During the 70s, Coors Brewing Co. began to market directly to Hispanics. One of their first actions was to hire golfer Lee Trevino as their celebrity spokesman. Trevino, who was at the top his game, had an agreement with Coors which required him to participate in six outings annually using a Coors-identified golf bag when playing west of the Mississippi. At that time, Coors was only sold in the western US.
Today, Trevino occasionally plays at the same golf club I play. He periodically refers to the time he worked with Coors, looking back on those years with fond memories. He no longer drinks, but references the fact that the last beer he had was a Coors.
Golf and beer have been linked together forever. For many golfers, their favorite hole is the 19th hole drinking a cold beer while they settle their bets for the round. Most wholesalers and breweries sponsor golf tournaments, many for charity. Retailers and importers are doing the same, too.
AB, featuring Michelob, has been a long time sponsor of the PGA tour. Recently, my former company, Warsteiner, signed with the European Tour as its sponsor. Warsteiner also participated in the senior tour.
The golf industry went through rapid expansion beginning in the late 80s thru the 90s. Hundreds of new courses were opened, most tied to upscale housing developments targeted at the soon-to-retire baby boomers. This rapid growth continued, outside of the dotcom bust, until the recent recession. Between 1986 and 2005, 4,500 net new courses were added. In fact, the golf industry is contracting now at an alarming rate. In 2013, for the eighth consecutive year, more 18-hole equivalent courses closed in the US (157) than opened (14), according to the National Golf Foundation.
Soon the beer industry will have 3,000 breweries producing beer. The industry’s trend is the reverse of golf’s trend, with less than 50 breweries in 1980, now we see at least one new brewery open every day. Currently there is no sign that this trend in new brewery openings will slow down, in fact, it is increasing.
In golf, affiliated organizations including the PGA, R&A, the Masters, First Tee, and many others have tried to develop programs to increase participation in golf. These are funded in part by golf manufactures and other companies who have an invested interest in the game.
In beer, like golf, the overall industry has been contracting, and it appears that the decline in sales is increasing. Several segments, however, including craft beers, ciders, and some imports are really flying. Domestics, as we know, are struggling.
So the question now should be: When will the rapid growth of new brewery openings reverse, to the point that closing breweries out number openings, similar to today’s golf industry?
It is safe to say that the current trends will continue? If so, for how long? As Lee Trevino always says, “Even God can’t hit a one-iron!”
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