E-Malt.com News article: 4724

USA: New Belgium Brewery in Fort Collins, Colorado registered an increase by 16% of its sales in 2004 as more consumers caught on to its signature Fat Tire Amber Ale, Rocky Mountain News posted. Production at Denver-based Breckenridge Brewery - maker of Avalanche Ale - rose 3 percent last year, even with the seasonlong hockey lockout. Nationally, sales of craft beer rose 7 percent in 2004, after several years of slower growth, according to the Boulder-based Brewers Association.

"There are a few factors that have converged on this," the main reason being an increase in quality of craft beers, said association director Paul Gatza. The taste of craft beer was more hit-or-miss through the mid- 1990s, Gatza said Friday during a conference call from the association's annual Craft Brewer's Conference and BrewExpo America in Philadelphia.

A lack of consistent quality made consumers wary, he said. "Now, we've seen several regionals that have set a quality standard," he said. "Consumers now, when they see a craft beer, they know the experiences they've had have been positive, and it will probably be a good experience trying a new brand."

Larger brewers Anheuser Busch, SAB Miller and Molson Coors still control more than 80 percent of the overall beer market, followed by imports and craft brews.

But last year, craft beer saw the biggest increase in sales among all alcoholic beverage categories, including wine and spirits, according to association statistics. Mass market domestic beer sales, meanwhile, rose a scant 0.5 percent.

Growth in popularity among 21- to 27-year-olds, the key beer-drinking demographic, also is driving sales, said Bump Williams, executive vice president of global consulting for Information Resources Inc., which tracks retail beer sales. "They're coming into the category at a high rate," Williams said. "They like the uniqueness. It's about 'having my own brand.'"

Retailers have taken note of the growing popularity of local and regional brews and have begun devoting more shelf space and, often, marketing efforts to them, Gatza and Williams said. That, in turn, has spurred sales further by making sure the brews are available.

It's true at Argonaut Liquors in Denver, co-owner Ron Vaughn said. "Over the last year, I have seen a resurgence in micro-brewed beers," he said. "The beer business, and liquor in general, is very cyclical. Now, it seems like the craft beers are back, and we live in one of the top craft beer parts of the country." By far, the most popular right now is New Belgium's Fat Tire, Vaughn said, at least in part because the brewer has been investing more in marketing.

New Belgium started as a small brewer in a college town, said spokesman Brian Simpson, and for years its marketing came in the form of sponsorships and events locally. Recently, though, as it has expanded its reach into 15 states, New Belgium has turned more toward traditional advertising channels to sell its beer.


20 April, 2005