Report: Low Carb Craze Hurts U.S. Beer Consumption

After seven years of consistent gains, the U.S. beer market contracted 0.3 percent in 2003 to 2.8 billion 2.25-gallon cases, according to the latest Adams Beer Handbook published by Adams Beverage Group.

"Beer consumption clearly took a hit from the focus on low-carb diets," said Tiziana Mohorovic, spokesperson for Adams Beverage Group. "Increased competition from spirits and wine products also took its toll."

Spirits and wine consumption have not only benefited from ongoing new product launches and from the cocktail culture sweeping the country, but also from glamorous advertising campaigns and increased availability. More states are doing away with blue laws, thereby permitting spirits and wine sales on Sunday and in more retail channels. Both distilled spirits and wine consumption continued their upward climb in 2003.

Lights -- the largest beer segment approaching a 50 percent share of market -- climbed 3.6 percent and was the only domestic segment of the beer business to post a gain in case sales last year. More than two-thirds of light's gain was attributable to Michelob Ultra and Rock Green Light -- two new low-carb offerings. Several established lights took a hit in 2003. Bud Light recorded its lowest rate of growth ever last year, and Michelob Light fell double- digits after six years of growth.

No beer category was spared from carb mania last year. Imports recorded their slowest growth rate in more than a decade and flavored malt beverages fell 7.9 percent in 2003 after two consecutive years of robust growth, the report said.