E-Malt.com News article: UK: Beer drinkers prioritising value for money through premium options – Heineken Beer Report

Consumers are prioritising value for money through premium options and quality experiences despite financial challenges, according to the Heineken Beer Report 2023.

Beer drinkers are looking to treat themselves when going out, according to the brewer’s second annual report. Many consumers are doing so through trade-up options, with world lager growing value share to 27% during 2022 (up from 22.7% in 2021).

The report revealed 18 to 34-year-olds in particular to be driving this trend, being less likely to go without a premium beer than any other age group.

Heineken UK on-trade director Will Rice said: “In its second year, Heineken UK's Beer Report continues to unveil profit-driving trends and data for operators.

“In the midst of a cost-of-living crisis, more than ever we’re seeing a greater emphasis on ‘smart spending’ to maximise the return from disposable income.”

What’s more, beer drinkers are also opting for ‘accessible premiumisation’. This means they’re seeking beers that they perceive to be higher quality, but not necessarily trading all the way up to world lager.

Instead, they may move from classic beer brands to the premium or premium 4% category.

These ‘accessible premium’ brands often tap into trends and boast premium quality cues, such as taste credentials or authentic heritage, but at a more affordable price than world or craft options.

Rice said: “Consumers are looking to prioritise their experience in the on-trade, primarily by buying into beer brands they believe can deliver on that premium quality experience."

He added: “The key to any offer is ensuring the brand selection has maximum appeal to the specific customers and for the occasions to which your venue caters, while hitting different points of your pricing ladder.”

While the report showed that more than a quarter of 18 to 34-year-olds (29%) are drinking more craft beer versus last year, the growth of the craft beer category has slowed.

Larger craft brands continue to dominate beer ranges, which could be due to lockdown, and the higher cost-of-living, as drinkers prioritise the experience over experimentation.

But the report also highlighted the need to maintain well-known brands on the bar. More than half (55%) of drinkers want to stick with a brand they know and like over the next year, while 43% are drinking the same number of classic brands as last year.


01 August, 2023