it’s time for beer! (the best long drink in the world) the world of beer appreciation simon...

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It’s Time for Beer! (The best long drink in the World) The World of Beer Appreciation Simon Jackson The Beer Academy

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It’s Time for Beer!(The best long drink in the World)The World of Beer Appreciation

Simon JacksonThe 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 Market1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

0

10

20

30

40

50

60

70

LagerAle & StoutM

illion

hect

olitr

es

Actual UK beer market: ale & lagerLager 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 Market1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

0

10

20

30

40

50

60

70

Off-tradeOn-trade

Million

hect

olitr

es

Source

The UK beer market: on/off tradeOn-trade - fallen by 50% as take-home consumption accelerates. Off-

trade now account for 50% of UK beer sales

Changes in a Mature Market

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

0

20

40

60

80

100

120

0

20

40

60

80

100

120

UK Beer Production

Breweries (excl. micros)Beer

Pro

du

ctio

n m

hls

Nu

mb

er

of

bre

weri

es

The UK beer market: brewery rationalisation

Source

Changes in a Mature Market1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Lit

res

of

10

0%

alc

oh

ol

FABs

Spir-its

Wine

Cider

Beer

Source

The UK beer market: the competition!

8

15

20

25

30

35

40

45

1909

1914

1919

1924

1929

1934

1939

1944

1949

1954

1959

1964

1969

1974

1979

1984

1989

1994

1999

2004

2009

Why has beer consumption fallen so dramatically in recent years …

Source: BBPA

mill

ion

barr

els

9

… here and in other mature markets

Source: BBPA

0

20

40

60

80

100

120

140

160

Germany Australia Ireland UK Netherlands

1980 2007

UK

litre

s pe

r hea

d

10

Have brewers lost touch with this generation?

20

25

30

35

40

45

1953 1963 1973 1983 1993 2003

2,250

2,750

3,250

3,750

4,250

UK beer production 18-25 males

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……

12

010203040506070

It is higher incalories than most

other alcoholicdrinks

It is made fromnatural ingredients

It can be part of ahealthy lifestyle

and diet

%Beer

Wine

Spirits

We have failed to communicate the wholesomeness of beer …

Source: ComRes

Beer and Wholesomeness

13

… in a social occasion …

0102030405060708090

100

It is an ideal drinkfor socialoccasions

It has a widevariety of flavours

and styles

It goes well with awide range of

foods

% Beer

Wine

Spirits

Source: ComRes

Beer and Sociability

14

We need to reconnect with consumers as in the past …

15

Good work has started, but we still have a long way to go …

SIBA

Proud of Beer!What a great film!

Beer, the natural choice?

18

Key Q: - Will the next generation enjoy beer and pubs?

20

25

30

35

40

45

1953 1963 1973 1983 1993 2003 2013 2023

2,250

2,750

3,250

3,750

4,250

UK beer production 18-25 males

Source: National Statistics/BBPA

mill

ion

barr

els

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!

Thank you