
a) Last week, Brews News in Australia highlighted a report that suggested “the positioning of many craft beers to target ‘purists’ and ‘hipsters’ gave the independent brewers less traction with a sizeable part of the Australian market.”
The result is that mainstream breweries have created a class of “contemporary beers” that are priced between budget beers and premium beers. They appeal to “consumers tiring of traditional beer brand offerings but ‘who felt disenfranchised by the craft movement.’”
b) With that in mind, look at what Mike Urich wrote in his Seven Point Analytic blog last month. Really nice visuals illustrate that, “Low income drinkers have exactly one entry point into beer, and it’s pale/light lager. We’re hardly offering new and low income drinkers a lot of options.”
He contrasts that to spirits, where every segment has significant pricing overlap. “The average price of whiskey, gin, and tequila are each above the average price of vodka, but there are still plenty of options in every segment at essentially every price point. This allows drinkers of every income level an entry point into any spirits segment that they want to try. From there, they can go wherever they want—there’s a cheap, widely available spirits brand in every segment for every drinker.”
c) In 1998, The New Brewer included an article about “The Demographics of the Micro Market.” It reported the results of the National Beer Survey, which was sponsored in part by the Institute of Brewing Studies (a forerunner of the Brewers Association).
