Table of Contents
Executive Summary
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- The market
- Value sales rise but volumes fall in 2019
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- Figure 1: Forecast of UK value sales of beer, 2014-24
- Lager dominates the beer market; craft trend fuels rise in ale/bitter values
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- Figure 2: UK value sales of beer, by segment, 2018-19
- Off-trade volumes continue to steal share from the on-trade
- Freeze on beer duties eases pressure
- A third of adults have reduced their alcohol intake
- Companies and brands
- Lager brands see mixed fortunes
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- Figure 3: Share of UK retail value sales of the leading lager brands, 2018/19*
- Guinness continues to lead in ales and stouts; BrewDog sees growth
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- Figure 4: Share of UK retail value sales of the leading ale and stout brands, 2018/19
- Low-/non-alcoholic beer trend continues among big brands
- Craft remains a focus
- Adspend rises in 2019
- Guinness has a strong brand image; Stella Artois and Birra Moretti score highest on brand commitment
- The consumer
- 71% drink beer; 44% weekly
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- Figure 5: Frequency of drinking beer, October 2019
- Supermarkets are the most popular place to buy beer
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- Figure 6: Where beer is bought, October 2019
- Calorie reduction and more low-/non-alcoholic versions are called for in beer
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- Figure 7: Interest in innovation in beer, October 2019
- 60% would rather cut back than switch to low-alcohol beer
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- Figure 8: Behaviours related to beer, October 2019
- No stigma surrounding low-/no-alcohol beer for 64%
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- Figure 9: Attitudes towards beer, October 2019
- What we think
Issues and Insights
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- Low/non-alcoholic beer trend provides a way to engage younger drinkers
- The facts
- The implications
- A need to push sustainability credentials
- The facts
- The implications
- Post-exercise beer sparks interest
- The implications
- Opportunities for British and imported brands
- The facts
- The implications
The Market – What You Need to Know
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- Value sales rise but volumes fall in 2019
- Lager dominates the beer market
- Craft trend fuels rise in ale/bitter
- Stout/porter sees flat volumes on rising value sales
- Off-trade volumes continue to steal share from the on-trade
- Freeze on beer duties eases pressure
- A third of adults have reduced their alcohol intake
Market Size and Forecast
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- Value sales rise but volumes fall in 2019
- Lager continues to lead the market
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- Figure 10: Total value and volume sales of beer, 2014-24
- The future
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- Figure 11: Forecast of UK value sales of beer, 2014-24
- Figure 12: Forecast of UK volume sales of beer, 2014-24
- Forecast methodology
Market Segmentation
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- Lager dominates the beer market
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- Figure 13: UK value and volume sales of beer, by type, 2017-19
- Craft trend fuels rise in ale/bitter
- Stout/porter sees flat volumes on rising value sales
Channels to Market
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- Rising prices drive value growth in the on-trade
- Off-trade volumes continue to steal share from the on-trade
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- Figure 14: Value and volume sales of beer, by channel, 2014-19
Market Drivers
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- Beer prices affected by multiple factors
- Freeze on beer duties eases pressure
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- Figure 15: UK excise duty rates for beer and other alcoholic drinks, 2009-19
- Welsh government to launch MUP in 2020
- Rising costs for the on-trade
- A third of adults have reduced their alcohol intake
- Improved household incomes create opportunities for premium products
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- Figure 16: CPI vs average weekly earnings, 2016-19
- Brexit uncertainty lingers, potentially denting volumes as consumer cutback
- Industry submits proposal for more detailed alcohol labelling
- BrewDog targets home workers with DeskDog scheme
- Demographic changes will put pressure on the market
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- Figure 17: Change in age structure of the UK population, 2014-19 and 2019-24
Companies and Brands – What You Need to Know
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- Lager brands see mixed fortunes
- Guinness continues to lead in ales and stouts; BrewDog sees growth
- Low-/non-alcoholic beer trend continues among big brands
- Craft remains a focus
- Adspend rises in 2019
- Guinness has a strong brand image; Stella Artois and Birra Moretti score highest on brand commitment
Market Share
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- Budweiser Brewing Group’s brands see mixed fortunes in lager
- Stella Artois continues to lead in lager
- Budweiser sees a decline in sales
- Heineken’s Foster’s struggles
- Birra Moretti is the star performer
- Carling struggles to grow volumes
- Carlsberg is yet to see the benefit from rebrand
- Asahi’s Peroni sees sales stagnate
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- Figure 18: UK retail value and volume sales of the leading lager brands, 2017/18-2018/19
- Guinness continues to lead in ales and stouts, despite sales decline
- Strong growth from some of the smaller ale brands
- BrewDog continues rise in sales
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- Figure 19: UK retail value and volume sales of the leading ale and stout brands, 2017/18-2018/19
Launch Activity and Innovation
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- Health trends provide inspiration for NPD
- Low/non-alcoholic beer trend continues among big brands
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- Figure 20: Beer brands launch low-/no-alcohol versions, 2019
- Brands explore strength up to 3.5% ABV and focus on flavour in low-alcoholic beer
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- Figure 21: Brands Look to beers with less than 3.5% ABV and flavour in low-/no-alcohol beer, 2019
- Müller makes move into low-alcohol craft beer with Milk & More
- Sainsbury’s launches a pop-up pub serving low- and non-alcoholic drinks
- Few brands call out lower calorie content
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- Figure 22: Emphasising calorie content on front of pack, 2018 and 2019
- Botanical brews could appeal to health-conscious drinkers
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- Figure 23: Botanical brews, 2018 and 2019
- Not pasteurised trend slows
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- Figure 24: Unpasteurised beers, 2019
- US brewers look to probiotics…
- …electrolytes
- …and superfoods
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- Figure 25: US brand Dogfish Head looks to superfoods, 2019
- Craft remains a focus
- Retailers revamp craft ranges
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- Figure 26: Retailers update their craft ranges, 2019
- Sainsbury’s launches own-label craft beer Hyde & Wilde into the on-trade
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- Figure 27: Sainsbury’s extends Hyde & Wild to the on-trade, 2019
- BrewDog launches exclusive beer with the Co-op…
- ..and unveils protest beer
- Budweiser Brewing Group unveils new Bass ale
- Packaging refreshes
- Peroni launches slimline cans
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- Figure 28: Peroni launches slimline cans, 2019
- Heineken launches first ever makeover for Desperados
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- Figure 29: Heineken revamps Desperados, 2018 and 2019
- Hobgoblin receives brand overhaul
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- Figure 30: Martson’s revamps Hobgoblin, 2018 and 2019
- Beer makers cater to environmental/ethical concerns
- Carlsberg launches a raft of environmentally-friendly NPD under its Together Towards Zero initiative
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- Figure 31: Carlsberg launches Snap Pack packaging, 2018
- …tests paper bottles
- Corona supports beach cleans
- Guinness switches from plastic to cardboard
- Heineken eliminates plastic from its packaging
- Waitrose trials refillable packaging
Advertising and Marketing Activity
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- Adspend rises in 2019
- Outdoor overtakes TV to be the most popular advertising channel
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- Figure 32: Total above-the line, online display and direct mail advertising expenditure on beer, 2015-19
- Budweiser Brewing Group the top spender
- Corona Extra continues to spotlight plastic pollution
- Budweiser focuses on sport…
- …and supports Pride
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- Figure 33: Total above-the line, online display and direct mail advertising expenditure on beer, by top 10 advertisers, 2015-19 (sorted by 2019)
- Heineken loses out on top spot but still spends more than £10 million
- Heineken launches cross-brand low-/non-alcoholic campaign
- Amstel enlists Jeff Bridges
- Birra Moretti pushes links with family and food…
- Foster’s bring back “Good call” to poke fun at craft trend
- Sharp’s launches first campaign for Doom Bar
- Carling is the top spending brand with its Made Local ad
- Coors Light launches That’s Cold campaign
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- Figure 34: Total above-the line, online display and direct mail advertising expenditure on beer, by top 10 brands, 2015-19 (sorted by 2019)
- Carlsberg rebrands and focuses on quality
- Diageo continues to cut back spend on Guinness
- Brewdog launches “Most Honest Ever” adverts
- 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, November 2019
- Key brand metrics
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- Figure 36: Key metrics for selected brands, November 2019
- Brand attitudes: Foster’s offers greatest value
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- Figure 37: Attitudes, by brand, November 2019
- Brand personality: Birra Moretti is the most exclusive
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- Figure 38: Brand personality – macro image, November 2019
- Guinness is the most traditional and authentic
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- Figure 39: Brand personality – micro image, November 2019
- Brand analysis
- Stella Artois is the most drunk brand; seen to be trustworthy and accessible
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- Figure 40: User profile of Stella Artois, November 2019
- Budweiser is the coolest brand
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- Figure 41: User profile of Budweiser, November 2019
- Foster’s is seen to be the most accessible brand
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- Figure 42: User profile of Foster’s, November 2019
- Birra Moretti stands out for being exclusive, sophisticated and special
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- Figure 43: User profile of Birra Moretti, November 2019
- Guinness is the most trusted and unique brand
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- Figure 44: User profile of Guinness, November 2019
- Heineken is seen to offer food value and to be accessible and refreshing
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- Figure 45: User profile of Heineken, November 2019
- Carlsberg seen to be accessible, fun and traditional
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- Figure 46: User profile of Carlsberg, November 2019
The Consumer – What You Need to Know
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- 71% drink beer; 44% weekly
- Supermarkets are the most popular place to buy beer
- Calorie reduction and more low-/non-alcoholic versions are called for in beer
- 60% would rather cut back than switch to low-alcohol beer
- Opportunities for British and imported brands
- Post-exercise beer interests 41%
- No stigma surrounding low-/no-alcohol beer for 64%
- Sustainability appeals to majority of beer drinkers/buyers
Usage of Beer
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- 71% drink beer; 44% weekly
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- Figure 47: Frequency of drinking beer, October 2019
- Usage is higher among men, the young and the highest earners
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- Figure 48: Beer drinking in the last 3 months, by gender, age and annual household income, October 2019
- Lager is the most popular beer, drunk by 72%
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- Figure 49: Types of beer drunk in the last 3 months, October 2019
- Beer drinkers have a narrow repertoire
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- Figure 50: Repertoire of types of beer drunk in the last 3 months, October 2019
- Craft is the most popular variety, drunk by 39%
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- Figure 51: Varieties of beer drunk, October 2019
- Low-/non-alcoholic beer trend continues, driven by the young
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- Figure 52: Usage of low-/no-alcohol beer, by age, October 2019
Where Beer is Purchased
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- Supermarkets are the most popular place to buy beer
- 18% buy beer from discounters
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- Figure 53: Where beer is bought, October 2019
- Half buy beer from a pub/bar; rising among men and higher earners
Interest in Innovation
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- Calorie reduction is called for in beer
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- Figure 54: Interest in innovation in beer, October 2019
- 25% of 18-24s are interested in seeing more low-/no-alcohol beer
- Beer blended with soft drinks also appeals most to the younger generation
- Functional aspects appeal to a minority
- Beer with botanicals and herbs and spices would appeal to the young
Beer Behaviours
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- 60% would rather cut back than switch to low-alcohol beer
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- Figure 55: Behaviours related to beer, October 2019
- Environmentally-friendly packaging offers brand standout among 47%
- Opportunities for British brands…
- …and imported brands
- Post-exercise beer interests 41%
Attitudes towards Beer
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- No stigma surrounding low-/no-alcohol beer for 64%
- Concerns on taste still felt
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- Figure 56: Attitudes towards beer, October 2019
- Sustainability appeals to majority of beer drinkers/buyers
- Alcohol content is seen to be a marker of quality among 27%; rising to 41% of 18-34s
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, 2019-24
- Figure 58: UK volume sales of beer, best- and worst-case forecast, 2019-24
Appendix – Market Share
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- Figure 59: UK retail value and volume sales of the leading lager manufacturers, 2017/18-2018/19
- Figure 60: UK retail value and volume sales of the leading ale and stout manufacturers, 2017/18-2018/19
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Appendix – Launch Activity and Innovation
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- Figure 61: Share of new product launches in the UK beer market, 2015-19
- Figure 62: Share of new product launches in the beer market carrying the ethical/environmental claim, 2015-19
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Appendix – Advertising and Marketing Activity
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- Figure 63: Total above-the line, online display and direct mail advertising expenditure on beer, by category, 2015-19 (sorted by 2019)
- Figure 64: Total above-the line, online display and direct mail advertising expenditure on beer, by media type, 2015-19 (sorted by 2019)
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- Figure 65: Sports sponsorship advertising expenditure on beer, by advertiser, 2015-19 (sorted by total)
- Figure 66: Sports sponsorship advertising expenditure on beer, by brand, 2015-19 (sorted by total)
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