E-Malt.com News article: UK: Budweiser Brewing Group predicting a stable year for beer sales

Budweiser Brewing Group UK&I, a proud part of AB InBev, is predicting a stable year for beer sales – up 0.4% from 2023 with exciting moments and events driving at-home drinking occasions, the Grocery Trader reported on February 9.

The last four years have been marked by tumultuous events, from the pandemic and lockdown to the current cost of living crisis. The result has been a huge shift in consumer drinking behaviours, the most notable being the rise of the Big Night In driven by heightened in-home experiences such as mealtimes. As we head into another year where shopper budgets will likely be squeezed, there’s a huge opportunity for retailers to capitalise on this trend and drive sales.

“While the future is always uncertain, one trend persists – a strong demand for at-home drinking occasions,” says Maria Neves, Head of Category Management for the UK at Budweiser Brewing Group. “To embrace this opportunity and address the growing interest in occasions such as the Big Night In, retailers need to stay abreast of evolving consumer demand. At Budweiser Brewing Group, we’re committed to working closely with our retail partners to help them understand their shoppers better and adjust their stock to suit these preferences, in turn boosting sales.”

Budweiser Brewing Group has identified five key beer-led opportunities for the Off-Trade heading into 2024.

Mealtimes

Beer is increasingly becoming a mealtime staple, 63% of at-home beer consumption takes place with food, compared to just 58% for total alcohol.[2] While Special Occasions are winning in-home share, informal meals and light snacks drive most of the volume – 39% of consumers enjoy a beer alongside their evening snack which represents a huge £30.7m opportunity.[3] Continental and standard lager are a big part of these occasions but some premium brands also over-index so stores should ensure they are pairing food and beer on shelf and through in-store signage to maximise sales.

Passion for Premium

Whilst shoppers are cutting back on larger expenditures, alcohol is one area where they are happy to trade up. This has led to huge growth in the premium category which isn’t something retailers should expect to see go away anytime soon. Budweiser Brewing Group is forecasting that by 2025, 65% of total beer consumption will be from brands in the premium or super-premium category.

Within the premium category, World Beer has been a standout winner. Since 2019, consumers have purchased 5% more World Beer in comparison to standard lager and we forecast a further 8% increase in sales by 2030.

Alcohol-Free: Anytime, Any Month

Whether it’s Dry January, Sober October, or any other month in the year – consumers are eager to moderate their drinking whilst still enjoying the taste of their favourite beer. Over the last few years, there has been a huge rise in the no-and-low alcohol category – now worth over £172m across the Off-Trade alone.

The younger generation (18–34-year-olds) over-index the most in the no-and-low category, highlighting a wider cultural shift. Stocking no-and-low options will therefore not only cater to existing customers but will also recruit new consumers into the category.

However, whilst retailers should stock up during these key selling moments, the no-and-low category is gaining momentum all year so retailers should ensure they have a wide selection of alcohol-free versions on shelf.

Scoring Big with Beer

The return of international sport brings a summer of opportunities for retailers, particularly with much-anticipated events such as the Euros. Every year, the men’s World Cup and Euro is the biggest occasion of the year, presenting a huge opportunity for retailers. Given the current success of the England’s men team, the tournament has the opportunity to drive 18.2% sales uplift in the Off-Trade during Euro 2024.

As the official sponsor of the England Men’s Football Team, the Budweiser Family achieved 7.7% penetration during the Euros 2020 – the highest of any beer brand. Budweiser will be helping retailers make the most of the summer of sport with a range of planned giveaways and POS support.

Cheers to Christmas

Christmas remains a key selling moment in the Off-Trade, and this year will be no exception. In the festive season, bottle packs have been a proven success and performed over index.[12] Additionally, the World Beer category continues to be a standout, with a remarkable growth of 2.25% compared to the previous year.


09 February, 2024