BEER SALES IN U.S.

Beer Sales in U.S

Beer Sales in the U.S

Introduction

Beer is the largest alcohol segment in the United States, accounting for roughly 85% of all alcohol volume sold. Annually, it generates over $91.6 billion in retail sales of beer in the U.S. The industry has continued to grow by leaps and bounds, increasing its popularity and profitability despite volatile economic conditions and irregular consumption patterns. The beer market is the most concentrated of the three alcohol sectors with three brewers-Anheuser-Busch, South African Breweries' Miller (SAB-Miller), and Molson Coors Brewing Company-accounting for about 79% all beer sales. There are some factors that can lead to even higher growth in the beer-selling market in U.S. these factors include increasing markets shares, increased pricing scale, new production efficiency, and the lift in the operating margins for a larger beer market in U.S. there are many changes that have uplifted the beer industry in the U.S, creating economic gains and synergy worldwide. These changes are dominated by the growing rates of consolidation of smaller companies into larger beer-manufacturing companies. A number of revolutionary brewers in the 1980s started producing traditional more full-flavoured "craft" beers using only traditional ingredients and brewing practices.

In this study we will look at different issues in the beer industry, from the perspective of demand patterns, production issues and market structure issues. Together, we will define the brewing markets of the U.S. in terms of its market share and consumption trends among the people of the United States.

Discussion

The beer industry is composed of the Backus Group Anglo-South African subsidiary of SAB Miller; Ambev Peru-Brazilian subsidiary of the Belgian holding Inver Anheuser-Bush, and local Ajegroup-owned Group. There are also other small producers such as Amazon and Brewery Group Torviscas. It is important to note that 99% of demand is met by local producers and only 1% for imports. Beer sales in the Peruvian market amounted to 11.5 million hectoliters in 2009, showing down 5% from the record volume of 12.1 million hectoliters in 2008, according to figures from Backus. Considering the high tax burden-Selective Consumption Tax (ISC) and the General Sales Tax (GST) - and distribution margins and retail marketing, the sales value of consumer prices have edged los US$1,950 millions, according to estimates of their own. For their part, white beer production rose to 11.69 million hectoliters in 2009, showing a reduction of 0.9% over 2008, according to information from the Ministry of Production. The fall in sales volumes was primarily explained by the impact of the global financial crisis on the local economy, which resulted in a drastic slowdown in consumption. Given this and Ajegroup Ambev continued their low-price policies to encourage consumption and gain market share (McGowan, 2000).

Demand Issues

The product of beer and other related beverages could generate while cannibalization with other presentations of the same brand, has to explore the response of consumers to new concepts of higher value beer. Plans over the next three years, double the production capacity of its ...