Press Release Summary = The rise of premium brands within the broader markets for beers and ciders has been a feature of the UK market for alcoholic beverages for nearly 20 years, dating back to the launches of numerous premium lagers in the 1980s.
The rise of premium brands within the broader markets for beers and ciders has been a feature of the UK market for alcoholic beverages for nearly 20 years, dating back to the launches of numerous premium lagers in the 1980s. It is a trend that reflects the adaptation of UK drinkers to a more international style of drinking - choosing lagers and ciders with quality ingredients and a higher alcohol content than the UK\'s traditional ales and ciders.
In 2003, the market for premium drinks was valued by Key Note to be worth £13.8bn, representing 69% of the total market for lagers, beers and ciders. This share has already risen from under 60% in the late 1990s, and is forecast to reach nearly 80% by 2008. Many standard-strength brands are struggling to survive, as consumer sophistication favours the premium brands, which are usually stronger in alcohol as well as being promoted on a quality platform. (Higher rates of taxation on the stronger drinks makes it inevitable that they carry a higher price-tag.)
Industry changes are contributing to the growth of premium brands, particularly in regard to lagers, where five brewers now account for over 90% of the UK market. Their enormous marketing budgets are concentrated on flagship brands such as Stella Artois (InBev, formerly known as Interbrew), Budweiser (Anheuser-Busch), Carlsberg Export, Heineken and Kronenbourg (Scottish & Newcastle PLC). These are all foreign brands of lager, although Scottish & Newcastle PLC owns Kronenbourg, originally from France.
Scottish & Newcastle PLC, the UK\'s largest brewer, added further to industry concentration in 2003 when it purchased Bulmers, the UK\'s top cider maker, with a market share of over 60%.
In contrast to the contracting number of major brands involved in premium lager and cider production, is the expanding distribution of premium beers, particularly the real ales from regional brewers such as Greene King PLC (Old Speckled Hen, Abbot Ale) and Fuller\'s (London Pride). These premium real ales will help to sustain interest in traditional brewing.
Cider is forecast to remain a cyclical market, and premium ciders - along with some premium lagers and beers - could benefit in the next few years from a consumer move away from the novelties popular during the early 2000s, such as ready-to-drink cocktails and \'shots\'.
2012
