Is it me, or is each and every beer named in the article a fairly pale, fizzy pilsner-style lager? ... - Noah Imported beers take the top shelf Surge of specialty brews cater to changing palate of beer drinkers looking for something different from mainstays Miller and Bud By Mary Ellen Podmolik Special to the Tribune January 30, 2007 A shelf tag hanging in front of a bottle speaks of the "complex, rich bouquet," while another mentions the "notes of bread, toasted grains and mildly sweet herbs." This isn't the fine-wine aisle of Binny's Beverage Depot. It's the section of the store devoted to imported and craft beers, and the references are to different formulations of hops and barley. Michael Binstein, owner of the 18-location, upscale liquor-store chain, has seen a dramatic change in beer-buying habits. Among the 30 top-selling beers at Binny's, imports outsell domestics 58 percent to 42 percent. To accommodate changing customer palates, Binstein hangs beer reviews from shelves and has hired specialty-beer experts to scope out the best products. "The battle is over, and imports have won," Binstein said. "Ten years ago, Miller and Bud had a chokehold on the whole category. [Today,] the customer is looking for what's new, interesting and different and is more willing to experiment. [Miller and Budweiser] are battling a common foe, the rising surge of imports and specialty beers." Customers at specialty shops such as Binny's aren't exactly mainstream grab-a-six-pack-at-the-convenience-store consumers. But beer-drinker habits have changed enough that the two domestic brewing heavyweights want in on the imported suds action. And their moves will mean more unfamiliar names on the shelves of local liquor stores. The strategy is simple: If you can't beat them, join them. Beginning in February, Anheuser-Busch Cos. will become the exclusive U.S. importer for the red-hot Stella Artois brand, as well as Beck's, Bass Pale Ale, Hoegaarden and Leffe. It already has distribution alliances with Grolsch, Tiger and Kirin. Until two weeks ago, Anheuser-Busch planned to break new ground by airing a commercial for an import, Grolsch, during the Super Bowl. It changed its mind, however, and ran the spots during NFL playoffs broadcasts. And, in another indication of how critical the import segment has become, the St. Louis-based brewer this month signed a deal to handle Czechvar Premium Czech Lager, which is already sold in 30 states through other companies. The pact was arranged despite a century of litigation between Anheuser-Busch and Czech brewer Budejovicky Budvar over who has rights to the "Bud" name. Budvar has been sold for five years in the United States under the Czechvar label. Tapping into resource Meanwhile, Miller is tapping further into the 150-brand portfolio of parent company SABMiller. It is expanding distribution of Polish beer Tyskie beyond Chicago and New York. It also will begin importing Aguila, the top Colombian brew, and two from Peru, Cristal and Cusquena. Miller also imports Peroni and Pilsner Urquell. "We haven't even come close to tapping into the global brand portfolio of our company," said Miller spokesman Peter Marino. Demand for imports is coming from consumers, who crave more robust-tasting beers, and from beer wholesalers, who see sales of domestic beers continuing to slip. For the first 11 months of 2006, domestic beer sales fell 0.5 percent, while total imports grew 12.8 percent, according to The Beer Institute, an industry trade group. In grocery stores alone, sales of import beers rose 6.3 percent last year, compared with a 1.4 percent drop in overall beer sales, according to data from ACNielsen. Part of the increase can be attributed to a broader range of product offerings; supermarkets carried almost 10 percent more imported beers last year than they did in 2005. "This is a real consumer shift," said Nick Lake, beer analyst at ACNielsen. "It's not going to be a flash in the pan. Consumers are upscaling across all categories. Look at coffee, ice cream, chocolate. Look at retailing. Target is doing well. Wal-Mart is struggling." The big domestic beers have a huge head start, of course. While the growth is on the specialty side, domestics still outsell the competition by a huge margin. Domestic beer sales were an estimated $71.7 billion in 2006, compared with imported beer sales of $18.6 billion, according to Mintel International research. The leading domestic brewers--Miller, Anheuser-Busch and Molson Coors--sell 88.5 percent of all beer. Beer retailers and distributors crave imports because they, along with the light beer segment, are the only segments that are growing. Additionally, premium products carry higher prices and greater profit margins. Miller, in fact, calls its imported brands part of the "worth more" category. Bigger not always better But businesses that long ago linked themselves to imported ales, lagers, ports and stouts warn that bigger does not always mean better. For 15 years, import and craft beers have been the draw at Hopleaf Bar on Chicago's North Side. Owner Michael Roeper attributes half of the bar's 56 percent sales increase last year to beer sales. Yet, Roeper, who has 44 varieties on tap, worries that Miller and Anheuser-Busch may homogenize the industry. "I think the big market distributors don't know what to do with these beers," he said. "My fear is when they pick up the distribution rights to a brewery that has nine different beers, and, of those nine, there are four that are specialized and never really generate any numbers, those are beers that aren't interesting [enough] for them to carry." Similarly, local distributors who long have been linked to imports, but who are not affiliated with Miller or Anheuser-Busch, could find their fortunes altered just as the import category is taking off. Under Illinois law, a brewer can end its agreement with a wholesaler, and pay it a fair fee, if the brewer's products represents 20 percent or less of a wholesaler's volume. Louis Glunz Beers Inc. of Lincolnwood started distributing Beck's in the mid-1970s. Today, Beck's and Stella Artois account for 40 percent of its volume. Because of its sales volume, it would not be forced to sell its distribution territory to a local Anheuser-Busch distributor, and it has no intention of doing so willingly. "It's my business, and we built it from scratch," said Jerry Glunz, general manager of the fourth-generation, family-owned business. "We built those brands for our future. I believe we should benefit from our sweat equity. "This isn't a fad like ice beers or lemon beers. Once you try a better beer, it's like taking the kid off the farm. You're never going to appreciate [the old] beers the same way." Copyright © 2007, Chicago Tribune