World beers focus: Brews of the world

We're a complex bunch, us UK drinkers. Don't let anyone tell you otherwise.

We value all things local and yet have also developed an appetite for beers, specifically lagers, from some of the most remote, exotic and far-flung corners of the globe. And a good many all the way from Europe, of course.

Italian beer Peroni Nastro Azzurro, a brand that until four-and-a-half years ago was mainly found in Italian restaurants, has become the poster boy for the world beer category's success.

Alongside it, brands such as San Miguel, Tuborg, Kirin, Corona Extra, Staropramen and Budweiser Budvar have been enjoying steady success over the past few years. Pilsner Urquell, Birra Moretti and Peroni have all experienced particularly strong sales in the past 12 months.

And now drinks giant Diageo, better-known for its portfolio of powerhouse brands such as Guinness and Smirnoff, has taken an interest in the category with the launch of a new world beers portfolio.

Indeed, so popular have world beers become, that draught world beer is the only beer category growing in volume year on year. And yes, one of the big drivers of that is Peroni, which grew its draught volumes by 38.2 per cent in the year to March 17, 2010, according to data from drinks market researcher CGA Strategy.

Another Italian brand, Heineken UK's Birra Moretti, grew by 43.5 per cent, and Miller Brands' Pilsner Urquell grew by 30.5 per cent, though it has to be said, from a much smaller base.

But why are consumers going for these beers in such a big way? Jason Wills, senior brand manager for Tiger Beer, Birra Moretti, Sagres and Zywiec at Heineken UK, says that these brands are regarded as cool and sophisticated by the younger drinkers (18 to 30-year-olds) with whom world beers are popular. Also, thanks to their relatively recent appearance on the bar, they don't have the baggage that many other brands do.

"New consumers come into the category and are always looking to drink something different from their elders," he says. "I was brought up in a pub 25 years ago and Skol was the biggest-selling brand in the UK. It's not necessarily existing consumers looking for different brands, it's new consumers looking for different brands.

"And they don't see them as having baggage from where they came from - as brands that have grown in restaurants. These consumers are more open-minded."

Darren Tendler is sales director of Miller Brands UK, which has Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft, Tyskie and Lech in its portfolio. The recession has of course exacerbated the woes of many pubs, but Tendler argues that consumers cutting down on their spending has helped world beers to grow.

"Over the past 18 months we saw a distinct pattern in the way consumers were behaving," he says. "They were either trading up or trading down. But world beers were an area consumers would gravitate towards, as it was relatively inexpensive for them, so if they were going to treat themselves it would be affordable.

"We are finding that more and more consumers are moving towards them because they want to treat themselves with beers that have authenticity, provenance and quality. More and more consumers are prepared to experiment and try new things."

It's the way you sell them

However, Garcia Gomez, head of Corona Extra in the UK, says it's all about the extensive marketing that brands such as Corona have been investing in. "The success of Corona Extra beer is underpinned by its strong international brand positioning, a cohesive marketing strategy across Europe, including advertising, sponsorships and below-the-line activity, as well as tailored support packages for individual accounts in the UK on-trade," he says.

All of the above may be true, but it's interesting that world beers are continuing to grow at the expense of other categories, namely premium lager, which lost 0.5 per cent of its share of total beer volumes in the year to March 17, 2010.

David Scott, director of customer marketing for Carlsberg UK, says: "There is a growing desire from consumers for more choice - and that is growing out of the problems in the premium lager market. Premium is no longer premium," he says.

"Consumers still want treats and rewards when they go to the pub but the traditional premium lager sector no longer fulfils that requirement. They are now looking for alternatives and that is where the world beer sector comes into play."

As world beers have grown in popularity, so too has the interest of drinks companies and brewers large and small, who have been busy accumulating arsenals of potential power brands ready to attack the market with.

New to the UK so far this year have been Spanish beer Alhambra and Namibian brand Windhoek. Another Spanish beer, Estrella Damm, now distributed by world beer pioneers Wells & Young's, launched on draught, as did craft American wheat beer Blue Moon. With their stylish images, both look set to attract female as well as male drinkers.

Beers from the Far East have benefited from clutivating a stylish image. Nigel Tarn, senior brand manager for Tsingtao, says Asian beers have enjoyed particularly strong growth, with volumes up by 42 per cent over 2008 and 2009.

But with so many brands from so many countries now available, two important questions are raised. Firstly, how do drinkers choose which ones they buy? And secondly, how do licensees?

Is country of origin an important factor? Or is it about image or taste? Do consumers care if the beer is brewed under licence in the UK?

Diageo clearly thinks that country of origin does matter. It selected Namibian beer Windhoek, a 4 per cent ABV lager, to start its world beer portfolio because African beers are under-represented in the UK market. Richard Barlow, marketing manager for packaged beverages at Diageo GB, says: "With premium credentials of quality, provenance and sense of adventure, combined with the GB opportunity, we aim to make Windhoek a top 10 world beer within 15 months of launch, targeting primarily 25 to 45-year-old male premium beer drinkers."

So how do you pick your range? David Scott from Carlsberg says: "Not every brand works in every pub, so break it down. Some brands work better in pubs which have a big food offer; others work better in pubs which have a strong music offer and a younger target market. There are others who will want their customers to trade up to a super-premium or speciality world beer. So in their case perhaps have an entry-level beer followed by a less well-known speciality beer."

Other tips include stocking a range from a number of different countries and paying close attention to your local community - for example by stocking Polish beers if you have a large Polish population living nearby.

Whichever you choose, you can't afford to ignore the opportunities to increased rate of sale and increased profit margins that world beers offer.

Just make sure you serve them in the right glasses though, eh? There's nothing worse than paying £4 for a Peroni and getting it in a standard pint glass.

See also: Beer Genie's Guide to World Cup beers​

Brooklyn Lager

The deep golden beer from New York has launched on draught for the first time in the UK. It means that you'll now be able to taste the beer as New Yorkers past and present have. The 5.2 per cent ABV beer with notes of tangy hops is brewed to a pre-Prohibition recipe. The taste is described as being bitter yet smooth.

"Make no mistake, this is not just a big Yankee fish in a small UK pond," says Nigel Stevenson, speciality beer consultant at distributors and sole UK importer, James Clay. "Brooklyn Lager is the real deal when it comes to independent American brewing. It's only ever brewed in New York and this is the first time it's been available in this country."

And here's a claim to fame: the brand's logo was created by Milton Glaser