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Beer in the US

Euromonitor International

July 2019

B E E R I N T H E U S P a s s p o r t i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Prospects ..................................................................................................................................... 1

New Interest in Alcohol-free Beers ........................................................................................... 1 Growth in Ale Slows Down As Craft Branches Out ................................................................... 1 Imported Premium Lager Shows Signs of Fatigue ................................................................... 2

Competitive Landscape ................................................................................................................ 2

Craft Brewers Are Worried About Tariffs, But Buoyed by the New Tax Break .......................... 2 Crown Imports Succeeds Despite Declining Sales of Beer ...................................................... 2

Category Background ................................................................................................................... 2

Lager Price Band Methodology ................................................................................................ 2

Summary 1 Lager by Price Band 2018 ............................................................................ 3 Table 1 Number of Breweries 2013-2018 ................................................................. 3

Category Data .............................................................................................................................. 3

Table 2 Sales of Beer by Category: Total Volume 2013-2018 .................................. 3 Table 3 Sales of Beer by Category: Total Value 2013-2018 ..................................... 4 Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018 .................. 4 Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018 ..................... 5 Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018 ........................ 5 Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018 ........................... 6 Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018 ....... 6 Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018 .......... 6 Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 6 Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 7 Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018 .............................. 7 Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023 ................... 8 Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023 ...................... 8 Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-

2023 ............................................................................................................. 9 Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-

2023 ........................................................................................................... 10

B E E R I N T H E U S P a s s p o r t 1

BEER IN THE US

HEADLINES ▪ In 2018, total volume sales of beer decline by 1%, to 23.6 billion litres

▪ The decline is principally the result of increased competition from spirits and wine

▪ Stout shows the strongest growth in 2018, increasing by 8% in total volume terms

▪ The average unit price of beer increases by 1% in current terms in 2018

▪ The leading players largely lose share, whilst craft beer accounts for an increasing share of

sales

▪ Beer is expected to see a negative total volume CAGR of 1% over the forecast period, falling

to 22.3 billion litres in 2023

PROSPECTS

New Interest in Alcohol-free Beers

US beer drinkers have long stood out amongst their counterparts in other developed markets

for their reticence to embrace low and non-alcohol products. This was rooted both in its

reputation for a poor taste and quality, and for its association with consumers struggling with

alcohol addiction. In more recent years, the rise of craft-style beers further reinforced the idea

amongst beer drinkers that quality beer usually has a high ABV content. Its association with

alcohol addiction has also contributed to a strong stigma against drinking non-alcohol beer in

social settings, which is a significant consumption occasion for beer. In 2018, however, new

product launches in this space helped to reduce the category’s association with poor taste, and

also normalised the consumption of such products for drinkers who may simply be looking to

moderate their alcohol intake. Younger adult consumers especially are adopting more mindful

attitudes about alcohol intake and are often interested in trying beers which reduce the alcohol

content to below 0.5% ABV. However, sales of non-alcohol beer in the US will remain a fraction

of sales in many comparable countries.

Growth in Ale Slows Down As Craft Branches Out

The ale category has seen consistent volume growth in the US, thanks to the popularity of this

style of beer amongst craft brewers, who are tapping into the growing interest in premium beers

made locally. However, whilst craft has continued to grow, some of the macro ale brands have

begun to see slower growth. The ale category is to an extent suffering from its association with

craft, which once propelled it. As US consumers become more knowledgeable about premium

beers thanks to the craft movement, they are turning away from some ale brands produced by

national manufacturers, such as Blue Moon and Newcastle Brown Ale, in order to purchase

beers made locally. Craft producers looking to innovate in categories beyond ale are also

contributing to the downturn. Lager, which was once the domain of affordable beers with

approachable flavour profiles, has increasingly seen new product developments from craft

producers responding to consumers’ interest in premium, locally-made beers with lighter flavour

profiles.

B E E R I N T H E U S P a s s p o r t 2

Imported Premium Lager Shows Signs of Fatigue

In recent years, US consumers enthusiastically took to imported lagers, increasingly choosing

them over more affordable domestic options. The large number of new product launches in the

domestic premium segment, however, are increasingly taking shelf space in major retailers, and

as a result imported premium lager is showing its first signs of faltering. Corona Extra, which led

the charge in the embrace of imports from Latin America, saw a volume decline in 2018. This

development represents a threat to the imported premium beer category, as products which

were once seen as high-end are to some extent being normalised in the face of ever more

sophisticated offerings from craft brewers, which are in tune with the tastes and trends of their

local market. Offerings from thus far little-known beer-producing regions and new beer concepts

and flavours, such as micheladas, represent hope for imported beers.

COMPETITIVE LANDSCAPE

Craft Brewers Are Worried About Tariffs, But Buoyed by the New Tax Break

Craft brewers represent an increasingly dynamic and significant share of the beer category in

the US, contributing to a growing share of total sales. Due to their smaller size, these brewers

are acutely impacted by changing legislative factors in alcoholic drinks in the US. Now in effect

for a full calendar year, US craft brewers are indicating that the Craft Beverage Modernization

and Tax Reform Act, which lowers the excise taxes imposed on some brewers, has allowed

them to innovate and release increasing numbers of new products whilst sustaining their current

business. This tax advantage for small brewers is temporary, but may be renewed, helping craft

brewers to continue to gain share from macro brewers. All has not been without issues on the

legislative front in craft brewing, however. The early 2019 US federal government shutdown

prevented craft brewers from introducing new products for approximately a month – between 22

December 2018 and 25 January 2019. This represented a significant hurdle for craft brewers, as

they depend heavily on their ability to launch new products on a consistent basis.

Crown Imports Succeeds Despite Declining Sales of Beer

With the overall total volume decline in beer in 2018, most of the main players saw declines in

their actual volume sales. Crown Imports, however, bucked this trend thanks to strong

performances by many of its secondary brands. Whilst its largest US brand, Corona Extra, saw

a decline, other brands, such as Modelo Especial and Modelo Especial Chelada, tapped into the

interest in imported brands which effectively communicate authenticity and novelty. Crown

Imports was the third ranked beer producer in the US in 2018, and is likely retain this position

thanks to continued growth and the declining performance of the next largest player, Heineken.

CATEGORY BACKGROUND

Lager Price Band Methodology

▪ The top four beer brands in the US – Bud Light, Coors Light, Miller Lite and Budweiser – are

all positioned within the mid-priced band, making this the most competitive price segment in

the country. Each product is priced at around USD5.00-6.00 for six 12fl oz (355ml) bottles,

with systemic price increases and discounts built in around the popular summer beer-drinking

months. Historically, Budweiser and Bud Light were priced at a premium compared with other

B E E R I N T H E U S P a s s p o r t 3

standard lager offerings, due to strong brand equity. However, beer price wars have

essentially eliminated any differences.

Summary 1 Lager by Price Band 2018

Category Price range per litre

Premium USD2.40-4.84

Mid-priced USD1.46-2.39

Economy USD0.84-1.45

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors that are considered in classification

Table 1 Number of Breweries 2013-2018

Year 2014 2015 2016 2017 2018 Craft 3,814 4,628 5,539 6,490 7,346 Non-craft 46 44 67 106 104 Total 3,860 4,672 5,606 6,596 7,450

Source: Euromonitor International

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Dark Beer 1,909.7 2,207.6 2,373.8 2,435.1 2,435.9 2,429.7 - Ale 1,235.5 1,481.1 1,612.5 1,696.0 1,726.2 1,741.6 - Sorghum - - - - - - - Weissbier/Weizen/ 674.3 726.4 761.3 739.1 709.7 688.2 Wheat Beer Lager 21,419.3 21,349.5 21,381.0 21,210.3 21,043.0 20,708.3 - Flavoured/Mixed Lager 310.0 320.7 351.3 345.0 331.8 328.8 - Standard Lager 21,109.4 21,028.8 21,029.6 20,865.4 20,711.2 20,379.5 -- Premium Lager 4,880.5 5,189.0 5,632.4 5,943.1 6,171.6 6,335.9 --- Domestic Premium 1,785.4 1,929.4 2,134.5 2,207.4 2,259.4 2,360.5 Lager --- Imported Premium 3,095.1 3,259.6 3,497.9 3,735.8 3,912.2 3,975.4 Lager -- Mid-Priced Lager 10,770.2 10,551.3 10,275.3 9,918.7 9,592.5 9,172.5 --- Domestic Mid-Priced 10,770.2 10,551.3 10,275.3 9,918.7 9,592.5 9,172.5 Lager --- Imported Mid-Priced - - - - - - Lager -- Economy Lager 5,458.7 5,288.6 5,121.9 5,003.5 4,947.1 4,871.1 --- Domestic Economy 5,458.7 5,288.6 5,121.9 5,003.5 4,947.1 4,871.1 Lager

B E E R I N T H E U S P a s s p o r t 4

--- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 233.3 215.1 204.3 195.4 182.8 175.0 - Low Alcohol Beer 134.2 116.5 105.7 100.1 91.2 82.8 - Non Alcoholic Beer 99.1 98.5 98.6 95.4 91.6 92.2 Stout 217.3 230.6 242.3 245.9 254.2 274.1 Beer 23,779.7 24,002.7 24,201.4 24,086.7 23,916.0 23,587.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 3 Sales of Beer by Category: Total Value 2013-2018

USD million 2013 2014 2015 2016 2017 2018 Dark Beer 14,068.4 16,236.7 17,807.2 18,423.2 18,650.3 18,770.2 - Ale 9,747.2 11,570.1 12,862.9 13,594.5 13,959.9 14,220.0 - Sorghum - - - - - - - Weissbier/Weizen/ 4,321.1 4,666.5 4,944.3 4,828.8 4,690.4 4,550.2 Wheat Beer Lager 79,669.9 80,247.0 80,922.8 81,433.3 82,007.7 81,390.2 - Flavoured/Mixed Lager 1,244.8 1,212.0 1,291.4 1,304.1 1,239.3 1,235.3 - Standard Lager 78,425.1 79,035.1 79,631.4 80,129.2 80,768.4 80,154.9 -- Premium Lager 26,511.6 28,186.4 30,550.0 32,514.7 33,763.7 34,485.6 --- Domestic Premium 9,091.7 10,144.9 11,690.7 12,027.6 12,496.8 13,192.1 Lager --- Imported Premium 17,420.0 18,041.5 18,859.4 20,487.2 21,266.9 21,293.5 Lager -- Mid-Priced Lager 35,697.3 34,939.4 33,589.3 32,553.7 32,224.7 31,308.3 --- Domestic Mid-Priced 35,697.3 34,939.4 33,589.3 32,553.7 32,224.7 31,308.3 Lager --- Imported Mid-Priced - - - - - - Lager -- Economy Lager 16,216.2 15,909.3 15,492.1 15,060.8 14,780.1 14,360.9 --- Domestic Economy 16,216.2 15,909.3 15,492.1 15,060.8 14,780.1 14,360.9 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 828.0 780.1 749.1 733.4 699.9 679.1 - Low Alcohol Beer 430.1 378.8 345.3 334.2 309.7 286.1 - Non Alcoholic Beer 398.0 401.3 403.8 399.2 390.2 393.0 Stout 1,700.2 1,878.4 2,038.3 2,155.6 2,304.1 2,587.3 Beer 96,266.4 99,142.2 101,517.4 102,745.6 103,662.1 103,426.9

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018

% total volume growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer -0.3 4.9 27.2 - Ale 0.9 7.1 41.0 - Sorghum - - - - Weissbier/Weizen/Wheat Beer -3.0 0.4 2.1 Lager -1.6 -0.7 -3.3 - Flavoured/Mixed Lager -0.9 1.2 6.1

B E E R I N T H E U S P a s s p o r t 5

- Standard Lager -1.6 -0.7 -3.5 -- Premium Lager 2.7 5.4 29.8 --- Domestic Premium Lager 4.5 5.7 32.2 --- Imported Premium Lager 1.6 5.1 28.4 -- Mid-Priced Lager -4.4 -3.2 -14.8 --- Domestic Mid-Priced Lager -4.4 -3.2 -14.8 --- Imported Mid-Priced Lager - - - -- Economy Lager -1.5 -2.3 -10.8 --- Domestic Economy Lager -1.5 -2.3 -10.8 --- Imported Economy Lager - - - Non/Low Alcohol Beer -4.3 -5.6 -25.0 - Low Alcohol Beer -9.2 -9.2 -38.3 - Non Alcoholic Beer 0.6 -1.4 -6.9 Stout 7.8 4.8 26.1 Beer -1.4 -0.2 -0.8

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018

% local currency, current value growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer 0.6 5.9 33.4 - Ale 1.9 7.8 45.9 - Sorghum - - - - Weissbier/Weizen/Wheat Beer -3.0 1.0 5.3 Lager -0.8 0.4 2.2 - Flavoured/Mixed Lager -0.3 -0.2 -0.8 - Standard Lager -0.8 0.4 2.2 -- Premium Lager 2.1 5.4 30.1 --- Domestic Premium Lager 5.6 7.7 45.1 --- Imported Premium Lager 0.1 4.1 22.2 -- Mid-Priced Lager -2.8 -2.6 -12.3 --- Domestic Mid-Priced Lager -2.8 -2.6 -12.3 --- Imported Mid-Priced Lager - - - -- Economy Lager -2.8 -2.4 -11.4 --- Domestic Economy Lager -2.8 -2.4 -11.4 --- Imported Economy Lager - - - Non/Low Alcohol Beer -3.0 -3.9 -18.0 - Low Alcohol Beer -7.6 -7.8 -33.5 - Non Alcoholic Beer 0.7 -0.3 -1.2 Stout 12.3 8.8 52.2 Beer -0.2 1.4 7.4

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Off-trade 17,265.4 17,441.9 17,634.6 17,685.3 17,613.4 17,439.0 On-trade 6,514.3 6,560.8 6,566.8 6,401.4 6,302.6 6,148.2 Total 23,779.7 24,002.7 24,201.4 24,086.7 23,916.0 23,587.2

B E E R I N T H E U S P a s s p o r t 6

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018

USD million 2013 2014 2015 2016 2017 2018 Off-trade 43,575.6 45,040.6 46,503.3 47,808.4 48,979.2 49,540.4 On-trade 52,690.9 54,101.5 55,014.0 54,937.2 54,682.9 53,886.5 Total 96,266.4 99,142.2 101,517.4 102,745.6 103,662.1 103,426.9

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade -1.0 0.2 1.0 On-trade -2.5 -1.2 -5.6 Total -1.4 -0.2 -0.8

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018

% constant value growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade 1.1 2.6 13.7 On-trade -1.5 0.4 2.3 Total -0.2 1.4 7.4

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018 Anheuser-Busch InBev NV 45.6 44.7 43.8 43.2 42.7 Molson Coors Brewing Co 12.8 12.4 25.9 25.6 25.4 Constellation Brands Inc 7.0 7.7 8.6 9.4 10.1 Heineken NV 4.1 4.2 4.2 4.5 4.4 Blue Ribbon 2.9 2.9 2.8 2.8 2.7 Intermediate Holdings LLC Yuengling Brewery 1.3 1.3 1.3 1.2 1.3 Boston Beer Co Inc, The 1.4 1.4 1.2 1.1 1.0 Florida Ice & Farm Co SA 0.8 0.8 0.8 0.8 0.8 Diageo Plc 0.6 0.5 0.5 0.5 0.6 Sierra Nevada Brewing Co 0.5 0.5 0.5 0.5 0.4 New Belgium Brewing Co 0.4 0.4 0.4 0.4 0.4 Craft Brew Alliance Inc 0.3 0.3 0.3 0.3 0.3

B E E R I N T H E U S P a s s p o r t 7

Gambrinus Co, The 0.2 0.2 0.2 0.2 0.2 Sapporo Holdings Ltd 0.1 0.1 0.1 0.1 0.1 Lagunitas Brewing Co 0.2 0.2 0.3 - - SABMiller Ltd 14.4 13.9 - - - Fomento Económico - - - - - Mexicano SAB de CV Foster's Group Ltd - - - - - Modelo SA de CV, Grupo - - - - - Pabst Brewing Co - - - - - S & P Co - - - - - Independent Brewers - - - - - United North American - - - - - Breweries Inc Others 7.4 8.4 9.0 9.3 9.6 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018 Anheuser-Busch InBev NV 45.6 44.7 43.8 43.2 42.7 MillerCoors LLC 27.1 26.3 25.9 25.6 25.4 Crown Imports LLC 7.0 7.7 8.6 9.5 10.1 Heineken USA Inc 4.1 4.2 4.2 4.2 4.1 Pabst Brewing Co 2.9 2.9 2.8 2.8 2.7 Yuengling Brewery 1.3 1.3 1.3 1.2 1.3 Boston Beer Co Inc, The 1.4 1.4 1.2 1.1 1.0 North American 0.8 0.8 0.8 0.8 0.8 Breweries Inc Diageo Beer Co USA - - 0.6 0.6 0.7 Sierra Nevada Brewing Co 0.5 0.5 0.5 0.5 0.4 New Belgium Brewing Co 0.4 0.4 0.4 0.4 0.4 Lagunitas Brewing Co 0.2 0.2 0.3 0.3 0.3 Craft Brew Alliance Inc 0.3 0.3 0.3 0.3 0.3 Gambrinus Co, The 0.2 0.2 0.2 0.2 0.2 Sapporo USA 0.1 0.1 0.1 0.1 0.1 Diageo-Guinness USA 0.6 0.6 - - - Others 7.4 8.3 9.0 9.2 9.6 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018

% total volume Brand (Global Brand Company 2015 2016 2017 2018 Owner) Bud Light Anheuser-Busch InBev NV 17.8 17.3 16.6 15.9 Coors Light (Molson MillerCoors LLC 8.3 8.3 8.2 8.0 Coors Brewing Co) Miller Lite (Molson MillerCoors LLC - 6.3 6.3 6.2 Coors Brewing Co)

B E E R I N T H E U S P a s s p o r t 8

Budweiser Anheuser-Busch InBev NV 6.8 6.1 5.9 5.6 Corona Extra Crown Imports LLC 4.0 4.3 4.4 4.4 (Constellation Brands Inc) Modelo Especial Crown Imports LLC 2.5 3.0 3.5 4.1 (Constellation Brands Inc) Michelob Ultra Anheuser-Busch InBev NV 2.4 2.9 3.2 3.7 Natural Light Anheuser-Busch InBev NV 3.2 3.2 3.2 3.4 Busch Light Anheuser-Busch InBev NV 3.2 3.2 3.3 3.3 Busch Anheuser-Busch InBev NV 2.3 2.3 2.4 2.3 Miller Lite MillerCoors LLC 6.4 - - - (SABMiller Ltd) Others Others 43.1 43.0 43.1 43.2 Total Total 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023

million litres 2018 2019 2020 2021 2022 2023 Dark Beer 2,429.7 2,417.3 2,418.0 2,428.8 2,446.6 2,468.8 - Ale 1,741.6 1,766.2 1,792.0 1,819.6 1,848.0 1,876.5 - Sorghum - - - - - - - Weissbier/Weizen/ 688.2 651.2 626.0 609.2 598.6 592.2 Wheat Beer Lager 20,708.3 20,347.1 19,988.7 19,734.5 19,510.3 19,317.4 - Flavoured/Mixed Lager 328.8 327.3 326.5 325.9 325.4 325.0 - Standard Lager 20,379.5 20,019.8 19,662.2 19,408.6 19,184.9 18,992.4 -- Premium Lager 6,335.9 6,485.9 6,634.0 6,777.6 6,910.1 7,042.9 --- Domestic Premium 2,360.5 2,447.1 2,561.2 2,666.3 2,755.3 2,844.4 Lager --- Imported Premium 3,975.4 4,038.8 4,072.8 4,111.3 4,154.8 4,198.5 Lager -- Mid-Priced Lager 9,172.5 8,771.6 8,376.7 8,072.1 7,802.1 7,555.2 --- Domestic Mid-Priced 9,172.5 8,771.6 8,376.7 8,072.1 7,802.1 7,555.2 Lager --- Imported Mid-Priced - - - - - - Lager -- Economy Lager 4,871.1 4,762.2 4,651.4 4,558.9 4,472.8 4,394.4 --- Domestic Economy 4,871.1 4,762.2 4,651.4 4,558.9 4,472.8 4,394.4 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 175.0 173.1 176.3 180.5 185.5 191.6 - Low Alcohol Beer 82.8 77.6 75.3 74.4 74.6 75.9 - Non Alcoholic Beer 92.2 95.5 101.0 106.1 110.9 115.7 Stout 274.1 294.9 314.0 328.4 340.6 351.2 Beer 23,587.2 23,232.4 22,897.0 22,672.1 22,483.0 22,329.0

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023

USD million

B E E R I N T H E U S P a s s p o r t 9

2018 2019 2020 2021 2022 2023 Dark Beer 18,770.2 19,414.5 19,573.9 19,797.9 20,091.4 20,425.6 - Ale 14,220.0 14,727.3 15,027.4 15,351.8 15,700.2 16,054.8 - Sorghum - - - - - - - Weissbier/Weizen/ 4,550.2 4,687.2 4,546.4 4,446.1 4,391.3 4,370.9 Wheat Beer Lager 81,390.2 81,568.6 79,752.4 78,545.3 77,433.8 76,511.7 - Flavoured/Mixed Lager 1,235.3 1,247.4 1,251.0 1,253.7 1,255.5 1,257.3 - Standard Lager 80,154.9 80,321.2 78,501.5 77,291.7 76,178.3 75,254.3 -- Premium Lager 34,485.6 35,348.5 35,898.4 36,535.4 37,114.5 37,720.7 --- Domestic Premium 13,192.1 14,111.7 14,837.9 15,524.5 16,089.8 16,641.6 Lager --- Imported Premium 21,293.5 21,236.8 21,060.5 21,010.9 21,024.8 21,079.1 Lager -- Mid-Priced Lager 31,308.3 30,608.1 28,668.6 27,182.9 25,823.2 24,598.7 --- Domestic Mid-Priced 31,308.3 30,608.1 28,668.6 27,182.9 25,823.2 24,598.7 Lager --- Imported Mid-Priced - - - - - - Lager -- Economy Lager 14,360.9 14,364.6 13,934.4 13,573.4 13,240.6 12,934.9 --- Domestic Economy 14,360.9 14,364.6 13,934.4 13,573.4 13,240.6 12,934.9 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 679.1 688.5 702.4 717.2 734.0 751.8 - Low Alcohol Beer 286.1 270.1 258.0 249.3 244.3 241.2 - Non Alcoholic Beer 393.0 418.5 444.5 467.9 489.7 510.6 Stout 2,587.3 2,818.8 3,046.6 3,179.3 3,282.2 3,341.3 Beer 103,426.9 104,490.4 103,075.4 102,239.7 101,541.4 101,030.5

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023

% total volume growth 2018/19 2018-23 CAGR 2018/23 Total Dark Beer -0.5 0.3 1.6 - Ale 1.4 1.5 7.8 - Sorghum - - - - Weissbier/Weizen/Wheat Beer -5.4 -3.0 -13.9 Lager -1.7 -1.4 -6.7 - Flavoured/Mixed Lager -0.4 -0.2 -1.2 - Standard Lager -1.8 -1.4 -6.8 -- Premium Lager 2.4 2.1 11.2 --- Domestic Premium Lager 3.7 3.8 20.5 --- Imported Premium Lager 1.6 1.1 5.6 -- Mid-Priced Lager -4.4 -3.8 -17.6 --- Domestic Mid-Priced Lager -4.4 -3.8 -17.6 --- Imported Mid-Priced Lager - - - -- Economy Lager -2.2 -2.0 -9.8 --- Domestic Economy Lager -2.2 -2.0 -9.8 --- Imported Economy Lager - - - Non/Low Alcohol Beer -1.1 1.8 9.5 - Low Alcohol Beer -6.3 -1.7 -8.4 - Non Alcoholic Beer 3.5 4.6 25.5 Stout 7.6 5.1 28.1 Beer -1.5 -1.1 -5.3

B E E R I N T H E U S P a s s p o r t 10

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

% local currency, constant value growth 2018/2019 2018-23 CAGR 2018/23 Total Dark Beer 3.4 1.7 8.8 - Ale 3.6 2.5 12.9 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 3.0 -0.8 -3.9 Lager 0.2 -1.2 -6.0 - Flavoured/Mixed Lager 1.0 0.4 1.8 - Standard Lager 0.2 -1.3 -6.1 -- Premium Lager 2.5 1.8 9.4 --- Domestic Premium Lager 7.0 4.8 26.1 --- Imported Premium Lager -0.3 -0.2 -1.0 -- Mid-Priced Lager -2.2 -4.7 -21.4 --- Domestic Mid-Priced Lager -2.2 -4.7 -21.4 --- Imported Mid-Priced Lager - - - -- Economy Lager 0.0 -2.1 -9.9 --- Domestic Economy Lager 0.0 -2.1 -9.9 --- Imported Economy Lager - - - Non/Low Alcohol Beer 1.4 2.1 10.7 - Low Alcohol Beer -5.6 -3.4 -15.7 - Non Alcoholic Beer 6.5 5.4 29.9 Stout 8.9 5.2 29.1 Beer 1.0 -0.5 -2.3

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources