Dominant draught

Draught remains the key sales format in the on-trade beer market holding 93% of volume according to Nielsen which indicates that people spent nearly €1.93 billion downing nearly 441 million pints of draught beer MAT to the end of January 2017 in the on-trade. We take a look at recent developments in this market.

It’s been a good year for beer with volumes up 1.8% and values 2.1% MAT to last January according to Nielsen.

It’s been a good year for draught beer sales in the on-trade too with volumes up 1.6% and values up 2.2% to €1.93 billion.

Draught lager, the main channel to the consumer, enjoyed a value share of 50.5% of the on-trade draught beer market to January 2017 MAT, up from 49.5% for the previous 12 months (MAT to January 2016). Lager itself enjoyed a volume share of 49.3%, up from 48.4%, according to Nielsen which states that on-trade draught beer volumes during this time rose 1.6% from 433.6 million pints to just under 441 million pints – this at a time when on-trade draught beer values went up by 2.2% from €1.89 billion to €1.93 billion.

Nielsen also points out that lager comprises over 51.5% of all beer volume sold, with over 89.25% of the lager volume being sold on draught, up marginally from last year.

In terms of category mix, beer accounts for a steady-as-she-goes 47.0% of the alcohol market.

And according to Heineken Ireland in its 2016 Performance Overview published in conjunction with Heineken nv’s Annual Results recently, on-trade beer volumes here returned to growth in 2016, growing by 1.3%.

Today, lager is the biggest segment in the on-trade at 47%. Draught accounts for 91% of this and the ‘big’ premium mainstream brands Heineken, Carlsberg, Coors Light and Budweiser, drive this segment accounting for 81% of total volume and experiencing growth of over 3%.

This positive momentum has been maintained in the early months of 2017 and is forecast to continue to grow in 2017 though at slightly slower rate, reports Heineken Ireland.

“The drivers of the growth in the past year have undoubtedly been improved consumer sentiment and confidence, the good Summer weather and the benefit of major events including the Euro Football and the Autumn Rugby Internationals,” believes Leona Daly, Consumer and Market Intelligence Manager at Heineken Ireland, “In addition, it’s clear that as the economy improves and publicans are taking the opportunity to invest further in their premises, consumers are responding by committing more of their social spend to pub visits.

“Regained consumer optimism post-recession has coupled with new and interesting outlets opening that deliver on total experience (entertainment, food, speciality drinks and serves).

“However these pub visits are showing a shift from historical ‘going for a drink to socialise’ to ‘young adults are looking for distinct/unique food & drink offerings’ – a smoking area that appeals to smokers & non-smokers is also attractive while games (eg quizzes, table top games or pool/snooker) are regularly mentioned. While few suggested lower prices, they look for regularly updated drink offers”

John O’Callaghan, On-Trade Trade Marketing Manager at Heineken Ireland, adds, “Undoubtedly the development and growth of craft beers has had a positive halo effect on all beers, making beer as a category more interesting giving it increased talkability and acceptability on a growing number of occasions.

“This growing interest in beer has increased consumers’ desire for choice. In turn this invites the brewers to offer a more varied portfolio of brands in response to these expanding needs; this is most apparent at the bar counter where we see an ever increasing range of lagers, beers and ales on offer.”

This is reflected by UK market research from CGA Brandtrack to February 2017 which found that 83% of lager-drinkers chose draught lager.

Standard draught lager is the clear preference for 58% with 45% preferring draught premium lager, 30% bottled premium lager, 16% draught speciality craft lager and 14% bottled speciality/craft lager.


A Hopping Success

This April sees the unveiling of a new multi-media heavyweight national campaign for Hop House 13, celebrating characterful places and the people behind them. It includes a roll-out of TVC & outdoor ads amplified through PR, experiential and social executions.

Since its launch the beer has proven to be one of the most successful Guinness innovations ever and its strong performance helped drive an increase in Guinness net sales across Europe.

“Our latest Hop House 13 media campaign showcases some of the uniquely characterful bars, pubs and even barbers where you can enjoy a Hop House 13 lager,” explained Diageo Europe’s Marketing Manager Dafydd Pugh Williams, “Hop House 13 is double-hopped for more taste and character; we want to reflect the values of the brand by celebrating the outlets and people behind them who have their own unique character; those places which are interesting and surprising with owners bold enough not to follow trends but forge their own path creating a venue that people can’t wait to go back to or take their mates to.”

The campaign features a range of recognisable characterful places throughout Ireland including Brennan’s Criterion Bar in Bundoran, John Kavanagh’s in Glasnevin, McCarthy’s in Fethard and Sam’s Barbers in Dublin.


Heineken Light – Giving Choice To Consumers

Heineken Light was introduced to Irish consumers in 2016 and response to date has been very positive. Heineken Light is perfect for occasions when drinkers want to be out with friends and in the moment but opt for a beer with lower calories and slightly lower alcohol content. These occasions include ‘after work’ drinks as well as watching sports during mid-week.

Heineken Light is lower in calories than any other light beer on the market and has an ABV of 3%.

Over 70,000 consumers have trialled the product in the on-trade with feedback received including:

“I recently switched to drinking Heineken Light as I’m in training for an event and I like the lighter taste.” Male consumer, aged 30.

The brand is available on draught and 355ml bottle in on-trade outlets nationwide. A new full Through-The-Line campaign for Heineken Light includes TV, Outdoor, Digital, In-Bar Activations and visibility.


Carling signs up for the Premier League

With a global audience of over five billion, Premier League is the world’s most watched football league and as every fan will tell you, these games are about more than football. They’re special events where friends get together to watch the best teams create the best memories. Carling is all about friends, stories shared and sport with everything underpinned by a superb quality lager, making Carling & the Premier League a perfect match.

The Official Beer of the Premier League has launched Carling Premier League Pubs, offering stockists season-long support worth up to €10,000 including bespoke venue branding, Premier League promotions, social media content and much more.

“With over 250 Premier League games to be televised live this year, the Carling Premier League Pubs initiative is aiming to create a community of venues with a Best in Class sports watching experience for customers,” commented Molson Coors’ Ronan O’Hagan, “Also, the addition of Friday Night games will give pubs a further opportunity to maximise this after-work occasion.”

Carling Premier League Pubs gives Carling drinkers more reasons to get together, share stories and follow the Premier League long after the final whistle has blown. By enhancing the live football-watching experience, Carling stockists have a unique opportunity to increase engagement with customers and leverage the most-watched league in the world.

For more details, contact Molson Coors on 01 651 0876 or your local Molson Coors Field Sales Representative.




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