Critical Analysis # 3 Literature & Language Essay Paper

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Domestic Beer and the Spike of Alternative Alcoholic Drinks Consumption
Background
Beer companies in the United States have dominated the alcoholic beverage market for years. A majority of Americans have had a preference for domestic beer over other alcoholic beverages. This has contributed to the large market volume of beers. The sales market shares of beer, however, have declined from 55.5% in the year 2000 to 45.2% in 2019 (Statista, 2020). Alternative alcoholic beverages have gained sales market share at the expense of beers. For instance, the sales market shares of spirits have increased from 28.7% in 2000 to 37.8% in 2019 (Statista, 2020). This decline in beer consumption has been attributed to two major reasons. One, beer consumption has raised health concerns and as a result, people who are conscious about health have reduced intake of beer (Lucas, 2020). Two, there has been a spike in the production and sale of alternative alcoholic drinks, such as seltzer, which have gained popularity among Americans. As Valinsky (2019) reveals, alcohol consumers now prefer the innovative brands that are offering spiked seltzers, premium liquor, and pre-made bottled cocktails, among others. Beer companies will continue losing their market shares because these innovative brands are taking over the alcoholic beverage market. The innovative brands offer drinks that have less sugar and calories than beer, such as the spiked seltzer brand (Valinsky, 2019). This places beer at a disadvantage.
Problem Statement
Beer companies must address the issue of alternative alcoholic drinks so as safeguard or maintain their market shares in the alcoholic beverages industry.
Alternative Solutions
To maintain their market shares, beer companies can produce beer that has less sugar and calorie. One of the core reasons why people have reduced beer intake is because of its high sugar and calorie content, which has raised health concerns (Lucas, 2020). Producing beer that has lower calories and sugar can win back consumers. International beer companies such as Heineken are already producing low-calorie beers to appeal to health-conscious consumers (Swartz, 2019).
Further, beer companies can produce more innovative beer brands to match the popularity of alternative alcoholic drinks. This approach will ensure that beer companies maintain their market shares and avoid collapsing. Boston Beer has already produced its innovative brand, referred to as Truly, and is using this brand to “beer-proof itself (Valinsky, 2019).” Even with the decline of beer consumptions, companies can still maintain their market share by being more innovative with their brands.
Beer companies can also consider the importation of beer. As Valinsky (2019) indicates, many consumers of domestic beer think it is stale,...