Devon Wright’s Post

USA Ratings interviews Stephanie Gallo, GALLO's VP of Marketing, about business strategy and the wine industry's landscape, emphasizing the "total alcohol" business and efforts to democratize wine. For Stephanie Gallo one primary objective seems clear: democratize the enjoyment of wine. Another is to make GALLO, as a company, into a “total alcohol beverage supplier.” This requires an “intrapreneurial mindset” within a very large family-owned firm, which has never lost contact with its strong roots and traditions in California. The direct descendent of Ernest Gallo, Stephanie recently told her alma mater, Northwestern University, that additional “consumers in the United States and throughout the world” should be drinking wine. She added that the potential for expanding the overall market for wine remains substantial. “Only 33 percent of Americans drink wine on a regular basis, and of that 33 percent, 80 percent of the volume is done by 11 percent of the population,” she stated. “So I would argue that our quest to democratize wine still has not been met.” What some might view as dismal numbers regarding the wine market, Stephanie views as yet unconquered territory for expanding sales. As Vice President of Marketing, Stephanie Gallo has tremendous influence in that regard. Gallo produces up to 3% of the world’s wine (that’s a lot). With over 7500 employees, the company accounts for an estimated 13%+ of total US wine industry revenue. As Richard Hemming MW noted several years ago, “It is often said that the world’s largest wine producer” only makes a very small percentage of “the total annual production of wine, which is illustrative of wine’s highly fragmented market structure.” It is within this market environment that Gallo has thrived, but never dominated the wine sector. “By comparison,” writes Hemming, “Coca-Cola owns about 50% of the global soft drinks market, while Anheuser-Busch has a 28% share of the global beer market.” Hemming believes this shows how “the industry [is] highly fragmented, with millions of smaller wine producers around the world each accounting for just a minuscule fraction of total global production.”

USA Ratings interviews Stephanie Gallo, GALLO's VP of Marketing, about business strategy and the wine industry's landscape, emphasizing the "total alcohol" business and efforts to democratize wine. For Stephanie Gallo one primary objective seems clear: democratize the enjoyment of wine. Another is to make GALLO, as a company, into a “total alcohol beverage supplier.” This requires an “intrapreneurial mindset” within a very large family-owned firm, which has never lost contact with its strong roots and traditions in California. The direct descendent of Ernest Gallo, Stephanie recently told her alma mater, Northwestern University, that additional “consumers in the United States and throughout the world” should be drinking wine. She added that the potential for expanding the overall market for wine remains substantial. “Only 33 percent of Americans drink wine on a regular basis, and of that 33 percent, 80 percent of the volume is done by 11 percent of the population,” she stated. “So I would argue that our quest to democratize wine still has not been met.” What some might view as dismal numbers regarding the wine market, Stephanie views as yet unconquered territory for expanding sales. As Vice President of Marketing, Stephanie Gallo has tremendous influence in that regard. Gallo produces up to 3% of the world’s wine (that’s a lot). With over 7500 employees, the company accounts for an estimated 13%+ of total US wine industry revenue. As Richard Hemming MW noted several years ago, “It is often said that the world’s largest wine producer” only makes a very small percentage of “the total annual production of wine, which is illustrative of wine’s highly fragmented market structure.” It is within this market environment that Gallo has thrived, but never dominated the wine sector. “By comparison,” writes Hemming, “Coca-Cola owns about 50% of the global soft drinks market, while Anheuser-Busch has a 28% share of the global beer market.” Hemming believes this shows how “the industry [is] highly fragmented, with millions of smaller wine producers around the world each accounting for just a minuscule fraction of total global production.” https://lnkd.in/dQfvwc6A

To put a finer point on Fox News' observations: 1) NA beer has come a long way, and tastes a great deal more like traditional beer now than it did as recently as ten or twelve years ago, but the growth of the NA market will depend on continued innovation and investment in R&D. 2) Women are trendsetters, and their early support of the new wave of craft NA beers almost certainly augers an as-yet-unrealized growth in demand among men as well. 3) Young people are the future, and the craft brewing community should take note of what their spending habits tell us. Just as the first wave of growth in the craft beer market was driven by an earlier generation's demand for hoppier, more flavorful beer with a higher ABV than what was then being produced by the "big three", this generation of craft beer drinkers is looking for low-alcohol or non-alcoholic versions of the many flavors and styles of beer not available in mass-produced NA form. 4) Athletic is the only craft brewery on Fox's list, and the only one producing an IPA. This speaks to the massive growth potential of the craft segment of the NA market, even as the rest of the craft beer industry stagnates. 5) It's time for craft NA brewers to seize the day!

The beer industry is facing a stark reality: Quality alone is no longer a strong enough differentiator to capture consumer attention. Brands are no longer judged solely by the quality they produce, but rather by how well they resonate with consumers' evolving tastes and preferences. The game has changed—it’s no longer about who brews the best beer, but about who understands their consumers best. Too many breweries still cling to the outdated belief that if they brew great beer, everything else will fall into place. This mindset is dangerous, especially in an era driven by occasion-based preferences and flavor experiences. Excellence is expected, but a brand thrives only when it builds an authentic, engaging identity that truly connects. Here's what many brewers are missing: 🔸 Consumers See "Beer as Beer": To many, beer—whether craft, domestic, or import—is a homogenous category. Craft beer, once a beacon of uniqueness, now risks blending into the broader landscape. Without a brand identity that resonates, scaling sustainably in a crowded market becomes an uphill battle. 🔸 Stop Thinking Like a Brewer; Start Thinking Like a Consumer: I’ve had countless conversations with brewers who passionately defend their beer's quality. They say, “If people only understood how incredible our beer is, we’d be unstoppable!” But here’s the problem: Success isn’t about educating consumers; it’s about engaging them. Purchases are driven by what resonates with them, like a particular occasion or flavor profile—not brewing techniques. 🔸 Firestone Walker Sets the Standard: Firestone Walker Brewing Company has shown that evolving with consumer preferences doesn’t mean sacrificing quality. Their innovation, like launching "turbo radlers," illustrates a perfect balance: adapting to what consumers crave while maintaining high standards. Their success proves that strategic adaptation fuels lasting growth. Having worked hands-on to elevate brands that are now industry leaders, I’ve seen the transformational power of embracing a consumer-first identity. I’ve guided underperforming brands from stagnation to prominence, not by chance but through strategic repositioning. The results? Brands that resonate with consumers and become indispensable to distribution partners—fueling unprecedented growth. This isn’t theoretical; it’s based on real-world experience transforming market challenges into major, scalable wins. The path to brand dominance isn’t about sticking to outdated methods or relying solely on quality. It’s about being adaptable, strategic, and relentless in creating a brand that consumers can't ignore. The market won’t wait, and neither should you. The time to adapt and evolve is now. #BrandStrategy #ConsumerEngagement #CraftBeerIndustry #BeverageBusiness #MarketTrends *Thanks as always to Dave Infante for the incredible industry insights. Check out his latest article at the link below! https://lnkd.in/eRXSRT5p

USA Ratings interviews Stephanie Gallo, GALLO's VP of Marketing, about business strategy and the wine industry's landscape, emphasizing the "total alcohol" business and efforts to democratize wine. For Stephanie Gallo one primary objective seems clear: democratize the enjoyment of wine. Another is to make GALLO, as a company, into a “total alcohol beverage supplier.” This requires an “intrapreneurial mindset” within a very large family-owned firm, which has never lost contact with its strong roots and traditions in California. The direct descendent of Ernest Gallo, Stephanie recently told her alma mater, Northwestern University, that additional “consumers in the United States and throughout the world” should be drinking wine. She added that the potential for expanding the overall market for wine remains substantial. “Only 33 percent of Americans drink wine on a regular basis, and of that 33 percent, 80 percent of the volume is done by 11 percent of the population,” she stated. “So I would argue that our quest to democratize wine still has not been met.” What some might view as dismal numbers regarding the wine market, Stephanie views as yet unconquered territory for expanding sales. As Vice President of Marketing, Stephanie Gallo has tremendous influence in that regard. Gallo produces up to 3% of the world’s wine (that’s a lot). With over 7500 employees, the company accounts for an estimated 13%+ of total US wine industry revenue. As Richard Hemming MW noted several years ago, “It is often said that the world’s largest wine producer” only makes a very small percentage of “the total annual production of wine, which is illustrative of wine’s highly fragmented market structure.” It is within this market environment that Gallo has thrived, but never dominated the wine sector. “By comparison,” writes Hemming, “Coca-Cola owns about 50% of the global soft drinks market, while Anheuser-Busch has a 28% share of the global beer market.” Hemming believes this shows how “the industry [is] highly fragmented, with millions of smaller wine producers around the world each accounting for just a minuscule fraction of total global production.”

Our editor Charlie Leary (李嘉立) PhD interviews Stephanie Gallo, GALLO's VP of Marketing, about business strategy and the wine industry's landscape, emphasizing the "total alcohol" business and efforts to democratize wine. For Stephanie Gallo one primary objective seems clear: democratize the enjoyment of wine. Another is to make GALLO, as a company, into a “total alcohol beverage supplier.” This requires an “intrapreneurial mindset” within a very large family-owned firm, which has never lost contact with its strong roots and traditions in California. The direct descendent of Ernest Gallo, Stephanie recently told her alma mater, Northwestern University, that additional “consumers in the United States and throughout the world” should be drinking wine. She added that the potential for expanding the overall market for wine remains substantial. “Only 33 percent of Americans drink wine on a regular basis, and of that 33 percent, 80 percent of the volume is done by 11 percent of the population,” she stated. “So I would argue that our quest to democratize wine still has not been met.” What some might view as dismal numbers regarding the wine market, Stephanie views as yet unconquered territory for expanding sales. As Vice President of Marketing, Stephanie Gallo has tremendous influence in that regard. Gallo produces up to 3% of the world’s wine (that’s a lot). With over 7500 employees, the company accounts for an estimated 13%+ of total US wine industry revenue. As Richard Hemming MW noted several years ago, “It is often said that the world’s largest wine producer” only makes a very small percentage of “the total annual production of wine, which is illustrative of wine’s highly fragmented market structure.” It is within this market environment that Gallo has thrived, but never dominated the wine sector. “By comparison,” writes Hemming, “Coca-Cola owns about 50% of the global soft drinks market, while Anheuser-Busch has a 28% share of the global beer market.” Hemming believes this shows how “the industry [is] highly fragmented, with millions of smaller wine producers around the world each accounting for just a minuscule fraction of total global production.” Read the full story on USA Ratings (USA Wine Ratings blog) by clicking on the link below.

Factors including the growth of ready-to-drink canned #cocktails and consumer trends away from beer and malt beverages are contributing to a contraction in #craft beer sales. https://buff.ly/3UW2xOL

Bavarian #Beer: A market leader in a declining market. How #breweries are reacting to current dynamics and who should be watching out. April 23 is meant to be a moment of pride and celebration: the Day of Bavarian Beer. However, breweries and food service outlets face a sobering reality: beer consumption in Germany is down 4.5% in volume compared to the previous year. This follows the long downward trend, with a 35% decline from 1990 to 2023. In an industry with historically high fixed costs, companies are reacting in different ways: 1) 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 & 𝐩𝐫𝐨𝐦𝐨𝐭𝐢𝐨𝐧 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 With its market-leading brand Beck’s, AB InBev has intensified promotion to maintain volumes, while also placing greater focus on higher-margin import beers. In contrast, FLENSBURGER BRAUEREI Emil Petersen GmbH & Co. KG has accepted volume losses, choosing instead to raise prices as well as focus on value and brand over volume. 2) 𝐂𝐫𝐞𝐚𝐭𝐢𝐯𝐞 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 𝐭𝐨 𝐮𝐬𝐞 𝐜𝐚𝐩𝐚𝐜𝐢𝐭𝐲 As predicted in a report from Integration Consulting and The Good Food Institute, breweries are using idle capacity for fermenting other food & beverage products, with the most recent example being Bitburger Braugruppe GmbH. Possessing experience in scaling up production, this trend can represent a significant boost for plant-based alternatives and potentially disrupt profit pools along the value chain. 3) 𝐒𝐨𝐟𝐭-𝐃𝐫𝐢𝐧𝐤𝐬 𝐚𝐬 𝐚𝐧 𝐞𝐚𝐬𝐲 𝐚𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 The most common strategy among breweries is focusing on soft drinks to leverage distribution power and existing capacities. OeTTINGER GETRÄNKE, one of the largest breweries in Germany, aims to have their soft drinks unit achieve 40% of total company revenue, Paulaner Brauerei Gruppe GmbH & Co. KGaA is expanding its Spezi soft drink to a lemonade and Krombacher is building out its Drinks & More portfolio. /// Despite the declining beer market, these companies are still giants. For breweries, it will be important to move forward with carefully planned and intelligent strategies that seek opportunities and expansion in segments that are growing. In the meantime, other categories (especially soft drinks) are advised to keep a close eye on these developments and understand the implications – especially as many of these traditionally alcoholic companies will start entering their non-alcoholic space. Finally, these dynamics may represent a unique opportunity for the nascent plant-based and alternative protein industry to partner up and (finally) start achieving scale.

Ethiopian Breweries Cutthroat Rivalries/Competition marvel In Ethiopia's fiercely competitive brewery industry, a troubling trend has emerged: major players resorting to coercive tactics to maintain their dominance. One such strategy involves strong-arming beer outlets into kicking out competitors' products, driven by a palpable fear of losing market share. Let's unpack this unsettling phenomenon. Reports abound of brewery behemoths pressuring beer outlets – from bars and restaurants to liquor stores – to exclusively stock their products while ousting those of competitors. This heavy-handed approach not only stifles consumer choice but also stifles the growth & diversity of the industry. The motivations behind such tactics are clear: fear of losing market share and revenue to rival brands. By monopolizing shelf space and visibility, dominant players seek to maintain their stranglehold on the market, effectively shutting out smaller competitors and limiting consumer options. Furthermore, these coercive practices undermine the principles of fair competition and free market dynamics. Instead of allowing consumers to make informed choices based on quality, taste, and preference, brewery giants seek to dictate their decisions through intimidation and coercion. Moreover, the ripple effects of this behavior extend beyond the confines of the brewery industry. Beer outlets, faced with pressure to comply with the demands of dominant players, find themselves caught in a precarious position, torn between profitability and principles. In the face of such challenges, it is imperative for regulators to step in and uphold the principles of fair competition. Measures to prevent anti-competitive behavior, such as price-fixing and monopolistic practices, are essential to fostering a level playing field for all players in the industry. Finally, the brewing rivalries unfolding in Ethiopia underscore the transformative power of competition. While big companies may resort to small and dirty tactics out of fear, the true winners are those who embrace innovation, integrity, and fair play. As the industry continues to evolve, may the spirit of healthy competition prevail, ushering in a new era of growth and prosperity for all stakeholders. Cheers 🍻 (All ideas & points here are my personal views, not attached or related to other parties)

Anheuser-Busch InBev was the largest beer company in the world as we began 2024, with sales amounting to approximately $59.4 billion U.S. dollars. Heineken Holding was the second largest company with sales of $32.8 billion dollars. That’s over $92 billion (that’s with a ‘B’) dollars, meaning these two beer global giants — combined, globally — had a 40% market share. What results will be delivered early next year for worldwide beer sales for 2024 (actual)? In 2023, Anheuser-Busch InBev controlled 27% of the global beer market. The company is responsible for the production, importation and distribution of many global brands; specifically Budweiser, Stella Artois, Beck's, Corona (partially, along with Constellation Brands and Grupo Modello), Leffe and Hoegaarden. The company also produces domestic brands such as Bud Light, Busch, and Michelob. Beer is among the handful of alcoholic beverages that have been consumed for centuries. Varied forms of beer can be obtained by effecting alterations to the beer brewing process. Some of the most common types of beers consumed today include: bitters, ales, and stouts. Other types of beer are: standard beer, low/no alcoholic content beer, premium lager, crafted beer, and specialty beers. The global beer industry has undergone a steady process of consolidation. Ten years ago — the global beer industry was highly fragmented. Since then, a steady process of consolidation via mergers and acquisitions (M&A) has taken place — often focused around cost-cutting opportunities or geared towards acquiring attractive emerging market assets: (e.g. the $60 billion U.S. dollar merger between Anheuser-Busch and InBev in 2008; Heineken's $24 billion U.S. dollar acquisition of Asia Pacific Breweries in 2013. The pace of globalization for beer has greatly accelerated with the increased activity of multinational beer enterprises acquiring existing breweries and constructing new facilities in emerging markets, as well as licensing production of their brands outside their home countries. As incomes rise and living styles change in developing countries, demand for such varied beer styles has grown significantly. Sooo … how does this impact you? Have you forecast your 2025 - 2029 anticipated brewing and/or sales activity? Has your forecast changed? “The best beers are ones we drink with friends.” — Stephen Carter King Source: Statista • The Beerconomist #ConsumerBehavior #EmergingTrends #BrandAwareness #BusinessIntelligence #Microbreweries #Pubs #Taprooms #Brewpubs #Beer #CraftBeer #NonAlcoholicBeer #Cider #RTD ✦✦✦ Stephen Carter King Chief of Growth and Marketing and Strategy • Beer Market Analyst • Beerconomy & Co. CEO • Thought Catalyst • Sherpa • Advisor • Speaker sharing beer market trends, insights, forecasts, and news via The Beerconomist Sales of Leading Beer Companies, worldwide, for calendar year 2023 in billions of dollars