Beer & Cider - Ireland - June 2018

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated total beer market, by segment, IoI, 2018
Figure 2: Estimated total cider sales, NI and RoI, 2013-18
Forecast
Figure 3: Indexed estimated beer and cider sales, IoI, 2013-23
Market factors
UK and RoI beer excises among the highest in Europe
Beer prices rising in pubs and bars
Foodservice an important revenue stream for the on-trade
Most Irish consumers upbeat on personal finances for the year ahead
Companies and innovations
The consumer
Lager and stout top beers
Figure 4: Types of beer consumers have drunk in home or out of home in the last three months, NI and RoI, March 2018
Apple continues to be key cider flavour
Figure 5: Types of cider drunk in the last three months, NI and RoI, March 2018
While visiting a pub and relaxing at home key beer and cider drinking occasions
Figure 6: Occasions on which consumers have drunk beer and cider in the last three months, NI and RoI, March 2018
Premium must be worth the price: taste is all important
Figure 7: Agreement with statements relating to beer and cider, NI and RoI, March 2018
THE MARKET – WHAT YOU NEED TO KNOW
Irish beer sales continue to grow in 2018
High excise rates on beer a threat to on-trade sales
Beer prices rising in pubs, declining in the off-trade
Food pairing opportunity for pubs and brands
MARKET SIZE AND FORECAST
RoI sees stronger beer value growth from 2016-17
Figure 8: Total beer sales, by value, IoI, NI and RoI, 2013-23
RoI on-trade increases, falls in NI
Figure 9: Total on-trade beer sales, by value, IoI, NI and RoI, 2013-23
Figure 10: Total overseas visitors to RoI and visitors from GB, January 2016-April 2018
Beer off-trade sees increased spending in 2017
Figure 11: Total off-trade beer sales, by value, IoI, NI and RoI, 2013-23
Volume sales decrease from 2016-17
Figure 12: Total beer sales, by volume (LPA), on-trade and off-trade, IoI, 2013-23
Cider continues to see strong value sales in 2017
Figure 13: Total cider sales, by value, IoI, NI and RoI, 2013-23
Cider growth set to be slow but steady in terms of value
Figure 14: Total off-trade vs. on-trade cider sales, by value, IoI, NI and RoI, 2013-23
Cider volume sales increase in off-trade, remain similar in on-trade
Figure 15: Total cider sales, by volume, on-trade and off-trade, IoI, 2013-23
MARKET SEGMENTATION 
Lager set to benefit from World Cup in 2018
Figure 16: Total lager sales, by value, IoI, off-trade and on-trade, 2013-23
Stout sees decline in on-trade performance
Figure 17: Total stout sales, by value, IoI, off-trade and on-trade, 2013-23
Ale continues to benefit from the craft trend
Figure 18: Total ale sales, by value, IoI, off-trade and on-trade, 2013-23
Figure 19: Estimated market value of craft beer market, Europe, 2012-18
MARKET DRIVERS
On-trade prices continue to increase
Figure 20: Consumer price indices for beer, on-trade and off-trade, RoI, January 2013-February 2018
Figure 21: Consumer price indices for beer, UK (including NI), January 2013-April 2018
Beer excise remains at 2017 levels, but high beer prices might hamper tourism
Figure 22: UK and RoI excise duty rates per pint of beer (4% ABV) and cider (up to 7.5%), 2012-18
Figure 23: Selected European beer excise rates, July 2017
Figure 24: How overseas visitors spent their money when visiting Ireland, 2017
Pub an increasingly important foodservice venue
Figure 25: Estimated revenue of foodservice sales via pub channels, NI and RoI, 2016 and 2017
Figure 26: Consumers who have visited a pub in the last month, NI and RoI, August 2016
Pub grub offers meal pairing opportunity
NI consumers still negative about future economic improvement
Figure 27: How consumers think the general economic condition of the country will change over the next 12 months, NI, April 2017-March 2018
Figure 28: How consumers think their personal financial situation will change over the next 12 months, NI, April 2017-March 2018
RoI consumers more positive about both economy and personal finances
Figure 29: How consumers think the general economic condition of the country will change over the next 12 months, RoI, April 2017-March 2018
Figure 30: How consumers think their personal financial situation will change over the next 12 months, RoI, April 2017-March 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Diageo launching new craft-style beers through its Open Gate Brewery
Cider market becoming more competitive thanks to new mainstream brand launches from Heineken
Rising demand for Irish craft beer as Porterhouse and Whitewater secure new export business
BrewDog outgrows its craft status as its bar and brewery portfolio grows and IPO looms
WHO’S INNOVATING?
Ethical claims dominate top 10, consumers attracted to higher-end products
Figure 31: Claims analysis of new beer and cider products launched, UK and Ireland, January 2014-April 2018
Smaller cans becoming more prevalent, especially amongst craft brands
Low-alcohol beer and cider launches increasing
Figure 32: New products launches in the UK and Ireland claiming to be low-alcohol, January 2014-April 2018
World’s first ‘blockchain beer’ being brewed in NI
Cider flavours heavily focused on fruit, but can take inspiration from botanicals
Figure 33: Flavour analysis of new cider products, excluding unflavoured/plain, UK and Ireland, January 2014-April 2018
COMPANIES AND BRANDS
AB InBev
Key facts
Product portfolio
Brand NPD
Recent developments
Diageo
Key facts
Product portfolio
Brand NPD
Recent developments
Molson Coors
Key facts
Product portfolio
Brand NPD
Recent developments
The Cantrell & Cochrane Group (C&C)
Key facts
Product portfolio
Brand NPD
Recent developments
Heineken Ireland
Key facts
Product portfolio
Brand NPD
Recent developments
BrewDog
Key facts
Product portfolio
Recent developments
 CRAFT BEER AND CIDER COMPANIES
The Porterhouse Brewing Company
Key facts
Product portfolio
Recent developments
Whitewater Brewery
Key facts
Product portfolio
Recent developments
Long Meadow Cider
Key facts
Product portfolio
Recent developments
Hilden Brewery
Key facts
Product portfolio
Carlow Brewing
Key facts
Product portfolio
THE CONSUMER – WHAT YOU NEED TO KNOW
Four in 10 drink lager
NI cider drinkers have more diverse taste profiles than RoI
Half relax at home while drinking beer/cider
Taste is king among beer/ cider drinkers
USAGE OF BEER 
Lager remains the key beer category in 2018
Figure 34: Types of beer consumers have drunk in home or out of home in the last three months, NI and RoI, March 2018
Lager sees strongest use among middle-aged
Figure 35: Consumers who have drunk lager (eg Harp Heineken) in the last three months, by gender and age, NI and RoI, March 2018
Figure 36: Consumers who have drunk fruit-flavoured beer (eg Früli) the last three months, by age, NI and RoI, March 2018
Stout embraced by 18-24s
Figure 37: Consumers who have drunk stout in the last three months, by gender and age, NI and RoI, March 2018
Low-alcohol and low-sugar beers see very little usage
Figure 38: Consumers who have drunk low-sugar/low-calorie or low-alcohol/non-alcoholic beer in the last three months, NI and RoI, March 2018
Figure 39: Selected statements on how consumers manage their sugar intake, NI and RoI, June 2017
USAGE OF CIDER 
NI consumers favour more diverse cider flavour profiles, especially fruit-flavoured cider
Figure 40: Types of cider drunk in the last three months, NI and RoI, March 2018
Figure 41: Consumers who have drunk apple cider vs lager in the last three months, by gender, NI and RoI, April 2017
NI consumers much more likely to drink fruit-flavoured cider than RoI consumers
Figure 42: Consumers who have drunk fruit-flavoured cider in the last three months, by gender, NI and RoI, March 2018
Figure 43: Consumers who have drunk fruit-flavoured cider in the last three months, by age, NI and RoI, March 2018
OCCASIONS FOR DRINKING BEER AND CIDER 
Pub visit key location for drinking beer and cider
Figure 44: Occasions on which consumers have drunk beer and cider in the last three months, NI and RoI, March 2018
The pub key for beer and cider drinkers
Figure 45: Consumers have drunk beer and/or cider in a pub or bar in the last three months, by gender, NI and RoI, March 2018
Over-45s more likely to drink beer/ cider when relaxing at home
Figure 46: Consumers have drunk beer and/or cider at home while relaxing in the last three months, by age, NI and RoI, March 2018
Beer and cider drunk with meals
Figure 47: Consumers have drunk beer and/or cider with a meal in and out of home in the last three months, NI and RoI, March 2018
ATTITUDES TOWARDS BEER AND CIDER
Taste is key to spending more on beer and cider
Figure 48: Agreement with statements relating to beer and cider, NI and RoI, March 2018
Less affluent consumers will only pay more for taste
Figure 49: Agreement with the statement ‘I'm only willing to pay more for beer/cider if I can easily taste the difference compared to cheaper equivalents’, by age and social group, NI and RoI, March 2018
Figure 50: Agreement with the statement ‘I am prepared to pay more for craft beers/ ciders (ie made by a small-scale brewer)’, by social group, NI and RoI, March 2018
Aged beers and ciders capture the interest of men
Figure 51: Agreement with the statement ‘I would be interested in trying a beer or cider aged in an oak barrel’, by gender, NI and RoI, March 2018
Over half of consumers want the new and unusual from beers and ciders
Figure 52: Agreement with selected statement relating to beer/cider innovation, NI and RoI, March 2018
Food waste used to brew could appeal to environmentally conscious?
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Data sources
Generational cohorts
Abbreviations