Strategies for the future. Understanding on and off trade trends in order to drive growth in both

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Shon Singleton
5 years ago
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1 Strategies for the future Understanding on and off trade trends in order to drive growth in both

2 EeBriaTrade is a craft beer marketplace connecting over 400 breweries with pubs nationwide 2

3 Craft Beer is a very quick growing sector of the industry but what makes up that growth? Craft Beer Market Size, m

4 IPAs and Pales are increasingly k Pale Ale IPA 2016: 2017: 20.9% 27.3% 23.7% 32.0% Pale Ales and IPAs have consistently grown their share of sales over the last 2 years, from 48% to 60% 2018: 24.6% 35.8% All sales are based on the 12 months ending in April of that year 4

5 Traditional styles are in rapid d Traditional Styles % of Craft Beer Market 16% 14% 12% 10% 8% 6% Craft brewers are increasingly shunning traditional styles such as Bitter, Amber, Red, Mild, Brown, Golden and Blonde Ales 4% 2% 0% All sales are based on the 12 months ending in April of that year 5

However brewery ranges are increasingly diversified Percentage of sales by largest product line 40% 35% 30% 25% 20% 15% 10% Breweries are less reliant on

6 However brewery ranges are increasingly diversified Percentage of sales by largest product line 40% 35% 30% 25% 20% 15% 10% Breweries are less reliant on one beer, as craft beer venues require variety to keep their customers interested Brewery name is more important now than the beer name. 5% 0%

Craft lager and sours are gaining momen Lager and Sour % of craft beer 7% 6% 5% Lager Sour Craft brands are starting to make inroads in craft lager, with it doubling its share of craft beer over the

7 Craft lager and sours are gaining momen Lager and Sour % of craft beer 7% 6% 5% Lager Sour Craft brands are starting to make inroads in craft lager, with it doubling its share of craft beer over the last two years. 4% 3% 2% 1% Sour beers are also becoming increasingly mainstream Stouts and Porters are holding their ground 0% All sales are based on the 12 months ending in April of that year 7

Craft Beer is stronger than non-craft beer and slowly gett Keg: Packaged: Avg ABV 2016 2018 5.23% 5.25% 5.33% 5.43% On average beer in the UK is 4.

8 Craft Beer is stronger than non-craft beer and slowly gett Keg: Packaged: Avg ABV % 5.25% 5.33% 5.43% On average beer in the UK is 4.2%, making craft over 1% stronger Stronger beers are typically more popular in package. Cask: 4.52% 4.30% All sales are based on the 12 months ending in April of that year 8

9 However 4-5% remains by far the most popular ABV range Craft Beer Strength, Last 12 Months Volume of Beer Sold However 4-6% craft beers makes up 3% less of the market than the previous year with both much stronger 8%+ and weaker 3-4% beers gaining Beer Strength (%) 9

10 % of Craft Beer Packaged in bottle and can, 12 month rolling average 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Can is now the package of choice for craft beer Bottles Cans Can has very rapidly overtaken bottle as the craft brewers vessel of choice for packaged beers. In recent months, 75% of packaged beer sold is in can 10

Rate of Sale of cans vs bottles Breweries moving from bottle to can saw almost a 3x increase in rate of sales Indexed and normalised Rate of Sale (100 = Rate of sale of bottles at point of change to

11 Rate of Sale of cans vs bottles Breweries moving from bottle to can saw almost a 3x increase in rate of sales Indexed and normalised Rate of Sale (100 = Rate of sale of bottles at point of change to cans) Bottles Cans Cans are proving much more popular with retailers and consumers alike, with a large increase in rate of sales when switching to cans. Note: 17% of breweries found a reduction in rate of sales, whilst 83% saw an increase 11

Change in price of craft beers The price of keg beer has grown rapidly, whilst packaged has been much more competitive Keg Packaged 140 Indexed price of craft beer (100 = Price in

12 Change in price of craft beers The price of keg beer has grown rapidly, whilst packaged has been much more competitive Keg Packaged 140 Indexed price of craft beer (100 = Price in 2016) The drop in price of packaged is driven by the switch to cans, which have shown an significant drop in prices over the last two years

13 In Summary Variety is critical to brewers and customers Brewers are increasingly reliant on a portfolio of beers, rather than one key brand Cans are cool, and preferred by brewers, retailers and customers Now significantly more beers are in can than bottle Brewers switching from bottle to can see a strong surge in sales Pale Ales and IPAs are increasingly dominant As are 4-5% ABV craft beers Sours and Craft Lagers are small but growing segments Traditional Styles have a rapidly declining importance in craft beer Average ABV is slowly growing 13

14 Any questions? David Jackson CEO, EeBria 14

American Craft Beer in the UK on-trade. Richard Yarnell, Category Manager Beer & Cider Mitchells & Butlers

American Craft Beer in the UK on-trade Richard Yarnell, Category Manager Beer & Cider Mitchells & Butlers September 2011 1 Agenda The UK On-Trade Mitchells & Butlers Resurgence of Cask Ale in the UK Role