Industry Analyst Pooh Poohs Beer

USA TODAY reports that beer, the most popular alcoholic beverage in the United States, has an image crisis. While it is still the nation’s favorite alcoholic beverage, it continues to lose ground to wine and spirits.
Beer Marketer’s Insights, a trade publication, estimates beer accounted for 59.5% of the alcohol market in its peak year, 1995. That had fallen to 56.7% in 2003.
“We believe there is an overall image crisis with beer,” says Smith Barney Citicorp analyst Bonnie Herzog.
As baby boomers age, they are more willing to buy wine and spirits. And wine and spirit companies are successfully targeting younger drinkers with advertising and promotions.
“Our wholesaler contacts have told us through a survey we conducted recently that beer has lost its ‘sexiness’ and ‘appeal to young consumers,'” Herzog says. “We continue to believe the road ahead is a long one for the beer industry.”



About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am head of brand strategy and creative at Bonehook in Portland, Oregon.