Damm UK managing director Luke White told The Morning Advertiser his feelings about the fiscal impact made by the Government so far on the sector while explaining what the business is up to and what the future holds.
White said: “The October Budget’s impact on the beer industry, particularly the on-trade sector, is definitely a concern.
“While there were some measures aimed at supporting business, it’s clear more is needed, especially as the on-trade continues to recover from the effects of the pandemic.
“The Government has a really challenging job on its hands to formulate the right fiscal policies to stimulate growth but when you look at the impact of the budget and then factor in other industry tax/levy burdens put on the industry such as Extended Producer Responsibility (EPR) – which still has significant policy issues that haven’t been clarified despite going live shortly, it does feel like the hospitality sector – one of the biggest employers in the UK across all sectors – has been overlooked and penalised.
Fabric of country’s history
“British pub and beer culture is sewn into the fabric of our country’s history bringing communities together across the nation in their local and at home, and it’s imperative we protect this.
“A thriving hospitality sector will drive the economy and we’ve seen this in the past.”
White – who has worked his way up to lead the Spanish brewer’s UK operation – said the biggest challenges in the sector now include: “Intense competition, evolving consumer preferences and the pressure to sustain growth in a mature market like in the UK.
“With premium beers accounting for over 60% of UK beer sales, the competition is fierce, not only from other Spanish brewers but also from other global brands.
“In this dynamic environment brands must stand out with a strong value proposition – quality, brand recognition and investment in consumer engagement.”
For the future, White added Damm UK is feeling optimistic about the future of trade, especially in the UK, which remains the most important market for Estrella Damm outside Spain.
“The British beer market continues to be one of the largest and most sophisticated in the world and there’s a growing preference for premium beers,” he explained. “This trend along with the rise of the ‘World Beer Lager’ category, provides significant opportunities for growth.
Competition is fierce
“For Estrella Damm, we target to double our size in the UK in the coming years. Our brand has established itself as the leader in the premium Spanish beer segment, and our rapid growth across both the on-trade and off-trade channels shows the demand for high-quality international beers.
“While competition is fierce, we feel confident in our position. We have a product that resonates with the British consumer, backed by strong brand recognition and 15 years of sustained investment. As the UK market continues to evolve, we’re ready to adapt, grow and meet the increasing demand.”
In the short term, Damm UK is focused on expanding Estrella Damm’s presence along with its broader portfolio and reaching new heights in the UK market, White said.
“Our goal is to double Estrella Damm’s size over the coming years, building on its position as a leading Spanish premium beer. We’ll also be expanding production facilities at the Eagle Brewery, increasing total output to nearly 1.8m hectolitres across beer and soft drinks.
“Additionally, we’re capitalising on the growing demand for premium Spanish beers, with a strong emphasis on both the on-trade and food channels. With the UK being our largest market outside Spain, we’re dedicated to reinforcing Estrella Damm as the go-to Super Premium Spanish lager.”
- To read a Big Interview with Luke White, click here.
