Beer remains a cornerstone of American culture, but shifting demographics and evolving consumption patterns mean that distributors need to stay ahead of the curve. In Episode 45 of Tapped In Sales, Bud and Mikey sat down with Lester Jones, Chief Economist and VP of Analytics at the National Beer Wholesalers Association (NBWA), to unpack the economic and demographic forces shaping the beer industry today.
From the rise of the “omni-bibulous” consumer (who drinks across categories) to the impact of cannabis and migration trends, this episode breaks down key insights that distributors can use to refine their strategies. The big takeaway? Lift your head up—consumer behavior is changing, but the beer industry still has plenty of opportunities.
The Omni-Bibulous Consumer: A Changing Landscape
Consumers are drinking more than ever, but differently. The days of rigid category loyalty are fading, replaced by an increasing willingness to mix beer, wine, spirits, and even cannabis. As Lester puts it, the modern drinker is “willing and able to drink across all segments and categories.”
Data from Scarborough’s large-scale consumer panel survey highlights this shift:
- 40% of Americans have had a beer in the past 30 days—a number that has remained steady despite changing preferences.
- Cross-category drinking is rising—7% of consumers report consuming both beer and cannabis in the same period.
- Younger consumers aren’t indexing like they used to—beer is losing ground in the crucial 21-24 age group, putting pressure on brands to reconnect with younger drinkers.
The key for beer distributors? Understanding that consumer behavior isn’t declining—it’s evolving. Beer is still a massive player, but it now shares more occasions with other categories.
Migration Trends Are Reshaping Beer Markets
Population movement is another major factor influencing beer sales. IRS data reveals a massive shift in adjusted gross income, with states like Florida, Texas, and North Carolina experiencing significant gains at the expense of states like California and New York.
What does this mean for beer distributors?
- Brand preferences shift with migration. Consumers moving from New York to Florida still want their familiar brands—so are distributors in high-growth states adjusting their portfolios accordingly?
- The on-premise opportunity is real. Distributors in high-growth states should focus on on-premise promotions to welcome new residents with the brands they love.
- Retail strategy needs to adapt. Grocery chains like Aldi are expanding rapidly, creating new retail points of distribution that may not have been major players for beer in the past.
Distributors who align with these shifting demographics will be best positioned for success in the coming years.
Reclaiming Younger Consumers & Creating New Drinking Occasions
One of the biggest challenges the industry faces is re-engaging younger drinkers. According to Lester, beer has historically peaked in consumption between ages 35-44, but the younger end of the spectrum (21-24) is not indexing as it once did.
The solution? Focus on occasions.
- Beer needs to double down on social connection. Social media allows people to stay connected without meeting up in person, making traditional social drinking occasions less common. The industry needs to reinforce beer’s role in real-life social experiences.
- Innovative drinking experiences can create new demand. Lester shared a fascinating concept: a bar featuring remote-controlled bulldozers for entertainment. It’s a reminder that bars and venues must get creative to draw in customers and extend their stay.
- On-premise matters more than ever. Breweries and distributors should invest in creating engaging on-premise experiences that make beer the star of the show.
As Lester said, “We don’t want fewer people drinking more beer. We want more people drinking fewer beers.” The future of beer isn’t about volume—it’s about winning occasions and maintaining relevance with younger drinkers.
The Big Picture: Beer’s Future Is Bright
Despite all the talk of shifting trends and challenges, the fundamentals of the beer industry remain strong. The number of beer drinkers is actually growing—just not in the same way as before. The population is expanding, new occasions are emerging, and the right strategies can keep beer at the center of American drinking culture.
So what’s the key takeaway from this episode? Lift your head up. Look beyond weekly sales reports and SKU-level data. Pay attention to consumer migration, changing drinking occasions, and evolving cross-category habits. The beer industry isn’t shrinking—it’s simply transforming. And those who stay ahead of the curve will be the ones who win.
🎧 Want to dive deeper? Listen to the full episode of Tapped In Sales featuring Lester Jones from NBWA to get the latest industry insights straight from one of the top analysts in the game.
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🚀 Ready to optimize your beer distribution strategy? VXP is here to help distributors navigate the shifting landscape with data-driven insights and tools to maximize profitability.