Please read the following conversation and tell us what you think. Take particular note of the very last sentences, which are RED. What say you?
From an actual email exchange.
Part 1: From a professional brewer, 15+ years in the industry
Since I could not listen to the presentation a week ago I just today looked through the presentation you gave. One item certainly caught my attention. On slide X you point out that beer both in general and craft specific skews heavily towards men. On the next slide you show the ethnicity skew towards “white.” Based on the %’s in the 2 charts and population numbers in the U.S. it appears that the bigger opportunity in terms of total number of potential consumers for beer in general and craft in specific is the female market. That said, I am unsure what the index numbers mean and do notice that Hispanics index lower for craft beer than do females as a % of adults. Does that imply more opportunity?
You certainly have to choose a focus with time allotted and so I’m curious why you decided on the Hispanic focus when the larger opportunity appears to be the female market. Does Nielsen gather data on women and beer much like you have with Hispanics and beer? What is your take on the opportunity that women present for growing the beer category?
Thanks for considering my questions.
Part 2: From a VP at Nielsen
Thank you for your thoughtful question.
First off, in terms of the numbers themselves…
- Hispanics 21+ account for 14.8% of the overall adult population currently, but only 7% of the Craft Beer volume, thus an index of 47
- Females 21+ account for 52% of the overall adult population currently, but only 28.4% of the Craft Beer volume, thus an index of 55
So, you are right, the BIGGER opportunity in overall size lies with Females; however…
- While Craft Beer is underdeveloped with Hispanics (that 47 index), Beer overall is NOT — Hispanics accounts for 16.6% of overall Beer volume (vs that 14.8% of population), so Hispanics drink Beer at levels consistent with their population, just NOT Craft Beer. That’s one reason why we focused on Hispanics
- Secondly, if you consider the future growth rates, Hispanics as you likely know, will only become a much larger percentage of the overall population, and a lot of that growth will occur at the younger legal drinking age end – that’s a second reason we focused on Hispanics – the FUTURE potential that lies with Hispanics
- Thirdly, at Nielsen, we have a Center of Excellence focused on Hispanics, so we know a fair bit about them.
That doesn’t mean that Females aren’t a big opportunity as well… they ARE just based on numbers (way more Females in total than Hispanics in total). However, they just don’t drink a lot of Beer in general. On the other hand, we know that Flavored Malt Beverages and Ciders have successfully addressed that opportunity. And we know from various surveys that certain styles appear more to Women than others.