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TheStreet Open House

Why the Official Beer Of Saint Patrick's Day Isn't What You Think

Stock quotes in this article: DEO, BUD, TAP, STZ

"What I'd probably be doing is trying to acquire a local brewery's cask and try to serve some real ale on Saint Patrick's Day to be more authentic," says Matt Simpson, "The Beer Sommelier" and owner of TheBeerExpert.com. "I'm not necessarily one for all Irish beers on Saint Patrick's Day, and I think the United Kingdom in general has a lot of beers that can be employed on that day."

Lots of barkeeps and beer drinkers agree, which is why imports have swelled from a scant 4% of the U.S. beer market 20 years ago to 13% in 2010, according to The Beer Institute. That's been great news for Guinness, whose 3% growth in the U.S. last year has been followed by 8% growth here in early 2012, but it's been fairly significant for other big imports as well.

Crown Imports, a joint venture between Constellation Brands (STZ) and Grupo Modelo that brings Corona, Pacifico and Modelo beers to the U.S., produces nearly five times as many barrels of its product for U.S. consumption as Guinness does and now makes up more than 5% of the U.S. beer market. That's how a brewer develops enough audacity to suggest its Mexican beer might be the official brew of Saint Patrick's Day.

Heineken USA, meanwhile, produces four times as much product as Guinness in the U.S. and has scored roughly 4% market share. It's an obstacle for Guinness at taps in the states, but Heineken creates a whole other pint full of problems for the stalwart stout back in its home country. Ireland is drinking less beer in general these days, with consumption dropping from nearly 4.16 million barrels in 2010 to 4.14 million barrels last year.

When the Irish do pick up a pint, it's getting a lot less likely that said pint is a Guinness. While Guinness was unquestionably Ireland's beer of choice in the early 1970s, when stouts made up 70% of the beers consumed by Irish drinkers, a 2006 report from Ireland's Competition Authority noted that European and American lagers had become "more fashionable" and taken 63% of Ireland's beer market compared with just 32% for stout. Guinness' Irish market share has slipped from nearly 31.1% in 2006 to just 26.9% last year, according to Euromonitor International. By comparison, Heineken, Budweiser and Carlsberg now account for 33.8% of all beer consumed in Ireland, up from 33.3% in 2010. Given the international competition between beers all owned by multinational corporations and all the non-Irish beers taking up the majority of beer sales, is there any way to accurately declare a beer the official beer of Saint Patrick's Day?

"That's a loaded question for so many reasons that I don't know where to start," Simpson says. "You're dealing with individual pub owners and their preferences and clientele, so the ones trying to gain craft appeal are going to want to try alternatives to macro beer product that folks are used to drinking on Saint Patrick's Day. The ones that consider themselves sports bars or family places may not want to and may want to stick with the best deals their distributors give them."

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Jason Notte is a reporter for TheStreet. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, the Boston Herald, the Boston Phoenix, the Metro newspaper and the Colorado Springs Independent. He previously served as the political and global affairs editor for Metro U.S., layout editor for Boston Now, assistant news editor for the Herald News of West Paterson, N.J., editor of Go Out! Magazine in Hoboken, N.J., and copy editor and lifestyle editor at the Jersey Journal in Jersey City, N.J.
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