Marketing

Beer stabilising in pub sector

The Irish beer market was worth €2.6 billion in 2014, an increase of 3.1% on 2013, with the growth in value primarily driven by increased growth in the on-trade, according to Heineken Ireland in its end-of-year report for 2014, just published.

However beer market volumes declined by 0.3% in 2014 albeit a smaller decline when compared to 2013’s 3.2%.

The company earned €505.5 million last year, up from €477 million in 2013. It employs 534 people, down 10 on the 2013 figure and reports that the on-trade accounted for 63% of the Irish beer market by volume – up one percentage point on 2013 – with the off-trade showing a volume decline of almost 4% for 2014 compared with 2013 at a time when the on-trade increased its market share by nearly 2%, “driven by a growth in consumer confidence and increased spend in the hospitality sector”.

Lager remains the preferred beer of choice with a 64% share of the beer market, down 1% on the 2013 figure. Within this Heineken retains title as the Number One lager brand.

“The overall outlook for the beer market in Ireland remains fragile,” states Heineken Ireland, adding that, “Signs do exist of some stabilisation of beer volumes within the pub sector. However, the off-trade sector remains challenging following another year-on-year decline in volume in 2014.”

But 2014 was another year of growth for Heineken Ireland’s other brands here with Coors Light growing share in both the on- and off-trades while Desperados and Tiger both delivered “double-digit” growth.

Summer 2014 also saw the launch of Amstel Radler, a mid-strength 2% ABV beer and lemon mix.

“2014 was another strong year for Heineken Ireland, which has seen us outperform a beer market that declined by 0.3% in 2014,” stated Heineken Ireland’s Chief Executive Maggie Timoney.

Group Operating Profit for Heineken Ireland’s parent company Heineken nv showed a 7.8% organic increase from €3.2 billion to €3.4 billion on Group revenues up 3.3% organically. The Heineken brand grew volumes 5.1% “with growth across all regions”.

 

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