After a Hot Year, Ice Beer Sales Show No Signs of Cooling Down : Alcohol: New brew will account for 5% of all sales this year, but some worry that novelty will wear off.
Ice beers are creating some waves in the brewing business.
They surfaced domestically for the first time a year ago. An estimated 35 ice beer brands are now available. Nearly every major brewer, including heavyweights Anheuser-Busch Inc. and Miller Brewing Co., is involved. Millions of dollars of advertising go into promotion.
Industry watchers estimate that ice beer, which gets its name from a distinctive wrinkle in the brewing process, will account for a healthy 5% of all beer shipped this year.
But some say a shakeout is inevitable. The rush to market may only reflect industrywide yearning for growth. It raises the question of whether ice beer will have only short-lived popularity the way dry beer had a few years ago.
The emergence of ice beer has also worried groups advocating moderation because many ice beer brands have proportionately more alcohol than regular beer.
Whatever the category’s long-range prospects, the brewing industry is relishing the excitement that ice beer is creating.
Consumers spent about $45 billion on beer last year. But sales volume has drifted in a narrow range for a decade as baby boomers aged, consumers turned health-conscious and awareness grew of the dangers of drinking and driving. Some analysts said ice beer could lift overall sales volume this year.
“It is still early but we are very optimistic about what we are seeing so far,” said Rob Olejniczak, who oversees Lite Ice for Miller, the nation’s second-biggest brewer. Miller distributes three other ice beers as well.
“It’s not going to be a fad,” said Michael LaBroad, manager for the category leader Ice Draft from Budweiser at Anheuser-Busch. “The natural image of ice and beer is very simple and easily understood by consumers.”
Ice beer migrated from Canada, where it is said to have captured nearly 10% of the market last year.
Beer marketers say the first sold here was Molson Ice, imported by Miller-owned Molson Breweries USA of Reston, Va. It arrived last August and remains among the five top-selling ice brands.
Ice beer’s main attribute is said to be smoother taste. The higher alcohol content in some versions--typically 5.6% as compared to 5% for regular beer--appeals to some consumers, but brewers can’t tout that feature.
Ice beer is created when its temperature is lowered during brewing so ice crystals form. That alone is said to alter the beer’s taste. Some brewers filter out the crystals, boosting the proportion of alcohol and further altering the taste.
Frank Walters, a veteran industry watcher, said ice beer sales will help the overall market grow by about 1% this year after a 0.2% rise last year. He said without ice beer, the market would be flat to lower.
