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PUTTING A HEAD ON IT

Summertime is the time for a picnic or a ballgame and many people would consider both activities incomplete without a cold beer. Major beer manufacturers are helping supermarkets and other retailers take advantage of this summertime tradition by providing enticing promotions and advertising support to boost beer sales during a season when the category is already popular.Overall beer sales, including

Summertime is the time for a picnic or a ballgame and many people would consider both activities incomplete without a cold beer. Major beer manufacturers are helping supermarkets and other retailers take advantage of this summertime tradition by providing enticing promotions and advertising support to boost beer sales during a season when the category is already popular.

Overall beer sales, including supermarket sales, are growing steadily, and imported beers are responsible for the majority of the category's growth.

"The summer season accounts for 44% of all volume of beer sales," said Bill Mulligan, manager of category management for Labatt USA, based in Norwalk, Conn. "That is why the promotional programs we put out now are so important. We want to focus on the summer months to promote an awareness of Labatt and of the category in general."

Unit beer sales in supermarkets increased about 1% within the last year, Mulligan said. This follows a small but steady growth in supermarket beer sales of between 0.6% and 1.7% each year since 1996, according to the Beverage Marketing Corp., New York.

However, profits from beer sales are increasing at a faster rate, Mulligan said.

Domestic beer sales in large supermarkets increased by 5.4% to $5.6 billion for the year ended June 10 compared with a year before, according to ACNielsen, while overall domestic beer sales by dollar volume increased 7.1%. Imports had a 17.3% increase in large supermarkets to $1.1 billion, compared with a 20% overall increase in imported beer sales, according to ACNielsen.

Supermarket sales represent 19% of all beer sales, although the category is a small one for most supermarkets. Beer consumed on premises represents 26% of all beer sales and liquor-store sales are 17% of all beer sales, according to Beverage Marketing. Forty-six states allow beer sales in supermarkets, Mulligan said.

Although per-capita consumption of beer remained steady for most of the 1990s, the total consumption rose to 196.4 million barrels a year last year, according to Beverage Marketing, from 193.3 million barrels in 1998. Much of the growth is attributed to the increased sales of imported beers, such as Heineken.

"The trends for Heineken brands in supermarkets are strongly positive and have been for at least the past three years," said Dan Tearno, Heineken spokesman. "The company has embarked on a number of initiatives to increase its sales emphasis in the off-premise segment in general and the supermarket channel in particular.

"The import segment continues to be the fastest growing segment in the beer industry and that trend shows no sign of slowing down," he added. "The reasons we believe such growth is occurring are that the economy is strong, consumer confidence is high, and beer consumers are willing to pay more for what they believe are superior quality products, much like the situation in other fast-moving consumer-goods categories."

Summer and December are the two seasons when beer sales are strongest and when companies concentrate their promotional activities, the manufacturers said.

"Our company, like other major beer suppliers, holds major promotional activities during the year, designed to generate feature and display activity, particularly in the supermarket and other large channels," Tearno added. "The summer is traditionally a period of strong beer sales."

Labatt, which has a portfolio of domestic as well as Canadian and Mexican beers, works with retailers on displays, especially during June, July and August.

"What we hope for is a good endcap display in the supermarkets," Mulligan said, "and we want the import section to have a fair representation of shelf space. Imports are driving the category and Mexican and European beers are leading the import sales."

Labatt Blue, the No. 3 selling import in supermarkets, is sponsoring a giveaway of vacations at the Labatt Blue Lodge in Canada. Dos Equis, a Mexican beer produced by Labatt, is giving away 75 trips for two for a Mayan jungle vacation.

Rolling Rock, a quirky domestic beer produced by Labatt, is sponsoring the Rolling Rock Town Fair, a day-long music festival Aug. 5 in Latrobe, Pa., where the beer is produced. Alternative rock groups Red Hot Chili Peppers, Moby and Fuel will be the featured entertainment, as well as festival type acts and activities, said Brenda Williams, Labatt USA spokeswoman.

Other domestic manufacturers also are jumping on the promotional bandwagon for summer with some unusual activities.

Budweiser is implementing the "Bud Summer 2000" promotion, which features supermodel Daniela Pestova on point-of-sale items and in a limited-edition, 16-month Budweiser calendar. The centerpiece of "Bud Summer 2000" is an in-pack instant-win program on Budweiser and Bud Light bottles and cans that gives consumers the chance to win more than $3 million in prizes.

"Anheuser-Busch's independent wholesalers offer retailers a variety of brand promotions and display activities," said George Fuchs, vice president of Anheuser-Busch Inc., St. Louis. "We create the display materials and merchandising elements, which are made available to our wholesalers, who in turn help create displays at retail.

"The Bud family will conduct a Labor Day football promotion featuring team-specific point-of-sale materials, football preview take-one guides, and cross-merchandising offers with ConAgra products and Tony's Pizza," Fuchs added. "In terms of the Olympic Games, we will support our sponsorship of the U.S. Olympic Teams, including cross-merchandising coupons on KC Masterpiece/Kingsford Charcoal.

"We recommend displays in the lobby or in front of aisles and in key cross-merchandising areas such as the deli and snack aisles," he said.

Anheuser-Busch leads all major brewers with an overall 7.7% sales increase for the year ended June 18. The growth is attributed in part to the increase in the number of entry-level beer drinkers, said Fuchs.

Two other leading domestic labels, Miller Lite and Miller Genuine Draft, are sponsoring the "Get the Goods" Internet site, which invites drinking-age consumers to bid on a variety of items and vacations, with the money going to a charity of the winner's choice. Where legal, consumers can collect "beerbucks" from specially marked Miller packages that can be used as cash in the auctions, said Jeff Waalkes, Miller spokesman.

Molson, a Canadian beer distributed by Miller, is sponsoring "Cool Summer" promotions with displays, posters, case cards and other materials for supermarkets and other retailers. Display enhancers include a 5-foot bottle-cap raft, inflatable backyard pool, mountain bike, deluxe beach chair, inflatable beach balls and rolling coolers.

"Summer is traditionally a big season for enjoying cold beers in a relaxed, party setting," said Peter Favilla, brand manager. "Molson is the right beer for that setting. When that message is delivered, retailers can increase their incremental summer sales."

Miller is also sponsoring a baseball promotion that will provide retailers with banners, display cards, posters and merchandise, including vintage designs and team logos.

"Each baseball game is a celebration of a uniquely American sport, and it's part of the tradition to enjoy the game with a cold beer," said Joe Jones, director of brand promotions. "By associating baseball with Miller Lite and Miller Genuine Draft, retailers give fans the best choice, while enhancing their own profit-making opportunities."

Retailers also will be able to take advantage of the summer Olympics with Foster's beer giveaways for trips to Sydney in September. Foster's is an Australian beer imported by Molson USA.