Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Beer volumes expected to bounce back and values forge ahead in 2017
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- Figure 1: Forecast of UK value sales of beer, 2012-22
- Lager sales propped up by the off-trade
- Ales, bitters and stouts also on the march
- The off-trade passes the on-trade in volume sales of beer
- Beer duty continues to rise
- Many people are cutting back on alcoholic drinks such as beer
- Companies and brands
- AB InBev consolidating as it looks to further its leading position
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- Figure 2: UK retail value sales of the top 10 beer brands, 2016/17
- Ale and stout are key battleground for craft brands
- Craft NPD activity is widespread
- Low- and non-alcoholic beer launches on the rise
- Beer adspend falls away in 2016
- Heineken is the leading beer advertiser since 2013
- The consumer
- 62% of Brits drink beer
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- Figure 3: Usage of types of beer, September 2017
- Relaxing at home and pub drinks are top beer occasions
- Promotions/special offers and recommendations are the best way to encourage trialling
- Glass bottles remain the most popular packaging type
- Consumers define craft beer in a number of ways
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- Figure 4: Factors which define craft beer, September 2017
- Almost half of beer drinkers want a certification for craft
- Two in five beer drinkers would prefer ‘schooners’ to pints
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- Figure 5: Attitudes towards beer, September 2017
- What we think
Issues and Insights
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- Schooners could boost the appeal of on-trade
- The facts
- The implications
- Craft’s ongoing growth now calls for greater structure
- The facts
- The implications
- Lower-/non-alcoholic beers set to become bigger business
- The facts
- The implications
- Online retailing provides an outlet for a competitive market
- The facts
- The implications
The Market – What You Need to Know
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- Growth expected in beer volumes in 2017
- Lager sales propped up by the off-trade
- Ales, bitters and stouts are on the march
- The off-trade passes the on-trade in volume sales of beer
- Beer duty continues to rise
- Many people are cutting back on alcoholic drinks such as beer
Market Size and Forecast
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- Beer volumes expected to bounce back and values forge ahead in 2017
- Minor fluctuation in beer volumes over 2012-16
- Inflation fuels value growth in 2017
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- Figure 6: Total value and volume sales of beer, at current and constant prices, 2012-22
- Lager remains the dominant segment of the market
- Beer values expected to continue rising
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- Figure 7: Forecast of UK value sales of beer, 2012-22
- Figure 8: Forecast of UK volume sales of beer, 2012-22
Market Segmentation
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- Lager sales propped up by the off-trade
- Minor fluctuations in total sales mask on-trade decline
- Modest support from low-alcohol beers
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- Figure 9: Total value and volume sales of lager, at current and constant prices, 2012-22
- 2017 looks set to be a better year for lager
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- Figure 10: Forecast of UK value sales of lager, 2012-22
- Ale/bitter sales benefiting from the craft boom
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- Figure 11: Total value and volume sales of ale/bitter, at current and constant prices, 2012-22
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- Figure 12: Forecast of UK value sales of ale/bitter, 2012-22
- Stout/porter sales bounce back
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- Figure 13: Total value and volume sales of stout/porter, at current and constant prices, 2012-22
- Figure 14: Forecast of UK value sales of stout/porter, 2012-22
Channels to Market
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- The off-trade passes the on-trade in volume sales of beer
- Off-trade volume growth expected to continue
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- Figure 15: Value and volume sales of beer, by channel, 2012-17
Market Drivers
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- Beer duty continues to rise
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- Figure 16: UK excise duty rates for beer and other alcoholic drinks, 2007-17
- Rising costs put pressure on producers and consumers
- An embattled on-trade industry
- Rising costs
- Pubs put more focus on food
- Many people are cutting back on alcoholic drinks
- The continued rise of craft beer
- Population changes could impact the market
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- Figure 17: Change in age structure of the UK population, 2012-17 and 2017-22
Companies and Brands – What You Need to Know
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- AB InBev consolidating as it looks to further its leading position
- Mixed fortunes for Heineken, Carlsberg hit by delistings
- Ale and stout are key battleground for craft brands
- Craft NPD activity is widespread
- Low- and non-alcoholic beer launches on the rise
- Beer adspend falls away in 2016
Market Share
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- AB InBev consolidating as it looks to further its leading position
- Stella Artois grows despite delistings
- Budweiser leaps ahead
- Corona and Becks see mixed fortunes
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- Figure 18: UK retail value and volume sales of the leading lager brands, 2014/15-2016/17
- Mixed fortunes for Heineken
- Foster’s struggles under range reviews
- Mixed performances from world beers
- Tough times for Carlsberg
- Molson Coors enjoys strong sales growth
- Growth among other brands reflects the rise of craft
- Ale and stout are key battleground for craft brands
- A fragmented segment
- Revival in fortunes for Guinness
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- Figure 19: UK retail value and volume sales of the leading ale and stout brands, 2014/15-2016/17
- Mixed fortunes among the other ale and stout brands
Launch Activity and Innovation
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- Craft NPD activity is widespread
- BrewDog and Fullers look to collaboration
- Innis & Gunn explores new approaches to barrel-ageing
- Traditional operators move with the times
- Large conglomerates look to tap into craft
- Larger brands look to pack redesigns
- Carlsberg updates Export
- Limited edition packs highlighted origin and seasonal events
- Carling and Heineken look to stronger variants
- Global beer activity
- New variants for Italian brands
- Low-alcohol/alcohol-free launches come to the fore
- Heineken goes 0.0%
- Budweiser launches Prohibition and Light
- Smaller operators also look to tap into the trend
- Scope for lower-calorie beers
- Beer advent calendars tap into seasonality
- Can the off-trade steal further from the on-trade?
Advertising and Marketing Activity
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- Beer adspend falls away in 2016
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- Figure 20: Total above-the-line, online display and mail advertising spend on beer, 2013-17
- Figure 21: Total above-the-line, online display and mail advertising spend on beer, by quarterly share of annual total, 2013-16
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- Figure 22: Total above-the-line, online display and mail advertising spend on beer, by media type, 2013-17*
- Heineken is the leading beer advertiser since 2013
- AB InBev has spent the most on beer ads in the past two years
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- Figure 23: Total above-the-line, online display and mail advertising spend on beer, by leading advertisers (sorted by total spend over period), 2013-17*
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- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on beer, by top 20 brands (sorted by total spend over the full period), 2013-17*
- Other leading campaigns in 2017
- Budweiser supports Bud Light
- Carlsberg focuses on Export
- BrewDog and Camden Town
- Selected other campaigns
- There’s a Beer for That continues to push food matching
- Carling helps fund community projects
- Calling back to the past
- Linking with entertainment and leisure
- Doom Bar and Stella Artois tie up with sports
- Hobgoblin and Red Stripe link to music
- Estrella Damm continues short films
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 25: Attitudes towards and usage of selected brands, October 2017
- Key brand metrics
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- Figure 26: Key metrics for selected beer brands, October 2017
- Brand attitudes: BrewDog is seen as an industry innovator
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- Figure 27: Attitudes, by brand, October 2017
- Brand personality: Carling has the strongest associations with boring
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- Figure 28: Brand personality – Macro image, October 2017
- Hobgoblin enjoys favourable links to authenticity and being special
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- Figure 29: Brand personality – Micro image, October 2017
- Brand analysis
- BrewDog leads the way in the craft segment
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- Figure 30: User profile of BrewDog, October 2017
- Corona’s cool image makes many beer drinkers proud to be associated with it
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- Figure 31: User profile of Corona, October 2017
- Hobgoblin evokes many craft associations
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- Figure 32: User profile of Hobgoblin, October 2017
- Kronenbourg balances a premium and accessible position
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- Figure 33: User profile of Kronenbourg, October 2017
- Amstel seen as a similar brand to Kronenbourg
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- Figure 34: User profile of Amstel, October 2017
- Carlsberg faces some notable challenges
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- Figure 35: User profile of Carlsberg, October 2017
- Carling leverages its cheap price to forge a value position
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- Figure 36: User profile of Carling, October 2017
The Consumer – What You Need to Know
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- 62% of Brits drink beer
- Relaxing at home and pub drinks are top beer occasions
- Promotions/special offers and recommendations foster trialling
- Glass bottles remain the most popular packaging type
- Consumers define craft beer in a number of ways
- Almost half of beer drinkers want a certification for craft
Usage of Beer
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- 62% of Brits drink beer
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- Figure 37: Profile of beer drinkers, by gender, age and socio-economic group, September 2017
- Lager remains Brits’ beer of choice
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- Figure 38: Usage of types of beer, September 2017
- Ales and stouts are less popular
- Few people report drinking craft beer
- Stout remains divisive
- Other types of beer remain more niche
- Almost half of beer drinkers stick to one type
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- Figure 39: Repertoire of usage of types of beer, September 2017
Occasions for Drinking Beer
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- Relaxing at home and pub drinks are top beer occasions
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- Figure 40: Occasions for drinking beer, September 2017
- Rising out-of-home costs have fostered pre-loading
- Festival and events usage peaks among young adults
- Beer enjoys strong usage on food-led occasions
Factors Encouraging Trialling of New Beers
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- Promotions/special offers are the best way to encourage trialling
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- Figure 41: Factors which have encouraged people to try a new beer, September 2017
- Recommendations can also be influential…
- …as can advertising via social media and traditional channels
- New tastes and new variants from trusted brands can also resonate
- Packaging can help create standout
Beer Preferences
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- Glass bottles remain the most popular packaging type
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- Figure 42: Beer preferences relating to packaging and serving size, September 2017
- Lighter beers are comfortably more popular than darker ones
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- Figure 43: Beer preferences relating to type and strength, September 2017
- A higher share of beer drinkers prefers the familiar…
- …and well-known brands
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- Figure 44: Beer preferences relating to brands, September 2017
Defining Craft Beer
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- Craft beer lacks a definition in the UK
- Certification of craft beer widely welcomed
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- Figure 45: SIBA’s Assured Independent British craft brewer logo, 2017
- Consumers define craft beer in disparate ways
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- Figure 46: Factors which define craft beer, September 2017
- Under-35s give more weight to unique flavour, over-45s to tradition
- High quality ingredients and scale of production spark limited interest
- Packaging and human input appear to be more peripheral indicators
Attitudes Towards Beer
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- Almost half of beer drinkers want more guidance when buying craft
- Tailored online subscriptions appeal to one in three
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- Figure 47: Attitudes towards craft and quality in beer, September 2017
- Paying a premium for craft splits beer drinkers
- Transparency is a watchword in craft
- Cloudy beers appeal to two in five
- 58% of beer drinkers are interested in beer as part of meal deals
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- Figure 48: Attitudes towards beer and food, September 2017
- Sharing bottles hold further potential
- Two in five beer drinkers would prefer ‘schooners’ to pints
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- Figure 49: Small bar’s beer boards, Cardiff, October 2017
- High interest in smaller servings among women
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- Figure 50: Attitudes towards the size of beer servings, September 2017
- Standards are seen to be improving in the low-/non-alcoholic segment
- Government drinking guidelines also spark mixed responses
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- Figure 51: Attitudes towards the size of beer servings, September 2017
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
- Best- and worst-case forecast data
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- Figure 52: Total UK value sales of beer, best- and worst-case forecast, 2017-22
- Figure 53: Total UK volume sales of beer, best- and worst-case forecast, 2017-22
Appendix – Market Segmentation
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- Lager
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- Figure 54: Total UK value sales of lager, best- and worst-case forecast, 2017-22
- Figure 55: Total UK volume sales of lager, best- and worst-case forecast, 2017-22
- Figure 56: Forecast of UK volume sales of lager, 2012-22
- Ale/Bitter
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- Figure 57: Total UK value sales of ale/bitter, best- and worst-case forecast, 2017-22
- Figure 58: Total UK volume sales of ale/bitter, best- and worst-case forecast, 2017-22
- Figure 59: Forecast of UK volume sales of ale/bitter, 2012-22
- Stout/Porter
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- Figure 60: Total UK value sales of stout/porter, best- and worst-case forecast, 2017-22
- Figure 61: Total UK volume sales of stout/porter, best- and worst-case forecast, 2017-22
- Figure 62: Forecast of UK volume sales of stout/porter, 2012-22
Appendix – Market Share
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- Figure 63: UK retail value and volume sales of the leading lager manufacturers, 2014/15-2016/17
- Figure 64: UK retail value and volume sales of the leading ale and stout manufacturers, 2014/15-2016/17
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