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Nielsen data: Craft-beer slowdown is real, and getting worse

1/8/2016

 
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No single market-research tool can accurately capture every possible market dynamic. And every such tool has its weak points. With that said, ignoring the declining craft-beer growth rate documented by as recognized and authoritative a resource as Nielsen, is unwise at best, catastrophic at worst.

Over the recent past, here's what Nielsen data has said about the volume growth rate of the craft-beer segment. The raw measures may be imperfect, but chances are the trend they chronicle is quite real.


Nielsen Craft-Beer Growth Rates (Annualized*)
(Data sources linked)

2014 12-month ...................................................... .....
+20%
2015 12-month as of June 20th........................ ...........+10.2%  
2015 year-to-date as of December................................+8.7%
2015 4-week as of December 19th................................+4.3%

Reactions

The gut response from many craft loyalists to what they see as threatening news of this kind is immature: Question the data, deride anyone who mentions it, and look for examples of fast-growing craft brands as if they weren't included in the Nielsen data. In other words: disbelief, nastiness, or off-point argument. Pretty childish.
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Four very hot craft brands: One shared route to the future
In its latest issue, Beer Marketers Insights identified a more rational, businesslike response: Attuned to market dynamics and with an eye to the future, four of 2015's five fastest-growing craft brands--Lagunitas, Firestone Walker, Ballast Point, and Founders--all consumated deals with BigBeer. It amounts to a shared view by the strongest craft brewers that continuing their success in a slowing category means real change from the past.

For children, change can be a scary thing.

For adults, it can spell opportunity.

*Edited to more clearly reflect that each measure shows an annualized growth rate. Data is unchanged.

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    The Author

    Dan Fox is a real beer guy.

    For more than half his 30-year career at ad agency, Foote, Cone & Belding, he ran the Coors Brewing account. Leading a group of dozens of advertising professionals, Dan also personally wrote the Pete Coors "Somewhere near Golden, Colorado" commercials, designed the Coors NASCAR graphics, authored sales-convention speeches, and most important of all, formulated marketing strategy for virtually every Coors brand, including Coors Light, Keystone, Killian's Irish Red and more. His proudest achievement? "Our team had every Coors brand growing at once."

    Over his advertising career, Dan was personally involved in the analysis, planning and creation of thousands of ads for a variety of products and services. By way of this blog, he freely shares his expertise about what works, and what doesn't, when it comes to selling beer.

    If you're in the beer-marketing business--or just interested in the subject--you may want to read what "HeyBeerDan" has to say.

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