Global Goodies

Non-Mexican beer imports boast authenticity and strong margins for retailers.

When it comes to imported beer, the numbers can be deceiving. According to the Beer Institute, imported beer volume surged by more than 6.1% for the first ten months of 2024, not surprisingly driven by a near 8% advance in Mexican brews. But the year-to-date gain lies in stark contrast to a 1% decline in total imports that the trade association reported for calendar year 2023. To say that trends for imported beer have been dynamic of late would be an understatement. But the truth is that the segment’s volume figures have been more impacted by a series of production shifts for major imports than variances in consumer preferences. In fact, most consumers aren’t even aware of the production changes that have been made by several leading international beers.

“A number of brands have recently shifted production to the U.S., in order to brew beer closer to the end consumer,” explains Andrew Heritage, chief economist at the Beer Institute. The shift has helped create jobs for the U.S. brewing industry, Heritage continues, “while maintaining the high standards that many of these established brands have for their products.” Indeed, quite a few beers from Europe, Japan, and even Canada are now produced domestically—essentially losing their import status—although marketers haven’t been broadly touting the shift to consumers for the most part.

Recent examples of beers that were previously produced overseas but are now made in the U.S. include Anheuser-Busch InBev’s Belgian label Stella Artois and German label Beck’s, as well as Japan-born brews such as Kirin and Sapporo. Canada’s Labatt Blue and Blue Light are now produced at the Genesee Brewery in New York, as both the brewery and Labatt USA are subsidiaries of Fifco USA. The top-selling Italian brew, Peroni, owned by Molson Coors, meanwhile, shifted draft production to the U.S. last year, while packaged production is expected to transition this year.

These changes in the beers’ origins—whether for profit-driven or product-quality reasons—have coincided with dramatic volume and share growth for Mexican beer imports in recent years. According to the Beer Institute, imports from south of the border accounted for 81% of all imported beer in 2023, and through October 2024, volume was up nearly 7.8% versus the year-earlier period. Indeed, eight of the top ten imported brews hailed from Mexico in 2023, according to Impact Databank, led by Constellation Brands’ Modelo Especial, which was up 9% to 196.2 million 2.25-gallon cases, and Corona Extra, which grew 1.6% to 125 million cases.

Though many international brands now produce domestically, essentially bucking their import status, Radeberger Gruppe USA is continuing production abroad. Radeberger imports its namesake beer as well as Schöfferhofer, Clausthaler NAB, and DAB Dortmunder (lineup pictured).
Though many international brands now produce domestically, essentially bucking their import status, Radeberger Gruppe USA is continuing production abroad. Radeberger imports its namesake beer as well as Schöfferhofer, Clausthaler NAB, and DAB Dortmunder (lineup pictured).

Authenticity Endures

But not all brewers have shifted to a U.S. production model, and some brands continue to benefit from their authentic origins. Dave Deuser, chief sales and marketing officer at Radeberger Gruppe USA, says that Radeberger from Germany is enjoying renewed interest in pilsners from American beer drinkers, along with expanded distribution. DAB Dortmunder Export, another German beer imported by the company, has also been performing well, Deuser says, thanks to expanded availability and aggressive pricing behind its 4-packs of 16.9-ounce cans. “It’s a good product at a good price,” he says of the 7% abv brew. Radeberger Gruppe also imports Clausthaler non-alcoholic brew and Schöfferhofer wheat beer from Germany, two products that, Deuser concedes, have faced tough competition lately from other NABs and RTDs, respectively. Overall, German beer volume declined 5% in 2023, according to the Beer Institute, but for the first ten months of 2024, volume had stabilized.

Belgium beer volume, meanwhile, was dramatically impacted in 2023 by the transition to U.S. production for Stella Artois, and through October of last year, trends were down at a 6% rate. Pointing to the diversity of beer styles from Belgium, Bob Leggett, owner of Artisanal Imports, which markets brands including St. Feuillien and Kwak, says, “we see a strong market for Belgian products.” He notes that Belgian brews were the “craft beers” of the U.S. beer market long before the craft beer boom. “From 2015 to 2019, we saw a decline in our business,” Leggett says. “But since then, we’ve had more strengthening. We’re finding that a lot of on-premise accounts today want to have one to two Belgian beers on their menus, including those retailers who previously stocked just craft beer.” In June, Artisanal partnered with other importers of Belgian beers on the annual Belgian Beer Week, which featured a series of tastings and events at on- and off-premise venues across the country.

Ireland’s Guinness has also been ramping up its support for retailers, and over the summer promoted unique cocktails featuring both the stout and Guinness 0 non-alcoholic brew. The Guinness 0 Black Velvet mocktail, the Mr Black & Guinness Espresso Martini, and the Guinness Bloody Mary are designed to be “new ways for consumers to enjoy our variants,” says Joyce He, Guinness brand director. “Consumer attitudes around alcohol consumption are continuing to change, and with them so too do tastes and preferences.” She adds that “Guinness brings a distinct and bold flavor that compliments other spirits,” such as Mr Black coffee liqueur and Ketel One vodka in the Espresso Martini and Smirnoff in the Guinness Bloody Mary. With the new cocktail options, “there’s a Guinness for everyone, no matter the occasion,” He says. The Irish stout—with volume of 11.8 million cases in 2023, according to Impact Databank—recently launched a global partnership with the Premier League, with activations staged at its Open Gate Brewery in Chicago.

Heineken, the top-selling non-Mexican import, posted a 3% decline in volume in 2023 to 49.2 million cases, according to Impact Databank. But low-carb Heineken Silver surged to 2.9 million cases in its first year and was named an Impact Hot Brand. Last year, Heineken Silver collaborated with Marvel Studios’ summer hit “Deadpool & Wolverine” on an ad campaign that included a television spot, in-store promotions, and digital and social media support.

While beer marketers and retailers claim the import brands that have moved production to the U.S. have lost authenticity, Aaron Peck, beer manager at The Publican, a European beer hall in Chicago (pictured), says consumers don’t care as much now as they used to.
While beer marketers and retailers claim the import brands that have moved production to the U.S. have lost authenticity, Aaron Peck, beer manager at The Publican, a European beer hall in Chicago (pictured), says consumers don’t care as much now as they used to.

Emerging Brands

While European beer imports, along with Mexican brews, have been long established in the U.S., the emergence of beer from central American countries could bear watching. Although still on a small basis, imports from Guatemala and Nicaragua both increased at low double-digit rates in 2023, according to the Beer Institute, and through October 2024 had accelerated by 26% and 50%, respectively.

Artisanal Imports markets both Toña and Palma from Nicaragua, and in recent years, availability of the brews has been expanded. Toña, which Leggett says is the top-selling beer in central America, has widest distribution in Florida, Texas, California, and the Midwest, with a targeted base of “Latin consumers and people from Central America.” But he also sees opportunity for the beer with more mainstream consumers, driven in part by the popularity of Mexican brews. “The American beer consumer today, even the craft beer drinker, is more interested in sessionable beers that are lower in abv,” he explains. “Overall, that’s driving growth for Latin-style beers.”

With a number of international beers no longer produced in their homelands for U.S. distribution, imported beer marketers and retailers say the category has lost some authenticity. But unlike the consumer uproar from decades ago when brands like Foster’s and Beck’s shifted production to North America, today’s beer consumers are unperturbed. “Customers don’t seem to care,” says Aaron Peck, beer manager at The Publican, a European beer hall in Chicago. “They order what they know they like.” Sam Davis, beer manager at Jubilation Wine & Spirits in Albuquerque, New Mexico, says most of his customers don’t realize where the brews are produced. “Maybe if they were made aware, they would care,” he notes.

Due to its format, The Publican doesn’t offer Mexican brews at all. Rather, the restaurant and bar, operated by One Off Hospitality, always serves up a German pilsner on draft, such as the recent Krombacher ($13 a half-liter pour), in addition to some 20 different packaged European brews, ranging from DAB ($9 a 500-ml. bottle) to Gouden Carolus tripel from Belgium ($15 an 11.2-ounce bottle). “We like to showcase the products you don’t see everywhere else,” Peck explains of the selection. Support behind European beers at The Publican includes an annual Oktoberfest celebration and Trappist beer dinners.

“I’m seeing an uptick in German and Belgian beers,” says Davis from Jubilation, where the brews are generally $11-$17 a 6-pack. “Consumers are going back to their roots and are interested in more traditional beers.” Beverage Warehouse in Winooski, Vermont also puts a focus on brews from Germany and Belgium, says Marc Gelsomino, beer and wine manager, but “niche” beers from European brews are also highlighted. “Customers come to our store because they’re specifically looking for these imports and know they’re unlikely to find them in other package stores,” he says. Among the tools Beverage Warehouse uses to promote imported beers is its annual Brewers Festival.

While Mexican brews account for the lion’s share of beer imports today, marketers of other international beers stress that it’s important for retailers to highlight their diversity. In addition to possessing knowledge about the beers and their rich histories, “retailers should get these beers in front of consumers. Don’t hide them on a bottom shelf,” advises Artisanal Imports’ Leggett. Radeberger’s Deuser adds that retailers should consider the strong margins on the products. “If you’re looking to increase your ring, it’s important to consider the shopper who’s looking for more choices beyond Mexican beer,” he says.