According to Heineken’s Beer Report 2024, released earlier this month, world beer has become the UK’s most popular pint in the on-trade, accounting for 28% of the overall category and gaining the biggest market share in the past 12 months.
The segment’s success has largely been driven by Italian and Spanish beers, the global brewer detailed, adding Birra Moretti was now its most popular serve, with Spanish lagers having seen a 27% increase in value year-on-year.
Madri Excepcional, Peroni, Coors Light, San Miguel, Stella Artois, Amstel, Cruzcampo, Coron Extra and Estrella Damm also made up the top ten most popular premium and world beer brand by value, according to the report.
The success of Spanish lagers goes back to innovation within the category shortly after the pandemic, when Molson Coors launched Madri at the end of 2020, the report said.
“[Madri’s launch] coincided with a time when we were all stuck at home experiencing wanderlust.
New and exciting
“Brands that evoke happy memories and holiday vibes were therefore set to do well and this was further fuelled by the launch of Heineken UK’s Cruzcampo last summer.
“These two brands hit the sweet spot for consumers looking for something new and exciting, that tastes great and at an affordable price”, it continued.
The figures also showed the size of the total UK on-trade beer and cider market had grown to £13.5bn, meaning around 17m hectolitres or nearly 3bn pints were poured in pubs last year, as previously reported in The Morning Advertiser (MA).
New products also helped drive beer sales, with Cruzcampo, Stella Artois Unfiltered Lager and Guinness 0.0 all having been launched in 2023. Value wise, these new serves were worth £122.8m, £7.5m and £4.8m by value respectively.
Meanwhile three of the top five beer brands sold on tap in pubs and bars in the UK were estimated to be worth more than £1bn.
Guinness topped the bill at £1.3bn, up 22% in value, followed by Carling, which saw a 6% downturn in value to £1.1bn.
“Despite what headlines may say, there’s reason to be optimistic."
Birra Moretti increased 3% in value to hit in excess of £1bn in sales. Madri Excepcional also put in a good performance, up 47% in value, while Beavertown Neck Oil was up 14%.
However, classic lager, for example brands like Carling and Fosters, remained the main cash generator for pubs as customers look to these staples for sessionable beers, with an average cost of £3.76 a pint and an average sales value per pub per year of £42,000.
Though premium lager still offered a broad appeal among lager drinkers last year, in particular well-known brands such as Stella, with an average pint price of £4.31 and generating £36,000 in sales for venues on average.
The lighter premium lagers, such as Coors, bought younger drinkers into the beer category, and were worth around £19,000 in sales per pub per year and had an average price per pint of £3.87.
Meanwhile, the world beer category generated £52,000 average sales value per pub per year with an average price of £5.17 a pint, aimed at those looking to trade up from premium lager.
Craft beer also proved popular in 2023, with an average pint price of £5.31 and generating £25k in sales, while Stout added diversity the category, coming in at £4.46 per pint on average and generating £20k per pub per year.
The report added cask ale played an important role in enhancing a pub’s reputation for quality beer when properly looked after and served, costing around £3.98 a pint and adding £27,000 in value sales for venues, including brands such as Theakstons.
Heineken further explained the data demonstrated how consumer tastes have evolved, with other continental lagers from France and Germany having seen a drop in popularity, down 47% and 25% respectively.
Reasons to be optimistic
Other influences on consumer habits included a steer towards healthier choices, with no and low alcohol options also gaining in popularity, as well as the cost-of-living-crisis as many beer drinkers remained financially cautious.
In addition, working from home also impacted how people interacted with the on-trade, in particular when it comes to special occasions.
The top three emerging trends in the occasions space were brunch, Sunday roasts and ‘big nights out’, the report stated.
Heineken’s research also found it takes guests just 22.6 seconds after entering a venue to order their first drinks.
To maximise beer sales, the report urged the importance of considering what taps and brands the customer notices first, from PoS material to how beers are presented in fridges as well as at the bar.
Heineken UK on-trade sales director Will Rice said: “Despite what headlines may say, there’s reason to be optimistic.
“There are several trends and behavioural shifts that we predict will be positive for the industry and for beer – a category that remains, after all, the UK’s favourite alcoholic drink by some distance.”
