World beer outperforms market

Premium ales and world beers are outperforming a declining market for beer in the pub — presenting opportunities for brewers and licensees who can offer their customers something different.

That's according to Miller Brands director of sales Mike Edwards, speaking at the SIBA Pub Retail Conference, organised by the Morning Advertiser​ in association with Miller Brands.

Edwards said that, while the on-trade continues to lose sales to the off-trade, pubs can take advantage of the higher cash margins offered by premium brands.

"In our research, consumers are starting to talk differently about beer. Abv is less important to them, and it's what we called the 'worthmore' category that's driving growth. Premium ales and world beers are outperforming the market.

"For drinkers it's about where it's brewed and how it's brewed. It's about cask versus keg."

In a market where consumers are being squeezed by rising costs and less money to spend it was "no surprise", he said, that ale sales overall are down 8% in volume and lager down by 5%. The off-trade, however, is "holding up" and in the last quarter saw a 15% surge in premium ales, echoed by a modest but significant 2% increase in the on-trade.

Similarly, world beers are driving growth in the off-trade, up 17% in the past year, and, although flat, have been the strongest performing category in the on-trade.

Within world beers, Miller Brands' Peroni is more than 10% up.

Combining premium ales and world beers into a category perceived by drinkers to be "worth more", Edwards concluded there was still growth to be had, and still "plenty of gaps" to be exploited by brewers and retailers alike.