Sector Insight: Beer

Still from Carlsberg ad
Still from Carlsberg ad

Despite an increase in off-trade sales and the growing popularity of low-alcohol products, the beer industry has been hit by a considerable decrease in revenues since 2006.

Five key trends:

The market was worth £15.5bn in 2011, down from £17.7bn in 2006. Lager experienced the biggest loss, down 10%. 

There is a shift toward drinking at home. On-trade sales were down 15% between 2006 and 2010, while at-home drinking increased by 1.6%. 

Low-alcohol beers have gained in popularity across the retail sector. Volume sales for nonand low-alcohol beer grew by 40% in the year to November 2011. 

Lager companies are looking to target women by launching variants that are less carbonated or lower in calories.  

Stout has suffered the sharpest decline, with volume sales down by 25% in the past five years.

Source: Mintel

Base: Adults aged 18+ Taken from the TGI survey of about 25,000 adults Source: GB TGI, Kantar Media UK Ltd Q3 2007-11 (Apr-Mar)/Mintel

Source: Mintel

The Industry's Main Players:

Chris McDonough, marketing director, Molson Coors UK and Ireland  Chris McDonough, marketing director, Molson Coors UK and Ireland

McDonough, an ex-Muller marketer, joined in 2010, taking responsibility for Carling, Grolsch and acquired brands Cobra and Singha.

He was behind Carling's £7m repositioning campaign, which launched last year.

James Watson, Western Europe marketing director, Stella ArtoisJames Watson, Western Europe marketing director, Stella Artois

Watson took the reins at Stella after a stint as marketing director for Budweiser and Tennent's at AB InBev. Before that, he was global innovation manager for Guinness.

He started his career at Heinz.


Jacco van der Linden, marketing director, HeinekenJacco van der Linden, marketing director, Heineken

Van der Linden took the top UK marketing role for Heineken's beer and cider business in February.

Previously, he had worked in Unilever's ice-cream division before joining Heineken NV in 1999, where he has held several international sales and marketing roles.

 

Iain Newell, Western European marketing director, Budweiser

Newell joined AB InBev in 2010. He is responsible for building the brand outside the US and for Bud 66, the low-alcohol brand launched in 2010.

He has also worked for Heineken, E&J Gallo, Interbrew, Bestfoods and Unilever.

Winners and losers in the beer sector

Budweiser: Has had strong growth with off-trade sales almost doubling, thanks to discounting and marketing support
Foster's: Has benefited from a well-received above-the-line ad campaign in 2010/11 and performed strongly against main rival Carling.
Stella Artois 4%: Despite a successful launch in 2009, value sales of this sub-brand have dropped 30%. The original Stella Artois has performed well, however.
Kronenbourg 1664: Off-trade sales of the Heineken brand dropped by more than 13% between 2008 and 2010.
Guinness: Pressure on Guinness with stout market falling in Europe although developing markets performing better. Even on its home-turf of Ireland sales have dropped 6%.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer