HEINEKEN has released its latest Beer Report which shows that beer continues to outperform in the on-trade drinks market providing insight into how to adapt the on-trade beer offer, highlighting how market growth is being driven by new launches, a boom in World Lager, and No & Low Alcohol brands.
With beer now worth £13.5bn to UK pubs and bars, equivalent to 3bn pints sold each year, it remains the UK’s favourite alcoholic drink and in the past 12 months, three of the UK’s top draught beer brands have exceeded £1bn in value sales. Guinness tops the bill at £1.3bn, up 22% in value, followed by Carling, down 6.3% to £1.1bn, and Birra Moretti, up 2.7% to hit £1bn in draught sales for the first time. The report show that Spanish beers have driven growth over the past 12 months with a 27% increase, now accounting for one in four pints of total World and Premium Lager sold in UK pubs and bars, and overall, the growth of the World Lager category has been a significant driver behind the success of beer in the on-trade, making up 28%, of the beer market.
New product launches since 2020 also now account for 9% of beer value share. The most successful launches for total 2023 were Guinness Draught 0.0, growing to be worth £19m to the on-trade; Stella Artois Unfiltered, already worth £7.5m, and – in the top spot – Sevillian lager Cruzcampo®, growing from launch to be worth a whopping £128m in on-trade sales in under a year.
Another bright spot has been the performance of No & Low Alcohol beer, up 40% in value over the past year. Although still a small part of the market, commanding 1% value of the total on-trade beer scene, HEINKEN say that there is a big opportunity for operators looking to stay ahead of changing behaviours as people seek to moderate their intake and pay attention to ABVs.
The report also offers advice and insight from industry experts demonstrating how operators can capitalise on the shifting consumer trends affecting on-trade consumption and the emergence of new behaviours to boost profit. This includes the rise of a ‘spend and splurge’ approach to on-trade visits, and the emergence of lunchtime and early evening amongst the most valuable trading times.
HEINEKEN UK On-Trade Sales Director Will Rice said, “We’re delighted to launch our third annual Beer Report to help pubs and bars navigate what their guests are looking for from beer. In the face of long-term shifts in the way consumers are socialising and drinking, the report provides an invaluable resource, helping operators adapt their beer range to maximise the opportunities presented by evolving on-trade trends.
“Despite what headlines may say, there’s reason to be optimistic. There are several trends and behavioural shifts that we predict will be positive for the industry and for beer – a category that remains, after all, the UK’s favourite alcoholic drink by some distance.
Download the full HEINEKEN Beer Report 2024 here
