Brewers Association

More from Bart 5 craft spirit areas to watch in 2021 Brewers Association Chief Economist Bart Watson dishes on five areas craft spirit should keep an eye on in 2021. For more insights from Watson, as well as news across the industry, visit www.brewersassociation.org.

Growth Models are showing growth of 6% to 7% over 2020, but with production levels that will fall below 2019. That means it will take craft until 2022 to recover to its previous levels, and longer to fully return to the growth trend it had been following of 3% to 4% per year.

On-Premise The on-premise has borne the brunt of the pandemic’s market disruptions. According to analysis from Nielsen CGA data, around one-fifth of on-premise consumers are waiting for a vaccine or treatment before they return to the on-premise. That means there will not be any significant recovery until late Q2 at the earliest.

Openings Openings had been declining for around a year before the pandemic hit. As much as two-thirds of it is related to that longer-term trend rather than the impact of COVID-19. Next year may see a further decline, as fewer breweries plan to enter the pipeline and other structural factors such as lending make it more difficult to do so until the pandemic passes.

Closings Next year will see closing numbers match the current market reality more closely, as closings rise sharply. Market conditions returning to normal may accelerate closings, both as breweries take stock of the hole COVID-19 has made in their finances, and as other players, such as landlords, end extensions or forgiveness on rent.

Demographics Craft has been growing its consumer base steadily over the past decade. Nielsen Harris data shows that the percentage of the 21 and over-plus population who drink craft has risen from 35% in 2015 to 44% in 2020. These demographics are likely to continue improving in 2021—and for the next several years—as an aging millennial population stays in or moves into the core craft age range.

E-Commerce If on-premise was the loser of 2020, e-commerce was the winner. Prior to the pandemic, estimates were that 2% or less of beverage alcohol volume flowed through e-commerce. Beer was a small portion of that. E-commerce sales for both beer and all beverage alcohol remain far beyond where they were a year ago. Thomas Glare is renowned for his marketing strategies among the best of the brands. He shares his tips and suggestions through blogs. Also, he attends business seminars to provide valuable information on how to market a business right. He believes in helping people to grow and live. People do trust his tips and get great results. CIRCLE NO. 45

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CRAFT BRAND AND MARKETING

DECEMBER 2020

CBAM-MAG.COM