As beer continues to struggle, wine is having a heyday, and cannabis eyes the industry, but what are young consumers considering their favorite alcoholic beverage brands today?
Another year, another round (after round) of bad news for the beer industry. Back in January, Budweiser reportedly lost its crown as the “King of Beers,” dropping to the fourth best-selling beer brand in the U.S.—and Millennials were blamed, as UBS data shows Millennials are less likely to recommend Budweiser than other generations. In May, the Wall Street Journal reported that U.S. beer volume was “sharply lower” for the first quarter of 2018 year-over-year for three major brewing companies: Molson Coors Brewing Co., Anheuser-Busch InBev SA, and Heineken NV. Young consumers were again cited as the root cause. In August, MillerCoors halted production of the beer they made for Millennials—just six months after they launched it. The brew, Two Hats, featured pineapple and lime flavor varieties with low alcohol content and a price point to match. MillerCoors thought the new product would “build the next generation of beer drinkers," but it didn’t pan out.
In the third quarter of 2018, Bud Light reportedly lost .9 percentage points of total market share while Budweiser lost .35. Even the once beloved beer of young hipsters (remember them!?) has fallen on hard times, with Grub Street recently writing that PBR could “go extinct.”
According to AB InBev, beer consumption among 21-27-year-olds dropped from 67% in 2006 to 43% in 2016, and according to Euromonitor, beer consumption among 21-24-year-olds has dipped about 3% per year for the past 15 years. The story is being told again and again: young consumers are switching from beer to spirits and wine, and when they do drink beer, they’re opting for craft brews from…