60 Highest Rated Beers in America
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The Possible Decline of Premiumization:
Premium alcoholic beverages have been outperforming other price categories for many years, helping drive the steady growth in craft beer. But the first half of 2023 has begun to show some cracks in premiumization, which may not bode well for craft beer, which is already slowing due to multiple other factors.
On Drizly, the overall average unit price of products sold has seen a steady increase since 2019, growing nearly 17% over the last five years. So far in 2023 that average has remained flat. It is obvious that inflation has triggered a change in the spending habits by consumers, but how much those consumers of higher-end alcohol, such as craft beer, are willing to give up their favorite beverage to save money is unclear. In past recessions craft beer has fared well, with consumers tending to be more cost conscious by looking for deals, but seemingly not trading down into cheaper non-craft options.
One factor that is different today from past recessions is the amount of craft beer brands owned by global corporations, which have a higher ability to offer discounts. This could mean greater craft beer offerings from the big brewers on sale in the grocery store aisles, leading to a more price-competitive environment for smaller, independent brewers.
The Devaluation of Craft Beer Brands:
Tilray Brands, Inc. (NASDAQ:TLRY) – a craft beer and cannabis company that was among the first to be licensed for medical cannabis in Canada – announced last month that it has agreed to acquire eight beer and beverage brands from Anheuser-Busch InBev SA/NV (NYSE:BUD).
The deal includes the Shock Top, Blue Point, 10 Barrel, Breckenridge, Redhook, Widmer Brothers, Square Mile Cider, and HiBall Energy brands. Upon satisfaction of customary closing conditions, Tilray Brands, Inc. (NASDAQ:TLRY) will become the fifth-largest craft brewer in the U.S. with a 5% market share.
One of the most noticeable aspects of this deal is the astonishingly low price – $85 million – that Tilray Brands, Inc. (NASDAQ:TLRY) paid for the 8 breweries combined. That’s about $150 per barrel – a far, far distance from the height of the craft beer industry when brands sold for as high as $1,000 per barrel only 6-8 years ago. This deal marks another sign that the large global brewers have lost interest in craft beer as they chase consumer preferences that are now trending into non-craft and non-beer categories. Tilray Brands, Inc. (NASDAQ:TLRY) already owns multiple beverage brands and ranks among the Biggest Marijuana Companies in the World.
NOTE: Since this is such a lengthy article, I selected only the section regarding Tilrays purchase of another 8 breweries. The entire article available thru this link. Discusses many other brands.
https://investingchannel.com/article/590489/60-highest-rated-beers-in-america