UK: Popularity of Madrí Excepcional eating into success of Carlsberg in the UK, CEO says

The popularity of lager brand Madrí Excepcional is eating into the success of Carlsberg in the UK, the CEO of the Danish brewer has told British newspaper The Telegraph.

Launched in UK pubs in 2020, the Madrí brand centres around Spanish culture, marketing itself as "the soul of Madrid".

That's despite the fact that the beer is actually brewed in the English county of Yorkshire by the Canadian-American multinational Molson Coors - which also owns Doom Bar, Carling, and Blue Moon.

According to data experts NIQ, Madrí Excepcional brought in annual sales of £93.3mn (€108.9mn) last year.

Molson Coors' website also notes that, in the second quarter of 2024, Madrí Excepcional generated the third highest sales revenue among all lagers sold in UK venues.

In response to these figures, CEO of rival brand Carlsberg, Jacob Aarup-Andersen, told The Telegraph: "We’re seeing a continued high competition in world beers. It's a fierce battleground in the UK.

"There's no doubt that one of the brands that is doing well in the UK is Madrí. If you look at the market share, they've done well. I think they found a good proposition there. So kudos, kudos to them."

A number of experts believe that Madrí's sharp rise in popularity is due to a marketing push in early 2022, a time when concerns around Covid-19 restrictions had significantly eased in the UK.

Capitalising upon this opportunity, Madrí sought to make itself synonymous with a sun-soaked holiday, a sought-after dream for many Brits emerging from successive lockdowns.

Using the faux-allure of continental Europe isn't, however, a marketing strategy just used by Molson Coors.

For instance, the Italian lager Birra Moretti is brewed by Heineken in Manchester for the UK market.

San Miguel, which was founded in the Philippines but is based in Spain, is also made by Carlsberg in Northampton for UK customers.

Despite being brewed in Yorkshire, Madrí does have one Spanish link.

It was notably created in partnership with La Sagra, a craft brewer in Spain that is also owned by Molson Coors.

Earlier this year, the international managing director of Spanish brewer Estrella Galicia argued that Madrí's advertising wasn’t "very honest".

"They did a very nice job in terms of marketing, that’s for sure. But it’s a little bit tricky because people think they are drinking a Spanish beer but it's not," Aitor de Artaza told The Telegraph.

In the UK, there are rules that outlaw deceptive advertising, although it's of course acceptable for breweries to take inspiration from other countries and culture.

Molson Coors has yet to respond to Euronews' request for comment.

Carlsberg, meanwhile, shared an earnings update earlier this week.

Cost-cutting at the firm balanced out a sales hit driven by weak consumer demand, meaning that the company raised its full-year earnings outlook.

The total volume of beverages sold was down 1.7% in Western Europe during the first half of the year.

16 August, 2024