Page 44 - July Hawaii Beverage Guide

SPIRITSCOPE BY DUNCAN H.CAMERON
JULY 2017
PROMOTE JULY!
This July, declare your independence from boring routine and start making excitement for your customers and extra profits for yourself! For the imaginative promoter, July offers a host of possibilities. It’s National Tennis, Ice Cream, Baked Bean, Hot Dog and Purposeful Parenting Month!
DRINKING SHRINKING?...
According to data compiled by the London-based IWSR (International Wine & Spirits Record), global alcohol consumption is declining. In fact, the rate of decline in global alcohol consumption is accelerating, with the global market for alcohol beverages shrinking by 1.3% in 2016, compared with an average rate of 0.3% in the previous five years.
The IWSR noted that this decline was accelerating at a “faster rate than has been previously reported by other data companies”, including Euromonitor, which last month said the rate of decline had actually slowed to -0.2%, from -0.8% the previous year.
By category, consumption of still wine dropped by 0.5% in 2016, according to the IWST, while the sparkling wine market grew 1.8%, driven by Prosecco.
Cider declined by -1.5% after years of solid growth, with this reversal blamed on declines in consumption in the South African and particularly the US, where volumes dropped by 15.2% in 2016 after years of double-digit growth, dragging down the category as a whole.
Beer saw the biggest decline, with consumption dropping by 1.8% in 2016, compared with a five-year rate of -0.6%.
“The global trend is a reflection of developments in three of beer’s largest markets: China, Brazil
and Russia, which all saw steeper declines than in previous years, decliningat-4.2%,-5.3%and-7.8% respectively in 2016,” it said.
The global consumption of spirits painted a much more positive picture, achieving a slight growth of 0.3%. However, vodka was blamed for “dragging down” the overall performance of spirits, declining by 4.3% last year. The decline in vodka was counteracted by healthy volume growth within the gin (+3.7%), Tequila (+5.2%) and whisky (+1.7%) categories.
“The negative trend in vodka is largely due to steep volume losses in Russia (-9.3%), which nevertheless remains vodka’s largest market by far,” the report explained. “Key growth markets for total spirits last year were China, the US and Mexico.”
In the U.S., Distilled spirits ended the year up by 2.6% at 220.8m nine- liter cases and, as a result, gained 0.2% share of the total beverage alcohol market. The wine industry increased for its 22nd consecutive year to end last year with a total of 358.3m nine-liter cases. The beer industry modestly decreased -0.2% to 241.3m hectoliters (hl) in 2016. Despite overall decline of global alcohol consumption, the IWSR predicts that this trend will reverse in the next five years, forecasting consumption to rise by 0.8% until 2021.
BOGUS BUD BUSTED... An underground factory in China’s southern Guangdong province has been busted for producing fake cans of Budweiser beer after a video showing an unsanitary production line went viral.
According to local authorities, the underground workshop was making more than 600,000 crates of beer every month as reported by Chinese news website Sohu.com.
It’s unknown where these
counterfeit beer cans were sold, but previous busts indicate that the beers were mostly bought by night clubs, bars and KTV (karaoke) parlors. A 330ml can of Budweiser normally sells for RMB 7 (US$1.02).
BEER COUNTS... Beer Institute and the NBWA (National Beer Wholesalers Association) have done a great job documenting the enormous contribution beer makes to the American economy. Among their findings:
Brewers and beer importers directly employ 64,745 Americans. About 58 percent of brewing jobs are linked to large and mid-sized brewers and beer importers.
Beer distributors directly employ 134,240 Americans.
Overall, the beer industry contributes more than $350 billion in economic output, which is equal to nearly 1.9 percent of the U.S. Gross Domestic Product.
Suppliers to the brewing industry - enterprises that manufacture bottles, cans and kegs, cardboard case boxes, brewing equipment or marketing displays - generate nearly $115.3 billion in economic activity and are responsible for more than 491,800 jobs alone.
The beer industry is vital to the United States, generating nearly 2.23 million jobs and contributing more than $350 billion to the American economy,” said Jim McGreevy, president and CEO of the Beer Institute. “Beer Serves America demonstrates how brewers, beer importers and beer industry suppliers are creating jobs, providing wages and benefits to working Americans and supporting the economy in every state and every congressional district.”
The Beer Serves America study was compiled by an independent economics firm John Dunham & Associates. It would be great to see
A-10 HAWAII BEVERAGE GUIDE JULY 2017
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