Wine's New Competition: Craft Beer

(Wines&Vines) - Americans may be buying fewer 12-packs of mass-marketed light beer, but they are buying more six-packs of special-release IPA—and that could be at the expense of bottles of Cabernet.

Those who sell craft beer are also taking their cue from some of wine’s strongest selling points to earn a greater share of the market. “From a shelf space perspective, we need to hold our ground,” said Danny Brager, senior vice president of Nielsen’s Beverage Alcohol Practice Area. Brager’s comments came during the Wine Market Council’s annual presentation on U.S. wine consumer trends.

Brager said craft beer sales are up nearly 23% in volume and 20.6% in value, and in regions like San Francisco and Portland, Ore., craft beer has seen growth of 30% or more.

Those strong sales, however, can’t buoy the general beer market, which continues to decline at a slow rate. In 2002, 60% of Americans favored beer, 27% preferred spirits and 13% favored wine, Brager said. By 2013, beer had slipped to 51.1%; spirits rose to 33.7% and wine grew to more than 15%.

People who enjoy craft beer say it offers a broader selection of choices, and they view it as a local product that pairs well with food, according to John Gillespie, president of the Wine Market Council.

Based on survey information from the most active beverage buyers, Gillespie said 66% of high-frequency wine drinkers claim to have enjoyed craft beer, and 49% of those said they enjoyed several craft brews per week. Brager said Nielsen’s data show that 13% of shopping carts with wine also contain craft beer.