Anheuser-Busch InBev NV (ADR) (BUD), Molson Coors Brewing Company (TAP): Investors Just Don’t Get Boston Beer Co Inc (SAM)

Anheuser-Busch InBev NV (ADR) (NYSE:BUD), brewer of the ubiquitous Budweiser brand, saw sales decline 6% in 2012, after a decline of 4.4% in 2011. This trend continued into the first quarter of 2013, with sales declining 5%.

Things were not much better in the most recent quarter for MillerCoors, which reported sales to retailers down 4.4%, sales to wholesalers down 5.3%, and total net sales down 2.9%.

These trends continued into the first six months of 2013. Overall beer sales fell 2%, even as craft beer sales grew 13% by volume.

Since the craft beer segment currently represents only 6% of the U.S. beer market, this presents plenty of opportunity for growth and continued disruption of the industry. As the largest craft brewer in the field, Boston Beer accounts for just over 1%, providing ample opportunity for growth.

Beer is the new wine
Jim Koch, CEO of Boston Beer has this to say about the shift:

Fifty years ago, a handful of California winemakers started making great wine and changed the way Americans think about U.S. wine and wine in general. Now it has a lot of respect and nobility. Beer is going through the same metamorphosis. Twenty-five years ago, a handful of small American brewers started making world-class beer and changing how Americans think about beer. The rest of the world is looking to the small American brewers like Sam Adams for creativity and quality. And 20-somethings are adopting beer in the same way their boomer parents adopted wine.

Foolish final thoughts
Boston Beer Co Inc (NYSE:SAM) is on the cutting edge of a seismic shift in the U.S. beer market. Consumers in increasing numbers are abandoning the old guard of bland lagers and demanding more variety and flavor. As younger more discriminating consumers opt away from lager and lite and toward craft beer, Boston Beer is positioned to reap the rewards.

The article Investors Just Don’t Get Boston Beer originally appeared on Fool.com and is written by Danny Vena.

Danny Vena owns shares of Boston Beer. The Motley Fool recommends Boston Beer and Molson Coors Brewing Company. The Motley Fool owns shares of Boston Beer.

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