Choose your Country: Franchise Opportunity AustraliaFranchiseek BrazilFranchiseek CanadaFranchiseek ChinaFranchiseek CroatiaFranchiseek FranceFranchiseek GreeceFranchiseek HungaryFranchiseek IndiaFranchiseek IrelandFranchiseek ItalyFranchiseek MalaysiaFranchiseek NetherlandsFranchiseek New ZealandFranchiseek SingaporeFranchiseek South AfricaFranchiseek SpainFranchiseek UAEFranchiseek UKFranchiseek USA
 

Signup HERE for our E-Newsletters and your FREE subscription to Franchise Focus E-ZINE

Market Trends Beer
.

International Franchise Statistics
International Home Page
Search For...
International Franchise Opportunities
Franchise Advisers
Employment Opportunities in Franchising
Franchise Information
Ask the Experts
Franchise News
Franchise Articles
Franchise Exhibitions
Upcoming Seminars
& Education
Legal Updates
Franchise Links
Market Trends >>>
About Us ...
Franchiseek International
Bookshop
Franchise Publications
Franchise Focus Magazine
Franchise Books

Market Trends Beer

Beer goes from strength to strength
- 25 Jun 2004
Author: Natasha Cazin

The beer industry remains in fairly good shape, with volume sales up by 2.2% in 2003. Growth is mainly being driven by the increasing importance of developing markets, such as China and Russia, underpinned by increasing disposable incomes, rising living standards and greater levels of foreign investment, mainly in the form of strategic alliances with local manufacturers. Indeed, China has now overtaken the US as the world’s largest beer market, with total volume sales increasing by 41% over the review period.

In the mature regional markets of Australasia, North America and Western Europe, as well as parts of Asia-Pacific, brewers have been struggling to achieve volume growth. This is due to a combination of weakened consumer confidence (particularly in the US and Japan) and changing consumption habits, particularly amongst younger consumers, who are increasing opting for alternative drinks, such as FABs, over traditional lagers and dark beers. Most of the major breweries are therefore placing an increased focus on premium beers, making them more visible and more widely available in both retail and on-trade channels.

Imports on the up
In the UK, for example, 2003 saw the demise of Heineken Cold Filtered to be replaced by a 5% abv genuinely imported version. Scottish & Newcastle also announced its intention to cease production of several of its economy lager brands, including Hofmeister and Kestral Pilsner, as well as its McEwan’s standard lager and Courage Light standard ale brands, in order to focus on the premium segment of the market.

In the US meanwhile, premium imported lagers such as Corona Extra and Heineken continued to perform strongly in 2003, despite the recent economic downturn.

Light beers carry weight
Another underlying trend in the beer market over the 1998/2003 period was the rise of "light beers". This tendency was particularly pronounced in the US, where Bud Light was the best-selling beer in 2002, having supplanted its older sibling, Budweiser, in the previous year.

Many US consumers continue to eschew full-calorie beers for their reduced calorie counterparts in an effort to control their waistlines. The latest idea is to reinvent light beers as "low-carbohydrate" beers, with Michelob Ultra leading the way.

Another developing trend is the increase in niche and speciality beers. These essentially are the products of microbreweries with the emphasis on the use of natural ingredients and traditional brewing techniques, and the absence of chemicals associated with large-scale production. Amongst speciality brews, wheat beers were one of the fastest growing product types in 2003, albeit from a very small base.

Consolidation continues apace
The global brewing industry has been going through a period of unprecedented change in recent years, with a burst of corporate activity in 2003. The acquisitions of BBAG by Heineken, Birra Peroni by SABMiller and Gabriel Sedlmayr Spaten-Franziskaner Bräu KGaA (Spaten) by Interbrew have highlighted the apparent urgency of the leading players to build scale in order to remain competitive.

The most recent shake-up occurred in March 2004 when Interbrew announced that it had agreed to merge with South American brewing giant AmBev. The combined entity will be the largest brewing company in the world by volume, displacing Anheuser-Busch. The merger represents a good geographic fit, as AmBev is very well placed throughout South America and is beginning to position itself in the Caribbean, while Interbrew is strong in European and North American markets - especially in Canada and Mexico - and in Asia.

In terms of brands, Budweiser remains the world’s biggest, followed by Bud Light and Skol. Of these, Bud Light was the only one to gain share in 2002, thanks to its superior brand equity, marketing and wholesaler execution. Indeed, the brand may well overtake Budweiser to become the leading global beer.

 

Global Intelligence supplied by Euromonitor International

Market Trends - Beer

 

 

Seeking a Franchise?
Book Shop
Franchiseek Books
Franchiseek Books
Franchiseek Books

 

Franchise Advice | Franchise Legal | Franchise Finance | Business Advice | Franchise News
Market Trends Beer | About Us | Contact Us

Copyright © 2008 Franchiseek Limited
Disclaimer
Privacy Policy