![#](https://e-malt.com/Images/left_top_corner16x200.gif) | E-Malt.com News article: UK: Budweiser Brewing Group is predicting huge opportunity for the off-trade this summer![Brewery news](https://e-malt.com/Images/BeerBullet2.gif)
With economic uncertainty continuing, there is ongoing pressure on disposable incomes impacting UK’s consumer spending, the Talking Retail reported on March 7.
Budweiser Brewing Group UK&I – which brews some of the UK’s best-loved beers – is bucking this trend, forecasting a 5.3% growth in the off-trade compared to 2019.
In response to the cost-of-living crisis, consumers are looking to cut back on their spending, resulting in fewer trips to pubs and restaurants, with 60% of on-trade customers saying they will visit hospitality venues less frequently.
As a result, Budweiser Brewing Group is predicting a huge opportunity for the off-trade this summer to capture some of this spend with beer remaining an affordable luxury.
“The past couple of years have been difficult for businesses across the country and as the cost-of-living crisis continues to dominate, there are still challenges for retailers to face,” says Maria Neves, head of category, Budweiser Brewing Group.
“However, there’s also a huge opportunity for retailers to capture consumer spend. Trends that we saw emerge during the pandemic are now becoming long-term habits so retailers must ensure they are responding to changing consumer demands. Understanding the new economic landscape and what to prioritise on shelf, will be key for retailers to win this year.”
Budweiser Brewing Group has identified five key trends impacting the way consumers will shop this summer, presenting a summer of opportunity for businesses.
Premiumisation The premium and super-premium category has been growing in momentum in recent years and is expected to continue its upward trajectory in 2023. Budweiser Brewing Group is forecasting that by 2025, 70% of total beer consumption will be of brands in the premium or super-premium category.
While shoppers are attempting to make savings across large expenditures, such as household bills, eating out and home furniture, smaller ‘treat’ purchases such as alcohol are one area that consumers are happy to trade-up. Retailers should prioritise premium brands that consumers already trust to deliver on taste and quality, to tap into this trend.
No-and-low alternatives Alcohol-free beers are no longer just consumed by teetotallers, but rather by shoppers looking to moderate their alcohol consumption. One in 10 beer drinkers now regularly opts for an alcohol-free alternative, a figure which has grown by 16% year-on-year.
Supported by the UK Government’s initiatives and campaigns to drink more responsibly, 70% of Britons are looking to be healthier in their everyday lives,5 and a third of consumers said limiting alcohol was an important part of their healthier lifestyle.6 No-and-low alternatives often contain fewer calories and less sugar and are therefore seen as healthier options for shoppers who still want to enjoy the taste of their favourite beer without the effects of alcohol.
Food and Beer pairings Lockdown restrictions saw many consumers develop a new love for cooking and eating at home, with 2.2m households claiming to do more at home entertaining than before the pandemic. This lasting habit has contributed to in-home meal occasions now growing ahead of the curve (+1.71%) compared with out-of-home meals. Significantly, mealtimes now account for 43% of all drinking occasions in the home9, which represents a great opportunity for cross-merchandising the categories to boost basket spend.
Beer sits at the heart of the mealtime occasion and ahead of the rest of the alcohol category. 63% of at-home beer consumption takes place with food, compared to just 58% for total alcohol. As a result, mealtimes with beer present an £85m sales opportunity to the Off-Trade.
Fast and Frictionless As consumers shift from traditional platforms to more modern options, e-commerce is rising with the share of e-commerce penetration growing from 5.4% in 2019 to 7.1% in 2022. This option can help companies reach a wider audience and allows shoppers to order from the comfort of their own homes.
Last year, Budweiser Brewing Group launched its B2B e-commerce platform BEES in the UK to provide customers with a seamless order experience and customised insights to help their businesses thrive. The platform accelerates the digital journey for retailers, allowing business owners to browse for products, place orders, earn rewards, arrange deliveries, manage invoices, and access business insights all in one place. BEES was trialled in 100 outlets nationwide to huge success and it will be rolled out more widely in 2023.
Sustainability Consumers are increasingly environmentally aware and have heightened expectations of a business’ sustainable practices. 29% claim they would pay a premium for a purposeful brand, with 62% saying they are also more likely to purchase from a brand that they trust.
As well as brands investing in sustainability initiatives, it is vital that retailers also consider their own sustainability credentials, particularly given 81% of consumers claim to prioritise buying from sustainable sellers.
08 March, 2023
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