E-Malt.com News article: Australia: Coopers to intensify efforts in growing its market share

The largest Australian-owned brewer, Coopers, is to intensify efforts to penetrate more of the interstate pub market, Adelaide Now reported on August, 12.

Its push is part of its ambitions to nearly double market share over the next decade.

In its 150th year, the family-run brewer is confident of sustaining its growth as the giant of independent premium breweries, with chief executive Dr Tim Cooper predicting to grow from 4 per cent of market share to 7 per cent within a decade.

He said 10 per cent of market share was a reasonable aim for the company in the longer term but it was essential to improve its over-the-bar sales in eastern states outside its Adelaide home.

Dr Cooper named Melbourne's pubs as having growth potential, provided publicans could be persuaded to bring in Coopers ales when party to longstanding discount percentage deals to keep taps pouring Foster's or Lion products.

"That's where it’s difficult for smaller players and we're no different," he said. "We have to focus on the premium end hotels to improve on-premises availability so people see Coopers poured off the tap and are encouraged to try. That's the crunch."

But he said the decline in market share of larger brewers sent a message to independent pubs that drinkers were experimenting more with premium beers.

"We're fortunate that there are enough independent operators concerned about diversity, variety and quality who want to keep particular taps accessible for smaller players," he said.

His comments comes as Foster's new owner SABMiller has yet to halt the slump in the company's beer sales, reporting an 8 per cent decline in the June quarter.

By contrast Coopers - off a tiny base compared to large brewers - has had an average 17.5 per cent annual growth since 1993, as volumes increased from 12.5 million litres to 70 million litres last year.

Cooper's believes it can have the best of both worlds, growing further in the premium market, boosted by popularity of craft brews but also reaching for a mass market share through sponsorship of the V8 Supercars.

"We've made a deliberate decision to get behind mid-strengths with a mild ale which is suitable for Queensland, where FourX Gold outsells VB," Dr Cooper said.

Interstate distribution has grown from 8.5 million litres in 2003 to about 40 million litres today.

The company, owned by 130 shareholders who are nearly all descendants of founder Dr Thomas Cooper, last month bought out full control of Premium Beverages, when 20 per cent shareholder Bruce Siney retired.

That marketing arm outside of South Australia has handled a reversal from a decade ago where 70 per cent of Cooper's product was sold in its home state. It will be run now by company chairman Glenn Cooper.

It is also aggressively taking on Foster's foreign premium beer territory, last month beginning to brew Carlsberg and importing Kronenbourg 1664 after winning the licences off SABMiller in May.

Cooper's already brews Japan's Sapporo in Adelaide, giving it an arsenal to combat SABMiller's stable including Peroni, Pilsner Urquell and Grolsch.

While he stresses 10 per cent of the beer market is not an official goal for Cooper's, the 56-year-old Dr Cooper thinks 6-7 per cent is realistic.

"If we track the way we are with growth, by my retirement in nine years we should get there," he said.

"We'll get there by improving our distribution, there's pockets we haven't tackled," he said.

"I just hope we don't get there because of the shrinking beer market."


15 August, 2012