It explores market and social trends, discusses current issues, profiles leading companies and more. While premium is often used as a marketing term, this Key Note report defines as premium any beer or lager with an alcohol by volume (ABV) of 4.5% or higher, while premium ciders are considered to be those with an ABV of 6% or more.
Premium lagers, beers and ciders are a well-established and popular sector of the alcoholic beverages industry, not least because they are considered by many consumers to be of premium quality as well as premium strength. This stands this sector in good stead for the future, but challenges exist.
Future growth may be undermined by the squeeze of the recession; health fears regarding alcohol and the general long-term decline in UK adults’ alcohol consumption levels; high taxes (particularly true for cider, for which the tax escalator policy remained in place at the time of writing); pub closures; and the ongoing struggle of the on-trade to compete with supermarkets and wholesale retailers.
Their higher prices and ABV strengths render premium beverages even more vulnerable to some of these issues than standard beers and ciders. Some cider brands have even seen their ABVs lowered, as part of producers’ corporate social responsibility (CSR) strategies.
There are positives, however. Fruit cider is a particularly strong growth area, with many companies confident that this sector has a very bright future. The boom in craft beers and microbrewing has seen the arrival of a wide range of strong beers, with craft beer increasing in popularity and successfully reaching out to new consumers. While beers and lagers tend to struggle to appeal to women, a key strength of cider is its popularity among female drinkers.
Key Note predicts modest growth for the premium sector, with most growth coming from ales and ciders as lager begins to lose a little of its majority market share.
Source: Key Note
© FoodBev Media Ltd 2024