![]() Today craft growth is driven primarily by local players through continuous innovation, (in both of the previously mentioned threads of the segment) along with some key large players who have found ways to resonate with consumers despite reaching scale (i.e. “Based on some definitions of craft, the category has eclipsed 15 percent of total volume and still growing, albeit at a slower pace. “The craft segment is absolutely in the middle of a reshaping into a new phase of its evolution as a key part of the beer industry,” Greene says. Yet, analysts note that craft brewers must continue to embrace new innovations and opportunities to help the beer segment return to accelerated growth. This could especially occur if consumers become too widely accustomed with access to craft beer at a lower price point and therefore raising the potential consumers baulk at higher-priced offerings.” “However, in a cautionary sense, volume growth coming from the lower end of the price spectrum for the craft category could lead to a deceleration in dollar growth for the category as a whole. “Many of are sold in larger pack types, with 15-packs of cans being most popular,” he says. Greene thinks that session IPAs can be a solution to support volume growth, but offers cautions on its pricing strategy for the future. “By pricing session beers between that of traditional craft and mass-market domestics the brewers create an opportunity for consumers to ‘trade-up’ to a product, which will often be perceived as better tasting and therefore higher quality than a traditional light lager, combined with a potentially more compelling brand story.” “raft breweries often use some form of a value proposition in order to attract consumers of domestics and differentiate from those products,” BMC’s Greene says. What also has curried favor with consumers and session IPAs are the value propositions that craft brewers have attached the sub-segment. Founder’s All Day IPA has the Top 3 packages, including the 15 pack 12-ounce can, which is growing 44.4 percent, and the recently introduced single 19-ounce can growing at a strong rate, especially in convenience stores.” “Several leading brands, including Golden Road Wolf Pup Session IPA and Terrapin Recreation Session IPA, are posting triple-digit growth rates in the off-premise. “Session IPAs sold $5.58 million and grew 38.5 percent in dollar sales in the off-premise multi-outlet/convenience store market in the latest 13 weeks,” Livingston explains. The impact also can be seen through recent performance throughout the session IPA sub-segment of craft beer. The Session IPA innovation is led by Boston Beer Co.’s Sam Adams Rebel Anytime Session IPA.” ![]() “In the latest 13 weeks, there were 62 Session IPA brands introduced to the U.S. “Brewers may be interested in broadening their product portfolio, and the Session IPA style may offer additional consumer benefits that are not found in other products in the brewer’s line up,” he says. Livingston highlights that data like this illustrates the potential of the session IPA sub-segment. Additionally, Founders’ All Day IPA sales grew more than 50 percent in the latest 13-week time period compared with 2017, he says. Citing IRI data for multi-outlet/convenience stores, Livingston reports that the craft brew accounts for nearly 70 percent of market share based on case sales among session IPAs. ![]() Leading the session IPA sub-segment is Founders’ All Day IPA.
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