Premium Ale INSIGHT REPORT

Transcription

1 Premium Ale INSIGHT REPORT 2012

2 Contents 1. Introduction A FEW WORDS FROM HALL & WOODHOUSE PREMIUM ALE DEFINITIONS UNDERSTANDING THE CATEGORY P.02 P.03 P Products Within Premium Ale TIERS WITHIN BOTTLED ALE KEY BREWERS & BRANDS BEER WRITER THOUGHTS P.20 P.21 P Executive Summary KEY OPPORTUNITIES WITHIN PREMIUM ALE P Regional Bottled Ale KEY CONSIDERATIONS & REGIONAL BRANDS P The Premium Ale Market BOTTLED ALE MARKET PREMIUM CANNED ALE MARKET P.08 P Premium Ale Merchandising MERCHANDISING PRINCIPLES WITHIN PREMIUM ALE P Category & Consumer Dynamics BEERS, WINES & SPIRITS CATEGORY TRENDS P Hall & Woodhouse COMMERCIAL BREAK P Bottled Ale Drinkers & Shoppers BOTTLED ALE DRINKERS BOTTLED ALE SHOPPERS P.17 P.18 Glossary P.37 CONTENTS 01

3 1. Introduction The premium ale category in the UK offers retailers an exciting opportunity to add value to the wider beer category. The growth of premium ale over the last decade has been driven by customers seeking high quality, crafted ales to drink at home. Even in a more challenging economic climate, customers are prepared to pay more for an indulgent treat; a trend which has been reflected across many food & drink categories. Premium ale satisfies this need perfectly, whilst also tapping into the increasing level of support for British produce. Anthony Woodhouse, Managing Director, Hall & Woodhouse Ltd INTRODUCTION 02

4 Premium Ale Definitions Within this report we have categorised premium ale in the way our shoppers and consumers tell us they do... Bottled ales are all viewed as premium ales by consumers, regardless of alcoholic strength. This report therefore covers all bottled ale brands. Premium Canned ales are seen as a distinct category by consumers; a very different proposition to National Canned Bitter brands such as John Smiths. Premium Canned ales referred to within this report are all canned ale brands that fall between % ABV. INTRODUCTION 03

5 There are many exciting opportunities within the premium ale category Over the last 5 years, sales of both Bottled Ale and Premium Canned Ale have grown in volume by almost 20%, an enviable performance in a beer category that has remained flat BEER CATEGORY 5 YEAR VOLUME TREND (Indexed to 2006) 2007 Bottled Ale Total Beer Premium Canned Ale Nielsen ScanTrack MAT to Total Beer sales continue to shift from pubs to the take home market, a trend that looks set to accelerate as belts are tightened. However ale s share of the take home market remains underdeveloped. As more ale drinkers move from drinking in pubs to drinking at home, they will be looking for increased availability of premium ale to replace their cask ale pint. Closing the share of beer gap in retailers that currently exists for ale could increase the size of the take home ale category by 440 million to 1 billion! ON TRADE ALE VALUE SHARE OF BEER CATEGORY 25 % 7 % 68 % Over the last 10 years the number of households who purchase premium ale has almost doubled, but there remains a great deal of scope for category development. Currently just 21.5% of UK households buy Bottled ale. If the penetration level were to reach that of Premium Bottled Lager (33% of households), this would add 119m to the Bottled Ale category. Similarly, only 5.5% of UK households purchased Premium Canned Ale last year. If this were to increase to the number of households who currently buy Premium Canned Lager, this would increase the Premium Canned Ale category by 126m PREMIUM ALE PENETRATION GROWTH 21.5% 30,000 25,000 20,000 15,000 10,000 5, BEER SALES TREND TO TAKE HOME (000 Brls) % Share 49.1% Share vs TAKE HOME 13 % 3 % 84 % % 3.3% 5.5% Bottled Ale % Penetration Premium Canned Ale % Penetration On Trade Take Home 2010 ANNUAL BARRELAGE SURVEY, BRITISH BEER & PUB ASSOCIATION Lager Ale Stout PREMIUM BOTTLED LAGER 33.2% PREMIUM LAGER CANS 14.6% TAKE HOME: Nielsen ScanTrack MAT to ON TRADE: Brand Index MAT to Nielsen HomeScan MAT to INTRODUCTION 04

6 The Bottled ale category is a diverse category with a large number of national brands, plus regional and local brewery brands, however... the top 10 brands generate of the total category value. INTRODUCTION 60% MORLAND BADGER SHEPHERD NEAME FULLERS NEWCASTLE BROWN WYCHWOOD MARSTONS CHARLES WELLS GREENE KING THEAKSTONS BLACK SHEEP ADNAMS SHEPHERD NEAME ADNAMS THEAKSTONS GREENE KING WYCHWOOD BADGER TOTAL BOTTLED ALE MORLAND BLACK SHEEP FULLERS CHARLES WELLS NEWCASTLE BROWN MARSTONS -7 BOTTLED ALE BRANDS % VALUE & VOLUME MARKET SHARE Value Share Volume Share 3.3% 3.4% 3.3% 3.3% 2.8% 2.7% 2.7% 2.6% BOTTLED ALE BRANDS GROWTH YOY % 4.2% 6.0% 6.4% 5.8% 6.1% 5.5% 6.0% 7.0% 6.5% 8.8% 8.6% 8.5% 8.7% 7.8% 8.8% Nielsen ScanTrack MAT to Total Coverage % VALUE GROWTH YOY % VOLUME GROWTH YOY Nielsen ScanTrack MAT to Total Coverage MORLAND McEWANS BADGER GREENE KING CHARLES WELLS MARSTONS BASS NEWCASTLE BROWN FULLERS RUDDLES WYCHWOOD GREENE KING PREMIUM CANNED ALE BRANDS % VALUE & VOLUME MARKET SHARE 7.2% 7.1% 6.4% 6.4% 5% 5.6% 5% 5.2% 4.9% 5.5% 4.8% 5% 4.7% 4% 4.5% 4.4% 3.5% 3.3% Value Share Volume Share MORLAND NEWCASTLE BROWN TOTAL PREMIUM CANNED ALE WELLS RUDDLES WYCHWOOD McEWANS BASS FULLERS BADGER MARSTONS % 19.9% 24.8% 24.7% Nielsen ScanTrack MAT to Total Coverage Within Premium Canned ale, there are fewer brands in total, identifying a big opportunity for Brewers to increase their presence within this growing category. PREMIUM CANNED ALE BRANDS GROWTH YOY % VALUE GROWTH YOY % VOLUME GROWTH YOY Nielsen ScanTrack MAT to Total Coverage 05

7 Development of the Premium Ale category is key to ensuring value growth of the wider beer category is sustained. Margin pressures, promotional dependence and diminishing brand loyalty within lager is eroding the value of beer within take home. Developing the premium ale category and delivering what the increasing number of Premium Ale shoppers & consumers require, is an essential element to maintaining the health of the beer category PREMIUM BEER - AVERAGE PRICE PER LITRE TOTAL WINE TOTAL SPIRITS TOTAL BOTTLED ALE Category average spend per buyer on BWS s TOTAL CANNED ALE BOTTLED ALE PREMIUM BOTTLED LAGER PREMIUM CANNED ALE PREMIUM CANNED LAGER % CHG YOY +5% +8% +7% +7% Nielsen PanelVision MAT A major benefit of attracting and retaining Premium Ale shoppers and consumers is their value to the wider BWS category. The Premium Canned Ale shopper has the highest average annual BWS category spend at 657, which has increased by 10% year on year. Bottled Ale shoppers are also very valuable to the BWS category; the average Bottled Ale shopper will spend c29% more money on BWS in a year than an average Wine shopper! 657 TOTAL PREMIUM CANNED ALE TOTAL STD CANNED ALE TOTAL LAGER MAT YA WE MAT TY WE TOTAL WORLD BEERS TOTAL TOTAL BOTTLED PREMIUM LAGER CANNED LAGER TOTAL STD CANNED LAGER TOTAL STOUT TOTAL RTD TOTAL CIDER Nielsen HomeScan Total Coverage MAT to VS YA The average Bottled Ale shopper will spend 29% more money on BWS in a year than the average Wine shopper! INTRODUCTION 06

8 2 2. Executive Summary Premium Ale now represents over half of ale sold in the UK Take Home market and it is currently worth 460 million. Growth of Premium Ale has consistently been ahead of the wider beer category with 19% volume growth since 2006, and the category is currently growing by over 5% in value year on year. TOTAL ALE PREMIUM ALE STANDARD ALE PREMIUM ALE PERFORMANCE Total Coverage Value Sales ( M) YA MAT TY Value % Chg YA MAT TY Volume Litres ( M) MAT TY Volume % Chg YA MAT TY EXECUTIVE SUMMARY Nielsen ScanTrack MAT to There are strong indications that this growth is set to continue as increasing numbers of households are buying into the category. As beer sales shift from pubs and bars, addressing the undertrade of Premium Ale in the take home market will fuel this growth further. Premium Ale also adds value and interest to total Beer, where other categories such as Lager have become commoditised. There are major opportunities to develop Bottled Ale and Premium Canned Ale ranges, particularly within the Impulse trade channel. Key opportunity: Increase range of Bottled Ale and Premium Canned Ale across the Impulse (Convenience) trade sector. Within Bottled Ale, ensuring optimum availability is the most effective way to drive category growth. Whilst Bottled Ale shoppers enjoy having a choice, this should not be at the expense of availability of the national core bottled ale brands that deliver the greatest proportion of category sales. Key opportunity: Maximise availability by ensuring correct amount of space is apportioned to core brands, whilst offering a small selection of regionally relevant brands to add variety. Care must be taken to maintain the value within Premium Ale, and not to be tempted to follow the Lager promotional model which has stripped out category growth, and is eroding brand loyalty. Adopting flat category promotional mechanics also restricts new product development into areas which are particularly appealing to consumers e.g. more premium brands. Key opportunity: Build value into Bottled Ale by developing Entry, Core, Special and Halo tiers within the range, and adopting a flexible promotional strategy that can accommodate a range of price points. For further information please contact: Melinda Bowles, Category Manager, Hall & Woodhouse Ltd. marketing@hall-woodhouse.co.uk 07

9 3. The Premium Ale Market BOTTLED ALE MARKET The bottled ale market in the UK is now worth almost 220 million and has experienced volume growth of almost 20% over the last 5 years as the number of households who shop the category has continued to increase, a performance well ahead of the total beer category. The category is being driven by Grocery Multiples, who sell 83% of Bottled Ale in the UK. Reflecting total BWS trends, Bottled Ale performance is improving in the Impulse channel, although there is still a significant undertrade versus share of beer. TOTAL BEER VOLUME SHARE 26 % 74 % Grocery Multiples Impluse GROC MULTS (3%) YEAR ON YEAR IMPULSE +3% YEAR ON YEAR TOTAL ALE VOLUME SHARE 13 % 87 % Grocery Multiples Impluse GROC MULTS (3%) YEAR ON YEAR IMPULSE (8%) YEAR ON YEAR Nielsen ScanTrack MAT to Bottled Ale has performed well in Discounters and Morrisons over the last year with discounters now selling almost 16% of the category in the UK Asda and Sainsbury s performance has struggled, with the Bottled Ale in category now undertrading in JS versus total Beer. 35% RETAILER BOTTLED ALE VALUE SHARES 30% 31.6% BOTTLED ALE VOLUME SHARE 17 % 83 % 25% 20% 15% 10% 5.5% 5% 3.6% Grocery Multiples Impluse 2.6% GROC MULTS +5% YEAR ON YEAR 0% IMPULSE +1% YEAR ON YEAR TESCO DISCOUNTERS MORRISONS SAINSBURY ASDA WAITROSE CO-OP BOTTLED ALE OVER/ UNDER TRADE BOTTLED ALE YOY VALUE CHG 25% Total Beer Bottled Ale ( 11.8m) +3.0% 6.2% m +18.3% 15.9% 15.6% 12.8% + 5.0m +8.1% 15.5% 14.5% ( 1.8m) -16.0% 16.3% 9.9% ( 11.5m) -10.4% + 5.1m -4.3% 1.9% ( 3.0m) +2.6% Nielsen ScanTrack MAT to Nielsen HomeScan MAT to THE PREMIUM ALE MARKET 08

10 Bottled Ale shifting data also shows Sainsbury s are losing sales to Morrisons, Discounters and Tesco. TOTAL GROCERS inc M&S TOTAL BOTTLED ALE SHIFTING BETWEEN RETAILERS MAT TY WE 24/12/11 VS MAT YA MORRISONS BOTTLED ALE +537k WAITROSE BOTTLED ALE k ASDA BOTTLED ALE k CO-OPS INCL SOMERFIELD BOTTLED ALE k SAINSBURY S BOTTLED ALE k DISCOUNTERS BOTTLED ALE + 1.2m ALL OTHER - 207k TESCO BOTTLED ALE k 10.0k 169.1k 271.0k 338.1k 425.6k 585.2k Nielsen HomeScan MAT to Key Bottled Ale Brewers driving category growth year on year. ABSOLUTE VALUE DIFFERENCE Total Coverage - Value Sales ( 000) MAT TY Data to WE 24/12/11 SHEPHERD NEAME BTL GREENE KING BTL HALL & WOODHOUSE BTL MOLSON COORS (UK) BTL HEINEKEN UK BTL ADNAMS BTL INNIS & GUNN BTL PRIVATE LABEL BTL MARSTONS PLC BTL BUTCOMBE BREWERY BTL ,547 1, , Nielsen ScanTrack MAT to Key Bottled Ale Products driving category growth year on year. ABSOLUTE VALUE DIFFERENCE Total Coverage - Value Sales ( 000) MAT TY Data to WE 24/12/11 SPIRFIRE ALE HOBGOBLIN BADGER FURSTY FERRET BADGER HOPPING HARE SHARPS DOOM BAR OLD GOLDEN HEN BISHOPS FINGER STR KENTISH ALE McEWANS NO1 CHAMPION ALE GREENE KING IPA BITTER MARSTONS PEDIGREE ,182 1,151 1, Although some bottled ales are driving growth through price discounting, the key sustainable category growth drivers will be increasing the number of people who shop the category (increasing penetration), and increasing the number of times per year the category is visited (increasing purchase frequency). The aim is to make the decision less dependent on price thereby protecting category value growth. The Bottled Ale shopper is less price sensitive than other Beer shoppers; shallower discounts with increased display, improved availability, and style information at fixture would drive growth within the Bottled Ale category without damaging category value. 2,838 Nielsen ScanTrack MAT to Within the Bottled Ale category, 2011 saw an overall reduction in the amount of promotional activity, but an increase in the % of volume sold on promotion BWS CATEGORIES - % VOLUME SOLD ON PROMOTION TOTAL BWS 64.5 BEER BOTTLED ALE PREMIUM CANNED ALE LIGHT WINE RTD CIDER SPIRITS MAT to 24/12/11 MAT to 24/12/10 Bottled Ale has lost share of total beer activity across most major retailers, although has seen an increase in promotional display achieved year on year. There is the danger of the level & type of promotional activity traditionally adopted in the Bottled Ale category restricting range development & evolution. Flat category multibuy deals (e.g. 3 for X) often cannot accommodate smaller brewers or more premium brands. A combination of less deep cut tiered multibuy mechanics, or buy X bottles and save X% would be a solution to this, and allow product development in the category to be led by consumer, rather than commercial drivers. The fact that the products are being highlighted on shelf, rather than the level of discount, increases sales during activity Nielsen ScanTrack MAT to THE PREMIUM ALE MARKET 09

11 There is also a big opportunity for increasing household penetration in the predominantly British Premium Bottled Ale category. Shoppers are gravitating towards buying more British products to support local businesses and therefore the struggling economy. British brands will also benefit during key events such as the Olympics, the Diamond Jubilee and Euro Bottled Ale Pack Formats The Bottled Ale category is still dominated by single 500ml bottles. Bottled ale pack format extensions have to date been unsuccessful in delivering category growth. 4 bottle multipacks of the same ale are experiencing falling rates of sale and subsequent distribution reductions. These are failing to drive purchase volumes as bottled ale customers prefer pick & mix single purchases. Smaller bottles (330ml / 355ml) drove some trial initially but are not a pack format that appeals to category shoppers where a 500ml pint is King. They have now practically creased to exist as single skus. THE PREMIUM ALE MARKET 10

12 PREMIUM CANNED ALE MARKET Although still comparatively small, currently worth 76m, the Premium Canned Ale category has also experienced substantial volume growth of almost 20% over the last 5 years. The Premium Canned Ale is dominated by Grocery Multiple retailers, with 90% of the category volume sold through this trade channel. Unlike other categories, Premium Canned Ale is currently not performing in the Impulse channel and is declining by 20% year on year as convenience retailers have not developed their Premium Canned Ale ranges to reflect the changes in shopper behaviour. STANDARD CANNED ALE VOLUME SHARE 12 % 88 % PREMIUM CANNED ALE VOLUME SHARE 10 % 90 % Within Grocery Multiples, Tesco has a significant share of Premium Canned Ale, with over a third of the category sold through their stores. Over the last 12 months however, good performances from Sainsbury s, Waitrose and the Discounters have driven their respective market shares. 35% 30% 25% 20% 15% 10% 5% 0% OVER/ UNDER TRADE YOY VALUE CHG TOTAL GROCERS INC M&S TOTAL PRM CANNED ALE SHIFTING BETWEEN RETAILERS MAT TY WE 24/12/11 VS MAT YA WAITROSE PRM CANNED ALE k MORRISONS PRM CANNED ALE + 1.3m RETAILER PREMIUM CANNED ALE VALUE SHARES 31.6% 34.8% TESCO SAINSBURY MORRISONS ASDA DISCOUNTERS WAITROSE CO-OP + 2.2M +10.9% 15.5% 25.7% + 6.9M +60.9% 12.8% 12.2% Total Beer Premium Canned Ale ( 0.4M) +3.3% 16.3% 11.5% ( 3.2m) +0.2% CO-OPS INCL SOMERFIELD BOTTLED ALE k 6.2% ( 0.6m) -19.8% 5.3% 5.2% 2.6% DISCOUNTERS PRM CANNED ALE k ALL OTHER - 7k + 1.7m +95.1% 2.5% ( 0.8m) -25.8% Nielsen HomeScan MAT to Although some Premium Canned Ale sales in Sainsbury s have shifted to Morrisons, they have attracted new customers into the category and are selling in greater volumes. 3.6% 1.4k 322.4k 999.4k Grocery Multiples Impluse GROC MULTS (8%) YEAR ON YEAR IMPULSE (10%) YEAR ON YEAR Grocery Multiples Impluse GROC MULTS +3% YEAR ON YEAR IMPULSE (20%) YEAR ON YEAR Nielsen ScanTrack MAT to ASDA PRM CANNED ALE k TESCO PRM CANNED ALE k SAINSBURY S PRM CANNED ALE k Nielsen HomeScan MAT to THE PREMIUM ALE MARKET 11

13 Key Premium Canned Ale Products driving growth year on year OLD SPECKLED HEN GREENE KING ABBOT ALE 1,055 DIRECTORS BITTER 851 NEWCASTLE BROWN 388 BOMBARDIER 312 CALEDONIAN DEUCHARS IPA 287 BREWDOG PUNK IPA 130 BLACK SHEEP 104 ADNAMS THE BITTER 74 THE REVEREND JAMES 68 ABSOLUTE VALUE DIFFERENCE Total Coverage - Value Sales ( 000) MAT TY Data to WE 24/12/11 0 3, Nielsen ScanTrack MAT to The key growth driver within the Premium Canned Ale category is to increase category penetration. Currently only 5.5% of households buy Premium Canned Ale so there is a big opportunity to develop this category, and drive value growth into the total canned ale market. A further opportunity within Premium Canned Ale is pack format development. Currently c80% of Premium Canned Ale category sales are in 4-packs despite the average number of Cans bought per shopping trip being almost 10. Over the last 12 months, larger packs have driven category growth and, more importantly, encouraged shoppers of National Canned Bitter multipacks to trade up to Premium Ale. A recent development within the Premium Canned Ale category is the movement of some brands from a 500ml to a 440ml Can in order to help mitigate cost & Duty rises. Whereas a 440ml Can is widely accepted within Lager, there are a number of considerations for Premium Canned Ale: Premium Canned Ale consumers are less attracted to 440ml Can 4-packs as ale is decanting into a pint glass (unlike lager) thereby highlighting volume reduction / shortfall. Premium Canned Ale 4-packs are purchased as an at home alternative to cask ale in the pub; having a pint is very important. Although price is a factor, Premium Canned Ale customers are less price sensitive than Canned Bitter or Lager customers. The initial purchase decision within the Premium Canned Ale category is pack format rather than brand (unlike lager); customers will switch to another brand if the desired pack format is not available. The number of units purchased does not increase with the reduction in Can size. A move to 440ml risks reducing the Premium Canned Ale category by 12% in volume; a loss worth c 9 million. Levels of Premium Canned Ale promotional activity have increased over the last year although there has been reduced amount of display given to this category. A vital element of driving category penetration is to increase the visibility of Premium Canned Ale and encourage trade up by National Canned Bitter shoppers. As with Bottled Ale, the level of discount is not the driving force behind promotional success, in fact excessive lager-style deals risk devaluing the category & reducing brand loyalty. Increasing shopper engagement with display, whilst maintaining availability on promotion, is the key to sustainable category penetration growth. THE PREMIUM ALE MARKET 12

14 4. Category & Consumer Dynamics BEERS WINES & SPIRITS CATEGORY TRENDS BWS CATEGORY TRENDS The total BWS category is currently fairly flat. Value growth is predominantly being driven by Duty & VAT increases, and overall BWS volumes are in decline as customers are buying less often and in smaller quantities BWS CATEGORY WITH EFFECT OF VAT AND DUTY REMOVED TOTAL BWS 6.2bn +0.2% YoY WINE 2.9bn -0.9% YoY LONG ALCOHOLIC DRINKS 2.3bn +1.9% YoY SPIRITS 945m -0.1% YoY 10 BWS WINE SPIRITS CIDER RTDs BEER LAGER ALE CANNED ALE STANDARD PREMIUM BOTTLED ALE CANNED ALE CANNED ALE VOLUME % CHANGE VALUE % CHANGE TOTAL BEER 1.6bn -0.9% YoY CIDER & PERRY 591m +9.6% YoY RTD S 132m +3.9% YoY Wine includes: Light Wine (excl. British), Fortified, Sparkling & Champagne. Source: Nielsen ScanTrack, 52weeks to 24th December 2011, Total Coverage. Nielsen ScanTrack MAT to CATEGORY & CONSUMER DYNAMICS 13

15 There are a number of positive trends in alcohol however; the reduction of car usage and out of town shopping is improving the performance of the Impulse trade sector which, whilst only accounting for 24% of BWS volume, is now outperforming the Grocery Multiple sector, with volume growth of 3% year on year. The consumer trend towards at home consumption and the subsequent need for more premium food & drink is also driving sectors of BWS such as Premium Spirits, Premium Lager, Bottled Cider and Bottled Ale. BWS PEFORMANCE BY TRADE SECTOR TOTAL BWS -2% GROCERY MULTS BWS -3% IMPULSE BWS +3% VOLUME % CHANGE Nielsen ScanTrack MAT to BEER CATEGORY TRENDS Lager accounts for over 83% of all take home beer value but it is declining in volume as almost 400,000 households have dropped out of the Lager category over the last year. Another major factor driving the decline is the reduction of Lager pack sizes, engineered by manufacturers to reach more attractive price points and to help mitigate Duty and cost rises. This is, understandably, reducing volumes that shoppers are buying per shopping trip. Within lager, premium lager is performing well however, refl ecting wider BWS trends, although increased promotional activity is reducing overall brand loyalty. CATEGORY & CONSUMER DYNAMICS 14

16 Other premium sectors of the Beer category are also performing well. Bottled Ale is outperforming total Beer, growing by 7% in value* and 4.5% in volume* over the last 12 months, and now represents over a 1/3 of total ale volume in the UK. Bottled Ale growth is being driven by existing consumers, and sales are shifting from premium canned ales and standard canned lager. TOTAL BOTTLED ALE SHIFTING WITH OTHER LIQUOR CATEGORIES ACTUAL % TOTAL 6481 MKT PEN 18 AWOP 3270 REPERTOIRE 2587 SHIFTING 605 SOURCE OF VALUE ACTUAL 1640 INDEX 224 STD CANNED LAGER PRM CANNED ALE TOTAL SPIRITS ALL OTHER TOTAL STOUT TOTAL RTD PRM CANNED LAGER TOTAL CIDER STD CANNED ALE TOTAL WINE TOTAL BOTTLED LAGER SHIFTING GAINS/LOSSES *Nielsen ScanTrack MAT to Basis: (000 s) Nielsen HomeScan MAT to Premium Canned Ale has increased its share of total canned ale over the last 3 years and now accounts for almost 30% of total canned ale category value. After very strong growth throughout 2010, growth slowed towards the end of 2011 as lager became the retailer s main focus over Christmas. Although a small proportion of Premium Canned ale sales have shifted to Bottled Ale & Lager, sales have been gained as National Canned Bitter customers trade up to premium ale. PREMIUM CANNED ALE PERFORMANCE TOTAL PREMIUM CANNED ALE SHIFTING WITH OTHER LIQUOR CATEGORIES Total coverage - volume % chg ya rolling mats 56 weeks data to we SOURCE OF VALUE SHIFTING GAINS/LOSSES 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0-1.0% WE 27/11/10 WE 11/12/10 WE 25/12/10 WE 08/01/11 WE 22/01/11 WE 05/02/11 WE 19/02/11 WE 05/03/11 WE 19/03/11 WE 02/04/11 WE 16/04/11 WE 30/04/11 WE 14/05/11 WE 28/05/11 WE 11/06/11 WE 25/06/11 WE 09/07/11 WE 23/07/11 WE 06/08/11 WE 20/08/11 WE 03/09/11 WE 17/09/11 WE 01/10/11 WE 15/10/11 WE 29/10/11 WE 12/11/11 WE 26/11/11 WE 10/12/11 WE 24/12/11 ACTUAL % ACTUAL INDEX % STD CANNED ALE TOTAL TOTAL CIDER STD CANNED LAGER MKT PEN ALL OTHER TOTAL SPIRITS AWOP 2760 REPERTOIRE 2631 SHIFTING PRM CANNED LAGER TOTAL STOUT TOTAL RTD TOTAL BOTTLED LAGER TOTAL BOTTLED ALE TOTAL WINE Nielsen ScanTrack MAT to Basis: (000 s) Nielsen HomeScan MAT to CATEGORY & CONSUMER DYNAMICS 15

17 World Beer remains in strong growth, up 13% in value and 10% in volume. This sub category is significantly outperforming total Beer although still represents only 6% of the category... BRANDS VALUE CONTRIBUTION TO BOTTLED WORLD BEER Value Scales ( 000) - MAT This Year Data to WE 24/12/11 15,517 10,093 6,002 3,584 3,276 1, ,795 2,429 2, , ,743 BTL SAN WORLD MIGUEL BEER YEAR AGO PERONI ALL OTHER (calc.) CORONA TIGER ESTRELLA DAMM LEFFE BLONDE HOEGAAR BRAHMA SOL TYSKIE BTL DEN WORLD BEER THIS YEAR Nielsen ScanTrack MAT to Peroni & San Miguel are the key brands driving this sub category and have added over 25m to the category over the last year. CATEGORY & CONSUMER DYNAMICS 16

18 5. Bottled Ale Shoppers & Drinkers BOTTLED ALE DRINKERS Connoisseur Clive Loyal Len Rookie Rob Newbie Neil Predominantly male, aged yrs, affluent ABC1 16% of category shoppers, buy 24% of category volume Shops the PBA category with confidence; fairly experimental but will have key favourite brands Heavy category shopper; PBA is his main drink Wide portfolio of brands, buys over 4 bottles per shopping trip Predominantly male, aged 55 yrs+, empty nesters, 1-2 person household, less affluent (vs PBA category shoppers) 23% of category shoppers, buy 24% of category volume Medium category shopper; progressed to PBA from Cask ale in pubs. Also drinks wine & whisky Narrow portfolio within Bottled Ale; loyal to small number of category signpost brands Visits the category fairly infrequently and buys fewer bottles per trip Less responsive to price or promotion; availability of his brand(s) is key Predominantly male, aged yrs, no children, single person household, less affluent (vs PBA category shoppers) 27% of category shoppers, buy 21% of category volume Light category shopper; has a wide BWS portfolio Has less experienced within PBA category, relies on mainstream brands for reassurance Clear glass bottles and ale brand availability in pubs also aids decision process Predominantly male yrs, pre family, C1C2, in a couple, works part time Currently a very small proportion of category shoppers and are very new to category Light category shopper; has evolved from premium lager and sees PBA category as opportunity to be more experimental Category knowledge currently fairly low but keen to increase level of engagement Aspires to premium ale becoming a hobby Insitas Bottled Ale Customer Segmentation Research Sample 1250 bottle ale purchasers BOTTLED ALE SHOPPERS & DRINKERS 17

19 5 BOTTLED ALE SHOPPERS Elizabeth Envoy Predominantly female, aged yrs, affluent, teenage kids 34% of category shoppers, buy 31% of category volume Heavier category shopper, buys 4 bottles per trip but buys infrequently Little category knowledge or engagement, has remit to buy different ales for her partner but lacks confidence to venture off shopping list Promotionally receptive as price eases purchase decision Additional style information would increase level of category engagement and make decision less dependent on price PBA category growth drivers to maximise appeal across all customer segments (summary only, further tailored information available on request) Promotional Activity Combination of 4 for X and 3 for X multibuys to satisfy pick & mix shopping behaviour whilst maintaining/driving volume purchased per visit. Level of discount is less important than highlighted offer, providing an opportunity to drive category value. Occasional single bottle price cut activity to drive category penetration. Range Maintain availability of core category signpost brands by ensuring adequate facings are allocated, particularly during promotions. Develop premium and entry level tiers within Bottled Ale to add interest and help drive category value. Merchandising All segments navigate category by Brewer, making it imperative that the fixture is blocked by Brewer/Brand Overlay merchandising with simple style information to help Elizabeth, Rob & Neil. (SEE BOTTLE ALE FLAVOUR MAP) Developing a simple flavour map approach to the category can help give Elizabeth Envoy, Rookie Rob and Newbie Neil additional confidence when purchasing bottled ale and increase their level of engagement with the category. This could be further simplified by dividing bottled ales into flavour quadrants to translate this concept to in-store signage. (SEE SIMPLIFIED FLAVOUR MAP) Point of Purchase Ale & Food links increases category relevance for Elizabeth As recommended by shelf barkers reassure newer category entrants. Trade Channel Clive, Len, Rob & Neil have a higher propensity to shop in the Impulse (Convenience) trade channel where the bottled ale category is currently underrepresented. Offering a wider choice will increase the frequency that these customer segments buy into the bottled ale category. Insitas Bottled Ale Customer Segmentation Research Sample 1250 bottle ale purchasers BOTTLED ALE SHOPPERS & DRINKERS 18

20 5 BOTTLED ALE FLAVOUR MAP To help less experienced category shoppers to identify different bottled ales by style. LIGHT EASY DRINKING refreshing Honey Dew Innis & Gunn England s Own Badger Champion Tanglefoot Brakspear Oxford Gold Blandford Flyer Hopping Hare Marstons Old Empire London Pride Golden Glory Fursty Ferret Banana Bread Ruddles County Bishops Finger Directors Abbot Ales Blacksheep Old Speckled Hen Pedigree Spitfire Badger First Gold Brakspear Bitter Fuller s ESB complex FULL BODIED EASY DRINKING LIGHT & REFRESHING Easy Drinking DARK & TRADITIONAL Easy Drinking LIGHT LIGHT & COMPLEX full bodied DARK & COMPLEX full bodied FULL BODIED traditional Newcastle Brown Ale FRUITY HOPPY OTHER DARK Bombardier Hobgoblin Poacher s Choice McEwans Broadside Old Peculiar complex DARK Simplification of Flavour Map concept for in store point of sale. BOTTLED ALE SHOPPERS & DRINKERS 19

21 6. Products Within Premium Ale TIERS WITHIN BOTTLED ALE The most widely understood and accepted way that customers segment the bottled ale category is by price tiers, driven predominantly by ABV. Four distinct segments have been identified Product development into the Specials & Halo tiers adds interest for Connoisseur Clive and Newbie Neil, encouraging increased visits to the bottled ale fixture and adding value to the category. Despite this, the current bottled ale category is fairly fl at, with over 70% falling within the Core tier. This arguably has been driven by retailer category promotional mechanics rather than a response to consumer need. To drive value by encouraging product development within the Specials tier will require a different approach to the way that bottled ales are promoted. A change to tiered multibuy mechanics or a % saving for buying increased number of bottles would encourage up selling. BOTTLED ALE CATEGORY SEGMENTATION A Consumer s Perspective >4% 4.2-5% -ABV RANGE- 5%+ 6%+ HALO ULTIMATE TREAT THE PINNACLE OF BREWING EXPERTISE ENFORCES CREDIBILITY OF RANGE. HALO FULLERS VINTAGE ALE EDLP < 4% ABV Point of Entry c level Traditional ale No gimmicks Good value but not cheap The Best of the Brewery Major players Brewery core brands Promotional support 4.2-5% ABV Most active sector Most competitive Lots of choice Great variety Perfect value Volume purchase Sessionable Premium majors (min) 5% ABV Rarely price promoted Protected species Crafted Personal brands Ales to savour Specialist Super dupers 6% ABV > Brewery Halos Premium packaged Special recipes Tempt me Experiment One-only Giftability Support your local brewer SPECIALS CORE ENTRY ALES TO SAVOUR HIGHER ABV AND INTENSE FLAVOURS. EVERYDAY REFRESHMENT MID ABV AND EASY TO DRINK, SESSIONABLE FLAVOURS. AS IT S ALWAYS BEEN LOW - MID ABV, TRADITIONAL STYLE AND UNCHALLENGING ALES. SPECIALS CORE ENTRY CRAFTY HEN, BADGER BLANDFORD FLYER, FULLERS ESB, INNES & GUNN, BADGER POACHERS CHOICE, ADNAMS BROADSIDE STRONG ALE, YOUNGS SPECIAL LONDON ALE OLD SPECKLED HEN, BADGER TANGLEFOOT, HOBGOBLIN, SPITFIRE, LONDON PRIDE, BADGER FURSTY FERRET, THEAKSTON, OLD PECULIER, BADGER HOPPING HARE, BOMBARDIER, BLACK SHEEP, BISHOPS FINGER BADGERS FIRST GOLD, BRAKSPEAR, MARSTON S BURTON BITTER, MARSTON S MANNS BROWN, CHISWICK, NEWCASTLE BROWN PRODUCTS WITHIN PREMIUM ALE 20

22 KEY BREWERS & BRANDS Ridleys Ruddles Morland Marston s Wychwood Brakspear Badger Greene King Belhaven Jennings Ringwood Banks s Manns Badger PRODUCTS WITHIN PREMIUM ALE 21

23 KEY BREWERS & BRANDS Shepherd Neame Fullers Wells McEwans Shepherd Neame Fullers Courage Young s PRODUCTS WITHIN PREMIUM ALE 22

24 KEY BREWERS & BRANDS Newcastle Brown Caledonian Theakstons Black Sheep Brewery Adnams Adnams PRODUCTS WITHIN PREMIUM ALE 23

25 Beer Writer Thoughts Adrian Tierney-Jones Journalist & Writer, Beer & Pub Specialist I think there is a need for brewers and retailers to really clarify what premium means to the consumer by the very nature of the word it means quality and strength, but what do the brewers and retailers mean by it? I also think that smaller brewers current obsessions with more and more hops will become a sort of arms race and that the more perceptive ones might start thinking about other ways of making their beers stand out, like using different speciality grains in conjunction with all of these hops, or even different yeasts this is the sort of thing that gives a beer a story and I would have thought can reach out to the thinking drinker. The effect it would have on the premium category is that bigger brewers have to be careful not to start jumping on double IPA bandwagons the strength of the US craft breweries is that they don t just make great beers with loads of hops, but they make great beers of many styles period. Cans could become important if breweries try to differentiate their canned products from the more cheaper commodity beers such as John Smith s etc, but there still PRODUCTS WITHIN PREMIUM ALE might be a long way to go for that, though BrewDog are blazing a bit of a trail. People remain interested in the stories that the beers present, whether it s the story behind the name of the beer or perhaps the single varietal hop that goes into the brew. Another thing not to be forgotten is that a premium bottled beer is still an affordable luxury, a message that needs to be put out to people. You could argue that Premium ale meets the needs of today s consumers who are sick of marketing-led global brands and much more switched on by provenance, heritage, taste, natural products and localism. It is this, together with renewed interest in cask ale as a unique selling point for pubs amongst operators, that will lead to growth Tim Hampson Retail expert and British Guild of Beer Writers Chairman Not enough retailers are keeping up with changing consumer expectations of beer. Yes, there are still people who assume beer will be piled high and sold cheap. But increasingly there are those who expect to see premium beers sold with provenance, taste and sophistication. Many shops sell cheese in two different ways industrial mass produced cheeses are in the chiller cabinet, while craft cheeses are sold from the delicatessen counter. What is good for cheese should good for beer too. Beer fans, broadly speaking, are people who drink a wide variety of beer styles (not just lager or ale), and are interested in quality beer and new flavours. People who buy premium beers be they in a bottle or a can are also more likely to buy a selection of different beers. They don t necessarily want a pack containing four of the same beers but instead would perhaps choose a dark beer, a beer flavoured with a spice, a wheat beer and a locally made beer. These premium buyers want beers with a story. Beer fans are into beer because they are interested in food and drink generally. They also enjoy drinking good quality wine, like new recipes, new food products and exotic dishes. They are bon viveurs, are passionate about food and drink, frequently entertaining at home if they are not in a pub or restaurant. They are inquisitive about food and life is for living. Retailers, shouldn t ignore these people, they should recognise that there is a growing market for sophisticated, often craft produced or locally made, premium beers. 24

26 Pete Brown Author & Leading Beer Authority The whole ale category is currently undergoing a renaissance. We have a revival in traditional British ale brewing happening at the same time as a new wave of craft brewing which sees more international, experimental influences coming into British brewing. So you get classic British ale style such as India Pale Ale, porter and stout being given a complete makeover and being interpreted in new ways. At the moment, the hardcore ale drinker is working through an obsession with increasingly extremely hopped beers, but this will work itself through in the next year or so and we ll revert to looking for balance in our beers. More intriguing is the burgeoning experimentation with ageing beers in wooden casks, such as old whisky casks and wine barrels, allowing beers to take on new flavours and blurring the boundaries between beer and other drinks. There s a well-established trend now among discerning consumers to seek out flavour, authenticity, artisanship and local produce across all food and drink. It s about character over blandness, difference versus mass market conformity, and products that have a bit of a story behind them. It took beer in the UK a while to catch up with other foodstuffs in this trend, but now it finally has, it s happening with a vengeance. We re seeing a much broader array of beers than ever before, a far greater degree of experimentation among drinkers, and greater promiscuity in terms of choice. Sure, not everyone is behaving in this way - there are still those who buy on price and don t really pay much attention to flavour - but those who are taking a greater interest are more affluent and upmarket, and are prepared to spend more to get what they want. New consumers are being attracted to premium ale, TGI research shows that an increasingly broad demographic are turning to premium ale. The number of drinkers aged 18 to 24 is growing steadily each year. The number of women drinking ale has doubled in the last four years. Overall, one in ten ale drinkers tried ale for the first time in the last twelve months. The membership of the Campaign for Real Ale has doubled in the last ten years. It s hard to stereotype the premium ale drinker now, because the demographic is so diverse. Marverine Cole TV Presenter, Broadcast Journalist & Award-Winning Beer Writer BEER TARGETTING WOMEN I think I m not alone in saying that any beers aimed at women aren t the way forward, although it s too early to tell if those breweries who ve launched such beers to this target market have worked. In my personal opinion the premise and wide generalisation that women only like low ABV, golden ales that are less hoppy in terms of bitterness isn t entirely true. I have introduced beer to nearly 500 women in the last 18 months and everyone has different tastes. Granted, there are men and women alike who don t like overly hopped beers but there are just as many who do. High ABV wines and spirits with real punchy flavours are drinks that women enjoy a lot and I ve found it s no different when it comes to beer. I ve also found that women want a drink that surprises them on the flavour front. Fruity-flavoured beers, very bitter IPAs, dark porters & stouts, and seductively sweet oak-aged beers have all been big faves at my beer tasting parties. This whole beer designed for women idea is a nonsense. PRODUCTS WITHIN PREMIUM ALE 25

27 LOW ABV BEERS I also think it s too early to measure the success of low alcohol ale. I ve not seen a big retail push of brands in bottle. If I m on a night out and I ve got the car, then I m just going to abstain and have a soft drink. I don t feel I have to drink something with alcohol in ALL the time and the low ABV beers I ve tasted haven t contained enough of a flavour kick in them to satisfy my taste buds. I think it s a real challenge to pack flavour into a brew like that. Some breweries reckon they ve cracked it. I ve not yet been convinced. Time will tell if the public like them. GROWTH OF INTEREST IN CRAFT BEERS It s hard to be objective about the growth and interest in premium craft ales. I think it s all rosy but that s because I m constantly on the look out for new beers so I can recommend the good ones to my blog readers. If you and your mates personally know of a great craft beer bar or a fabulous off-licence which goes out of its way to stock premium craft beers, bully for you. But I think we re still at a stage where most of the general public believe beers are the root of binge-drinking headlines and are not something for connoisseur drinkers. The general public still think beer is just about mass produced cheap lagers that you can buy for 5p a case in the big supermarkets or it s the ale their granddad used to drink. I might be wrong but that s my perception. The big supermarkets are making in roads and have increased their supplies of premium beers on the shelves, so let s hope they do much more and we can gradually shift perceptions. Breweries are recognising that people DO want to seek out new beers; they re constantly innovating, talking to consumers and producing new beers, e.g. seasonals to capitalise on unforgettable moments in history (Royal Wedding, Jubilee, Olympics) and so on. They are also realising that drinkers want to know the story behind the beer. It s now: Here s our beer, this is where we make it, this is HOW we make it, these are the ingredients and this is where we got them from, and we called it this because of x,y,z. Many are realising the power of marketing and being much more upfront with the drinker about their ethos. That can only be a good thing. RETAILERS SHOULD GET BEHIND CRAFT BEER There s a wealth of people out there actively looking for craft beer, so if you re not already selling it, you should be getting yourself into a position to be selling it. If you ve already dipped your toe in the water, then you need to keep looking ahead for what s new and exciting and will get shoppers talking. Retailers should be getting out there and talking to drinkers and beer writers about what customers are saying and drinking and wanting, then deliver that to consumers in an exciting, accurate way. Sainsbury s is doing a great job with the Great British Beer Hunt competition where they include customers as judges to find beers from microbreweries to stock in their stores regionally and nationally. Some (not all) supermarkets have got a way to go in terms of in-store marketing, talking about beer styles in the right way and so on. They do need help and once they all get their ducks lined up, you won t be able to walk down a beer aisle because it will be packed with shoppers filling their baskets and trollies. PRODUCTS WITHIN PREMIUM ALE 26

28 7. Regional Bottled Ale SCOTLAND Harviestoun, Belhaven, MaClay, Arran, Broughton, Orkney McEwans, Brewdog, Innis & Gunn, Caledonian Jennings, Thwaites, Holts, Robinsons, Lees, Coniston Thornbridge Cains, Coach House Marstons, Wye Valley, Sadlers Hook Norton, Hobsons, Brakspear, Wychwood Brains, Hurns, Newmans, Rlymney Exmoor St Austell, Sharp s, Otter, Skinners, Cotleigh BREWERIES BY REGION LANCASHIRE & ENGLAND BORDERS Hawkshead WALES & WEST SOUTH WEST Wadworths, Hopback, Bath Ales NORTH EAST CENTRAL YORKSHIRE LONDON SOUTH & SOUTH EAST Hogsback White Horse Hall & Woodhouse, Palmers Maxim, Allendale, Mordue, Wylam EAST ENGLAND Black Sheep, Theakstons, Saltaire, Timothy Taylor, Ikley, Kelham Island, Daleside, Skipton Arundel, Dark Star, Ringwood Everards, Lymestone Samuel Smith, Batemans Elgoods Adnams, St Peters, Ridley s. Greene King, Ruddles Fullers, McMullens, Wells & Young s, Courage Shepherd Neame, Hepworth, Meantime One of the greatest dilemmas within the bottled ale category is what to stock as a regional ale offering. Whilst it is important to bottled ale customers that regional ales are represented within the range, stocking a plethora of local ales puts pressure on maintaining availability of the core national brands. This is particularly important when you consider that the top 10 brewers in the UK account for 77% of total PBA sales and the top 10 brands generate 60%. TOP 10 BOTTLED ALE BREWERS TOTAL UK Rank by value sales Brewer 1 Marston's Greene King Heineken Hall & Woodhouse Shepherd Neame Fullers Wells & Young s Black Sheep Adnams Thwaites Top 10 Bottled Ale Brewers generate 77% of PBA category value across the UK TOP 10 BOTTLED ALE BRANDS TOTAL UK Rank by value sales Brand 1 Morland Badger Shepherd Neame Fullers Newcastle Brown Wychwood Marston s Charles Wells Theakstons Greene King Top 10 Bottled Ale Brands generate 60% category value and are National must stock brands Nielsen ScanTrack MAT to REGIONAL BOTTLED ALE 27

29 Regional Ales Key Considerations Key Regional Premium Ale Brands Are the correct products being stocked for the region? Ensure regional lines are highlighted correctly on shelf Create an impression of choice but keep number of regional skus manageable Retain balance between consumer demand & commercial reality Remain realistic by store format & cater for consumer base Small range of local ales adds interest & provenance to category but maintaining availability of volume driving national lines is key Importance of regionality varies across UK:- greater in Scotland & South West, less important in Wales & West and North East After all the best performing regional ales (e.g. St Austell Tribute) have become national brands.. Based upon regional ales share of sales across the UK, share of space for both regional & local offerings justifies circa 10% of the fixture. CENTRAL Brakspear Hook Norton Wye Valley Wider range of Marston s & Wychwood EAST ENGLAND Adnams Ruddles St Peter s Wider range of Greene King & Morland LANCASHIRE & ENGLAND BORDERS Jennings Thwaites Joseph Holts Coniston SOUTH & SOUTH EAST Ringwood Arundel Wider range of Shepherd Neame SOUTH WEST Sharps (Molson Coors) St Austell Skinners Wider range of Badger WALES & WEST SA Brains Bath Ales YORKSHIRE Black Sheep Batemans Kelham Island Timothy Taylor 7 % 3% 90 % REGIONAL SPACE PROPOSAL BASED ON 1 BAY FIXTURE (6 Shelves X 16 Facings) Regional: Local: Regional & Local combined: National: 7 facings 3 facings 10 facings 86 facings EXCEPTIONS SOUTH WEST & SCOTLAND REGIONS Regional & Local: National: 16 facings 80 facings LONDON Courage Hogsback Wider range of Wells, Youngs & Fullers NORTH EAST Dominated by Newcastle Brown (c20% PBA share) Double Maxim Allendale SCOTLAND McEwans Innis & Gunn Belhaven Orkney Caledonian Arran National Regional Local SHARE OF SPACE BASED ON NATIONAL MULTIPLE PERFORMANCE Nielsen ScanTrack MAT to Based upon highest cash rate of sale by region Nielsen ScanTrack MAT to REGIONAL BOTTLED ALE 28

30 8. Premium Ale Merchandising MERCHANDISING PRINCIPLES WITHIN PREMIUM ALE Unlike lager, the primary decision by ale shoppers is format driven rather than brand. The initial distinction is Can vs Bottle and there is little evidence of an early brand decision. BOTTLED ALE CUSTOMER DECISION HIERARCHY Clive Len Rob Neil Elizabeth FOR SELF BOTTLED ALE FOR OTHER ALE SINGLE BOTTLE MULTIPACK WEEKLY SHOP GIFT BOTTLED ALE CANNED ALE BREWER/ BRAND STYLE MIXED PACK BREWER/ BRAND SINGLE BRAND BREWER/ BRAND SINGLE BOTTLE BREWER/ BRAND MULTIPACK PBA + GIFT MIXED MULTIPACK BREWER/ BRAND BREWER/ BRAND BREWER/ BRAND Within Bottled Ale, all customer segments navigate the fixture by brewer, using signpost brands such as Old Speckled Hen. It is therefore imperative to block merchandise the range by Brewer to aid the decision process. LOCAL PRICE/ PROMOTION NATIONAL PRICE/ PROMOTION PRICE/ PROMOTION STYLE PRICE/ PROMOTION PRICE/ PROMOTION PRICE/ PROMOTION PRICE/ PROMOTION PRICE/ PROMOTION PREMIUM ALE MERCHANDISING 29

31 Bottled Ale Style Information CANNED ALE CUSTOMER DECISION HIERARCHY HALO CANNED ALE SPECIALS CORE ENTRY Building Tiers into the fixture also improves the shopping experience with entry level brands lower on the fixture and Specials & Halo brands at the top. 4 PACK PREMIUM CANNED ALE MULTIPACK 4 PACK NATIONAL CANNED BITTER MULTIPACK The development of a secondary layer of ale style information to help increase the level of engagement of non-consumers and increase the confidence of newer category entrants. LOCAL NATIONAL STYLE/ABV LOCAL NATIONAL PRICE/ PROMOTION LIGHT STYLE/ABV STYLE/ABV PRICE/ PROMOTION PRICE/ PROMOTION PRICE/ PROMOTION BREWER/ BRAND LIGHT & REFRESHING Easy Drinking LIGHT & COMPLEX full bodied PRICE/ PROMOTION BREWER/ BRAND PRICE/ PROMOTION BREWER/ BRAND BREWER/ BRAND BREWER/ BRAND BREWER/ BRAND EASY DRINKING DARK & TRADITIONAL Easy Drinking DARK DARK & COMPLEX full bodied FULL BODIED In the Canned ale category, there is little brand loyalty and pack format is a more important part of the decision process. Shoppers make a clear distinction between Premium Canned Ale and National Canned Bitter products which suggests that these categories need to be merchandised separately on the fixture, albeit adjacent to each other. PREMIUM ALE MERCHANDISING 30

32 9. Hall & Woodhouse COMMERCIAL BREAK COMMERCIAL BREAK 31

33 In August 2011, Badger rolled-out the new labels on their premium bottled ales. The re-design, which unified the range of countryside inspired ales, was created by award-winning design agency BrandOpus to appeal to a widening ale-drinking audience and help the ale shopper in-store. Although the beers in the range remain the same Badger fans know and love, the re-design has brought to life the unique personalities of each of the ales, in a consumer-friendly, navigable way. PREVIOUS PACK DESIGN COMMERCIAL BREAK 32

34 COMMERCIAL BREAK 33

35 The brand identity is now positioned within a framework, creating a clear and consistent brand architecture, whilst the central space allows the flexibility to demonstrate quirky traits of each of the ales within the range. The core range is represented by a series of illustrated animals, designed to reflect the characters of the ales, whilst the higher ABV ales to savour, are brought together by countryside pursuits in deep jewel colours. Badger performance has been strong; with Badger bottled ales growing ahead of the bottled ale category at +8% in value and +5% in volume and the number of customers buying Badger bottled ale growing by +12% in Nielsen Scantrack / Homescan data MAT to COMMERCIAL BREAK 34

36 CORE Tanglefoot is a golden ale with hints of melon and pear developed from fermentation. Ideal for steak and ale pies. A sweet nutty palate, hoppy aroma and a hint of Seville oranges, give this tawny amber ale its distinctive personality. Recommended with smooth and creamy West Country Cheddar or indulgent pork pies and mustard. SPECIALS ENTRY A clean, fresh, distinctive ale with hints of orange and spice from the hop, perfect with traditional English roasts and pies. SEE SMELL TASTE ALSO AVAILABLE IN 500ml CAN Light amber, copper Fruity, scented hop, cereal Crisp/sweet, spicy overtones This award-winning brew s spirited origin is reflected in its uplifting white grape and melon flavours. A fitting accompaniment to Sunday roast chicken or a whole baked trout with a squeeze of lemon. SEE SMELL TASTE ALSO AVAILABLE IN 500ml CAN Tawny, light golden brown Delicate spicy hop, orange, malty Malty, sweet/bitter balance Summer is the perfect time to enjoy the deliciously balanced peach and melon flavours of this award-winning classic. An ideal complement to sticky bbq ribs or an indulgent vanilla cheesecake. SEE SMELL TASTE A medium-bodied brew with warm ginger notes and a rounded sweetness; it makes a refreshing accompaniment to a hot lamb biryani or spicy, crispy chilli beef. Tawny, light golden brown Ginger spice & toffee Sweet ginger with a strong spicy character SEE SMELL TASTE Dark amber, ruby brown Floral hop, roasted malt Malty, orange zest, spicy hop SEE SMELL TASTE Golden blonde, light straw Floral, elderflower Elderflower & white grape The subtle elderflower aromas of this delicately floral brew are reminiscent of a summer s evening. This divine all-rounder is a great companion for smoky, chargrilled chicken and peppery rocket salad. SEE SMELL TASTE Golden, amber brown Intense fruit, floral Smooth, peachy, balanced sweetness A refreshing ale with a unique hoppy aroma and well-balanced bitterness that is bound to satisfy! It is a terrific match with roast lamb and spicy Thai dishes! SEE SMELL TASTE This rich, smooth brew has a softly spiced sweetness with dark liquorice notes and a fruity damson aroma. A gutsy ruby ale that is well matched with hearty game pie or a tangy mature cheese. Dark rich ruby ale Fruity, roasted malt & liquorice Sweet, full bodied, malty & bitter SEE Copper, pale golden straw SEE Light amber, copper SMELL Floral, subtle tangerine SMELL Fruity, scented hop, cereal TASTE Crisp & fruity, with a hint of elderflower TASTE Crisp/sweet, spicy overtones COMMERCIAL BREAK 35

37 THE NEW BREWERY Hall & Woodhouse are investing in the future of brewing in Blandford with a 5m investment into a new brewery, set to officially open in June COMMERCIAL BREAK 36