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INSIGHT DEPARTMENT Topic Paper July 2016

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INSIGHT DEPARTMENT Topic Paper July 2016 INSIGHT DEPARTMENT Topic Paper July 2016 The Growth of Craft BEER & The Scottish Tourism Industry: How Your Business Can Benefit 1 Background The rise of interest in craft beer over recent the tourism industry over recent years, and years has also mirrored many similar consumer are already affecting consumer behaviour and trends within the tourism industry. The growth decisions. in interest from younger demographics, most notably millennials, has driven a search for VisitScotland conducted research in products that are authentic and give an honest conjunction with The Brewers Association of representation of their brand. Consumers Scotland (TBAS) in order to better understand searching for transparency within their the potential craft beer has for enhancing products have also been attracted to the the tourism experience through the food and craft beer phenomenon due to their ability drink industry in Scotland. The following to tell a compelling, honest story about their paper highlights the potential craft beer has in background and passion for their product. enhancing the Scottish tourism product, Provenance has also played an integral role in as well as offering stakeholders food for helping craft beer brewers tell the story of their thought on how this trend could positively brand, highlighting their heritage and roots. impact their business. These trends have also been identified within What is Craft Beer? Although it is difficult to define what exactly makes a beer or ale craft, it is most commonly associated with small, independent breweries who offer a unique product. 2 The importance of Food & Drink to Scotland’s tourism industry Food and drink is an important part of our Although the vast majority do not come to Scottish cultural identity and heritage and is Scotland solely for the purpose of sampling therefore, a key strength in promoting Scotland craft beer, trying local food and drink enhances as a holiday destination. Sampling traditional their experiences. Research from VisitScotland’s dishes and local produce is one of the top Visitor Survey (2015) found that ‘trying local activities undertaken by visitors to Scotland. drinks’ was the third highest food & drink Recent research from VisitScotland’s Visitor experience undertaken by visitors to Scotland Survey (2015) found that trying local food and whilst on their trip. This further highlights the drink is an integral part of the visitor experience, importance provenance plays in the mind set of particularly for international visitors, who show tourists, and the potential role it plays in terms a strong desire to find out about the provenance of motivating consumers to Scotland. of food and drink products. which of the following did you experience on your holiday / short break in scotland Dined out in a 95% 92% Restaurant, café or pub 93% Tried local food 75% 49% 56% Tried local drinks 68% 40% (E.G. Whisky, cra beer) 47% Night out / visited pubs 47% 33% 36% Had a picnic or bbq 24% 31% 30% Visited a 38% 13% whisky distillery 20% Attended a 6% International Food & drink event 4% 4% Domestic Went on a 3% 1% Food or drink trail 1% Total Base: 1608 Source: Scotland Visitor Survey (2015) Did you know… Visitors to Scotland spend 20% of their holiday budget on eating and drinking. Source: VisitScotland Research 3 Expectation and Experience It is important to recognise that a gap exists found their experience greatly surpassed their between the expectation and experience of expectations, particularly within international Scottish food and drink products by visitors. markets. This further enforces the positive Recent research found that international image that the provenance of food and visitors, particularly Europeans have a lower drink products has on improving the visitors expectation than other markets of Scottish experience whilst on their trip. food and drink products. However, all markets 9 8.36 7.89 8.09 8 experience 7.86 7.29 7.40 7 expectation mean score 6.55 6 6.09 scots rest of UK europeans rest of world Base: 1608 Source: Scotland Visitor Survey (2015) Tourism & Scottish Craft Beer Digital analytics information from generated in domestic markets such as London VisitScotland’s consumer website and Aberdeen, whilst overseas interest came (VisitScotland.com) indicate that there is from New York, Hamilton, and Toronto Ontario, a strong domestic interest in ‘craft beer’, Houston Texas, and Sydney Australia. with general searches related to craft beer, festivals, and tastings originating from London, In terms of tourism products, many of Edinburgh, Glasgow, and Aberdeen. In terms Scotland’s craft breweries offer tours around of international searches, interest for beer their premises explaining their process, festivals were registered with consumers in the heritage, and passion for producing their USA, with a particular high number of searches industry. This helps to emphasise the in New York, Oakland San Francisco, San Jose importance provenance and authenticity California, and Detroit Michigan. Data indicates plays in their product as many brewers have that these markets made searches regarding identified the importance of localism. It should ‘craft beer’ pages throughout 2015, and showed also be noted that there is a growing trend with a continued interest in the products consumers to seek out products, which match their own beliefs and opinions. As many craft Searches were also made using the terms ‘craft beer products are unique and have compelling ale’, which also generated particular domestic stories to strengthen their brands image, and overseas interest. In terms of visits to the this helps to create a sense of authenticity ‘real ale trail’ page, particular interest was with the consumer. 4 Trends in tourism and craft beer industry So what exactly links tourism with the craft beer industry? The rise of provenance their business, brewers highlighted a number of The farm to fork phenomenon is changing key themes already prevalent within Scotland’s shopping and eating habits through many tourism industry and product. Areas highlighted consumer markets. Local food/drink produce include: and provenance are now things to shout about. Farmers markets, food stalls at events and • Quality/Trust Affiliation with Scotland festivals are increasingly gastronomic. The as a tourism product has worldwide move by consumers to understanding and association with quality in terms of seeking provenance has its links in trends of tourism product. Exporting world health and wellbeing, connections to landscape renowned quality products such as and appreciation of iconic produce. Research whisky, salmon, amongst other conducted by VisitBritain and the Office for products has helped to establish National Statistics found that 40% of visitors Scottish food & drink products as who come to Scotland buy food or drink to quality, trusted products. take home with them. Research also found that • Scenery/Landscape A number of Scottish international visitors to Scotland are shopping craft brewers use either national or for food-based souvenirs more than in other local landmarks in order to portray their areas of the UK, furthering the connection of products brand story. This further provenance associated with Scotland and its emphasises the importance brewers who rich food and drink identity. use this imagery in order to link with the Scottish tourism product. It is evident that many craft brewers use • Heritage The use Scottish words or provenance as a means of differentiating their phrases help to build upon the Scottish products from competitors. It is also recognised brand image as well as convey the story as an excellent marketing tool to promote their of the product. This may be in the name products values and brand story. Research of a particular beer or ale. Some brewers conducted by The Brewers Association of will provide context to the products Scotland in conjunction with VisitScotland background in order to help the consumer found that nearly two thirds of respondents identify the product with a particular found the brand of Scotland important to their event or place. This helps to create an own brand, while 50% found it very important. emotion or feeling with the product that When prompted to divulge what aspects of in turn creates brand loyalty. Scotland’s brand image are most important to 5 Recent data has indicated that “ millennials (25 -34) generate the highest amount of visits to craft beer related pages than any other demographic - VisitScotland Research ” 6 Honest Authenticity Authentic experiences are being developed or cuisine. Findings from interviews with within the minds of the consumer before they Scottish craft beer brewers indicates that the arrive in Scotland, and we, the Scottish tourism majority of brewers in Scotland are small, industry, need to meet their expectations. family run businesses, which resonate well When we don’t consider our customers with consumers looking for products that have perspectives, we run the risk of resulting in a a compelling story. It is evident that certain tainted view of a real authentic experience. consumers are searching for products, which Tourism professionals may be aware that are created with passion and spirit. As many although consumers have different ideas of craft breweries in Scotland build their image what authenticity is when considering a tourism around a strong brand story, consumers will product, it should be noted that consumers look to draw closer to such brands in a time are also searching for honest authenticity. of dwindling brand loyalty, due to increased This could be discovering real local customs competition. Importance of Millennials Businesses looking to tackle seasonality issues Data collected from VisitScotland’s English shouldn’t overlook the younger demographics language sites found that page visits for craft in the off season. Other than the over 65 beer related content is made by a wide range market, the 16-24 demographic stay the longest of demographics. However, recent data has in quarter one on average than any other indicated that millennials (25-34) generate the domestic demographic.
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