Industry insiders say that the beer industry, although still dominant, continues to lose its share of the market to wine and distilled spirits. This trend started in the 1990s and analysts say it continued in 2004.
Baby boomers and young people appear to be more attracted to wine and spirits while beer appears to have an image crisis. The wine and spirits industry has increased advertising for the younger demographic in bars and restaurants.
Analyst Bonnie Herzog says "Our wholesaler contacts have told us through a survey we conducted recently that beer has lost its 'sexiness' and 'appeal to young consumers." Breweries see a threat and are relying on more bar and restaurant promotions.
