The sluggish economy is driving up the sales of cheaper canned beers, while the percentage sales of better quality craft beers is declining as a total percentage market share. Retailers nationwide notice a shift of buyers to cheaper canned beers such as Pabst, Miller, Olympia and other higher quality craft brands in bottles that sell for around $8-9 dollars a six pack of bottles now make up a smaller market share than the cheaper canned beers.
Economists now note that between 2007-2010 the median net worth of American families has declined by a whooping 39%, to around $78,000, partly due to a loss in savings, partly due to declined home equity values. All of this huge loss of family wealth has also only worked to decline disposable income among families for luxury or elective items. This new economics has hit the beer industry now, where adults still like to drink. But, they simply have less money to do it.
Like any economic downturn, there will always be some buyers who have plenty of money and are willing to buy higher priced beers because of the much higher quality and taste. For example, an excellent one man craft beer brand from tiny Carlton, Oregon, a town of just 200 persons, Fire Mountain Beer, which sells for around $5 a bottle as a 22oz., is selling like crazy because it produces one of America’s best beers with outstanding entries such as Bad Henry and a stout variety that some beer critics claim is the best stout beer ever produced in the United States.
In some other cases, some adults are now claiming that they quit drinking, which can be for health reasons. But, in many cases it may be for economic reasons as many persons struggle to come to terms with the bad economy and it’s impact on their own wallets.