Brewers tackle supermarket price war with smaller packs

Brewers finally look to be winning the battle to increase the price point of their brands in supermarkets this Christmas.

They have fought an increasingly desperate battle in recent years against the big multiple retailers to stop beer prices from falling through the floor.

But this year instead of trying to increase the price point of the big multi-packs they are instead encouraging retailers to sell smaller pack sizes.

Most brewers are now moving from 24 to 20 packs, with some even moving to 18 packs; last year InBev UK introduced 20 packs for 330ml bottles of Stella Artois instead of the usual 24.

Coors has taken this further this year and introduced a series of promotions for the off-trade specifically targeted at smaller pack sizes. For example six cans (500ml) of Grolsch will go on offer for £5, while nine cans (330ml) of Carling will cost £5.

Scottish Courage, although admitting that the big multi-packs would still be seen on shop floors, also said it wanted to encourage customers to buy smaller pack sizes.

"It is widely acknowledged that beer has been the battleground for damaging price promotional activity which has affected value performance within the off-trade marketplace," said David Goadby, head of customer marketing at Scottish Courage.

"If we provide shoppers with a good choice of pack sizes then we can be hopeful of modest price inflation this Christmas."

Each year the big supermarket chains use the big lager brands as a loss leader to get people into the stores. This has stuck in the craw of many licensees who have been unable to compete.

However, prices have got increasingly low in recent years. Last November The Publican started its Pricewatch initiative looking at the price differential between on and off-trade in the run up to Christmas.

The investigation found you could buy 48 cans of lager for £20 - the equivalent sum would have bought you eight pints of standard lager in a pub.