Table of Contents
How the Large Got/Stay Large
Why Light is King
Craft Beer Facts
The Craft Beer Way
Spreading the News
Large Feeling the Effects
Beer Wars was a very eye-opening documentary. It was interesting to see how the market share of the largest beer company, Anheiser-Busch, has grown throughout the years. In 1965, Anheiser-Busch had a meager market share of twelve percent. As marketing on television grew in popularity, Anheiser-Busch’s market share grew as well. By 1985, Anheiser-Busch’s market share had grew to thirty-seven percent. By 2005, Anheiser-Busch’s market share had grown to an enormous forty-nine percent. This was very shocking to me that one company could control almost one-half of the market share of a $97 billion industry. Also, in 1985, the other two largest beer makers, Miller and Coors, made up about twenty-six percent of the market share. Thus, in 2005, major beer companies made up seventy-five percent of the beer sales in the United States. Which tells us that craft breweries only had twenty-five percent of the market share. How the Large Got/Stay Large
In the beginning, all beers were craft beers, until the big three companies wanted to grow, and grow they did. Unfortunately, as the three largest beer companies in the United States grew, the beer-drinking public that was buying their beer were actually the people who were suffering. The reason that I say this is because of the way the large beer manufacturers got to this point. The large beer manufacturers were not very concerned about the quality of their beers as much as they were about the number of sales that were created. The way that the large beer companies did this was through their advertising campaigns. The large beer companies were/are millions and millions of dollars during different sporting functions and on every day television. Beer Wars told us that, on average, there is about $1.5 billion spent on advertising by the large beer companies every single year. That number is astounding to me, considering how popular their beers are. I think if they were to cut back their advertisements by about 50%, they would still maintain a stranglehold on the beer market in the United States. Another way that large beer companies tend to stay on top of the market is through shelf space at different locations. The large beer companies tend to make many different varieties of beers and thus are afforded more space on the shelves and local markets and liquor stores. This leaves a very small area for craft beers to be displayed, especially when it is very difficult to determine if a beer is a craft beer or made by one of the large beer companies. I will talk more about this later in the discussion. Why Light is King
The large beer companies tend to market light lager beers, and for good reason. About eighty-five percent of the beer consumed in the United States is light lager. So, Miller Lite, Coors Light and Bud-Light are very good money makers for the large beer companies. I would not blame the companies for pushing and selling what the people want, or is this what people want? Craft Beer Facts
Well, craft beers haven’t fully caught on in the beer markets. NPR.org tells us that craft beers only make up about five percent of the total beer market. According to NPR.org, there are currently over two thousand breweries in the United States. Of those two thousand, about 1,950 of those breweries are considered craft beer breweries. That’s another very interesting point. Ninety-five percent of the breweries in the United States are brewing about five percent of the beer that is sold in the United States. That really doesn’t seem right, but NPR.org goes on to tell us that in order to be a craft brewery, the breweries cannot brew more than 6 million barrels of beer every...
References: (Other Than Beer Wars)
1. "BREWERS ASSOCIATION RELEASES TOP 50 BREWERIES IN 2011." Brewers Association. Brewers Association, 17 Apr. 2012. Web. 28 Nov. 2012. <http://www.brewersassociation.org/>.
2. Chappell, Bill. "U.S. Craft Beer Brewers Thrive, Despite Small Share Of The Market." NPR.org. NPR, 18 May 2012. Web. 28 Nov. 2012. <http://www.npr.org/blogs/thesalt/2012/05/17/152958268/u-s-craft-beer-brewers-thrive-despite-small-share-of-the-market>.
3. Lisheron, Mark. "Anheuser-Busch InBev Roars against Craft Breweries Bill in Texas Legislature." Texas Watchdog | Investigating Government Waste, Fraud and Abuse in Texas. Texas Watchdog, 11 May 2011. Web. 28 Nov. 2012. <http://www.texaswatchdog.org/>.
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