Reassurance needed

THE PUBCO boss points at the fonts for Stella Artois, Artois Bock and Peeterman Artois, InBev's 'famille Artois', in one of his pubs. "What are they? What are those brands?" Tony Brookes, chief of the Head of Steam group, asks incredulously.

He is busy criticising what he sees as poor launches by InBev, the owner of the two Stella Artois brand extensions - a 6.2 per cent lager (Bock) and a four per cent wheat beer (Peeterman).

The brewer hopes they will reinvigorate falling sales of the once mighty Stella by creating a continental-style 'brasserie' group of draught lagers. Tony believes that both have been ill-defined in

customers' minds by InBev's accompanying marketing campaign.

Stella Artois was once seen as the perfect brand, an example of a premium lager that had enforced its credentials through a stylish and effective marketing campaign.

Figures released by Nielsen in March, however, show the value of Stella's sales had dropped 7.6 per cent in 12 months, and that the volume of sales had fallen by 10.5 per cent.

And it appears that this is because drinkers are simply not buying as much Stella as they used to, rather than a case of retailers de-listing the product.

According to Nielsen, while the brand's distribution was down just one per cent year-on-year, the rate of sale was down 10.5 per cent.

While Stella Artois still holds an impressive 36 per cent share of the premium lager category, it is undeniably in decline. It has recognised this with the introduction of the brasserie concept, but this has met with mixed reactions.

The brands not only face competition from the re-formulated Heineken, but also from similar attempts to create a family by Scottish & Newcastle's Kronenbourg. Its "famille" includes Kronenbourg 1664, Premier Cru and wheat beer Kronenbourg Blanc.

So how did Stella reach this point?

Strength no longer fashionable​

It, and the overall list of higher ABV drinks that are traditionally defined as premium beers, have suffered from a consumer swing away from what is seen as one of the prime drinks of choice for binge-drinkers.

"The challenge for higher strength lager is not to get caught up in binge-drinking culture," comments Richard Bradbury, Heineken UK sales director. How Stella is faring in this challenge is open to question.

Steve Kitching, commercial and field operations managing director at InBev, argues brands are not to blame: "Binge-drinking is a complex issue. No one brand is responsible for it and there is no indication that drinkers are moving away from any particular brands because of the media debate around this important subject."

Devalued by the off-trade​

Where once Stella was "reassuringly expensive" many question the validity of this label now that InBev has allowed it to be sold in supermarkets at prices that devalue the premium image it had worked so hard to foster.

Richard points to "the importance of being really careful about pricing, not just in the on-trade, but in the off-trade too".

Steve acknowledges the point: "It's no secret that the supermarkets use Stella as a footfall driver - however, in the on-trade Stella Artois is considered worth paying more for.

"The price consumers pay for it has increased by three per cent over the last 12 months."

Muddled launch​

This all brings us to the launches of Bock and Peeterman last year - launches which more than one brewer has described as examples of an "identity crisis" being suffered by Stella.

"They have tried to establish this family. But that is a more difficult way to sell beer in the on-trade than the ways we have previously experienced. I can't think of a lager that has managed to work a theme in this way before," says Geoff Brown, Punch Taverns' director of marketing.

A brave attempt at a new concept ​

Nevertheless, there is also admiration for InBev's Artois brasserie. While it has not worked as smoothly as the company had hoped, the concept is a brave attempt to shake up lager, admirers say.

"In many ways we applaud it," says Geoff. "We desperately need to see more innovation in the on-trade."

InBev itself says it is "confident" Stella Artois will retain its leading position in premium lager.

"Premium lager sales have been depressed for some time now and as the number one brand Stella Artois has been affected," Steve says.

"But it's important to remember that Stella has a 36 per cent market share of the premium lager category - two and a half times the size of its nearest competitor."

It remains to be seen whether "le famille" can be a happy one.