Marstons Off Trade Beer Report 2018
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WHO ARE HOW YOUR RANGING A CLOSER HOW THE MARKET CATEGORY YOUR SHOPPERS YOUR BEER LOOK AT FUTURE IS SUMMARY PROJECTION SNAPSHOT SHOPPERS? BEHAVE AISLE CRAFT SHAPING UP 3 4-6 7-8 9-13 14-19 20-23 24-25 26-27 How is the market forecast to Sub-category performance How do Ale & Lager What motivates their purchase? Ranging Ale by style and How a concept is being defined What are the developing trends Key recommendations to drive grow over the next 3 years? by brand and pack format drinkers differ supporting with brand equity & as a category within the Beer category? your Beer category sales What do they purchase for utilising Own Label How do they move different occasions? The different stages of the Craft between categories? What breadth of choice means in journey Ale and Lager How can you tailor your offer the Lager world drinkers are on to accommodate each of your customer types? How Craft is changing the face of the aisle, and will continue to change How off shelf continues to benefit The power of the multi-buy OFF TRADE BBPA NUMBERS - BARRELS STANDARD ALE PREMIUM ALE STOUT STANDARD LAGER PREMIUM LAGER 16000 FORECAST 14000 12000 Welcome to the OFF TRADE beer report 2018 10000 from Marston’s Beer Company 8000 6000 4000 For the last few years, we have produced the annual Ale Report to support our Off Trade and On Trade 2000 customers and provide actionable insights to help grow the category and for you to benefit from this. 0 In 2018 we have extended the scope of this report to also encompass the Lager category and provide you with an even broader understanding of the Beer category as a whole. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 We are the UK’s largest Ale Brewer and are the UK distributor of a selection of renowned World Lagers & Craft Source; British Beer and Pub Association Beers – therefore we are well placed to offer category expertise across the entire beer category. To compile this report we draw upon various quantitative and qualitative data sources across both the Off Off Trade Beer volumes have been growing steadily since 2014. In both Lager and Ale we are seeing a trend Trade and On Trade. These include IRI total market sales data, Kantar Purchase Panel and Alcovision data to towards premiumisation and this is set to continue with further growth in World and Craft Lager as well as understand the sales and shopper trends and ‘what’ is happening. growth from Craft Ales. To get a deeper understanding of our drinkers we have commissioned Eureka! an independent research We also expect to see further growth in Ale coming from Premium Canned Ale and Premium Bottled Ale (PBA) company to survey over 2,000 Ale drinkers and 2,000 lager drinkers – this helps us to understand the ‘why’ – in particular beers that are influenced by Craft styles with more hoppy flavours are seeing strong growth, behind current and future beer trends. we coin these ‘Crafted PBA’. We hope that you will find this report interesting and that our findings are actionable. Standard Ale & Lager will continue to decline as consumers increasingly opt to drink ‘Better, not more’. Let’s sell some beer! Cheers! It’s important for Brewers and Retailers alike to continue to innovate within Beer and act upon Category Jim Hopkins insight to respond to consumer trends to continue to grow sales. Off Trade Category Manager 2 OFF TRADE beer report 2018 3 CATEGORY MARKET SNAPSHOT “ALCOHOL WAS LAST YEARS LEADING FMCG CATEGORY IN THE UK, WHILST SALES GREW MORE IN THE UK THAN ANY OTHER COUNTRY.” - IRI Top Categories Special Report 2018 TOP 10 WORLD BEERS TOP 10 CRAFT BEERS CATEGORY GROWTH CATEGORY MAT CATEGORY GROWTH CATEGORY MAT DRINKS CATEGORIES PERFORMANCE & CATEGORY SHARES YOY +11% SHARE £m YOY +92% SHARE £m RTD’S WORLD BEERS £794.9 CRAFT BEERS £136 BEERS, WINES, SPIRITS & CIDER CORONA EXTRA 17.0% £135.3 BREWDOG PUNK IPA 26.0% £35.8 YOY VALUE % CHG % VALUE YOY PERONI NASTRO AZZURRO 16.5% £130.9 HOP HOUSE 13 16.0% £21.6 WINE 3.6% SPIRITS SAN MIGUEL 15.0% £119.3 BREWDOG DEAD PONY CLUB 6.0% £8.6 WINE DESPERADOS 6.2% £48.9 BROOKLYN LAGER 3.0% £4.1 BEER & CIDER 5.6% TYSKIE 5.4% £43.3 GOOSE ISLAND IPA 3.0% £3.8 SPIRITS 5.6% BEER & ESTRELLA DAMM 4.4% £35.3 BREWDOG ELVIS JUICE 3.0% £3.8 CIDER COBRA 4.4% £35.2 BLUE MOON WHEAT BEER 2.0% £2.9 RTD’S 6.5% BIRRA MORETTI 3.9% £30.9 INNIS & GUNN CRAFT LAGER 2.0% £2.8 STAROPRAMEN 2.4% £19.4 SIERRA NEVADA PALE ALE 2.0% £2.7 RED STRIPE 2.3% £18.2 CAMDEN USA HELLS 2.0% £2.2 BEER ALE LAGER World Beer is the most buoyant Lager category, with brands such as Well known Mainstream Craft brands continue to dominate. With YOY VALUE % CHG % VALUE YOY CHG % VALUE YOY CLASSIC ALE YOY VALUE % CHG % VALUE YOY Estrella Damm in +135% growth, more than any other in the top 10. 42% of the market share solely coming from the top 2 brands before -1.4% PBA LAGER quickly dropping off. -2.8% -1.3% LAGER 4.7% MAINSTREAM PREMIUM WORLD BEER CRAFT PACKAGE PREMIUM MAINSTREAM PREMIUM CANNED ALE LAGER 4.5% STOUT 2.8% 5.7% PACKAGE TYPE PACK SIZE TYPE STANDARD WORLD 15x & ABOVE CRAFT* 98% 13% 15x & CANNED ALE 3% ABOVE -5.9% 8x-10x STANDARD 2% 8x -10x CANNED STOUT CAN 12x CAN ALE 35% 2x -4x WORLD CLASSIC SINGLE CRAFT BOTTLE 37% 38% BOTTLE LAGER LAGER 17% 12x PREMIUM PBA 63% ALE CANNED MAINSTREAM 2x-4x 62% ALE PREMIUM 2% 6x LAGER 6x *Craft total includes 34% SINGLE Ale and Lager TOP CLASSIC LAGERS TOP 10 MAINSTREAM PREMIUM LAGER TOP 10 STANDARD CANNED ALE TOP 10 PREMIUM CANNED ALE CATEGORY GROWTH CATEGORY MAT CATEGORY GROWTH CATEGORY MAT CATEGORY GROWTH CATEGORY MAT CATEGORY GROWTH CATEGORY MAT YOY -1.3% SHARE £m YOY +4.5% SHARE £m YOY -5.9% SHARE £m YOY +5.7% SHARE £m STANDARD CAN £103.7 PREMIUM CAN £93.3 CLASSIC LAGER £949.2 MAINSTREAM PREM LAGER £1,551.6 STELLA ARTOIS 34.3% £532.9 JOHN SMITH’S EXTRA SMOOTH 61.5% £63.8 OLD SPECKLED HEN 33.4% £31.2 FOSTERS 39.3% £373.2 BUDWEISER 25.3% £391.8 BODDINGTONS DRAUGHT 11.5% £11.9 MCEWAN’S EXPORT 13.4% £12.5 KRONENBOURG 1664 8.9% £137.5 TETLEY’S SMOOTHFLOW 4.6% £4.8 ABBOT ALE 11.1% £10.4 CARLING 34.4% £326.3 COORS LIGHT 6.6% £102.1 OWN LABEL 3.0% £3.2 HOBGOBLIN RUBY 6.9% £6.5 CARLSBERG 12.2% £115.4 HEINEKEN 4.1% £63.6 GREENE KING IPA 3.0% £3.1 TANGLEFOOT 3.8% £3.5 BECKS 4.1% £63.5 TETLEY’S ORIGINAL 2.9% £3.0 HOBGOBLIN GOLD 3.4% £3.2 TENNENTS 6.7% £63.8 CARLSBERG EXPORT 3.5% £53.6 JOHN SMITH’S ORIGINAL 2.5% £2.6 NEWCASTLE BROWN ALE 3.3% £3.1 OWN LABEL 6.6% £62.9 BUD LIGHT 2.3% £36.1 BELHAVEN BEST 1.6% £1.68 WHITBREAD GOLD LABEL 3.2% £3.0 HOLSTEN PILS 2.2% £33.5 OLD GOLDEN HEN 1.5% £1.6 FULLERS LONDON PRIDE 2.9% £2.75 The Classic Lager category is in decline with consumers opting CARLSBERG SPECIAL BREW 2.0% £31.6 TENNENTS SPECIAL ALE 1.5% £1.57 BASS DRAUGHT 2.8% £2.65 for more premium options with higher taste profiles. Premium Lager is increasing in popularity as we see people trading Standard Canned Ale is the fastest declining beer category. Over 70% At current growth rates we expect to see Premium Canned Ale Key: up from Classic Lager. Whilst the more traditional, recognised of sales come from just two brands, with John Smith’s dominating the overtake Standard Canned Ale by next year. Single digit growth Single digit decline brands aren’t performing as well, NPD such as Bud Light is seeing category with 61% of sales value. The majority of the spend lost from Double digit + growth Double digit + decline substantial growth. this sub-category is not switching into other sub-categories within Source: IRI, All Outlets Mar18 beer. Source: IRI All Outlets, Mar 18 4 OFF TRADE beer report 2018 5 CATEGORY MARKET SNAPSHOT THE SHOPPER To benefit from market insight, it is essential to understand your customers. Here we review the differences in behaviour between Ale and ALE PACK FORMAT VALUE TOP 10 MINI KEGS Lager drinkers and how that differs still when it comes to Craft. As with the 2017 Ale Report, we have divided drinkers & shoppers into three groups based on level of engagement. £16M MULTI £9M MINI KEG ALE CATEGORY GROWTH CATEGORY MAT YOY +47.8% SHARE £m £21M MIXED MINI KEG £11,929,663 OLD SPECKLED HEN 18.3% £2.2 LEVEL OF ENGAGEMENT WITH BEER HOBGOBLIN RUBY 17.4% £2.1 ADNAMS GHOST SHIP 15.6% £1.9 CONSUMERS £93M PREMIUM BUDWEISER BUDVAR 10.3% £1.2 CANNED ALE HOBGOBLIN GOLD 8.5% £1.0 £262M STELLA ARTOIS 5.7% £0.7 SINGLE BOTTLE WARSTEINER PREMIUM 3.9% £0.5 £104M STANDARD NEW! OLD CRAFTY HEN 2.6% £0.3 CANNED ALE NEW! IRON MAIDEN TROOPER 2.3% £0.3 NEW! SHIPYARD PALE ALE 2.3% £0.3 SHOPPER LESS ENGAGED MORE ENGAGED Mini Keg remains in double digit growth and the most incremental We are given instructions by someone We represent only 25% of Craft We represent 75% of Craft format of Ale.