Page 26 - Winter 2018 english

Product Selection at Your Facility
It is important for your facility to stay current, following the trends and ensuring you have products available for consumption that meet the wants and needs of your golfers. Some products to stock that meet the current trends (using Moosehead examples) could include the following:
• A mix of fresh and unique premium import brews: Estrella Damm or Samuel Adams
• New types of beverages: Angry Orchard Crisp Apple or Angry Orchard Rosé
• RTDs for a warm summer day: Twisted Tea
• Classic but still fresh: Moosehead Radler
• Low-alcohol beer: Cracked Canoe
• Local Craft beer: Hop City’s Barking Squirrel
• 100% Canadian beer: A pint of classic Lager or any other of the core Moosehead brews
26 Golf Business Canada
Moosehead Breweries Limited is Canada’s oldest independent brewery, still privately owned and operated by the Oland family, and now in the sixth generation of family ownership. (l to r) Andrew Oland President & CEO; Derek Oland Executive Chairman; Matthew Oland Vice President, Supply Chain; and Patrick Oland CFO.
National sales of beer fell 1.1%, from 22.42 million hL in 2016 to 22.20 million hL in 2017. Considering the dramatic rise in the number of players in the market, this does not bode well for breweries looking to strike it rich, as Canadian consumers now have more choice than ever.
FOREIGN & EXOTIC
While domestic beer sales are falling, import sales across Canada continue to rise, as consumers continue to seek new and exotic beers from around the world. This trend has been seen not only in Canada, but globally as well, with international imported beer sales growing at a compound annual growth rate (CAGR) of 4.3% annually dating back to 1999. This compares to 1.7% for domestic beer, demonstrating that consumers continue to be excited by import brands, despite higher prices.5 However, domestic brewers still account for 84% of the beer purchased in Canada, which is in steep contrast to wine & spirit sales.
Domestic wines account for only a third of Canadian’s wine purchases, and domestic spirits 56% of Canadian’s spirits purchases.6 It will still be a while before imports trump domestic in the beer space, but the consumer excitement and interest is there, and Canadians
continue to look for fresh and unique international brews outside of the classic international brands.7
Despite the consumer interest in import brands, Canadians still enjoy supporting local breweries. Craft beer continues to be a major thorn in the side of large brewers, and the number of breweries opening up does not appear to be slowing down anytime soon.
However, rising production costs, as well as other key factors have led to the price of manufacturing beer to increase, putting into question several small brewers’ abilities to stay a oat. These increased costs have in turn led to the average price of beer rising nationally by 2.6%, while the price of spirits increased at a rate of 1.6%, and wine decreased by 0.4%.8
PRODUCT INNOVATION IS DRIVING VALUE
While domestic beer sales are falling, and the overall alcohol industry is experiencing low growth overall, new product innovations and changing consumer prefer- ences are helping drive value into areas that have not seen much interest among Canadians previously.
Ready-to-drink beverages (RTDs), hard ciders, radlers, and everyone’s favorite Rosés are becoming more and more mainstream, and every year take
5 http://www.arena-international.com/Journals/2018/05/18/k/w/w/3.-Kevin-Baker---GlobalData.pdf
6 http://industry.beercanada.com/statistics
7 https://www.statista.com/statistics/257677/global-market-share-of-the-leading-beer-companies-based-on-sales/ 8 http://industry.beercanada.com/statistics