Marston’s House Wolverhampton WV1 4JT OFF TRADE For all enquires please contact [email protected] BEER REPORT 2019/20 www.marstons.co.uk WELCOME TO THE INSIDE... OFF TRADE BEER REPORT 2019 4-6 CATEGORY SNAPSHOT FROM MARSTON’S BEER COMPANY How the Beer category is shaping up As the UK’s largest Ale brewer and the licensed distributor of a selection of recognised World Lagers and Craft MACRO TRENDS Beers, at Marston’s we are passionate about Beer and well placed to offer category expertise across the entire 7 Beer category. Five macro trends that are affecting consumer behaviour To compile this report we draw upon various quantitative and qualitative data sources across both the Off Trade 8-13 UNDERSTANDING THE DRINKER and On Trade. These include IRI total market sales data, Kantar Worldpanel and Alcovision data to understand the How Ale and Lager drinkers differ sales and shopper trends and ‘what’ is happening. To get a deeper understanding of our drinkers we commissioned Eureka! - an independent market research 14-15 RANGING company - to survey over 2,000 Ale drinkers and 2,000 Lager drinkers across the UK – this helps us to Merchandising the Beer category in the most convenient understand the ‘why’ behind current and future beer trends. way for the shopper We have endeavoured to make this report insightful and most importantly actionable with recommendations to help you to grow your Beer category sales in three ways: more shoppers, more occasions, more often. 16-17 PREMIUMISATION How to capitalise on this trend Jim Hopkins Off Trade Category Manager 18-19 CRAFT Understanding the Craft category 20-22 HEALTH month, by Volume British Beer & Pub Association (BBPA) Sources: How wellness is impacting the Beer category TOTAL BEER VOLUME Multiples, 52wk 29-12-18. Grocery Advantage, IRI Market AUTHENTICITY 23 35 OFF TRADE ON TRADE Understanding the importance of provenance and quality 30 CONVENIENCE 24-26 25 Winning in the Convenience channel 20 27 EXPERIENCE MAT VOLUME HECTOLITRES 15 Replicating the pub experience at home Jul - 14 Mar - 11 Oct - 15 Oct - 10 Aug - 11 Jul - 09 Apr - 18 Apr - 13 Jan - 17 Mar - 16 Feb - 14 Feb - 19 Jun - 17 Nov - 17 Jan - 12 Dec - 14 Jun - 12 Nov - 12 Aug - 16 May - 15 May - 10 Apr - 08 Jan - 07 Feb - 09 Jun - 07 Nov - 07 Dec - 09 Sept - 18 Sept - 13 Sept - 08 28-29 FUTURE The developing trends within Beer styles and pack formats for future growth Off Trade Beer volume overtook On Trade volume in 2015 and this trend has continued over time as consumers drinking habits have changed, favouring drinking at home rather than in the pub. Total market volume for the 30 SUMMARY year to March 2019 showed that 4.3m pints of Beer were sold through the Off Trade – over 700,000 more than in Key recommendations to drive your Beer category sales the On Trade. 2018 was a fantastic year for the Beer category with the exceptionally hot weather and the World Cup providing consumers with more beer drinking occasions. Look out for our key KEY RECOMMENDATIONS Beer was one of the top performing categories in Grocery Multiples last year with value up +£258m, an increase recommendations and key of +9% from the previous year and +19% compared to 6 years ago. insights throughout the report KEY INSIGHTS 2 OFF TRADE BEER REPORT 2019/20 3 TOP 10 WORLD BEERS TOP 10 CRAFT BEERS CATEGORY GROWTH CATEGORY MAT CATEGORY GROWTH CATEGORY MAT CATEGORY MARKET SNAPSHOT YOY +14.9% SHARE £m YOY +39.3% SHARE £m WORLD BEERS £923,594 CRAFT BEERS £200,696 CORONA EXTRA 17.3% £160,235 BREWDOG PUNK IPA 20.7% £41,494 DRINKS CATEGORY PERFORMANCE & SHARE RTDs PERONI NASTRO AZZURRO 15.5% £142,725 HOP HOUSE 13 16.6% £33,365 2% SAN MIGUEL 14.7% £136,082 BREWDOG DEAD PONY CLUB 3.8% £8,130 BEERS, WINES, SPIRITS & CIDER BIRRA MORETTI 7.9% £73,353 BREWDOG ELVIS JUICE 4.0% £8,000 YOY VALUE % CHG VALUE YOY DESPERADOS 7.0% £64,406 CAMDEN USA HELLS 3.5% £6,942 SPIRITS ESTRELLA DAMM 6.2% £57,303 INNIS & GUNN CRAFT LAGER 2.8% £5,718 WINE WINE 0.5% 28% TYSKIE 4.5% £41,157 BREWDOG DOG PACK 2.7% £5,342 36% BEER & CIDER 8.0% COBRA 3.0% £27,758 GOOSE ISLAND IPA 2.3% £4,524 BEER & CIDER RED STRIPE 2.7% £25,155 BREWDOG INDIE PALE ALE 2.2% £4,482 STAROPRAMEN 2.7% £24,627 BLUE MOON WHEAT BEER 1.9% £3,908 SPIRITS 6.5% 34% WORLD BEER DELIVERED THE HIGHEST VALUE GROWTH... THE CRAFT CATEGORY IS STILL SHOWING STRONG GROWTH... within the Lager category, the largest growth areas coming from Mediterranean albeit slower than last year. Brewdog Punk IPA has lost 5% share YOY, signalling the number of RTDs 19.6% brands such as Estrella Damm. new entrants and high levels of consumer experimentation. TOTAL BEER VALUE SHARE TOTAL ALE VALUE SHARE TOTAL LAGER VALUE SHARE MAINSTREAM PREMIUM WORLD BEER CRAFT PACKAGE (EXC CRAFT) (EXC CRAFT) CRAFT PACKAGE TYPE PACK SIZE TYPE 5% CANNED ALE WORLD CLASSIC ALE 10x pack 21% BEER LAGER 6x pack STOUT 11% 3% PBA 26% 27% 4% 2% LAGER CANNED 60% SMOOTH/MILD 82% MAINSTREAM 19% PREMIUM LAGER 47% 12x pack BOTTLE 4x pack 21% BOTTLE 32% BEER VALUE PERFORMANCE ALE VALUE PERFORMANCE LAGER VALUE PERFORMANCE CAN 37% 18x pack 48% CAN 3% STOUT PBA 63% SINGLE 52% 4.2% WORLD BEER -2.3% 14.9% 34% VALUE (£M) VALUE (£M) VALUE VALUE (£M) VALUE 3x pack LAGER 3% 8.7% CANNED MAINSTREAM SMOOTH/MILD PREMIUM LAGER CRAFT -1.5% 8.1% 39.1% CANNED CLASSIC ALE ALE LAGER -0.7% 3.4% 3.4% 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 +3.4% SHARE £m YOY +8.1% SHARE £m YOY -1.5% SHARE £m YOY +3.4% SHARE £m STANDARD CAN £93.8 PREMIUM CAN £107.6 CLASSIC LAGER £977.8 MAINSTREAM PREM LAGER £1,670.7 STELLA ARTOIS 35.2% £592.4 JOHN SMITHS EXTRA SMOOTH 68.0% £63.8 OLD SPECKLED HEN 28.6% £30.0 FOSTERS 39.2% £383.2 BUDWEISER 24.7% £416.1 BODDINGTONS DRAUGHT 11.6% £11.0 MCEWANS EXPORT 14.3% £15.0 CARLING 33.5% £327.3 KRONENBOURG 1664 8.8% £147.9 TETLEYS SMOOTHFLOW 4.2% £3.9 ABBOT ALE 10.2% £10.7 HEINEKEN 6.9% £115.8 GREENE KING IPA 3.3% £5.3 SHARPS DOOM BAR 6.4% £6.8 CARLSBERG 11.9% £116.6 COORS LIGHT 5.8% £98.3 TETLEYS ORIGINAL 2.5% £2.3 OWN LABEL 4.3% £4.6 TENNENTS 8.6% £83.8 BUD LIGHT 3.4% £57.3 BELHAVEN BEST 2.3% £2.1 HOBGOBLIN 4.3% £4.7 JOHN SMITHS ORIGINAL 2.2% £2.0 TANGLEFOOT 3.5% £3.7 OWN LABEL 6.2% £60.2 BECKS 3.1% £52.2 CARLSBERG EXPORT 3.1% £52.1 CAFFREYS IRISH ALE 2.1% £1.3 HOBGOBLIN GOLD ALE 3.4% £3.6 WORTHINGTONS CREAM FLOW BITTER 1.4% £0.9 ADNAMS GHOST SHIP 3.1% £3.3 SUMMER HAS CONTRIBUTED TO THE GROWTH WITHIN CLASSIC LAGER. AMSTEL 2.1% £35.4 Drinkers from other categories switched into Lager. HOLSTEN PILS 1.7% £28.8 BANKS'S ORIGINAL ALE 0.9% £0.7 NEWCASTLE BROWN ALE 2.6% £2.8 KEY: MAINSTREAM PREMIUM BRANDS SIT ALONGSIDE CLASSIC LAGER... 80% OF THE TOP 10 BRANDS ARE IN DECLINE... PREMIUM CAN IS ONE OF THE KEY GROWTH AREAS giving the Classic Lager drinker the chance to premiumise. John Smiths increasing category share indicates that space is being taken away OF THE ALE CATEGORY... SINGLE DIGIT GROWTH SINGLE DIGIT DECLINE from this declining category and given to other more buoyant ones. with a signifcant proportion of spend switching from PBA. As predicted last year, DOUBLE DIGIT + GROWTH DOUBLE DIGIT + DECLINE Premium Can share of the category has now overtaken Standard Can. Source: IRI All Outlets w/e 27th Apr’19 Source: IRI All Outlets w/e 27th Apr’19 4 OFF TRADE BEER REPORT 2019/20 5 CATEGORY MARKET SNAPSHOT MACRO TRENDS TOP 20 PBA BRANDS ALE PACK FORMAT SALES Within this report we consider the fve key macro trends that are affecting consumer behaviour, how this is impacting the Beer CATEGORY GROWTH CATEGORY MAT category and what can be done to remain relevant in these areas and grow total sales. YOY -1.6% SHARE £m PBA £282.2 £259M SINGLE SHARPS DOOM BAR 6.8% £19.3 OLD SPECKLED HEN 4.9% £13.9 £14M MULTI HOBGOBLIN 4.6% £13.0 Almost half of drinkers are readily looking to premiumise their £94M drink choice. Consumers continue to drink less but better as £18M STANDARD NEWCASTLE BROWN ALE 4.5% £12.7 £105M PREMIUMISATION demonstrated by the growth of Premium Beer categories. MIXED CANNED ALE PREMIUM OWN LABEL 3.4% £9.6 CANNED ALE McEWANS NO 1 CHAMPION ALE 3.2% £9.0 Source: CGA BrandTrack ST AUSTELL PROPER JOB 2.9% £8.2 OLD CRAFTY HEN 2.8% £8.0 TOP 5 PBA & CRAFT MIXED PACKS FULLERS LONDON PRIDE 2.6% £7.4 THEAKSTON OLD PECULIER 2.1% £5.8 CATEGORY GROWTH CATEGORY MAT SHIPYARD IPA 2.0% £5.7 65% of consumers are proactively trying to lead a healthy lifestyle. Health and wellbeing YOY +2.2% SHARE £m are increasingly important in an age of increased responsibility.