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COPYRIGHT 2005 Bev-AL Communications, Inc.
Premium beers, once the hallmark segment of the beer industry, continued their decline in 2004. Ten years ago the segment was more than 737 million cases and held a 27.8% share of the overall beer market. That share of the industry has tumbled in the years since, falling to 16.8% last year. The reason for the contraction of the premium segment is the growing popularity of light and imported brews. In contrast to premium, light's share of the beer industry grew from 35.3% to 49.4%, and import's climbed from 5.5% to 11.7% over the same time frame.
The top three brands in the category, Budweiser, Miller Genuine Draft and Coors Original, one from each of the largest brewers all declined in case sales last year. The leading brands, similar to the overall category, have contracted over the past decade. Premium beers declined 5.3% in 2004 to 447.5 million 2.25-gallon cases.
The decline in cases for Anheuser-Busch's flagship brand, Budweiser, continued last year. Budweiser was dethroned in 2001 by sister brand Bud Light as the best selling U.S. beer, it has also been displaced as the best-selling brand worldwide. Budweiser declined 4.5% last year to 386.0 million cases. Anheuser-Busch increased advertising spending for the brand in 2004 by over $17.5 million to $139.2 million. The brand continues to remain one of the top ad spenders among all beer brands. It also continues to dominate the premium category with more than an 80% market share.
Miller Brewing was not able to capitalize on a more than $46 million increase in ad outlays for the number two premium brand. This was a 117.6% increase in outlays over 2003. In spite of the increased advertising budget Miller Genuine Draft continued to lose cases in 2004. The brand has been on a downward trend since the mid-1990's and fell another 9.1% last year to 54.0 million cases.
Molson Coors, unlike its larger rivals, spent comparatively less in 2004 advertising its premium brand. Ad spending for Coors Original dropped 45.5% to $12.6 million. The brand is a distant third in the premium segment with a 4.1% market share. In 2004, Coors Original continued the slide that began more than ten years ago. Consumption of Coors Original dropped 8.0% last year to 19.8 million cases. The other smaller Molson Coors entry in the premium segment is Coors Extra Gold. That brand is facing the same fate as its rivals in the category. Extra Gold declined 10.3% last year falling to 1.3 million cases.
Rolling Rock, the fourth-largest brand in the category, has not experienced the same fate as its competitors over the past few years. The brand declined 2.9% last year, the second consecutive year of declines following years of fluctuating results.
As was the story in 2003, of the top eight leading brands tracked only one posted a gain in case sales last year. Kirin Ichiban, the beer from Japan brewed in the U.S., continued on its upward climb...
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