Thursday, 8 August 2013

UK Beer Market Insights 2013

Product Synopsis
A detailed market research report on the UK beer industry. Researched and published by Canadean.

Introduction and Landscape
Why was the report written?
This report comprises high level market research data on the UK beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and analysis on beer market trends, brands, brewers, packaging, distribution channels, market valuation and pricing. 

What is the current market landscape and what is changing?
The year had started with expectations high, with a high profile European Football Tournament, the Queen's Diamond Jubileeand the Olympics. These events had a muted impact however, and sales volumes fell in every quarter of 2012. A deterioration in demand at Christmas capped another disappointing year. The tax cut on 2.8% Abv beer has prompted a surge in sales of lower Abv beers.

What are the key drivers behind recent market changes?
The Duty rise of 5% was expected but what could not be legislated for were the appalling weather conditions that plagued the country during much of the summer. The impact significantly lowered refreshment requirements and was as instrumental in pushing down consumption as the stagnant economy.

What makes this report unique and essential to read?
The UK Beer Market Insight report is designed for clients needing a quality in-depth understanding of the dynamics and structure of the Beer market. The report provides a much more granular and detailed data set than our competitors. All data has been researched, brand upwards, by an experienced 'on-the-ground' industry analyst who conducts face-to-face interviews with key producers, leading companies in allied industries, distributors and retailers.

Key Features and Benefits
This report provides readers with an excellent way of gaining a thorough understanding of the dynamics and structure of the UK Beer industry. Data includes volumes from 2008 to 2012 plus forecasts for 2013, enabling historical and current trend analysis.

This report provides readers with in-depth market segmentation: mainstream, premium, super premium, discount, alcoholic strength, local segmentation, beer type.

This report provides data and analysis of the performance of both domestic and imported brands and reports on new product activity in 2012.

This report provides an analysis of industry structure, reports on company volumes and contains brewer profiles for major brewers.

This report provides distribution channel data (on- vs off-premise) and discusses the latest trends in the key sub-channels. Packaging data includes consumption volumes by pack material, type, size, refillable vs non-refillable, multi-serve vs single serve. Market valuation data and pricing data, including beer consumption by price segment/distribution channel and selected consumer beer prices are also included.

Key Market Issues
The year began with some optimism that the European Football championships, the Jubilee celebrations, and the Olympics might provoke a slowdown in the rate of beer decline. What could not be legislated for however, were the appalling weather conditions that plagued the country during much of the summer.

Losses from the big brands are prompting a cider rush with brewers now looking to move into the cider market.

A healthier consumer with more cosmopolitan tastes has emerged in recent years, prompting a shift to wine and other alcoholic markets. Consumers have become more adventurous with their refreshment choices, and importantly, consumers seem to be spending more on their beer but drinking less of it.

In 2013 the threat of minimum pricing in England and Wales was lifted for the short-term when a proposed level of £0.45 was sidelined. In Scotland it is another matter: the £0.50 minimum price per unit is on course to be implemented.

After the double digit gains of 2011, imports into the UK fell back last year. Many imported beers are sold in supermarkets and will have been affected by the downturn in the off-premise.

Key Highlights
Foster's is the new number one UK brand but the key story of 2012 has been the performance of the top ten UK beer brands, which all contracted during the twelve months.

The intense lobbying to end the Duty Escalator was rewarded in 2013 when the government, perhaps influenced by the depressed state of the industry in 2012 and falling revenues, opted to end the unpopular measure.

The tax cut on 2.8% Abv beer has prompted a surge in sales of lower Abv beers. Some companies launched new products while others like Carlsberg lowered the Abv of existing brands, such as Skol, to capitalize on the lower price.

Microbrewers continue to flourish on the declining big brands. The microbrewery boom continued unabated in 2012 as the tax differential helps them compete favorably with bigger producers.

Curry house brand Cobra Beer was helped by a £4 m campaign in 2012 and responded with some growth - the move was part funded by a drop in Abv to 4.8%. The future brings an interesting duel with rival Kingfisher, which will now be marketed and distributed by Heineken UK.



Table of Contents

Canadean United Kingdom Beer Market Insights Report 2013 
Executive Summary 
Section 1 Market Context 
MARKET CONTEXT 
Market Environment 
The Consumer Palate 
All Commercial Beverages 
Legislation and Taxation 
MARKET PARAMETER TABLES 
Table - Population Size and Growth, 1991-2015F 
Table - West Europe Population Size and Growth, 2002-2013F 
Table - Economic Indicators, 2004-2014F 
Table - West Europe Commercial Beverage Consumption - Per Capita, 2002-2013F 
Table - West Europe Commercial Beverage Consumption - Per Capita, % Share, 2002-2013F 
Table - West Europe Beverage Consumption Per Capita, Growth, 2003-2013F 
LEGISLATION AND TAXATION TABLES 
Table 1.5.1A - Taxation Base 
Table 1.5.1B - Excise Duty by Percentage Alcohol by Volume (From April 2012) 
Table 1.5.2 - Historical Excise Rates of Beer 
Table 1.5.3 - Legal Controls on Beer 
Table 1.5.4 - Tax Burden on Beer @ 5% Abv, 2012 
Section 2 Market Background Briefing 
MARKET BACKGROUND BRIEFING 
Table - Beer Definitions by Type - Local Segmentation 
Table - Beer Definitions by Type - Standard Price Segmentation 
Table - Beer Definitions by Type - Alcoholic Strength 
Table - Beer Definitions by Type - Beer Type 
Table - Beer Definitions by Type - Local, National and International 
Section 3 Market Update 
MARKET UPDATE 
Beer Key Facts 
Market Size 
Growth 
Market Value 
Segmentation 2012 
Distribution 2012 
Packaging 2012 
MARKET COMMENTARY 
Current and Emerging Trends 
Outlook 
Imports and Exports 
Segmentation 
Top 10 Beer Brands - Volume, 2010-2012 
Top 10 International Premium and Superpremium Beer Brands - Volume, 2010-2012 
Licensed Brand Owners and Licensees 
Brand Analysis 
Private Label/Private Label Producers 
New Products Activity 
Chart - Leading Brewers/Importer, 2012 
Market Structure 
Brewers 
Chart - Consumption by Pack Material/Type, 2012 
Packaging Trends 
Chart - Distribution by Channel, 2012 
Chart - Consumption by Price Segment, 2012 
Market Valuation and Pricing 
Beer Market Valuation (Local Currency), 2011-2013F 
Distribution Trends 
DISTRIBUTION AND PRICING TABLES 
Table 3.6.1 - Outlet Universe for Beer, 2010-2012 
Table 3.7.1 -Leading Retail Groups for Beer, 2008-2012 
Table 3.8 - Leading Importers and Distributors, 2012 
Table 3.9 - Trade Margin Build-Up Model 
Table 3.10.1 - Selected Consumer Beer Prices - Off-Premise, 2011-2013 
Table 3.10.2 - Selected Consumer Beer Prices - On-Premise, 2011-2013 
DATA TABLES 
Commercial Beverage Consumption Per Capita, Litres, 2002-2013F 
Commercial Beverage Consumption Per Capita, % Share, 2002-2013F 
Commercial Beverage Consumption Per Capita, Growth, 2002-2012 
Commercial Beverage Consumption, Million Litres, 2002-2013F 
Alcoholic Beverage Consumption - Litres of Pure Alcohol (LPA) Per Capita, 2002-2013F 
Beer Production/Trade/Consumption, 2002-2013F 
Beer Production/Trade/Consumption, Growth, 2002-2013F 
Consumption of FABs and Cider, 2002-2013F 
Beer Foreign Trade by Country (Imports), 2009-2013F 
Beer Foreign Trade by Country (Exports), 2009-2013F 
Beer Market Valuation (Local Currency), 2011-2013F 
Beer Consumption by Local Definition, 2009-2013F 
Beer Consumption by Standard Price Segmentation, 2009-2013F 
Beer Consumption by Alcoholic Strength, 2009-2013F 
Beer Consumption by Type, 2009-2013F 
Beer Consumption by Geographic Scope, 2009-2013F 
Beer All Trademarks, 2008-2012 
Beer Brands by Local Definition, 2008-2012 
Beer Brands by Standard Price Segment, 2008-2012 
Beer Brands by Alcoholic Strength, 2008-2012 
Beer Brands by Type, 2008-2012 
Beer Imported Brands by Origin, 2008-2012 
Beer Licensed Brands, 2008-2012 
Beer Private Label Brands, 2008-2012 
Beer Trademark Owners, 2008-2012 
Beer Local Operators, 2008-2012 
Beer Leading Brewers/Importers, 2008-2012 
Beer Consumption by Pack Mix: Refillability/Type/Material/Size, 2009-2013F 
Beer Distribution: On-Premise v Off-Premise, 2009-2013F 
Section 4 Brewer Profiles 
BREWER PROFILES 
CandC GROUP PLC 
Ownership/Shareholders 
Company History 
Strategic Information 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - CandC Full Brand List, ABV%, Pack Type 
Table - CandC Group Brand Volumes, 2008-2012 
CARLSBERG UK LTD 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Carlsberg Full Brand List, ABV%, Pack Type 
Table - Carlsberg UK Brand Volumes, 2008-2012 
DIAGEO GREAT BRITAIN 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Diageo Full Brand List, ABV%, Pack Type 
Table - Diageo, Great Britain Brand Volumes, 2008-2012 
GREENE KING PLC 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Greene King Full Brand List, ABV%, Pack Type 
Table - Greene King Brand Volumes, 2008-2012 
HEINEKEN UK 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Heineken Full Brand List, ABV%, Pack Type 
Table - Heineken UK Brand Volumes, 2008-2012 
A-BINBEV UK (formerly INBEV UK) 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - A-BinBev Full Brand List, ABV%, Pack Type 
Table - InBev UK Brand Volumes, 2008-2012 
Table - A-BinBev UK Brand Volumes, 2008-2012 
MARSTON`S PLC 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Marston`s Full Brand List, ABV%, Pack Type 
Table - Marston`s Brand Volumes, 2008-2012 
MILLER BRANDS UK 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Miller Brand`s Full Brand List, ABV%, Pack Type 
Table - Miller Brand Volumes, 2008-2012 
MOLSON COORS BREWERS (UK) LTD 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Molson Coors Brand List, ABV%, Pack Type 
Table - Molson Coors Brewers UK Brand Volumes, 2008-2012 
WELLS and YOUNG`S BREWING COMPANY 
Ownership/Shareholders 
Company History 
Strategic Information 
Other Beverage Interests 
Company Data 
Table - Breweries, Capacity, 000s HL 
Table - Wells and Young`s Full Brand List, ABV%, Pack Type 
Table - Wells and Young`s Brewing Co Brand Volumes, 2008-2012 
SMALLER BREWERS 
Adnams Plc 
Budweiser Budvar UK Ltd 
Cobra Beer UK 
Daniel Thwaites Plc 
Fuller, Smith and Turner Plc 
Hall and Woodhouse 
Shepherd Neame Ltd 
Wadworth and Co Ltd 
Methodology 
Beer Attributes Definitions 
Product Definitions 
Packaging Definitions 
Glossary 
Map



List of Tables

Table 1: United Kingdom Population Size and Growth, 1991-2015F 16
Table 2: West Europe Population Size and Growth, 2002-2013F 17
Table 3: United Kingdom Economic Indicators, 2004-2014F 17
Table 4: West Europe Commercial Beverage Consumption - Per Capita, 2002-2013F 18
Table 5: West Europe Commercial Beverage Consumption - Per Capita % Share, 2002-2013F 19
Table 6: West Europe Commercial Beverage Consumption - Per Capita Growth, 2003-2013F 20
Table 7: Historical Excise Rates of Beer 21
Table 8: Legal Controls on Beer 22
Table 9: Tax Burden on Beer @ 5% Abv, 2012 [1] 23
Table 10: Leading Retail Groups for Beer 2008-2012 (number of outlets) 23
Table 11: Beer Key Facts 34
Table 12: Top 10 Beer Brands - Volume, 2010-2012 37
Table 13: Top 10 International Premium and Superpremium Beer Brands - Volume, 2010-2012 38
Table 14: Licensed Brand Owners and Licensees 39
Table 15: Beer Market Valuation (Local Currency), 2011-2013F 47
Table 16: Trade Margin Build-Up Model 48
Table 17: Selected Consumer Beer Prices: Off-Premise, 2011-2013 49
Table 18: Selected Consumer Beer Prices: On-Premise, 2011-2013 54
Table 19: Beer Production/Trade/Consumption, 2002-2013F 54
Table 20: Beer Production/Trade/Consumption - Growth, 2002-2013F 55
Table 21: Consumption of FABs and Cider, 2002-2013F 55
Table 22: Beer Foreign Trade By Country (Imports), 2009-2013F 56
Table 23: Beer Foreign Trade By Country (Exports), 2009-2013F 57
Table 24: Beer Market Valuation (Local Currency), 2011-2013F 58
Table 25: Beer Consumption by Local Definition, 2009-2013F 58
Table 26: Beer Consumption by Standard Price Segmentation, 2009-2013F 59
Table 27: Beer Consumption by Alcoholic Strength, 2009-2013F 59
Table 28: Beer Consumption by Type, 2009-2013F 59
Table 29: Beer Consumption by Geographic Scope, 2009-2013F 60
Table 30: Beer All Trademarks, 2008-2012 61
Table 31: Beer Brands by Local Definition, 2008-2012 66
Table 32: Beer Brands by Standard Price Segment, 2008-2012 74
Table 33: Beer Brands by Alcoholic Strength, 2008-2012 81
Table 34: Beer Brands by Type, 2008-2012 88
Table 35: Imported Brands by Origin, 2008-2012 95
Table 36: Beer Licensed Brands, 2008-2012 98
Table 37: Beer Private Label Brands, 2008-2012 101
Table 38: Beer Trademark Owners, 2008-2012 102
Table 39: Beer Local Operators, 2008-2012 109
Table 40: Beer leading Brewers/Importers, 2008-2012 117
Table 41: Beer Consumption by Pack Mix: Refillability/Pack/Size, 2009-2013F 119
Table 42: Beer Distribution: On vs Off Premise, 2009-2013F 120
Table 43: Breweries Capacity (000s HL) 125
Table 44: A-BInBev Uk Full Brand List 126
Table 45: A-BInBev UK Brand Volumes 2011-2012 127
Table 46: InBev UK Brand Volumes 2008-2010 128
Table 47: Anheuser-Busch Europe Brand Volumes 2008-2008 129
Table 48: Breweries Capacity (000s HL) 131
Table 49: CandC Group Full Brand List [1] 131
Table 50: CandC Group Brand Volumes 2010-2012 131
Table 51: Breweries Capacity (000s HL) 134
Table 52: Carlsberg Full Brand List 134
Table 53: Carlsberg UK Brand Volumes 2008-2012 135
Table 54: Breweries Capacity (000s HL) 138
Table 55: Diageo Full Brand List 138
Table 56: Diageo, Great Britain Brand Volumes 2008-2012 139
Table 57: Diageo, Northern Ireland Brand Volumes 2008-2012 139
Table 58: Breweries Capacity (000s HL) 141
Table 59: Greene King Full Brand List 141
Table 60: Greene King Brand Volumes 2008-2012 142
Table 61: Breweries Capacity (000s HL) 146
Table 62: Heineken Full Brand List 146
Table 63: Heineken UK Brand Volumes 2010-2012 148
Table 64: Scottish and Newcastle, UK Brand Volumes 2008-2009 149
Table 65: Breweries Capacity (000s HL) 152
Table 66: Marston's Full Brand List 152
Table 67: Marston`s Brand Volumes 2008-2012 153
Table 68: Miller Brands Full Brand List 154
Table 69: Miller Brands UK Brand Volumes 2008-2012 155
Table 70: Breweries Capacity (000s Hl) 158
Table 71: Molson Coors Brand List 158
Table 72: Molson Coors Brewers UK Brand Volumes 2009-2012 160
Table 73: Coors Brewers UK Brand Volumes 2008-2008 161
Table 74: Breweries Capacity (000s HL) 163
Table 75: Wells And Young's Full Brand List 163
Table 76: Wells and Youngs Brewing Co Brand Volumes 2008-2012 164
Table 77: Company Adnams Plc 165
Table 78: Company Budweiser Budvar UK Ltd 165
Table 79: Company Cobra Beer UK 166
Table 80: Company Daniel Thwaites Plc 166
Table 81: Company Fuller, Smith and Turner Plc 167
Table 82: Company Hall and Woodhouse 167
Table 83: Company Shepherd Neame Ltd 168
Table 84: Company Wadworth and Co Ltd 168



List of Figures

Figure 1: Beer Leading Brewers/Importers, 2012 
Figure 2: Beer Consumption by Pack Material/Type, 2012 
Figure 3: Beer Distribution by Channel, 2012 
Figure 4: Beer Consumption by Price Segment, 2012



Companies Mentioned

A-BINBEV UK (formerly INBEV UK), CandC GROUP PLC, CARLSBERG UK LTD, DIAGEO GREAT BR, GREENE KING PLC,HEINEKEN UK, MARSTON'S PLC ,MILLER BRANDS UK ,MOLSON COORS BREWERS (UK) LTD ,


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