Market Watch, March 1, 2017

Some innovative products are also providing a spark Schöfferhofer Grapefruit a 25 percent abv German radler has been enjoying rapid growth from its small base The brand has created new consumers people who never even identified themselves as beer drinkers says Armin Buehler head of marketing at importer Radeberger Gruppe USA New 12 packs of 112 ounce cans of Schöfferhofer Grapefruit are launching this month The brand will also be tied in with the movie Snatched starring Amy Schumer and Goldie Hawn which is set for release in May Importers believe that interest in craft brews can provide an opening for their brands The craft movement has increased beer drinkers interest in exploring more flavorful offerings a positive trend for Guinness Diageos Giles says noting the newly broadened Guinness portfolio We have a Guinness beer for every occasion and consumer taste Heineken USAs Teles notes that while beer drinkers are experimental these days they default to brands they know and trust He expects the growth of craft brews to slow adding The larger more established European imports will continue to drive the category over the longer term mw MARCH 2017 MARKETW ATCHMAG COM MARKET WATCH 69 EUROPEAN BEER IMPORTS IN THE UNITED STATES BY ORIGIN1 millions of 225 gallon case shipments Eleven Months Year to Date Percent AACGR2 Ending November Change2 Country 2010 2011 2012 2013 2014 2015 2010 2015 2015 2016 2015 2016 Netherlands 769 710 723 672 640 675 26 628 586 67 Belgium 153 193 214 212 265 320 159 286 264 75 Ireland3 118 136 130 127 97 125 12 107 128 198 Germany 168 164 109 97 80 84 129 79 102 296 United Kingdom4 111 99 96 89 67 61 111 57 42 264 Italy 26 27 30 23 24 23 24 21 22 20 Poland 01 01 15 14 15 16 630 15 15 61 Czech Republic 14 13 12 10 10 11 37 10 09 96 Austria 01 01 02 02 04 04 324 04 04 58 Denmark 04 04 04 04 03 04 10 04 04 151 Total Top 10 1365 1349 1335 1250 1205 1323 06 1211 1177 28 Other Europe 20 20 09 09 10 13 75 12 08 365 Total European Beer5 1385 1369 1344 1260 1215 1337 07 1223 1185 31 1 Excludes non alcoholic brews 2 Based on unrounded data 3 Understated because it excludes Irish beer bottled in the United Kingdom 4 Overstated because it includes Irish beer bottled in the United Kingdom 5 Addition of columns may not agree because of rounding Source IMPACT DATABANK 2017 TOP FIVE EUROPEAN BEER BRANDS IN THE UNITED STATES1 millions of 225 gallon cases Percent Change2 Rank Brand Importer Origin 1990 1995 2000 2005 2010 2015 2016E 2015 2016E 1 Heineken Heineken USA Inc Netherlands 306 339 535 645 579 565 566 02 2 Stella Artois Anheuser Busch InBev Belgium 02 39 134 278 310 115 3 Guinness Stout3 Diageo Beer Co USA Ireland4 26 47 99 91 99 99 100 05 4 Newcastle Brown Ale Heineken USA Inc England 02 12 35 61 74 64 54 160 5 Heineken Light Heineken USA Inc Netherlands 44 51 55 49 115 Total Top Five5 333 398 671 881 936 1061 1078 16 1 Excludes European beers brewed bottled in the United States 2 Based on unrounded data 3 Excludes Extra Stout brewed bottled in Canada lagers and Golden Ale 4 Includes beer packaged in the United Kingdom 5 Addition of columns may not agree due to rounding Source IMPACT DATABANK 2017