Sponsored article: HEINEKEN UK
THERE were exciting results for Birra Moretti in the latest CGA Report on the Top Brands in the Scottish On-Trade, as it entered the Top Five for the first time.
Here, we speak to Veronica Sica, Beer Brands Unit Director at HEINEKEN UK, about this breakthrough and her thoughts on the wider Scottish and UK markets.
SLTN: Birra Moretti has had an exceptional year – overtaking Carling on a UK level and moving up to become the third-biggest brand overall in the Scottish on-trade. What do you think has driven this success? Is it a shift in tastes, ramping up of support from the brand, or a mixture of both?
Veronica: “Firstly, we recognise Birra Moretti has had huge success in Scotland and the UK more widely because it’s a beer that really taps into current consumer tastes and trends. The beer category is really being driven by world lager right now, and it’s the Italian and Spanish iterations that have seen the most success in recent years.
This can be attributed to a few different factors – there was certainly a reaction from the pandemic of consumers seeking out drinks that evoked happy memories and Mediterranean holiday vibes when all we could do was look out of the window.
Birra Moretti and Molson Coors’ Madri, were the initial big winners to this trend, with the demand for Mediterranean lager in the UK further accelerated by the launch of HEINEKEN UK’s Cruzcampo® last summer.
This has proven to be the biggest brand launch in over a decade in the beer, wine and spirits category, catering to the demand for Mediterranean Lager.
Tastes evolve overtime; for example, lagers from France and Germany are currently witnessing a decline, whilst Italian and Spanish beers have driven excitement and growth over the past 12 months, with Birra Moretti perfectly positioned to capture this demand.
Premiumisation is also continuing to drive significant growth in on-trade revenue, with consumers opting to drink higher-quality products such as Birra Moretti in venues. We’ve seen over the last two years a trend toward consumers going out less, but demanding a higher quality when they do.
As a premium lager, Birra Moretti is perfectly positioned to tap into this trend, while classic lager brands such as Carling have struggled somewhat under these conditions.
That’s not to suggest our support of the brand hasn’t also been a factor in Birra Moretti’s success. We’ve put significant marketing spend behind the brand in the UK, while the launch of Sale di Mare this year has offered drinkers further trade up, catered to consumers eager to discover new products and entrenched the association between Birra Moretti and food.”
Is the brand’s growth in Scotland driven by the Star Pubs estate, or is there an even split between Star sites and free-trade?
“As an important HEINEKEN UK brand, naturally Birra Moretti performs well in our Star Pubs estate, but it continues to see significant growth in a really broad range of outlets. Within the independent free trade, with L&T or managed pub groups, Birra Moretti is driving remarkable sales in Scotland.
We’re also having success with the HORECA channel, particularly Italian restaurants, perhaps unsurprisingly.
Birra Moretti is of course a premium product, and there are some venues where a classic or mainstream lager would likely perform better, so we’d steer customers away from the brand, but as long as the publican has a demand for premium beers, Birra Moretti is ideal, tapping into this trend we see toward Mediterranean lagers.”
The CGA figures provided to us for this year’s Top Brands feature seemed to show a shift back to beer, with spirits values dipping and beer values increasing by over £60m between 2023 and 2024. What do you attribute this to?
“This trend is not isolated to Scotland, in fact the whole UK on-trade beer category is continuing to outperform the drinks market ahead of spirits and wine, and is now worth a staggering £15.6bn. It is by far the largest category in the UK on-trade in terms of volume and value – beer is seen as an affordable luxury.
Consumers are more likely to trade up from a classic lager to a Birra Moretti as opposed to a cocktail, which are typically pushing the £10 and above mark. With consumers still feeling the pinch, this is hampering spirit sales.
Key drinking occasions have also been really important in the success of beer this year – 2024 has been a big year for sport.
With Scotland and England making the finals, the men’s UEFA Euros in particular drove a lot of people into venue in Scotland and beyond, with the Olympics also playing a part. For sporting occasions, we know beer over indexes vs other drinking occasions so it’s no surprise Birra Moretti had a good summer vs other categories.
Another key factor that has amplified beer sales is the introduction of new brands, which have helped to boost growth in the category and drive-up value. Whilst there have been a few new brands introduced the past 12 months, the top three include Guinness Draught 0.0, Stella Artois Unfiltered, and – in the top spot – Sevillian lager Cruzcampo®, which has successfully hit the sweet spot for consumers looking to discover great tasting, refreshing and good value beer.”
What are your thoughts on the Scottish on-trade beer market compared to the rest of the UK? Are there any particular differences or are tastes broadly similar north and south of the border?
“The Scottish beer market shares similarities with the rest of Great Britain, with classic lagers remaining a staple in consumers repertoires. However, the trend towards premiumisation is progressing but at a slower pace compared to other GB regions.
Scottish consumers demonstrate a strong regional loyalty, particularly with the iconic brand Tennent’s, while also showing an increased preference for stout and craft beers as they seek a broader variety of styles and flavours.
As the premiumisation trend grows, there is an opportunity for brands like Birra Moretti to tap into this emerging demand for higher-quality beer.”
Do you have any on-trade promotional activity for Birra Moretti planned for the coming months?
“Birra Moretti has had a huge year, climbing the ranks to become the UK’s most popular draught lager, and we can attribute its success to the high-impact nationwide marketing campaign that drove awareness across the on- and off-trade.
As well as this, we launched Birra Moretti Sale di Mare earlier this year, supported by engaging marketing activity, eye-catching glassware and competition mechanic around Italian food and drink pairing in the on-trade.
We obviously want this momentum to continue, and whilst we’re still in planning stages for 2025, I can say that there will be more exciting things to come for this premium Italian lager that has taken the UK by storm.”
What advice can you provide licensees to help them build – or maintain – interest in Birra Moretti in their outlets?
“Make sure you are placing popular products such as Birra Moretti front and centre of your bar. Continental style lagers have a strong place in the lager category, and offer pubs the opportunity to further premiumise their offering.
We know that as soon as a customer approaches the bar, they begin to search out what is available, looking firstly at taps, followed by fridges and then any relevant PoS materials. With that in mind, ensure you are placing brands that you want to sell more on the bar to make them as visible as possible in order to generate interest and boost sales.
You should look to place the most premium brand, such as Birra Moretti, as a stand-alone fount, to draw the most attention and encourage consumers to purchase. Stand-alone founts should be positioned closely to icon founts to ensure these products are being considered in the decision-making process.
If possible, repeat Birra Moretti on longer bars so your customers can easily see it from wherever they are ordering.
You can then look to use the fridge space to offer further variety and alternative choices, or in this instance, a different format of one product, such as bottles of Birra Moretti. This is also an excellent space in which to encourage guests to trade up to other premium products such as Birra Moretti Sale Di Mare, and to showcase your No and Low offering – such as Birra Moretti Zero.
PoS materials are also important – ensure that these materials are recent, up to date and in excellent condition to help target and sway any customers as they come to the bar.”
How about the rest of the Heineken UK portfolio? How are the company’s other brands performing in Scottish venues in 2024, and are there any plans for the other Heineken brands you can tell us about?
“HEINEKEN UK’s portfolio is performing exceptionally well in Scotland, with Birra Moretti standing as the second-largest lager brand in the market. Cruzcampo® has also seen phenomenal success in its first year, rising to become the 12th largest lager brand, closely followed by Heineken and Amstel.
In the craft ale segment, Beavertown Neck Oil leads the way, reinforcing HEINEKEN UK’s strong presence across a diverse beer category. John Smith’s Extra Smooth ranks as the third-largest classic ale brand, further showcasing the portfolio’s breadth and appeal.
In the cider category, Strongbow holds the top spot as the market leading cider brand, followed by Strongbow Dark Fruit, while our newest addition in the HEINEKEN UK portfolio, Inch’s Cider, is experiencing rapid success as the fastest-growing cider brand in Scotland.”
