Anheuser-Busch Sales VP: “Craft is a real threat, but it’s also an opportunity”
Just more chatter around the ongoing discussion of too many SKUs…
(Anheuser-Busch Sales vp Dave Almeida) showed research that indicated that retailers that have too many SKUs actually end up selling less overall beer. He used the example of the health and beauty aids aisle in a supermarket, where consumers spend an average of 90 seconds and only buy something 25% of the time, whereas people spend 31 seconds in the beer aisle and buy something 75% of the time. "Retailers that are winning are not invested in craft to the detriment to the category," said Dave. Later Dave and his national accounts team walked me through a deck showing that chains that over-SKU with crafts end up selling less beer and making less profit than chains that protect their domestic premium space.
More on AB’s future >> Beer Business Daily.
Breweries: Anheuser-Busch
are you kidding me? let that company keep on thinking on thier feet.
Luckily my beer store keeps beers made by Mr. Almeida’s company in the back corner so they don’t add to my confusion when i’m buying my beer.
That has to be the dumbest thing I have ever heard….Domestic is down as a whole and Craft is rising each and every year.
I call bullshit
It’s funny. When I’m spending a at least 20 minutes (or more) at the liquor store trying to decide which combination of crafts to pick up, I see a lot of people come in and pick out their choices in about a minute or so. I guess a lot of folks don’t put much thought into their beer choices. I think stores that are committed to craft tend to ensure that their staff are more knowledgeable and willing to engage in conversations, take down special requests, and promote craft in general. That kind of effort will sell more beer. People who just want the macro stuff will always be there, but engaging craft buyers while they’re checking out the selection will help keep your “SKU”s turning or whatever. That and making sure your stuff is fresh. If it has a best-by date, keep an eye on that.
I spend several minutes a few times a week at my local liquor store and grocery stores picking out new craft to try. No matter what time constraints I have, I LOVE spending time looking through the new crafts, so that I can always try something new. Mr Almeida obviously still thinks his watered down piss is still relevant in a world where beer drinkers are becoming smarter. As the older generations stop buying beer, the current, and more informed generation will cut deeper and deeper into ABs bottom line. Good luck in the future Mr. Almeida. You’ll need it.
I second that bull shit call and I hope that he reads these comments because I know places like Binny’s in Chicago will always have craft beer a priority keeping it fresh. As a former employee I can tell you that we dont give a rats ass about macro brews and we throw around the cases, dont care if customers are buying old beer and pretty much treat macro brews like the red headed step child of the beer world. Craft beer is always being asked about and is a major contribution to the sales figures.
He is largely talking about “Grocery” not liquor or beer stores.
Anyhow, this is the company that Schafly recently said we need to be inclusive of, ie “stop saying CRAFT, as it is not inclusive”. Basically here is the number spin from those who “sell” Bud and Bud Light, if you carry less variety, there is more of a chance we can remain flat to minor percentage growth.
It’s going to take bankruptcy and financial troubles, but ideally within two decades InBev will have shattered those who are not too big too fail, but too big to succeed, or better said, grow any further.
I can understand the too many SKU train of thought. From a non-beer enthusiast perspective (i.e. someone who does not read or comment on beer blogs) I could see all the different types of beers being quite overwhelming. When dealing with stuff that I am not enthusiastic about, say green beans, I don’t want a plethora of SKUs. I want green beans (hence the reason I shop at TJ’s, limited SKUs with the belief, from past experience of buying other stuff there, the stuff is going to be pretty good… might not be the best but pretty good). Then again as the market becomes more educated about the subject of beer, the plethora of SKUs becomes less of a hindrance (much like in the wine world). Also the market doesn’t have to become enthusiasts per-say about beer, they just have to have some knowledge about it. I am not a wine enthusiast by any means, but I know there are differences between wines and to take that to mind when making my purchase.
What a load of crap, I have been running a specialty beer store for 3 years and I see a compklete different story.
While they do pedal crap beer it is true… I work in the industry and have access to chain data (store level) that shows that premium lights are still a major driver of success in chain grocery. % growth on volume that didn’t exist the year before is not true growth… Not to mention the majority of craft brand growth (total cases not %) is coming from Blue Moon and Sam Adams… Welcome back to reality beer snobs!
@truth if you have access to the data and work in the industry you should know that Blue Moon does NOT count a craft, and if AB-Inbev is counting it as craft they are spinning things in their favor.
And when you say the majority of craft brand growth is coming from Blue Moon and Sam Adams, I assume you are talking grocery only, because again, Blue Moon does not get counted in craft, and it will also be a fallacy to pin all growth across the board on Boston Beer Company, especially as they are coming off their worst quarter in years.
Welcome to facts non beer snob.