Beer & Cider - Ireland - June 2019

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
Market sizes
Figure 1: Estimated total beer market, by segment, IoI, 2018
Figure 2: Estimated total cider sales, NI and RoI, 2014-19
Forecast
Figure 3: Estimated value of the total beer and cider market, NI and RoI, 2014-24
Market factors
Increased beer prices could hinder on-trade growth
Pint of beer/cider duty freeze continues
Alcohol-related deaths peaks
Healthy finances in RoI, but NI are less positive
Companies and innovations
The consumer
Lager is the most drunk beer in Ireland
Figure 4: Types of beer consumers have drunk in home or out of home in the last three months, NI and RoI, March 2019
Apple cider remains the favourite in Ireland
Figure 5: Types of cider drunk in the last three months, NI and RoI, March 2019
Price most important factor in beer while flavour more important to cider drinkers
Figure 6: Factors most important when buying beer, NI and RoI, March 2019
Figure 7: Factors most important when buying cider, NI and RoI, March 2019
Premium beer/cider must deliver on taste
Figure 8: Agreement with statements related to beer and cider, NI and RoI, March 2019
THE MARKET – WHAT YOU NEED TO KNOW
Beer sales forecast for 2.6% while cider expected to see modest growth in 2019
Lager accounts for 60% of beer sales in 2018
Beer prices rising could benefit off-trade
Pint tax duty freeze continues as beer consumption rates fall
Record year for alcohol-related deaths
Healthy finances bode well for beer in RoI, but NI are less positive
MARKET SIZES AND FORECAST
IoI beer sales forecast 2% growth in 2019
Figure 9: Total beer sales, by value, IoI, NI and RoI, 2014-24
On-trade beer sales witnessed 2.8% growth in 2018
Figure 10: Total on-trade beer sales, by value, IoI, NI and RoI, 2014-24
Off-trade growth estimated at 1.6% in 2019
Figure 11: Total off-trade beer sales, by value, IoI, NI and RoI, 2014-24
Figure 12: Occasions on which consumers have drunk beer in the last three months, NI and RoI, March 2018
Figure 13: Types of activities that consumers have done/taken part in during the last three months, on a weekend night, NI and RoI, January 2019
Volume sales slow in 2019
Figure 14: Total beer sales, by volume (LPA), on-trade and off-trade, IoI, 2014-24
Cider forecast consistent but slow growth in the next five years
Figure 15: Total cider sales, by value, IoI, NI and RoI, 2014-24
On-trade cider sales slow while off-trade sales improve
Figure 16: Total off-trade vs on-trade cider sales, by value, IoI, 2014-24
Figure 17: Occasions on which consumers have drunk cider in the last three months, NI and RoI, March 2018
Volumes sales up almost 2% in 2018
Figure 18: Total cider sales, by volume, on-trade and off-trade, IoI, 2014-24
MARKET SEGMENTATION
Lager accounts for around 60% of total beer sales
Figure 19: Total lager sales, by value, IoI, off-trade and on-trade, 2014-24
Stout set for 1.3% growth in 2019
Figure 20: Total stout sales, by value, IoI, off-trade and on-trade, 2014-24
Ale set for continued growth in 2019
Figure 21: Total ale sales, by value, IoI, off-trade and on-trade, 2014-24
Figure 22: Distribution of microbrewery beer products, by the top five selling styles of beer, RoI, 2017
Craft beer continues strong growth
Figure 23: Estimated market value of craft beer market, RoI, 2014-20
MARKET DRIVERS 
On-trade beer prices rising faster than off-trade
Figure 24: Consumer price indices for beer, on-trade and off-trade, RoI, August 2017-February 2019
Figure 25: Consumer price indices for beer, UK (including NI), August 2017-February 2019
Figure 26: Consumer price indices for restaurants and cafes, UK (including NI), August 2017-February 2019
Tax on beer freezes in 2019 while RoI consumption of beer drops
Figure 27: UK and RoI excise duty rates per pint of beer (4% ABV) and cider (up to 7.5%), 2012-19
Figure 28: Beer consumption rates in Europe (annual beer consumption in litres per capita), by country, Europe, 2017
Health concerns could impact beer sales
Key players step into low/non-alcohol beer category
Figure 29: Consumers who have drunk low/non-alcoholic beer or cider in the last three months, NI and RoI, March 2019
Financial outlook looks promising
Figure 30: How consumers rate their current personal financial situation, NI and RoI, March 2019
Figure 31: Agreement with the question ‘Thinking about your own personal financial situation, do you think that it will improve, stay the same or get worse over the next 12 months?’, NI and RoI, March 2019
RoI VAT rise could cause problems for hospitality and tourism sector
Figure 32: Consumer responses to the question ‘What stands out when you think of Irish food & drink?’, Global, 2016
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Craft beer launches signalling to social media
C&C Group and Brewdog take stakes in craft producers
Larger brewers now adapting to a reduced alcohol era
Long Meadow expanding its deal with Sainsbury’s
Many brands in the industry working to reduce environmental impact
WHO’S INNOVATING?
Beer product launches reaching a peak in the last five years
Figure 33: New beer product launches, UK and Ireland, 2014-19
Brewers looking to improve environmental performance
Figure 34: Top 10 claims in new beer product launches, UK and Ireland, 2014-19
Rising launches in vegan and unpasteurised beer
New beer launches engaging via social media
Figure 35: Beer companies launching products using “Social Media” as a claim, UK and Ireland, 2014-19
Number of new cider product launches increasing
Figure 36: New cider product launches, UK and Ireland, 2014-19
Cider offers natural ‘gluten-free’ advantages
Figure 37: Claims analysis of new cider products launched, UK and Ireland, 2014-19
Premium push across both categories
Figure 38: Beer and Cider launches using the claim “Premium”, UK and Ireland, 2014-19
COMPANIES AND BRANDS
Budweiser Brewing Group UK & Ireland
Key Facts
Product Portfolio
Brand NPD
Recent Developments
BrewDog
Key facts
Product portfolio
Brand NPD
Recent developments
C&C Group Plc.
Key Facts
Product Portfolio
Brand NPD
Recent Developments
Diageo
Key Facts
Product Portfolio
Brand NPD
Recent developments
Heineken Ireland
Key Facts
Product Portfolio
Brand NPD
Recent Developments
Molson Coors
Key Facts
Product Portfolio
Brand NPD
Recent Developments
 CRAFT BEER & CIDER COMPANIES
Carlow Brewing Company
Key facts
Product portfolio
Recent developments
Hilden Brewery
Key Facts
Product Portfolio
Long Meadow
Key facts
Product portfolio
Recent developments
Porterhouse Brewing Company
Key facts
Product portfolio
Whitewater Brewery
Key facts
Product portfolio
Recent developments
THE CONSUMER – WHAT YOU NEED TO KNOW
Lager tops beer types
Apple cider preferred by Irish consumers
Price and flavour are the most important factors in beer and cider
Many would be happy to receive beer/cider as a gift
USAGE OF BEER 
Lager remains the top beer drunk in Ireland
Figure 39: Types of beer consumers have drunk in home or out of home in the last three months, NI and RoI, March 2019
Men more inclined to drink lager
Figure 40: Consumers who have drunk lager (eg Harp, Heineken) in the last three months, by gender and age, NI and RoI, March 2019
Figure 41: Consumers who have drunk fruit flavoured beer (eg Fruli) or spirit flavoured beer (eg Desperados), in the last three months, by age, NI and RoI, March 2019
Stout appeals to 25-34 year olds
Figure 42: Consumers who have drunk stout (eg Guinness) in the last three months, by age, NI and RoI, March 2019
Craft beer holds more ground in RoI
Figure 43: Consumers who have drunk craft beer (eg Galway Bay) in the last three months, by gender and age, NI and RoI, March 2019
USAGE OF CIDER
Apple cider tops
Figure 44: Types of cider drunk in the last three months, NI and RoI, March 2019
Apple cider preferred by men
Figure 45: Consumers who have drunk apple cider in the last three months, NI and RoI, March 2019
Younger consumers prefer other fruit flavoured cider
Figure 46: Consumers who have drunk other fruit-based cider (eg strawberry and lime, red grape) in the last three months, by gender and age, NI and RoI, March 2019
FACTORS OF INFLUENCE 
Price most important when it comes to beer selection
Figure 47: Factors most important when buying beer, NI and RoI, March 2019
Millennials most interested in beer price and less about brand
Figure 48: Consumers who noted price and brand as being the most important factors when buying beer, by age, NI and RoI, March 2019
Flavour more important than price when buying cider
Figure 49: Factors most important when buying cider, NI and RoI, March 2019
Distinct flavour prompts innovation in processing techniques
Figure 50: Consumers who noted distinctive flavour as being the most important factor when buying cider, by social class, NI and RoI, March 2019
Brand of significant importance to Irish cider drinkers
Figure 51: Consumers who noted ‘brand’ and ‘craft’ as being the most important factor when buying beer, NI and RoI, March 2019
ATTITUDES TOWARDS BEER AND CIDER
Premium beer/cider must deliver on taste
Figure 52: Agreement with statements related to beer and cider, NI and RoI, March 2019
Can beer break into the ‘gifting’ occasion?
Figure 53: Agreement with the statement ‘I am happy to receive beer/cider as a gift (eg Christmas/birthday)’, by gender, NI and RoI, March 2019
Beer should be brewed in an environmentally friendly way
Figure 54: Consumer agreement with the statement ‘I think it is important beer/cider is brewed in an environmentally friendly way’, NI and RoI, March 2019
Figure 55: Top five environmental issues most important to consumers, NI and RoI, November 2018
Beer is part of the ‘going out’ experience
Figure 56: Consumer agreement with the statement ‘I think drinking beer/cider is a good way to bond with other people’ and ‘I think beer/cider is an important part of the 'going out' experience (eg live sport/ concerts)’, NI and RoI, March 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Generational cohort definitions
Abbreviations