Introduction

The lager market continues to expand in the UK, especially within the off-trade where offers on beer are perpetually used by the multiples to drive footfall. Combined with the increasing tendency to entertain/be entertained in the home environment, lager, which is available in countless different pack sizes, has become the mainstay of the UK beer market, accounting for around two thirds of all beer volume.

Consumers have become increasingly brand-focused and, in most categories of the alcohol market, brands are accounting for a growing volume share of the market. It also means that many outlets will be stocking much the same range, borne out by the fact that nine out of ten of the best-selling beers in the off-trade are lagers. However, while volumes have grown, values have continued to fall, as many brands become almost commodity-based in the off-trade. Furthermore, consumers have come to expect value-for-money promotional deals, but beer nevertheless accounts for around 3% of total consumer expenditure.

Introduction

The lager market continues to expand in the UK, especially within the off-trade where offers on beer are perpetually used by the multiples to drive footfall. Combined with the increasing tendency to entertain/be entertained in the home environment, lager, which is available in countless different pack sizes, has become the mainstay of the UK beer market, accounting for around two thirds of all beer volume.

Consumers have become increasingly brand-focused and, in most categories of the alcohol market, brands are accounting for a growing volume share of the market. It also means that many outlets will be stocking much the same range, borne out by the fact that nine out of ten of the best-selling beers in the off-trade are lagers. However, while volumes have grown, values have continued to fall, as many brands become almost commodity-based in the off-trade. Furthermore, consumers have come to expect value-for-money promotional deals, but beer nevertheless accounts for around 3% of total consumer expenditure.

Report's scope

Providing fresh insight into:

- Market sizes

- Supply structures

- Market shares

- Consumer attitudes

- Future trends

- Market forecasts

Key findings include:

Consumer trends - In today's style-conscious society, labels mean everything and the same is true of lager to young drinkers. Fashion is important in all markets nowadays and there is doubtless competition from FABs, white spirits and many other drinks all competing for the leisure pound, which has not been helped by the rise in excise duty in 2003. Lager consumption tends to fall away with older consumers and brewers should be aware that there is forecast to be a substantial drop in the number of 18-35-year-olds (the main consumer age group for lager) in the next five years

Advertising trends - In its debut year, Coors outspent all other brewers in the lager category, most of which reduced their spends slightly in 2002, but continue to invest heavily in their big brands. However, all brand owners are now being forced to contribute to the multiple grocers and pub chains by way of listing/promotional allowances, which has reduced monies available for above-the-line advertising or, in some cases, for NPD. Brewers are now investing more in the on-trade experience with upgraded staff training, the distribution of branded glassware and link promotions with snack food companies.

Market developments - Brewers and importers are turning more to speciality beers in a bid to make them less price-sensitive and preserve much-needed margin, with such beers often appealing to more affluent drinkers. The bigger brewers tend to concentrate on the well-known national brands, offering a somewhat restricted choice and possibly allowing the lager category to lose drinkers to other product groups, although some have slowly begun to introduce one or two speciality lagers.

All the crucial industry questions answered.

How truly brand conscious are UK consumers when choosing lager?

When and where do consumers tend to drink their lager? Where is consumption at its greatest?

How has ongoing price discounting by the grocery multiples effected the entire industry?

Other related reports:

- Cider, Market Intelligence - UK Report, October 2002

- Pub Visiting, Leisure Intelligence - UK Report, August 2002

- Ales and Stouts, Market Intelligence - UK Report, May 2002

- Attitudes Towards Drinking, Market Intelligence - UK Report, March 2002

- Flavoured Alcoholic Beverages, Market Intelligence - UK Report, October 2001

- Impact of Cross-Channel Shopping on the UK Alcohol Market, Market Intelligence - UK Report, June 2001

and the forthcoming:

- On-trade Soft Drinks, Market Intelligence - UK Report, September 2003

- In- versus Out-of-Home Drinking, Market Intelligence - UK Report, November 2003.