Beer & Cider - Ireland - July 2017

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated total beer market, by segment, IoI, 2017
Figure 2: Total cider sales, by value, IoI, on-trade and off-trade, 2012-22
Forecast
Figure 3: Total cider vs beer sales, by value, IoI, on-trade and off-trade, 2012-22
Market factors
Duty excise increase sees consumers paying more for a pint
NI consumers have low expectations for the economy, but high for personal finances
Fewer visitors from GB impacting RoI pubs
Irish consumers more likely to ‘pre-load’ than UK
Innovations
The consumer
Lager continues to see strongest usage
Figure 4: Types of beer consumers have drunk in-home or out-of-home in the last three months, NI and RoI, April 2017
Apple continues to be key cider flavour
Figure 5: Types of cider drunk by consumers in the last three months, by age group, NI and RoI, April 2017
A pint at the pub is the most popular drinking occasion
Figure 6: Occasions on which consumers have drunk beer in the last three months, NI and RoI, April 2017
Six in 10 want wider beer/cider choice at festivals and events
Figure 7: Agreement with statements relating to beer and cider, NI and RoI, April 2017
THE MARKET – WHAT YOU NEED TO KNOW
Irish beer market estimated to see 2% growth in 2017
Cider sees 2% growth 2015-16
Lager maintains market share
Beer prices increase
Consumer confidence in economy low, but high for personal future finances
Less visitors from GB impacting RoI pubs
Irish consumers more likely to ‘pre-load’ than UK
MARKET SIZE AND FORECAST
Beer value sales set to increase between 2016 and 2017
Figure 8: Total beer sales, by value, NI and RoI, 2012-22
Figure 9: Indexed total beer sales, by value, NI and RoI, 2012-22
Beer on-trade has a wobble in 2016, but 2017 expected to be better
Figure 10: Total on-trade beer sales, by value, IoI, NI and RoI, 2012-22
Figure 11: Sterling (£) to euro (€) exchange rate, 2010-17*
Beer off-trade benefitting from increased on-trade prices
Figure 12: Total off-trade beer sales, by value, IoI, NI and RoI, 2012-22
Beer volume sales set for increase in 2017
Figure 13: Total beer sales, by volume, on-trade and off-trade, IoI, 2013-22
RoI sees strong cider sales value growth 2015-16
Figure 14: Total cider sales, by value, NI and RoI, 2012-22
Figure 15: Total on-trade cider sales, by value, NI and RoI, 2012-22
Off-trade cider seeing slow-down
Figure 16: Total off-trade cider sales, by value, NI and RoI, 2012-22
Cider volume sales increase in off-trade, decline in on-trade
Figure 17: Total cider sales, by volume, NI and RoI, 2012-22
MARKET SEGMENTATION 
Lager still the dominant sector of the Irish beer market
Figure 18: Estimated total beer market, by segment, IoI, 2017
Lager the dominant sector
Figure 19: Total lager sales, by value, IoI, off-trade and on-trade, 2012-22
Stout expected to see continued growth in 2017
Figure 20: Total stout sales, by value, IoI, off-trade and on-trade, 2012-22
The rise in craft beer could spark opportunity for ale
Figure 21: Total ale sales, by value, IoI, off-trade and on-trade, 2012-22
Figure 22: Estimated market value of craft beer market (on-trade and off-trade), RoI, 2012-17
MARKET DRIVERS
Beer prices increase in the UK and Ireland
Figure 23: Consumer price indices for beer, on-trade and off-trade, RoI, January 2012 to May 2017
Figure 24: Consumer price indices for beer, UK (including NI), June 2012 to May 2017
Increase in excise duty helping to boost beer prices
Figure 25: UK and RoI excise duty rates per pint of beer (4% ABV) and cider (up to 7.5%), 2012-17
Brexit and UK elections taking toll on NI economic confidence
Figure 26: How consumers think the general economic condition of the country will change over the next 12 months, NI and RoI, April and June 2017
Consumers expect improvements in personal financial situation
Figure 27: How consumers think their own personal financial situation will change over the next 12 months, NI and RoI, April 2017
Brexit could disrupt import and export of beers
RoI pubs suffer setback in 2017 as UK/NI tourism drops off
Figure 28: Number of overseas trips to Ireland by non-residents, by area of residence and reason for journey, 2014-Q1 2017
Figure 29: Types of activities done by consumers during last holiday (in Ireland or abroad), NI and RoI, September 2015
NI tourism saw improved performance in 2016
Figure 30: Estimated number of overnight trips in NI by market, 2014-16
Figure 31: If consumers intend to shop for various goods/services in NI/UK during the next six months to take advantage of the shift in the £/€ exchange rate, by demographics, RoI, August 2016
Ireland top country for pre-loading behaviour
Figure 32: Consumers who have drunk beer or cider at home before a night out in the last three months, NI and RoI, March 2017
Figure 33: Top five countries for ‘pre-loading’ drinking behaviour, 2017
KEY PLAYERS AND INNOVATIONS 
2016 sees strong beer and cider launch activity
Beers increasingly vegan friendly
Apple still the dominant cider launch type
WHO’S INNOVATING?
2016 sees increase in beer and cider NPD
Figure 34: Number of beer and cider products launched, UK and Ireland, 2012-17*
Figure 35: Number of beer and cider products launched, by packaging type, UK and Ireland, 2012-17*
Strong increase in vegan-friendly launches
Figure 36: Number of beer and cider products launched, by vegan/vegetarian claims, UK and Ireland, 2012-17*
Standard apple cider continues to see strongest launch
Figure 37: Cider products launched, by top flavours, UK and Ireland, 2012-17*
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
The Cantrell and Cochrane Group (C&C)
Key facts
Product portfolio
Brand NPD
Recent developments
Heineken Ireland
Key facts
Product portfolio
Brand NPD
Recent developments
Craft beer and cider companies
BrewDog
Key facts
Product portfolio
Brand NPD
Recent developments
Carlow Brewing
Key facts
Product portfolio
Recent developments
Hilden Brewery
Key facts
Product portfolio
Recent developments
Long Meadow Cider
Key facts
Product portfolio
Recent developments
The Porterhouse Brewing Company
Key facts
Product portfolio
Recent developments
Whitewater Brewery
Key facts
Product portfolio
Recent developments
THE CONSUMER – WHAT YOU NEED TO KNOW
Lager most drunk type of beer
NI consumers strong users of pear and other fruit ciders
Pubs and bars key location for drinking beer and cider
Consumers demand greater beer/cider choices at festivals
USAGE OF BEER 
Lager most drunk type of beer in 2017
Figure 38: Types of beer consumers have drunk in-home or out-of-home in the last three months, NI and RoI, April 2017
Lager sees strong engagement among more mature consumers
Figure 39: Consumers who have drunk lager (eg Harp Heineken) in the last three months, by age, NI and RoI, April 2017
Stout appeals to men more than women
Figure 40: Consumers who have drunk stout (eg Guinness, Murphys) in the last three months, by gender, NI and RoI, April 2017
Stronger usage of craft beer among RoI consumers
Figure 41: Consumers who have drunk any craft beer/beer made by a small producer (eg Galway Bay) in the last three months, by gender and age groups, NI and RoI, April 2017
Figure 42: Number of beer products launched claiming to be craft, UK and Ireland, 2012-17*
Flavoured beers favoured among 18-24s in RoI
Figure 43: Consumers who have drunk fruit flavoured and spirit flavoured beer in the last three months, NI and RoI, April 2017
Figure 44: Consumers who have drunk fruit flavoured and spirit flavoured beer in the last three months, by age group, NI and RoI, April 2017
USAGE OF CIDER 
NI consumers have more diverse cider tastes compared to RoI
Figure 45: Types of cider drunk by consumers in the last three months, by age group, NI and RoI, April 2017
Apple cider shows stronger engagement with Irish women compared to lager
Figure 46: Consumers who have drunk apple cider vs lager in the last three months, by gender, NI and RoI, April 2017
NI consumers twice as likely to drink pear cider
Figure 47: Consumers who have drunk pear cider in the last three months, by gender, NI and RoI, April 2017
Other fruit ciders see strong usage in NI
Figure 48: Consumers who have drunk any other fruit-flavoured cider (eg strawberry and lime/red grape) in the last three months, by gender and age, NI and RoI, April 2017
OCCASIONS FOR DRINKING BEER AND CIDER 
A pint at the pub is the most popular occasion
Figure 49: Occasions on which consumers have drunk beer in the last three months, NI and RoI, April 2017
Men more likely to drink beer in pubs, but women more likely to drink cider
Figure 50: Consumers have drunk beer and/or cider in a pub or bar in the last three months, by gender, NI and RoI, April 2017
NI consumers more likely to drink beer and cider while relaxing at home
Figure 51: Consumers have drunk beer and/or cider while relaxing at home (eg watching TV) in the last three months, NI and RoI, April 2017
NI consumers more likely to drink beer and cider with meals
Figure 52: Consumers have drunk beer and/or cider with a meal in and out-of-home in the last three months, NI and RoI, April 2017
ATTITUDES TOWARDS BEER AND CIDER
Six in 10 want wider beer/cider choice at festivals and events
Figure 53: Agreement with statements relating to beer and cider, NI and RoI, April 2017
Better variety at festivals important to younger consumers
Figure 54: Agreement with the statement ‘I would like to see a wider choice of beer/cider available at festivals/ events (eg more than just a sponsor’s beer)’, by gender and age, NI and RoI, April 2017
Taste very important to encouraging consumers to spend more
Figure 55: 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 socio-economic group, NI and RoI, April 2017
Oak barrel aging holds strong appeal
Figure 56: Agreement with the statement ‘I would be interested in trying a beer or cider aged in an oak barrel’, by gender, NI and RoI, April 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Data sources
Generational cohorts
Abbreviations