Brewers optimistic for 2008

16 November, 2007

Brewers are refusing to be brow-beaten by the poor performance in 2007 and are already making plans to innovate for next season.

The top five lagers in the UK own nearly half the value in the total beer market,and though their sales may fluctuate with the weather, they're not going anywhere.

The question is, how will they make sure 2008 isn't the washout that 2007 has been?

Two of the biggest brewers in the market, Scottish & Newcastle and Coors, want to grow their sales by giving the whole market an overhaul.

Coors, whose flagship lager Carling has a strong link with football, says waiting for Euro 2008 and hoping for better weather isn't enough. "We tend to find that football competitions affect the timings of beer consumed, not the volumes," says portfolio activation director David Wigham. "We have plans to drive sales of all of our brands throughout the year next year. We want to encourage consumers to think about beer more often, and there will be a lot of activity about extending the reach of beer to a broader range of consumers and occasions."

Scottish & Newcastle UK, which has Foster's, Kronenbourg 1664 and John Smith's Extra Smooth in the top 10, has developed a category plan that sees beers and ciders marketed by drinking occasion and customer rather than by brand. It says that will grow the whole category rather than shuffling market share from one brand to another.

InBev UK, which owns 11 brands in the top 50, including market leader Stella Artois, is investing in advertising for Stella and its sister brands Peeterman Artois and Artois Bock. A new TV ad aired for the first time last week and a website - artois.co.uk - and training programme, l'Academie Artois, are among the Dutch brewer's plans for the brands.

Activity is also planned around the 30th anniversary of the Artois Tennis Championships at London's Queen's Club.

Like others in the trade, InBev UK's take-home retail director Steve McAllister blames Stella's 5 per cent sales drop on the weather and the lack of a major ­football tournament this summer. "We do not believe this is a long-term trend - Stella Artois remains the UK's favourite beer brand and is nearly four times the size of its nearest competitor in terms of take-home volume," he says.

Carlsberg and Carlsberg Export grew sales by 17 per cent and 7 per cent respectively, and between them command 11 per cent of the total beer market. But the brewer believes they could have done even better with a decent barbecue season.

Take-home marketing controller Ged Lowry says: "2008 will be a better year for a number of reasons, but you can't imagine that the weather could be quite so bad again next year. Euro 2008 will also drive sales by creating more drinking occasions as men will get into the tournament and enjoy watching football with a beer.

"It is also important to continue to focus on driving the number of occasions for drinking beer and we are doing this through innovation, whether it's our Carlsberg Draughtmaster that is perfect for parties, our Jacobsen speciality range that is great for sharing with a special meal, or our Carlsberg low alcohol product that is an excellent product for those worried about alcohol consumption."Winners and losers

The winners

Foster's Twist saw the biggest growth in the off-trade beer market this year, with sales soaring 713 per cent to £10 million in the year after its launch, nearly on a par with Tetley's Smoothflow and Fuller's London Pride.

InBev UK's Peeterman Artois also saw massive success, leaping into 48th place with nearly £8 million of sales in its launch year.

Further up the table, Cobra's ad campaign and TV sponsorships helped boost the brand 54 per cent to £15 million, and Peroni Nastro Azzuro grew sales by 40 per cent to £23 million.

The losers

This year's biggest loss was for Castlemaine XXXX, which saw sales plummet by 39 per cent to £29 million. Owner InBev UK blamed the weather but hopes the brand's new look - designed to give it a more Aussie feel with slogans such as A Beer Not a Lifestyle Choice printed on cans - will appeal to male drinkers and help turn it around.

Sales of Carlsberg's 3 per cent abv Skol fell 35 per cent to £13 million. But Carlsberg says it believes the brand could become popular as interest in lower abv beers grows. Take-home marketing controller Ged Lowry says: "Skol is the biggest mid-strength lager and is much bigger than Carling C2. The brand has a part to play in our portfolio and there is a growing demand for lower abv products.

GB Off-trade sales
Year to Oct 6 2007
PositionBrandSupplier
% sales change
1 (1)
Stella ArtoisInBev UK
-5
2 (2)

CarlingCoors
-3
3 (3)

Foster'sScottish & Newcastle
5
4 (4)

CarlsbergCarlsberg UK
17
5 (5)

BudweiserAnheuser-Busch
-8
6 (7)

Carlsberg Export Carlsberg UK
7
7 (6)

Kronenbourg 1664Scottish & Newcastle
-5
8 (8)

GrolschCoors
-3
9 (10)

John Smith's Extra Smooth Scottish & Newcastle
8
10 (12)

Beck'sInBev UK
8
11 (11)

Tennent's InBev UK
6
12 (9)

Guinness DraughtDiageo
0
13 (13)

Carlsberg Special BrewCarlsberg UK
0
14 (15)

Tennent's Super InBev UK
-2
15 (16)

San MiguelScottish & Newcastle
6
16 (17)

BoddingtonsInBev UK
-10
17 (14)

Castlemaine XXXX InBev UK
-39
18 (18)

Guinness Original Diageo
-5
19 (20)

HeinekenHeineken UK
9
20 (27)

Peroni Nastro AzzuroMiller Brands
40
21 (23)

Old Speckled Hen Greene King
10
22 (29)

Corona Extra Wells & Young's
23
23 (22)

Newcastle Brown Ale Scottish & Newcastle
5
24 (21)

Miller Genuine Draft Miller Brands
-5
25 (19)

Miller BeerMiller Brewing Company
-28
26 (26)

Holsten PilsCarlsberg UK
17
27 (25)

John Smith's OriginalScottish & Newcastle
-7
28 (28)

McEwan's Export AleScottish & Newcastle
-1
29 (35)

CobraCobra Beer
54
30 (30)

Murphy'sInBev UK
-1
31 (24)

SkolCarlsberg UK
-35
32 (32)

Caffrey'sCoors
-12
33 (36)

London PrideFuller's
13
34 (33)

Tetley's SmoothflowCarlsberg UK
-22
35 (-)

Foster's TwistScottish & Newcastle
713
36 (46)

Leffe BlondeInBev UK
37
37 (31)

Tetley's OriginalCarlsberg UK
-29
38 (41)

TigerUbevco
5
39 (24)

Oranjeboom Shepherd Neame
-28
40 (38)

BrahmaInBev
-4
41 (-)

Lynx Altra Booker
13
42 (47)

Sol Coors
15
43 (42)

Marston's Pedigree Marston's
-5
44 (-)

Lynx premiumBooker
98
45 (45)

Theakston's Old PeculiarTheakston
8
46 (44)

Budweiser BudvarBudweiser Budvar UK
8
47 (37)

Coors Fine Light Coors
-13
48 (48)

Peeterman ArtoisInBev UK
*new entry
49 (40)

Stone'sCoors
-12
50 (49)

Skol SuperCarlsberg UK
-18

Source: Neilsen Scantrack data.




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