
355,000OnPremiseAccountsintheUS
Includesbars,taverns,restaurants,concessionsand
militarybars
TotalUSbeerbusinessisworth$104billiondollarsat
retailin2012
Offpremisehas80%ofvolumesbutonly45%of
dollars
Onpremisehas20%ofvolumesbut55%ofretail
dollars

ThankYou

LesterJones
ChiefEconomist
BeerInstitute,Washington,DC