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 JacksonThe Beer Academy
It’s Time for Beer!(in moderation naturally)
• Preamble• Glass half full?• Options for the Brewing sector
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
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
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!