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 Source
Changes in a Mature Market The UK beer market: on/off trade On-trade - fallen by 50% as take-home consumption accelerates. Off-trade now account for 50% of UK beer sales Source
Changes in a Mature Market The UK beer market: brewery rationalisation Source
Changes in a Mature Market The UK beer market: the competition! Source
Why has beer consumption fallen so dramatically in recent years … million barrels Source: BBPA
… here and in other mature markets litres per head UK Source: BBPA
Have brewers lost touch with this generation? Source: National Statistics/BBPA
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 Source: ComRes
… in a social occasion … Beer and Sociability Source: ComRes
SIBA Proud of Beer! What a great film!
Key Q: - Will the next generation enjoy beer and pubs? million barrels Source: National Statistics/BBPA
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 • The Wine and Spirits Education Trust trained 15,000!
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!