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Restaurant Beer Sales Improving

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Senior Vice President of Professional Brewing Division

Paul Gatza is the Senior Vice President of Professional Brewing Division at the Brewers Association. Paul’s origin in the beer community started when he took up homebrewing in 1990. He worked on the bottling line at Boulder Beer and would sneak over to the brewhouse when opportunity allowed. He owned a pair of homebrew supply shops in Boulder and Longmont, Colorado from 1994 to 1998. He served as director of the American Homebrewers Association for seven years and is in his 23rd year as Brewers Association director. Paul is ranked as a National Beer Judge by the Beer Judge Certification Program. Paul is also a former judge director of both the Great American Beer Festival and World Beer Cup, before moving to the judge panels for these elite competitions.

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July 23, 2010

Technomic, a company that tracks sales information in the on-premise market, had started the year with a 2010 estimate for alcohol sales declining 2.5 % in restaurants and bars. Technomic has revised that estimate to now expect 2010 to show an increase in alcohol sales by 1.1 %. That is good news for the many establishments that were hanging on during the recession. 

Beer is anticipated to grow 1.2 % in the on-premise and spirits 1.6 %. Wine is anticipated to show a further decline of 0.6 % this year. Other sources have reported that wine has a nice upside opportunity in the on-premise, but that has yet to manifest to the point where Technomic sees an increase. 

For beer sales to grow in the on-premise market at a time when overall U.S. beer sales volumes are down nearly 3 % is good news. Drummer Lester Jones, who also serves as Beer Institute’s Chief Economist, recently presented that draught beer sales were up 1.6 % January through May.  So the bottom line is that the on-premise market is claiming share back from the off-premise. This trend bodes well for craft brewers, as many craft brewers are strong in the on-premise market. This trend is one reason why many craft brewers are showing accelerated sales growth.

Thanks to Megan Metcalf of Wine and Spirits Daily for bringing this story to light. Most of this piece is an echo of her coverage.

I’ll see you at the bar over a beer soon.

–Paul Gatza

 

Link to author biography
Senior Vice President of Professional Brewing Division

Paul Gatza is the Senior Vice President of Professional Brewing Division at the Brewers Association. Paul’s origin in the beer community started when he took up homebrewing in 1990. He worked on the bottling line at Boulder Beer and would sneak over to the brewhouse when opportunity allowed. He owned a pair of homebrew supply shops in Boulder and Longmont, Colorado from 1994 to 1998. He served as director of the American Homebrewers Association for seven years and is in his 23rd year as Brewers Association director. Paul is ranked as a National Beer Judge by the Beer Judge Certification Program. Paul is also a former judge director of both the Great American Beer Festival and World Beer Cup, before moving to the judge panels for these elite competitions.

See Paul Gatza's Articles