Delivering a ShopperCentric Beer Retail Environment

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Beer Shopper Fundamentals Basic Beer Shopper Facts
Prepared by Anheuser-Busch, Inc. 2008
2
Overview

• This sales tool covers the basics about Beer
  shoppers and their off-premise Beer buying
  behavior.
• Potential Applications
• Highlight the importance of the beer category
• Focus on demographics that drive beer sales
  growth
• Target the right shoppers
• Understand shoppers beer channel choices

3
Highlights

• Beer is widely consumed 35 of US adults are
  past-month beer drinkers.
• Beer is broadly enjoyed across all key
  demographic segments.
• Beer is the most widely purchased alcohol
  beverage, but beer shoppers also purchase other
  alcohol beverages.
• The Beer industry is projected to grow
  steadily--fueled by the growth of key demographic
  segments.
• Most Beer Shoppers are also Beer Consumers and
  Beer Shoppers (like Beer Consumers) are primarily
  male.
• Grocery is the most popular channel for beer
  purchasing, but beer is purchased more frequently
  at convenience stores, which drive that channels
  volumetric importance.
• Where available, Shoppers prefer to buy cold beer.

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Beer Is Widely and Regularly Consumed

• Almost two out of five (35) U.S. adults 21 are
  regular (at least past month) Beer drinkers.

Percent of Total Adult (21) Population Who Are
Beer is a very important category, regardless of
channel, because of its wide appeal.
Source ABI Beverage Poll, 2007
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Beer Is Broadly Enjoyed By All Types of Consumers
Beer Consumers are mostly Male, but otherwise
fairly well distributed across major demographic
segments.
Source ABI Beer Poll, 2007
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Beer is the Most Widely Purchased Alcohol
Beverage
35 of U.S Adults 21 Are Past Month Beer Buyers
Average Past Month Alcohol Beverage Purchase
Incidence Among Adults 21
Wine Coolers
Lemon Brews
Hard Ciders
Beer
Wine
Spirits
FABs
Beer is an important category at retail and is
more widely purchased than any other type of
alcohol beverage.
Source ABI Shopper Poll, 2007
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Beer Shoppers Also PurchaseOther Alcohol
Beverages
Of U.S. Adults 21 In a Typical Month
Buy WINE in addition to Beer
Buy SPIRITS in addition to Beer
Buy FABs in addition to Beer
Marketing your stores as Total Alcohol Beverage
destinations will appeal to Beer buyers, since
nearly 3/4 of them buy multiple alcohol beverage
categories.
Source ABI Shopper Poll, 2007
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Beer Shopper Mindset by Channel
Retailers have a big opportunity in Beer given
its destination nature, especially in C-Stores
and Drug stores.
Across most channels, the shopper is also the
consumer. In-Store brand and lifestyle imagery
should be balanced with straight price messages,
as appropriate, to resonate with shoppers
mindsets. (Note the Mass Merch self
tendencycounter to current paradigm.)
SOURCE ABI Shopper Poll, 2003-2007YTD, Total US
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Beer Shopper Mindset by Channel
The biggest opportunities for in-store influence
are in Grocery, Mass Merch, and Clubs.
Brand / size assortment, as well as merchandising
and POS materials, should reflect the nature of
the shoppers intended consumption occasions in
each channel.
SOURCE ABI Shopper Poll, 2003-2007YTD, Total US
10
Beer Purchase Frequency Trends
C-STORE
Beer purchase frequency across channels has been
stable over the years. However, Mass Merch beer
shoppers are making that channel a much more
regular beer destination.
MASS MERCH
ALL CHANNEL AVG
GROCERY
DRUG
CLUB
SOURCE ABI Shopper Poll, 2003-2007YTD, Total US
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Some Consumer Segments Account ForDisproportionat
e Beer Volume
MA-27 Males Blue Collar
Versus their size in the Beer-consuming
population, disproportionate Beer volume is
consumed by MA-27s, Males, and Blue Collar
demographic groups.
Source ABI Beer Poll, 2007 ABI Shopper Poll,
2005-07
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Key Demographic Groups Are DrivingU.S Population
Growth
5-Year Growth Estimate
21-27 Year Old 5
Latino 18
Asian 18
50 Population 15

• Growth of these key consumer groups will impact
  beer category growth.

Source Spectra/Claritas and US Census
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Population Breakdown by Age Groups
1990 - 2015
The Highest Growth Rate is Projected for Age 50
Source U.S. Census
14
MA-27 Year Olds Are a Large and High Volume Base
of Beer Consumers
Anglo African American Latino
MA-27 28-34 35-49 50
of Beer Buyers in Demographic Group
of Beer Volume Consumed by Demographic Group
21-27 Year Olds Consume Close to 1/4 of Total
Beer Volume, 29 more relative to their size in
the population.
Source ABI Beer Poll, 2007
15
Beer Shoppers (Buyers) are Very Similar To Beer
Consumers (Drinkers)
Demographic Profile of Beer Consumers vs. Beer
Shoppers
Versus Beer Drinkers, Beer Shoppers skew female
and slightly older. But the Beer shopper is
still predominantly male.
Source ABI Beer Poll/ABI Shopper Poll 2007
16
A Small Percentage of Beer SHOPPERSAre NOT Beer
CONSUMERS
Shopper/Non-Consumers - Where Most Often Buy
Beer -
Shopper/Non-Consumers - Demographic Profile -
Shop and Consume 94
Grocery Liquor Store C-Store Mass Merch Warehouse
Club Drug Store All Other
Male Female MA-27 28-34 35-49 50 Blue
Collar White Collar Gray Collar Student Other
Collar
Shop But Dont Consume 6

• Shopper/Non-Consumers are Unique
• They skew female, older, retired or homemakers
• They tend to be loyal to the Grocery channel for
  Beer

Source ABI Shopper Poll, 2007
17
Grocery is The Most Common Beer Channel Choice
Where do you most often buy Beer?
Grocery is the channel of choice for almost ½ of
Beer shoppers.
Source ABI Shopper Poll 2005-2007
18
But The Convenience Channel Is Important
Volumetrically
Where do you most often buy Beer?
Liquor Store 22
Grocery 46
C-Store 14
C-Store Beer volume is driven by store count and
purchase frequency.
Source ABI Shopper Poll, BudNet
19
Given a Choice, Beer Shoppers Prefer To Purchase
Cold Beer
Temperature and Location of Most Recent Beer
Purchase by Most Recent Beer Channel
57
Proper COLD BEER space allocation and assortment
is imperative! In channels where cold Beer is
available, shoppers prefer to buy cold Beer.
Source ABI Shopper Poll 2007
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Beer Shopper Fundamentals Implications

• Beer is a very important category at retail
• Broad appeal across demographic segments
• More widely purchased than any other type of
  alcohol beverage
• Beer is a growth industry
• Fastest growing demographic groups 50 year
  olds, Latinos, and Asians.
• Retail Beer shopping environments should be
  relevant to MA-27s
• MA-27s consume 29 more Beer volume vs. their
  size in the population

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Beer Shopper Fundamentals Implications

• The Beer Shopper is usually the Beer Consumer
• Beer Shoppers (Buyers) are very similar to Beer
  Consumers (Drinkers)
• Beer Shoppers skew female, slightly older, and
  slightly higher income, but the Beer Shopper is
  still predominantly male.
• Over 9 out of 10 Beer Shoppers are also Beer
  Consumers. So the retail Beer marketing
  environment should speak to a Beer Consumers
  mindset (occasion anticipation, emotion) more so
  than strictly a Shoppers (functional,
  price-oriented) mindset.
• Grocery is the channel of choice for nearly ½ of
  Beer Shoppers
• But the Convenience channel is important
  volumetrically, driven by store count and
  purchase frequency
• Proper Cold Beer space and assortment are
  imperative
• Where its available, Shoppers overwhelmingly
  prefer to buy cold Beer