HEINEKEN UK has launched the third annual Beer Report aiming to help operators navigate evolving trends that are impacting the way consumers socialise and drink. The report explores how market growth is being driven by new launches, a boom in World Lager, and No & Low Alcohol brands.
Beer is now worth £13.5bn to UK pubs and bars, equivalent to 3bn pints sold each year, and remains the UK’s favourite alcoholic drink. In the past 12 months, three of the UK’s top draught beer brands have exceeded £1bn in value sales. Guinness tops the bill at £1.3bn, up 22% in value, followed by Carling, down 6.3% to £1.1bn, and Birra Moretti, up 2.7% to hit £1bn in draught sales for the first time.
New product launches since 2020 also now account for 9% of beer value share. The most successful launches for total 2023 were Guinness Draught 0.0, growing rapidly to be worth £19m to the on-trade; Stella Artois Unfiltered, already worth £7.5m, and – in the top spot – Sevillian lager Cruzcampo®, growing from launch to be worth a whopping £128m in on-trade sales in under a year.
A significant driver behind the success of beer in the on-trade over the past 12-months is growth of the World Lager category, which comprises 28% of the beer market. The rise of Spanish lager has also been key over the past 12 months, posting a 27% increase in value, and now accounting for one in four pints of total World and Premium Lager sold in UK pubs and bars.
Another bright spot has been the performance of No & Low Alcohol beer, up 40% in value over the past year. Although still a small part of the market, commanding 1% value of the total on-trade beer scene, there remains a big opportunity for operators looking to stay ahead of changing behaviours as people seek to moderate their intake and pay attention to ABVs.
The report also highlights the shifting consumer trends affecting on-trade consumption and the emergence of new behaviours. This includes the rise of a ‘spend and splurge’ approach to on-trade visits, and the emergence of lunchtime and early evening amongst the most valuable trading times. Advice and insight from industry experts demonstrate how operators can capitalise on these trends to boost profits.
HEINEKEN UK On-Trade Sales Director Will Rice said:
“We’re delighted to launch our third annual Beer Report to help pubs and bars navigate what their guests are looking for from beer. In the face of long-term shifts in the way consumers are socialising and drinking, the report provides an invaluable resource, helping operators adapt their beer range to maximise the opportunities presented by evolving on-trade trends.
“Despite what headlines may say, there’s reason to be optimistic. There are several trends and behavioural shifts that we predict will be positive for the industry and for beer – a category that remains, after all, the UK’s favourite alcoholic drink by some distance.”
