Table of Contents
Executive Summary
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- The market
- Volume sales receive a boost in 2018
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- Figure 1: Forecast of UK value sales of beer, 2013-23
- Lager continues to dominate the market, craft trend fuels rise in ale/bitter
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- Figure 2: UK value sales of beer, by segment, 2017-18
- Off-trade volumes continue to surpass on-trade
- Freeze on alcohol duties eases pressure on manufacturers
- A sizeable minority are cutting back on alcohol
- Companies and brands
- AB InBev’s top brands Stella and Budweiser post strong growth
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- Figure 3: Leading brands’ shares in the UK lager market, by value, 2017/18*
- Guinness leads ales and stouts
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- Figure 4: Leading brands’ shares in the UK ales and stouts market, by value, 2017/18*
- Stella Artois launches gluten-free beer, joining a raft of others
- Craft trend continues
- Beer ad spend looks set to drop in 2018
- Guinness stands out as unique, BrewDog is most fun and Budweiser leads on refreshment
- The consumer
- 70% of UK adults drink beer, with men, the young and wealthy in the lead
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- Figure 5: Types of beer drunk in the last 3 months, October 2018
- Price is the top factor influencing purchase, but only half prioritise it
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- Figure 6: Factors influencing purchasing of beer, October 2018
- Sampling would encourage purchasing among 75%
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- Figure 7: Behaviours related to beer, October 2018
- Environmental action chimes with 71% of beer drinkers
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- Figure 8: Attitudes towards beer, October 2018
- Refreshment is a selling point for lager; authenticity for stout/porter and ale/bitter and quality credentials and trendiness apparent for craft
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- Figure 9: Correspondence Analysis of qualities associated with different types of beer, October 2018
- What we think
Issues and Insights
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- Environmental action chimes with beer drinkers
- The facts
- The implications
- Beer enjoys a strong image as facilitating social connections
- The facts
- The implications
- Sampling encourages purchasing
- The facts
- The implications
- Low/no-alcohol beer helps the market to retain those cutting back on alcohol
- The facts
- The implications
The Market – What You Need to Know
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- Volume sales receive a boost in 2018
- Lager continues to dominate the market
- Craft trend fuels rise in ale/bitter
- Stout/porter volume sales see slight decline
- Off-trade volumes continue to surpass on-trade
- Freeze on alcohol duties eases pressure on manufacturers
- A sizeable minority are cutting back on alcohol
Market Size and Forecast
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- Volume sales receive a boost in 2018
- Inflation fuels value growth
- Lager leads the market
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- Figure 10: Total value and volume sales of beer, UK, 2013-23
- The future
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- Figure 11: Forecast of UK value sales of beer, 2013-23
- Figure 12: Forecast of UK volume sales of beer, 2013-23
- Forecast
Market Segmentation
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- Lager continues to dominate the market
- Off-trade performance masks volume decline in the on-trade
- Low-/no-alcohol beers provide small support
- Rising prices and premiumisation to drive growth going forward
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- Figure 13: UK value and volume sales of lager, 2013-23
- Figure 14: Forecast of UK value sales of lager, 2013-23
- Craft trend fuels rise in ale/bitter
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- Figure 15: UK value and volume sales of ale/bitter, 2013-23
- Figure 16: Forecast of UK value sales of ale/bitter, 2013-23
- Stout/porter volume sales see slight decline
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- Figure 17: UK value and volume sales of stout/porter, 2013-23
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- Figure 18: Forecast of UK value sales of stout/porter, 2013-23
Channels to Market
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- Rising prices fuel value growth in the on- and off-trade
- Off-trade volumes continue to surpass on-trade
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- Figure 19: Value and volume sales of beer, by channel, 2013-18
Market Drivers
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- Multiple factors affect the price of beer
- Freeze on alcohol duties eases pressure on manufacturers
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- Figure 20: UK excise duty rates for beer and other alcoholic drinks, 2008-18
- Scotland introduces minimum unit pricing for alcohol, with Wales set to follow
- Exchange rates and ‘Brexit’ deal will have an impact on beer
- Rising costs in the on-trade
- Barley shortage puts upwards price pressures on beer
- A sizeable minority are cutting back on alcohol
- Environmental concerns cause brands to take action
- AB InBev launches fund for start-ups tackling sustainability…
- …and announces 100% recyclable packaging by 2025 commitment
- Fuller’s looks to sustainability
- Stella focuses on water…
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- Figure 21: Stella Artois partners with Water.org to highlight global water crises with limited edition packs, 2018
- …as does Brewgooder, helped by BrewDog
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- Figure 22: Brewgooder focuses on clean water, 2018
- Demographic changes will put pressure on the market
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- Figure 23: Change in age structure of the UK population, 2013-18 and 2018-23
Companies and Brands – What You Need to Know
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- AB InBev’s top brands Stella and Budweiser post strong growth
- Guinness leads ales and stouts
- Stella Artois launches gluten-free beer, joining a raft of others
- Craft trend continues
- Beer spend looks set to drop in 2018
- Guinness stands out as unique, BrewDog is most fun, while Budweiser leads on refreshment
Market Share
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- AB InBev’s top brands post strong growth in retail
- Stella continues to lead
- Budweiser overtakes Foster’s
- Heineken sees mixed fortunes
- Foster’s sales drop hampered by delistings
- Heineken brand performs well
- Premium lagers blaze a trail
- Estrella Damm sees strong growth
- Birra Moretti is Heineken’s fastest-growing brand
- Peroni undergoes makeover
- Molson Coors sees flat sales
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- Figure 24: UK retail value and volume sales of the leading lager brands, 2015/16-2017/18
- Guinness leads ales and stouts
- BrewDog continues extraordinary growth
- Other brands see mixed fortunes
- Fuller's acquires Dark Star Brewing
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- Figure 25: UK retail value and volume sales of the leading ales and stouts brands, 2015/16-2017/18
Launch Activity and Innovation
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- Stella Artois launches gluten-free beer, joining a raft of others
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- Figure 26: Beer brands tap into gluten-free market, 2016-18
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- Figure 27: Perception map of attribute performance of Gluten-free Stella Artois in comparison to standard Stella Artois, UK, April 2018-November 2018
- Craft trend continues
- Retailers continue to build their craft brew ranges
- BrewDog continues to innovate…
- …seeking to drive sour beer
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- Figure 28: BrewDog launches a sour beer, 2018
- Fuller’s launches limited-run craft beers from pilot brewery…
- …and rebrands its craft Frontier line as a premium lager
- Alcohol-free launches continue
- St Peter's Brewery launches organic alcohol-free beer
- Peroni poised to launch a non-alcoholic beer in 2019
- Collaborations are increasingly seen in beer
- Collaborations among brewers…
- …and beyond
- Beers look to ethical innovation
- Packaging innovation
- Budweiser taps into World Cup fever with new bottles and themed packs…
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- Figure 29: Budweiser launches limited edition aluminium bottles, 2018
- …as well as light-up, interactive glasses
- BrewDog repackages Punk IPA for International Women's Day
- Fruit-infused beer brand Jubel changes look to target craft segment
- Fridge-ready pack launches
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- Figure 30: Brands launch fridge-ready packs, 2018
Advertising and Marketing Activity
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- Beer spend looks set to drop in 2018
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- Figure 31: Total above-the line, online display and direct mail advertising expenditure on beer, 2014-18
- Heineken is the leading advertiser
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- Figure 32: Total above-the line, online display and direct mail advertising expenditure on beer, by top 10 advertisers (sorted by 2018), 2014-18
- Taking a light-hearted approach with the ‘That’s Heineken’ campaign
- Pushing continental associations for Amstel
- Celebrating Foster’s roots with cricket
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- Figure 33: Foster’s launches on-pack promotion to win a trip to Australia, 2018
- Birra Moretti focuses on relationships with Pull Together ad
- Maltsmiths debuts TV ad
- AB InBev cuts back on spend
- Stella celebrates joy with Joie de Biere campaign…
- …and continues sports sponsorship
- Budweiser pushes football ties with sponsorship of World Cup…
- …and succeeds Carlsberg as official England football team beer
- Estrella Damn is the biggest spending brand with long-form ad
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- Figure 34: Total above-the line, online display and direct mail advertising expenditure on beer, by top 10 brands (sorted by 2018), 2014-18
- Low-/no-alcohol brands see significant ad support
- Budweiser supports Bud Light with Dilly Dilly campaign
- Heineken unveils £6 million campaign for alcohol-free beer
- Budweiser uses 'dry January' to promote Prohibition beer
- Guinness continues Made of More campaign
- Carlsberg focuses on Danish simplicity with Export
- Molson Coors supports Carling…
- …while boss blasts ad performance of Coors Light
- Greene King looks to modernise Old Speckled Hen
- BrewDog continues to invest in traditional media
- …and launches one million sampling activation
- …and charters a Boeing 767
- Tiny Rebel develops mobile video game app
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 35: Attitudes towards and usage of selected brands, October 2018
- Key brand metrics
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- Figure 36: Key metrics for selected brands, October 2018
- Brand attitudes: BrewDog stands out as being the most innovative
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- Figure 37: Attitudes, by brand, October 2018
- Brand personality: Carling and Foster’s suffer a more boring image
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- Figure 38: Brand personality – Macro image, October 2018
- Guinness stands out as authentic and traditional
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- Figure 39: Brand personality – Micro image, October 2018
- Brand analysis
- BrewDog leads on fun
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- Figure 40: User profile of BrewDog, October 2018
- Estrella Damm solicits positive endorsements among a low user base
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- Figure 41: User profile of Estrella Damm, October 2018
- Guinness enjoys a winning image of being unique and of high quality
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- Figure 42: User profile of Guinness, October 2018
- Stella Artois is seen most widely as a favourite brand
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- Figure 43: User profile of Stella Artois, October 2018
- Budweiser is strong on refreshment
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- Figure 44: User profile of Budweiser, October 2018
- Foster’s is most accessible, offering good value
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- Figure 45: User profile of Foster’s, October 2018
- Carling suffers from a boring brand image
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- Figure 46: User profile of Carling, October 2018
The Consumer – What You Need to Know
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- 70% of UK adults drink beer, with men, the young and wealthy in the lead
- Lager is the most popular type
- Price is the top factor influencing purchase, but only half prioritise it
- Sampling would encourage purchasing among 75%
- Exploration is important, with 73% enjoying try new beers
- Environmental action chimes with 71% of beer drinkers
- Refreshment is a selling point for lager, authenticity for stout/porter and ale/bitter, while craft enjoys quality credentials and trendiness
Usage of Beer
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- 70% of UK adults drink beer, with men, the young and wealthy in the lead
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- Figure 47: Beer drinking in the last 3 months, by gender, age and socio-economic status, October 2018
- Lager is the most popular type
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- Figure 48: Types of beer drunk in the last 3 months, October 2018
- Ale/stout usage is biased towards the young
- Craft beer is drunk by 37%
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- Figure 49: Varieties of beer drunk in the last three months, October 2018
- Low/no alcohol variants are drunk by a sizeable one in five beer drinkers
- 35% drink just one type
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- Figure 50: Repertoire of types of beer drunk, October 2018
Factors Influencing Choice
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- Price is the top factor influencing purchase, but only half prioritise it
- Potential to compete on added value, as half don’t deem price a top factor
- Stout/ale’s competitive on-trade price warrants more focus
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- Figure 51: Factors influencing purchasing of beer, October 2018
- Special offers/promotions appeal to just 24%
- Distinct flavour appeals to 42%
- Craft drinkers take a keen interest in distinct flavour
- Lager can do more to play on flavour
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- Figure 52: BrewDog references taste of pilsner beer, 2018
Behaviours Related to Beer
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- Sampling would encourage purchasing among 75%
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- Figure 53: Behaviours related to beer, October 2018
- Elevating sampling: tasting events
- Sampling should help low-alcohol beer to tackle bland image
- Exploration is important, with 73% enjoying try new beers
- Craft brands cater to exploration with experimental ranges
- Premium appeals over craft for 46%
- A sizeable minority are cutting back on beer or drinking more low/no alcohol variants
- 30% agree drinking low-alcohol beers means you can drink more
Attitudes towards Beer
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- Environmental action chimes with 71% of beer drinkers
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- Figure 54: Attitudes towards beer, October 2018
- 47% show interest in refill schemes
- Beer is a good way to bond with friends for 67%; rising to 76% among men aged 18-34
- Social interaction gains focus
- Beer enjoys a strong image as facilitating social connections
- 46% express interest in collaborative brews; rising to 63% of 18-34-year-old men
Qualities Associated with Beer
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- Refreshment is a selling point for lager
- Perception of blandness is a potential barrier for low/no alcohol beer
- Authenticity stands out for stout/porter and ale/bitter
- Quality credentials and trendiness apparent for craft
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- Figure 55: Correspondence Analysis of beer, October 2018
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- Figure 56: Qualities associated with different types of beer, October 2018
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 57: UK value sales of beer, best- and worst-case forecast, 2018-23
- Figure 58: UK volume sales of beer, best- and worst-case forecast, 2018-23
- Figure 59: UK value sales of lager, best- and worst-case forecast, 2018-23
- Figure 60: UK volume sales of lager, best- and worst-case forecast, 2018-23
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- Figure 61: Forecast of UK volume sales of lager, 2013-23
- Figure 62: UK value sales of ale/bitter, best- and worst-case forecast, 2018-23
- Figure 63: UK volume sales of ale/bitter, best- and worst-case forecast, 2018-23
- Figure 64: Forecast of UK volume sales of ale/bitter, 2013-23
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- Figure 15: UK value sales of stout/porter, best- and worst-case forecast, 2018-23
- Figure 65: UK volume sales of stout/porter, best- and worst-case forecast, 2018-23
- Figure 66: Forecast of UK volume sales of stout/porter, 2013-23
Appendix – Market Share
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- Figure 67: UK retail value and volume sales of the leading lager manufacturers, 2015/16-2017/18
- Figure 68: UK retail value and volume sales of the leading ales and stouts manufacturers, 2015/16-2017/18
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Appendix – Launch Activity and Innovation
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- Figure 69: Attribute performance of gluten-free Stella Artois in comparison to standard Stella Artois, UK, April 2017-November 2018
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Appendix – Advertising and Marketing Activity
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- Figure 70: Total above-the line, online display and direct mail advertising expenditure on beer, by category, 2014-18
- Figure 71: Total above-the line, online display and direct mail advertising expenditure on beer, by media type, 2014-18
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- Figure 72: Sports sponsorship advertising expenditure on beer, by advertiser, 2014-18 (sorted by total)
- Figure 73: Sports sponsorship advertising expenditure on beer, by advertiser and brand, 2014-18 (sorted by total)
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