The Beer business has transformed with abundant variety and choice.
Molson Coors is addressing this One Consumer and One Segment at Time
In 1983, there were fewer than 100 breweries. At the end of 2020, there were 6,406 breweries reporting beer production in the United States. Many of these breweries are small. In 2020, for example, more than 90 percent of these 6,406 U.S. breweries made fewer than 15,000 barrels of beer.
Beer sold in the United States is often segmented based on price and perceived quality. These segments—and their nomenclature—have evolved over time. For example, Molson Coors’, currently groups beer into five segments: value, core, core-plus, premium, and super-premium (listed in order of increasing price and quality).
Beer brands in the premium segment include beers, such as Blue Moon and imports like Peroni. Beer brands in the super-premium segment include other imported beers and many craft beers.
While the value and core segments account for the majority of all beer sold in the United States, consumer preferences have shifted in recent years toward Mexican imports and craft beers, resulting in the premium and super-premium segments growing in sales and gaining market share.
This market trend toward the premium and super-premium segments has challenged Molson Coors, which have stronger positions in the value and core segments rather than in the premium and super-premium segments.
This market trend also increases the choices available to consumers as brewers innovate more premium and super-premium brands to meet increasing demand in those categories.
Molson Coors Strategy:
To meet this demand Molson Coors’ looked at consumer behavior and takes on Purpose Drives Purchase, or PDP strategy. This Strategy will help retailers keep shelves and cooler space productive as more innovation floods into the market.
The foundation of this strategy is based on consumers and the belief that shoppers are thinking about occasion first. This Marketing strategy is designed to put all occasions first. Observing and working through what occasions where beer is relevant, but what other things might be relevant as well.
This Category Management Strategy focuses on consumers and occasions broadly, so the innovation is there to give the consumer choices. A holistic approach to why consumers are making some of the choices they do and what is motivating them to purchase. Putting the consumer first and really understanding about what they need and when they need it.
Consumer awareness and engagement have always been paramount for marketer strategies, but never have brands had the wealth of information about consumers that they do today. With that data in hand, brands need to put consumers at the center of their strategies and campaigns.
Retailers need to look at the productivity per SKU and focus on the right items, core items and the emerging segments. What are the items driving share and growth? Rationalizing what core productive items in each segment will drive market share and sales and give the retailer more opportunities in shelf and cooler space.
Every segment has to play a role in a healthy beer category at retail,” Jeff Long says. “We believe in a balanced approach, and that does not mean every segment gets the same amount of space; it means that getting the items right within each segment is more critical than ever.”
Having the right category strategy and the right partner is more important than ever.
Contact your local Kramer Sales representative to help you drive more market share and profitability.
About Kramer Beverage
Kramer Beverage is South Jersey’s award winning largest beer wholesaler, owned and operated by four generations of the Kramer family since 1924. Kramer Beverage is based out of Hammonton, Atlantic County, and services eight counties in southern New Jersey with top brands from Molson Coors, Constellation, Yuengling, Boston Beer, Heineken USA, Pabst, Diageo, FIFCO, and more. Kramer Beverage also distributes a wide variety of craft beers, from suppliers such as New Belgium and Sierra Nevada, to local favorites including Flying Fish, Double Nickel, Evil Genius, Glasstown, Mudhen and 2SP. For more information on Kramer Beverage, please visit www.kramerbev.com.