Beer Category Needs Topping Off

C-stores still dominate in market share, but sales are flat

BEER SALES AND UNITS

The suds seem to be settling at convenience stores, as beer sales in the industry were basically flat for the 52 weeks ending Feb. 18. Data provided by Nielsen shows the category generated less than a 1-percent increase in dollar sales, as units declined by 1.1 percent. There are a couple of bright spots, though. Microbrews were up 18.2 percent in sales and 22.5 percent in units, while the super-premium segment (which includes brands such as Michelob and Samuel Adams Boston Lager) saw 14-percent sales growth and nearly 17-percent unit growth.

SHARE OF BEER SALES AND UNITS

Premium beers (such as Budweiser, Miller and Coors) hold the premium spot, too, in regards to share of beer sales in c-stores. The premium segment accounts for 53.5 percent of sales and 45.9 percent of units. At a distant second is budget brands (including Hamms, Blatz and Pabst), with a 12.6-percent share of sales and a 13.9-percent share of units. Rounding out the top five segments in both sales and unit share are Popular, Imports and Flavored Malt.

Source: Nielsen, 52 weeks ending 2/18/2012

COMPETITIVE MARKET SHARE

Convenience store retailers dominate the competition when it comes to beer sales. An overwhelming majority of beer consumers choose c-stores as their retail purchase point, resulting in the convenience channel claiming a 60-percent share of both sales and volume. Supermarkets hold the next largest share at just over 34 percent vs. drugstores' roughly 5-percent share.

Source: Nielsen, 52 weeks ending 2/18/2012