Sponsor (Oct-Dec 1964)

luctant to handle beer because of fear of offending some customers, particularly women shoppers. Although some states still restrict the sale of beer in supermarkets, 45 percent of the nation's food stores now sell beer and The Supermarket Institute reports 60 percent of its members sell beer. According to Food Field Reporter, beer now ranks as the fourth largest contributor to food-store dollar volume, behind bread, provisions and fresh vegetables. The number of breweries supplying this heavy volume, curiously, decreases each year. Brewers in operation at the end of 1963 totalled 194, compared to 225 in 1962, 440 in 1949, and 725 in 1934. Reason: attrition of rising labor, material and distribution costs in a ruthlessly competitive and essentially static market. The inexorable market thrust of the major brewers, as in previous years, continued unabated last year. In 1963, the 25 frontrunners accounted for 83 out of 100 barrels sold, compared to 80 out of 100 in 1962. While total industry sales were up only 2 percent, the 25 leaders posted a 6.2 percent increase. Here is a rundown of the sales, marketing and advertising developments for the top ten breweries: Anheuser Busch (Budweiser, Busch Bavarian, Michelob) topped the 9 million-barrel mark for the second consecutive year to lead the pack of breweries in 1963. Sales increased a modest 3 percent over 1962 (9.3 million barrels vs. 9.0 million barrels), while share-of-market improved slightly (10 percent in 1963 vs. 9.9 percent in 1962). In 1961 the company introduced Michelob, a premium beer, in a new decanter-type bottle. By the end of 1964 the beer will be sold in every state. Every yeax since 1957 the company has promoted its leading brand, Budweiser, with a special campaign called "Pick a Pair." This year's "Pick a Pair" campaign (May 1 through July 4) again received heavy support. Outdoor, magazines, newspapers and spot radio all took a share of the brewery's $15 million ad budget, but television claimed the largest share with $5,100,000. (See Sponsor, Apr. 20 and Apr. 27, 1964.) This year the Glass Container Institute spent $1 million in television for New York promotion of no-neck throw-away beer bottles. PROFILE OF TODAY'S U.S. BEER MARKET • In 1963 Americans downed a record 93 million barrels of beer, two percent more than the 91.2 million barrels consumed in 1962. • The U.S. Brewers Assn is predicting a bigger increase this year. The association estimates sales will reach 97 million barrels, a 3.2 million barrel increase. • Recent rise lifts industry out of business lag from 1947 to 1962, during which time sales climbed less than five percent, despite a 26 percent rise in population. ® Shorter weeks, increased vacations and leisure time have increased beer-drinking opportunities. • Population trends also are favorable. Beer's prime market (21 to 40 age group) will grow much faster than the rest of the population. • The number of brewers has continued to decline. At the end of 1963 there were 194 breweries in operation, compared to 225 in 1962, 440 in 1949, and 725 in 1934. • In December 1963 the U.S. Treasury approved the use of beer concentrates. This process — which removes the water from beer, reducing its volume by 75 percent — may have a strong impact on beer marketing in the future. 3 Still accounting for less than one percent of the U.S. market, imports hove expanded steadily. In 1950, 2.9 million gallons were imported. In 1963, 15.6 million gallons were imported. • The big brewers are getting bigger. In 1963 the 25 front runners accounted for 83 out of 100 barrels sold, compared to 80 out of 100 in 1962. • The top ten beer brewers in 1963 were Anheuser-Busch, Schlitz, Pabst-Blatz, Carling, Falstaff, Ballantine, Schaefer, Hamm's, Coors and Miller. • Brewers spent over $236 million in advertising in 1963. • The slight differences in actual products has led brewers to advertise packaging differences — new opening devices, shapes and sizes. • A number of breweries have been using broadcast media, especially radio, to air commercials oriented to the Negro and Spanish markets. Advertisers who have done so include Ballantine, Schaefer, Liebmann (Rheingold), Falstaff in such markets as New York, Philadelphia, Baltimore, Miami, San Antonio. (For further information on beer advertising to minority groups see SPONSOR, Aug. 17 and Oct. 19, 1964.) November 16, 1964 35