Domestic beer shipments for the US were down 7% in the first quarter. The entire US beer business, including imports and craft was flat in Q1. Spending is still stagnant in the industry, even with gas prices falling; consumers are not purchasing more beer. Walmart is putting pressure on their largest suppliers to cut prices, because of stiff competition from Costco and Kroger. The US price index for beer actually declined for the first time in 10 years.
As I pointed out in Thailand, the pace of M&A is picking up steam with ABI looking at more Craft companies to bring into the fold. Other craft beer companies are getting private equity companies into the mix and forming alliances to create synergies and leverage at the wholesaler and retailer level. This activity will continue over the next several years.