British Beer Market Witnessing Change in Taste of Consumers

UK's alcohol consumption was 7.7 litres per head in 2013 it was a 18% decline in consumption per head since 2004, to the lowest level this century. UK beer market is witnessing a change as demand for lager, which has ruled the UK beer market for more than 50 years is losing market share and replaces by stronger-tasting ale and stout.

According to recent statistics published by HSCIC UK, the majority of men had drunk normal strength beer, lager, cider or shandy (62%); a third had drunk wine (33%), and just over a fifth had drunk spirits (22%). In contrast, the majority of women had drunk wine (64%); a quarter had drunk spirits (26%), and a fifth (19%) had drunk normal strength beer, lager, cider or shandy.

A warm summer can be accredited in part for the best beer performance in a decade for the UK beer market but there were a number of factors that played their part. The extreme conditions of the spring concealed the impact of the dramatic news that the duty escalator which had been responsible for putting up the duty on beer by more than 40% since its inception in 2008 was to be ended. Not only was the duty escalator axed but duty on beer was cut by 1p a pint. Financially the cut was insignificant but physiologically the effect was very positive.

Sales in the seasonal period were boosted by the fact that the Christmas and New Year period fell over two weeks last year generating two weekend spikes instead of the usual one. The improving economic outlook also seemed to have contributed to consumer spending habits in the second half of the year.

The popularity of flavored ciders has not gone unnoticed among the brewers and recent innovation suggests that they are looking to replicate this success. Molson Coors have been at the forefront of this with Carling Zest evolving from citrus to offer Carling Zest with winter berries, summer berries and hint of ginger. This year Carlsberg have introduced a blackcurrant beer as an extension to their Carlsberg citrus. Radler beers have been well received in some markets in Europe and Fosters Radler did reasonably well in its first year. More flavor extensions might be expected as brewers look to adapt to a younger consumer with a sweeter tooth than their predecessors. The theory goes that consumers have grown up drinking more soft drinks and this will manifest itself in future refreshment patterns.

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