Transcript It’s Time for Beer!

It’s Time for Beer!
(The best long drink in the World)
The World of Beer Appreciation
Simon Jackson
The Beer Academy
It’s Time for Beer!
(in moderation naturally)
• Preamble
• Glass half full?
• Options for the Brewing sector
Preamble
• Recent history
• Current market dynamics
• What is the consumers view?
Changes in a Mature Market
Actual UK beer market: ale & lager
Lager has become the most popular beer type at the expense of ale
and stout and now accounts for 74% of the UK market
70
Million hectolitres
60
50
40
30
20
10
Lager
Ale & Stout
0
Source
Changes in a Mature Market
The UK beer market: on/off trade
On-trade - fallen by 50% as take-home consumption accelerates. Offtrade now account for 50% of UK beer sales
70
Million hectolitres
60
50
40
30
Off-trade
20
On-trade
10
0
Source
Changes in a Mature Market
120
120
100
100
80
80
60
60
40
40
UK Beer Production
20
0
Breweries (excl. micros)
20
0
Source
Number of breweries
Beer Production m hls
The UK beer market: brewery rationalisation
Changes in a Mature Market
The UK beer market: the competition!
10.0
Litres of 100% alcohol
9.0
FABs
8.0
Spirits
7.0
6.0
Wine
5.0
4.0
Cider
3.0
2.0
Beer
1.0
0.0
Source
19
09
19
14
19
19
19
24
19
29
19
34
19
39
19
44
19
49
19
54
19
59
19
64
19
69
19
74
19
79
19
84
19
89
19
94
19
99
20
04
20
09
million barrels
Why has beer consumption fallen so
dramatically in recent years …
45
40
35
30
25
20
15
8
Source: BBPA
… here and in other mature markets
160
140
120
100
litres per head
80
60
40
20
0
Germany
Australia
Ireland
1980
9
Source: BBPA
2007
UK
UK
Netherlands
Have brewers lost touch with this
generation?
45
4,250
40
3,750
35
3,250
30
2,750
25
20
1953
2,250
1963
1973
1983
UK beer production
10
Source: National Statistics/BBPA
1993
2003
18-25 males
Consumers view
• Plenty of evidence that consumers are on the cusp of
significant changes in their preferences
– Pete Browns Cask Report shows that Cask Beer is gaining
share and value share
– SIBA Industry report underlines this remarkable progress
• Consumers are interested in choice, variety and
innovation
– Beer as a natural accompaniment to food and as a
naturally moderate drink is creating traction with
consumers
– The wonderful range of beer styles excites consumers
• BUT……
We have failed to communicate the
wholesomeness of beer …
Beer and Wholesomeness
70
60
50
% 40
30
20
10
0
Beer
Wine
Spirits
It is higher in
It is made from It can be part of a
calories than most natural ingredients healthy lifestyle
other alcoholic
and diet
drinks
12
Source: ComRes
… in a social occasion …
Beer and Sociability
100
90
80
70
60
% 50
40
30
20
10
0
Beer
Wine
Spirits
It is an ideal drink
It has a wide
It goes well with a
for social
variety of flavours
wide range of
occasions
and styles
foods
13
Source: ComRes
We need to reconnect with
consumers as in the past …
14
Good work has started, but we still
have a long way to go …
15
SIBA
Proud of Beer!
What a great film!
Beer, the natural choice?
Key Q: - Will the next generation
enjoy beer and pubs?
45
4,250
40
3,750
million barrels
35
3,250
30
2,750
25
20
1953 1963 1973 1983 1993 2003 2013 2023
UK beer production
18
Source: National Statistics/BBPA
18-25 males
2,250
Scale of change
• 1979 - 42 Million Barrels
• 2010 - 27 Million Barrels
– That’s a decline of 36%!
– In the last 18 months 8 Million Barrels brewing
capacity closed with the loss of circa 800 jobs
– Despite wonderful success of local craft beer the
total market is still in decline
Beer and Pubs
• If the ‘Pub if the Hub’
– Then ‘Beer is the Heart’
• Fewer pubs means fewer on trade beer drinking
occasions
– So with fewer pubs we need to re focus on the role of
beer in pubs and reposition it as the favourite long
alcoholic beverage
– And as a beverage that suits all consumers and
consumer occasions – the wonderful variety of beer
styles where there is a beer for everyone and for
every occasion
Glass half full? – mine is
• Crikey it’s still a big market!
• The renaissance of local craft beer is impressive
– The SIBA Industry Report says it all!
• Have other long alcoholic drinks run out of
steam?
• Recent positive examples of marketing built on
provenance and human dimensions (Beer brewed
by brewers!) demonstrates a shift of marketing
approach
Green shoots to mighty Oaks
• There is at this very moment a clear window of opportunity
• A cross sector determination to highlight the positive beer
story is required
• This is not an ‘of the moment’ strategy – it will need
commitment in the medium to long term
• Beer is beer is beer- one big market, many sub markets and
opportunities- there is room for everyone
• Golden rule – why knock your competitors beer offering when
there are plenty of outsiders doing it for far more damaging
reasons?
• Your fellow brewer is part of the solution – not part of the
problem
– The overall dramatic fall in the total market is a problem
for all brewers
Market Scale
THE BIGGER THE CAKE THE BIGGER THE SLICES!!
Options for the sector
• Get behind a simple message that everyone in the sector uses
– What is the new ‘Beer is Best’ strap line?
– ‘Proud of Beer’
• Work together on non competitive communication with
consumers and decision makers
• Talk up variety, styles, beer & food, beer for every occasion
• Attract new consumer groups
– 52% of the population drink only 12 - 18% of the beer
• Get behind educational resources that will serve to educate
and enthuse consumers
– That’s what the Beer Academy does!
– The Beer Academy trained over 2000 candidates during
2010
Beer Academy Industry Training
•
•
Beer, beautiful beer! Want to learn more about it? How beer is made; what makes
it different; how to taste it professionally; how to enjoy it with food; how to
present it and much, much more? Well, welcome to the Beer Academy because
our aim is to help people understand, appreciate and enjoy beer sensibly - and
have fun! We offer a range of courses, tastings and events tailored specially to
your needs and expectations. Educate, entertain and enthuse about beer - that's
what we do at the Beer Academy. Come and join us!
Key words;
–Educate, enthuse, passion, celebrate
choice and variety, inform, enlighten…..
Beer Academy Education
• 90 minute tastings as various venues
– Next few events include
•
•
•
•
•
It’s time for beer – Meantime Beer!
Beautiful Belgian Beers
May is Mild Month
Old World Ales v New World Ales
Uncle Sam’s Ales
• Half day ‘How to judge Beer’ Course
• One Day Foundation Course
• Two Day Advanced Course
Conclusions
• We are where we are- the future is bright if we
show combined leadership about the image of
beer
• Talking with one voice is vital
• Educating consumers is mission critical
• There is a window of opportunity –those green
shoots must not wither
• It is ‘Time for Beer’
• Carpe Diem !
• Carpe Hordeum Vulgare !
Thank you
• To Jonathan Neame for material first
presented at IBC 2010
• Various others for data sources
• Beer Genie for photographs
• SIBA for inviting me to speak
• You for loving beer!
Thank you