Declining beer sales in emerging countries
West send along this article from the WSJ (that’s short for Wall Street Journal for those of you who aren’t as smart as West) this morning. Many large brewers have been investing in emerging markets in recent years as sales in North America and Western Europe have softened.
However, in tough economic times, beer is often one of the first things to go in emerging countries. It is still viewed as a luxury item, and can be replaced by cheaper (and more “effective”) local liquors. All of the big brewers have seen sales and volume declines, including InBev (beer volume in Russia dropped 11% in the 3rd quarter). This softening has also hit South Africa and Latin America.
Sales in Peru are still strong. SABMiller reported a 10% increase in Peru beer sales over the first half of the year. But this seems to be an exception in an otherwise tough beer market.
What does all of this mean for Monday Night Brewery? Probably not a lot, at least in the short-term. But if these economic slowdowns in beer continue, it could fuel even more consolidation in the beer industry, concentrating more of the distribution and marketing power in the hands of the bland. We need to be scrappy.
At least production levels should drop helping the hops shortage.
Always looking at the upside…
Monday Night Brew, their wwwwiirrrrryyyyy !
From what i’ve read, the emerging countries tend to like the bland beers that the beer giants specialize in. The craft beer market continues to grow in this country, which is why the giants are trying to get in on it. Good luck with the dream! If you get to NYC, check out BeerMenus.com to find great beer and beer bars and beer events. They launched in April and plan to spread to other cities next year. I’ve got to think Atlanta would be high on the list.
Who is this West guy? He sure does read the “WSJ” a lot…