Nielsen’s all-outlet and convenience data shows beer is up 1.5% in volume (4.1% in dollars) the latest as of the end of November 2014. Craft was up 11.6% and FMBs grew 11.8% in the period. Imports were up 8.3%. But premiums were down 0.3%, despite having been positive the previous 4 weeks, as premium regulars were down 2%. Below premiums were down 2.5%, with budget down almost 5%. The industry growth leaders are Mexican imports (mainly under AB-Inbev and Heineken USA) and craft beers which have been leading the US beer industry for the entire year. Belgian imports, mainly Stella under AB-Inbev, are also leading the trend. On one hand, these are the industry giants that has spent enormous amount of money on building brand awareness within the US market. On the other hand, Heineken brand has also been hit hard by Stella Artois on the brand fundamental where they compete to become the super premium beer.
For the month of November, SNA sales continue to decline significantly due partly to the market sentiment, and a big part as a result of significant decrease in promotional activities in the market. SNA sales is at -47.36% on M-o-M basis and -8.67% YTD. Taking into account that there were 189 kegs (30L) sold in November, the actual case-equivalent amount of sales is an incremental of 527 cases equivalent or 301,964 cases YTD. In term of depletion, we have approximately 23,207 units sold in November, which is -16.98% vs. the same month of last year, or decline -4.92% YTD. However, this depletion number also includes sales of 88 kegs, which actually gives an additional 246 units of cases equivalent. We can expect to see the same trend continuing until the end of year as the remaining sales team are restricting promotional spending both ATL and BTL activities. Although the sales volume is decreasing, it is expected that the financial result for SNA will be improved in the short-term as a result of this strategy.