This report covers the market for canned lager sold in the UK for consumption largely in the home via the off-trade but also mentions the pub and restaurant trade where relevant, although on-trade sales of canned lager are negligible. It also includes some information about self-importation. The off-trade lager market was last reported on by Mintel in Market Intelligence, March 1999, while the on-trade lager market was the subject of a Market Intelligence report published in January 1997. This is the first time the lager market has been segmented by canned/bottled/draught in three separate reports.

Introduction

The amount of beer consumed in 1998 was the lowest recorded since 1971, though this does not include any self-imported product. Within the beer market, sales of lager are holding up well, particularly through the off-trade where multiple grocers are taking an increasing share.

The proportion of consumers' expenditure taken by alcoholic beverages has been falling gradually but has reached a new ten-year low of 5.7%, of which beer accounts for about one half. Spending on beer has remained fairly static for the last five years when inflation is taken into account. The popularity of lager is confirmed by the fact that it now accounts for approximately 60% of the total beer market by volume, twice the proportion as in 1980, and also that 42% of the population now drink lager, according to Mintel's exclusive consumer research. In 1999, the off-trade's top ten beer brands, by value, were all lager for the first time.

The increasing influence of women in the beer market, combined with the substantial influx of "stubbies" in 1997, have contributed to the growth of glass against cans, hence Mintel's contention that "canned lager is losing sales to bottled. Producers need to ensure that the canned product is not perceived as an inferior product."

Other Mintel reports of relevance include:

- In-home Drinking, Market Intelligence, September 1999

- Off Licences, Retail Intelligence, May 1999

- Dark Spirits, Market Intelligence, April 1999

- Off-Trade Lager, Market Intelligence, March 1999

- White Spirits, Market Intelligence, March 1999

- Fortified Wine, Market Intelligence, December 1998

- Cider, Market Intelligence, October 1998

- Alcoholic Soft Drinks, Market Intelligence, September 1998

- Champagne and Other Sparkling Wine, Market Intelligence, September 1998

- Alcoholic Mixables, Market Intelligence, July 1998

- Ales and Stouts, Market Intelligence, June 1998

- Liqueurs, Market Intelligence, June 1998

- RTD Alcoholic Drinks, Market Intelligence, April 1998

- Adult Soft Drinks, Market Intelligence, March 1998

- Low Alcohol and Alcohol-free Drinks, Market Intelligence, January 1998

- Alcoholic Drinks Retailing, Retail Intelligence, January 1997

- On-trade Lager, Market Intelligence, January 1997

and the forthcoming:

- Bottled Lager, Market Intelligence, February 2000

- Draught Lager, Market Intelligence, March 2000

- RTD Alcoholic Drinks, Market Intelligence, April 2000.

Definition

The word lager means "to store" and is of German origin, with the term originally used to describe bottom-fermented beer stored by the brewer at low temperatures in order to mature and enhance the flavour. Top-fermented beers are those traditionally regarded as British or Irish such as bitter and mild; these fall outside the scope of this report and are covered in Ales and Stouts, Market Intelligence, June 1998.

In generic terms, lager can broadly be described as a light/amber, clear, carbonated beer brewed with pale kilned malts which, after fermentation, is filtered, pasteurised and conditioned before being packaged in cans, bottles or kegs for sale in the off- and on-trade. This is, however, a very broad definition; and as consumers' tastes become more sophisticated, there is a growing interest in darker lagers using different malts (sometimes referred to as red and black lagers), organic beers and even fruit-flavoured products.

This report includes some reference to bootlegging/smuggling and personal importation which have now become a significant force within the beer market. Definitions follow current industry classifications derived from the Brewers and Licensed Retailers Association (BLRA).

In terms of industry definitions for packaged lagers, Class I beers broadly relate to cheaper value or economy lager brands and have an alcohol content of 1.3-3.3% ABV, Class II to standard lagers of 3.4-4.2% ABV, Class III to premium lagers of 4.3-7.5% and Class IV to superstrength lagers of 7.6% ABV or above for example Carlsberg Special Brew.

NAB/LAB covers beers with either no alcohol (NAB) or with a content between 0.5% and 1.2% ABV (LAB).

The term "ice" is used to refer to beers which undergo a process of super-chilling during the brewing process, producing a taste that is claimed to be cleaner and more refreshing than standard lager.

Consumer research

In addition to the standard breaks, Mintel has analysed the consumer research in the following manner.

Lifestages are derived from analysis of the exclusive consumer research and are split into four main groups.

Pre-family	those aged under 35 who are not parents.
Family	those aged 15-54 with at least one child aged under 16 still at home.
Empty nesters	no family/empty nesters aged 35-54 with no children (aged under 16).
Post family	post family/retired those aged over 55/not working.

As part of an ongoing policy to find new ways of analysing data, Mintel has created

Special Groups of consumers to typify consumer habits in the late 1990s. Unlike the lifestage groups, these groups represent only sections of the population and do not account for all adults.

Benefit dependents	Es aged 35+ - those who are reliant solely on state benefits (around 10% of the adult population).
Families on a tight budget	these are working C2Ds with at least one child aged under 16 in the household - the majority have limited incomes which must be spent on a relatively large household (around 10% of the adult population).
Better off families	these are working ABC1s with at least one child aged under 16 in the household (around 9% of the population).
Better off empty nesters	these are ABC1s aged 35-64 who are working with no children (aged under 16) living at home. They are, therefore, the classic no family/empty nesters with probably a high income that can be spent on themselves rather than on family (around 8% of the adult population).
Working managers	these are working ABs (around 9% of the population).
Working women	women in part or full time employment (around 21% of the adult population).

Value figures throughout this report are at retail selling prices unless otherwise stated.

Abbreviations

AB	Anheuser-Busch
ACNielsen MMS	For more information contact Mary Sneddon at ACNielsen MMS on
	01344 627553.
ABV	Alcohol by Volume
BAA	British Airports Authority
BB	Beverage Brands
BLRA	Brewers and Licensed Retailers Association
BMRB	British Market Research Bureau
BOC	British Oxygen Company
CAMRA	Campaign for Real Ale
CWS	Co-operative Wholesale Society Ltd
EU	European Union
FA	Football Association
FIFA	Fédération Internationale de Football Association
FTSE	Financial Times Stock Exchange
ICS	In-Can Systems
ID	Identification (cards)
ITC	Independent Television Commission
MAT	Moving Annual Total
MGD	Miller Genuine Draft
MMC	Monopolies & Mergers Commission
msp	manufacturers selling price
NAB/LAB	No Alcohol Beer/Low Alcohol Beer
NOP	National Opinion Polls
NPD	New Product Development
NRB	Non-returnable bottle
OFT	Office of Fair Trading
OG	Original Gravity
ONS	Office for National Statistics
PET	Polyethylene Terephthalate
PPL	Premium Packaged Lagers
RPI	Retail Price Index
RRP	Recommended Retail Price
RTD	Ready to Drink
SPSS	Statistical Package for the Social Sciences
TGI	Target Group Index. For further details concerning this information, including data regarding readership patterns of users/purchasers and details of brands, please contact Peter Shreeve at BMRB International on 020 566 5000.
USP	Unique Selling Proposition
VAT	Value Added Tax
W&D	Wolverhampton and Dudley Breweries Ltd

01/2000