Dan Ihrelius Head Purchaser, Systembolaget
Export Development Program October 10th 2008 Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future Systembolaget – The Monopoly
• Minimizing alcohol related problems • Promoting a healthy drinking culture • Providing the best possible service Systembolaget 2007
• 411 stores (3 flagship stores with wine cellar; 300+ self- service) • 540 agents • 330 suppliers working with SB • 4,400 employees, 70% working part-time • Total sales in value: SEK 25,3 billion (USD 3,6 billion) • Total sales in volume: wine 160 million ltrs • spirits 19 million ltrs • beer 207 million ltrs • Range: 2 300 brands (+4 800 articles on the special order list) (300 beers) Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future The purchasing process
• Launch plan – published yearly • Request for tenders • Samples • Blind tasting •Purchase • Launch Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future Systembolaget’s sales jan-jun 2008
1 000 of change litres 2008/2007
Spirits 8 946 -1,1% Wine 78 558 3,0% Beer 102 602 2,7% Cider/RTD 8 845 1,8% Non alcoholic 376 4,6% Total pure alcohol 19 741 2,0% Sales share per category jan-jun 2008 (Volume)
Wine 39%
Beer 53%
Spirits Cider/RTD 4% 4% Sales share per category jan-jun 2008 (Value)
Beer 23%
Cider/RTD 3%
Wine 50%
Spirits 24% Top Ten Beer Countries (volume)
VOLUME 08 Chg vs. 07 Chg vs. 07 YTD VOLUME YTD VALUE YTD Sweden 115 902 150 1,3% 4,3% Denmark 19 536 381 4,7% 8,3% Czech Rep. 6 398 693 7,9% 10,3% Netherlands 3 071 605 7,2% 13,3% Finland 2 643 915 4,3% 5,9% UK 2 446 071 16,3% 20,7% USA 1 657 592 19,2% 23,1% Germany 1 483 660 -6,8% -3,1% Mexiko 1 263 331 19,1% 20,0% Spain 816 601 15,1% 12,2%
Jan-Aug 2008 Segments – sales development
Chg vs. Chg vs. VOLUME 07 VOL 07 VALUE SEGMENTS YTD 08 YTD YTD ALE/PORTER/STOUT BTL (..-5,9%) 1 914 548 12,2% 15,3% ALE/PORTER/STOUT CAN (..-5,9%) 639 685 -6,8% -4,2% ALE/PORTER/STOUT EXTRA STRONG (6,0%-..) 628 596 28,3% 29,6% ALE/PORTER/STOUT Totalt 3 182 830 10,4% 14,7% LAGER BTL IMPORTS (..-5,9%) 15 680 306 12,2% 15,9% LAGER BTL SWE (..-5,9%) 7 491 984 4,5% 10,4% LAGER CAN IMPORTS (..-5,9%) 17 920 169 4,5% 8,0% LAGER CAN SWE (..-5,9%) 72 747 383 2,8% 6,5% LAGER EXTRA STRONG BTL (6,0%-..) 2 166 329 -13,5% -18,4% LAGER EXTRA STRONG CAN (6,0%-..) 22 727 261 -2,2% -0,4% DARK LAGER BTL 603 257 -0,8% -1,8% DARK LAGER CAN 840 483 -15,6% -11,9% LAGER Totalt 140 177 171 2,8% 6,7% WHEAT 433 717 29,5% 26,0% SPECIALTY 210 216 -4,5% 1,5% OTHER PACKAGING FORMATS 792 655 4,1% 4,0% OTHER Totalt 1 436 588 9,1% 11,6% TOTAL 158 968 675 2,9% 6,6%
Jan-Aug 2008 (Ciders, RTDs and Seasonals have been omitted from the chart, but are included in the total.) Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future US Craft Beer Jan-Aug, 2006-2008
450 000 + 30 % Dark Lager Lager 400 000 Ales >6,0% Ales <6,0% 350 000 + 69 %
300 000
250 000
200 000
150 000
100 000
50 000
0 2006 2007 2008 Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future 2008 US long term launches
April Anchor Porter 355ml Anchor Saranac Black Forest 355ml Matt Brewing Co
October Coors Light 355ml Coors Brother Thelonious 355ml North Coast Samuel Adams Honey Porter 355ml Boston Beer 2008 US limited launches
February 2007 Celebration Sierra Nevada 250cs Ommegang 750ml Ommegang 250cs Widdershins Barley Wine 750ml Left Hand 60cs XS Imperial Pale Ale 750ml Rogue 60cs XS Imperial Stout 750ml Rogue 60cs Warrior IPA 750ml Left Hand 60cs
March Wheatland 355ml Michigan 500cs Three Philosophers 750ml Ommegang 165cs Black Chocolate Stout 355ml Brooklyn 200cs
May Monster Ale 355ml Brooklyn 150cs ESB 355ml Sierra Nevada 175cs Brewer's Choice Royal IPA 355ml Shipyard 450cs Le Merle 750ml North Coast 60cs 2008 US limited launches
June Mackinac Summer Ale 355ml Michigan Seasonal 2008 Bigfoot 355ml Sierra Nevada 175cs Old Rasputin 355ml North Coast 300cs Chainsaw 750ml Left Hand 50 cs
August Hercules Double IPA 355ml Great Divide 250cs Rye Bock 750ml Left Hand 75cs Hvedegoop 650ml Three Floyds/Mikkeller 15cs
September Brooklyn Oktoberfest 355ml Brooklyn Seasonal Samuel Adams Oktoberfest 355ml Boston Beer Seasonal Left Hand Okotberfest 355ml Left Hand 300cs 2008 Old Stock Ale 355ml North Coast 125cs 2008 US limited launches
November Old Guardian Barley Wine 650ml Stone 180cs Double Bastard Ale 650ml Stone 180cs 2008 Anniversary 355ml Sierra Nevada 350cs Samuel Adams Imperial Pilsner 355ml Boston Beer 125cs Oak Aged Yeti 650ml Great Divide 100cs Twin Sisters IPA 650ml Left Hand 90cs Anchor Christmas Ale 355ml Anchor Seasonal Samuel Adams Winter Lager 355ml Boston Beer Seasonal Longfellow 650ml Shipyard Seasonal Hibernation Ale 355ml Great Divide Seasonal
December Vertical Epic 07/07/07 650ml Stone 180cs Imperial Russian Stout 650ml Stone 180cs Anchor Christmas Ale 1500ml Anchor 100cs Samuel Adams Chocolate Bock 750ml Boston Beer 35cs Bourbon County Stout 355ml Goose Island 65cs Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future Health & Environment
• 22 % increase for organic beer • 50 organic products by 2009 • New packagings – PET • Health aspect – incl ’light’ beer • Fair Trade Premium
Chg vs. 07 Chg vs. 07 VOL YTD VALUE YTD ALE/PORTER/STOUT BTL (..-5,9%) 12,2% 15,3% ALE/PORTER/STOUT EXTRA STRONG (6,0%-..) 28,3% 29,6% LAGER BTL IMPORTS (..-5,9%) 12,2% 15,9% WHEAT 29,5% 26,0% • Trading up • Affordable luxury • Indulgence • ”I’m worth it” •DIY Local vs Global
• Globalization • Local = Premium • Local = Credibility • Individualism Media Agenda
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future Future strategy for US beer
• Maintain launch rate for ”one-offs” • Slow down launch rate for ”year-rounds” • Let the range settle Possible future launches
• Wheat Beer US/Can/UK ED 100 000O S– 125 000 litres/year AprilCL 2009
• Strong Ale US 20 000 – 30 000 litres/year October 2009 Agenda – all done!
1. Systembolaget – brief presentation 2. The purchasing process 3. General Sales 2008 4. US Sales 2008 5. US Launches 2008 6. Consumer trends 7. Future [email protected]