NEW YORK -- That stress you're feeling about keeping your beer offer up to date? Don't expect it to subside anytime soon.
That’s because countless new beer options aren’t just tweaking traditional styles--they’re creating new ones, according to a new report from Nielsen. And on top of that, by further branching out with offerings such as hard ciders, root beers, sodas and seltzers, brewers are no longer limiting themselves to traditional hops and barley.
The upside for retailers is that the massive variety provides new opportunities to drive sales, an appealing prospect that can bring incremental revenue to some of the more traditional segments of the beer category. At the same time, everyone in the chain—brewers, distributors, retailers and consumers—is dealing with limited capacity to brew, stock and even drink the onslaught of new beers. So the trick is knowing which varieties consumers are thirsty for, particularly as the arena continues to widen.
It’s commonly known that beer is favored more by men than women, but some of the styles that have gained the most ground over the past year--sweeter beers and hard ciders--have proven to be more attractive to females than in the past. That’s not to say that beer is falling out of favor with men, however: They account for close to two-thirds of overall beer consumption. But the craft-beer subcategory is steadily finding ways to broaden its appeal to adult beverage drinkers who have historically opted for something other than a can of traditional lager.
In a survey conducted by Harris Poll Nov. 20-30, 2015, males responded with a higher preference for 75% of 37 different craft styles. A select group of varieties, however, were more preferred by women than men, including sour ales, fruit and pumpkin beers, spiced beers, shandy/radlers and blonde/golden ales, among others. And all but one of seven subcategories preferred by women (Hefeweizen) is among the top 20 growth performers.
In terms of growth, the herb/spice subcategory ran away with the show last year (see chart, below), generating annual sales growth of 375%. Within the herb/spice subcategory, ginger beer is the main growth driver.
Notably, women are 55% more likely to prefer herb/spice brews than men. The most preferred style among women? Sour ale/American wild ale, which females find more preferable by 75%. And while these styles overall aren’t the biggest craft sellers, 20% more women than men preferred blonde ale/golden ale, a significant style in overall size.
With the big gains that ginger beer is driving, it’s no wonder that select brewers are thinking about other creative adult beverage options, including hard root beer and soda. While the pool of brands in this arena is small, hard root beer and soda generated more than $250 million in dollar sales during the 52 weeks ended March 26, 2016, within Nielsen-measured channels. And when Nielsen looked at consumption preferences by gender, female-led households showed a higher propensity to purchase these newer flavored products in comparison to their purchasing of more traditional beers.
But gender isn’t the only factor driving adult beverage preference. Age and location also play roles. For example, a recent Nielsen craft-beer survey found that consumers ages 35 to 44 are the most adventurous in terms of variety of preferred style preferences, followed next by consumers 44 to 54, and after that the 21- to 34-year-old drinking group. In terms of craft style preference, amber lager and pale ale scored highest across all age groups.
Looking at preference by region, however, there's a wider palate diversity. Craft-beer drinkers in the Midwest have the widest range of style preferences, but 50% still say amber lagers are among their favorite styles. Craft fans in the West have the second-widest range of style preference, and 50% say pale lager is among their favorite styles. Craft-beer drinkers in the Northeast have the narrowest range of style preferences, just slightly edging out their counterparts in the South.
The key to success in the craft arena, just like any other, Nielsen said, is knowing the consumer inside and out and meeting their needs.
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