Research identifies a positive outlook for the category in the on-trade
WORLD beer continues to provide a major opportunity for licensees in 2014, according to research from Miller Brands.
The firm, which counts Peroni Nastro Azzurro, Pilsner Urquell and Kozel among its brands, claims the world beer category accounts for 14% of total lager sales, with the potential to generate £1.8 billion of additional sales.
In a recent survey of 395 outlets commissioned by Miller Brands, 72% of licensees said they were planning to stock more world beers in the course of 2014.
Of those already stocking world beer, 69% said they were selling more than they had been the previous year, and 75% of respondents said they believe the category continues to present opportunities to grow profits.
“It is great to see that licensees recognise and are making the most of the trade up opportunity that world beer offers and, in line with our research, we expect this to continue into 2014,” said Tim Clay, sales director at Miller Brands.
“Licensees should aim to have a selection of world beers available alongside their mainstream and everyday premium lager selections in order to encourage consumers to trade up and take advantage of the higher margins and profit opportunities these brands offer.”
And Clay predicts a growing interest in authenticity will continue to impact positively on the beer category.
“It’s good to see an increase in interest in more authentic sectors of the category, such as world beer and even craft beer, which, while volumes are small, still demonstrates that consumers want to discover new tastes and trial different beers, as it’s these sectors that are delivering profit to licensees and driving category growth,” said Clay.
“Customers will look for familiarity so licensees should stock more well-known brands such as Peroni Nastro Azzurro to highlight their world beer offering, alongside lesser known brands to tap into sales opportunities from consumers looking to try something different.”