The UK beer market was worth £15.91bn in 1997, having grown by 5.7% over 1996. Beer takes 54.4% of their consumer spending on alcoholic drinks.

The ongoing, long-term trends in this traditional industry sector include a shift from dark beers (ale and stout) towards lager, particularly international brands, such as Budweiser (the US leader), Stella Artois (from Belgium) and Beck's (from Germany). The most popular dark beer outside the UK is Guinness, now part of Diageo.

Another long-term trend is towards take-home distribution, which increased its volume share of beer sales from 20% to 31% between 1989 and 1997. However, personal imports from France and low supermarket prices have dented profit in take-home, and the on-trade (mainly the pub) is still the dominant channel with a 69% share. The historic tie between brewer and publican is still crucial, with the brewers controlling 19,500 pubs.

Despite government intervention, market shares are heavily concentrated, with the top two companies - Scottish Courage and Bass - accounting for 54% the market, and the top five having 93%. Nevertheless, beer is such a large market that it also accommodates hundreds of regional and local brewers.

Prospects for brewing are fairly buoyant, with innovations such as 'ice' lager and 'cream' ales maintaining the allegiance of young drinkers. Per capita consumption by volume will continue to decline, but the trend towards premium products and improved choice in pubs and supermarkets will sustain value growth.

Executive Summary taken from 'Breweries & the Beer Market' by Key Note Ltd, price £279, to order your copy click here.

Table of contents

Executive Summary 1
Market Definition 2
INTRODUCTION 2
MARKET SECTORS 2
Lager 2
Other 'Dark' Beers 2

Table 1: Sectors and Subsectors of the Beer Market (£m and million litres), 1998

3

On-Trade and Off-Trade 3
Draught and Packaged 3
Widget, Nitrokeg, Cask Ale and Ice Beer 4
MARKET POSITION 5
Total Alcoholic Drinks Market 5

Table 2: Consumer Expenditure on Alcoholic Drinks at Current and Constant 1990 Prices (£m at rsp), 1988-1998

5

Table 3: Beer in the Alcoholic Drinks Market (£m and %), 1992-1998

6

International Position 6
MARKET TRENDS 7
Beer Consumption 7

Table 4: Per Capita Consumption of Various Drinks (litres and volume index), 1980-1995

7

Trends in Types of Beer 8
Vertical Integration and Distribution Trends 8

Table 5: Trends in Alcoholic Drinks Distribution Channels by Value (%), 1989-1999

9

Concentration and Diversification 10
Taxation and Personal Imports 10
Branding Trends 11
Market Size 12
THE TOTAL MARKET 12

Table 6: The Total UK Beer Market by Value and Volume (£m at rsp and million litres), 1994-1998

12

Premium Beers and Price Trends 13

Table 7: Retail Price Trends in the Beer Market (index 1995=100), 1995-1999

14

MARKET SECTORS 14

Table 8: On-Trade Segmentation by Type of Beer and Packaging (million litres, £m and %), 1998

15

Table 9: Segmentation of the Packaged Beer Market (on and off sales) by Type of Beer (million litres, £m and %), 1998

16

INDIVIDUAL MARKET SEGMENTS 16
Draught Lager 16
Packaged Lager 17
Draught Ales and Bitter 18
Nitrokeg Versus Cask-Conditioned Draught Beer 18
Packaged Ales and Bitter 19
Other Beer Segments 20
Stout 20
Superstrength Lager 21
Low Alcohol Beers 21
PRODUCTION, IMPORTS AND EXPORTS 21

Table 10: Output and Foreign Trade in Beer (million litres), 1994-1998

22

Table 11: Exports of Beer by Main Destination Country by Value (%), 1996-1998

23

Table 12: Imports of Beer by Main Destination Country by Value (%), 1994-1998

24

Industry Background 25
RECENT HISTORY 25
The 'Beer Orders' 25
Mergers and Acquisitions 25
Public House Developments 26
Diversification Activity of Major Brewers 27
INDUSTRY CONCENTRATION 27
Number of Breweries 27

Table 13: Number of Breweries in the UK, 1998

28

Brewing Market Share 29
DISTRIBUTION 29
On-Trade Versus Off-Trade ('take-home') 29

Table 14: Trends in Beer Distribution by Volume and Value (%), 1990-1998

30

Specific Beer Outlets 30

Table 15: Types of Retail Outlet for Beer by Volume (%), 1998

31

Leading Multiple Retailers 31

Table 16: Multiple Retailers of Beer by Number of Outlets, 1999

32

TRADE ASSOCIATIONS 33
Brewers and Licensed Retailers Association 33
Independent Family Brewers of Britain 33
Campaign for Real Ale 33
Competitor Analysis 34
THE MARKETPLACE 34
Brewery Tied Systems 34
Growth of International Lager Brands 34
The National Brand Leaders 35
Regional Brewer-Landlords 36

Table 17: Selected Regional Brewers by Turnover (£m), 1997/1998

37

MARKET LEADERS AND THEIR BRANDS 38

Table 18: Leading Brewers by Turnover (£m), 1997/1998

38

Table 19: The National Brewers and their Leading Brands, 1999

39

Diageo PLC 39
Company Structure 39
Market Share and Brands 40
Financial Results 40
Bass PLC 40
Company Structure 40
Market Share and Brands 41
Financial Results 41
Scottish & Newcastle PLC (Scottish Courage Ltd) 41
Company Structure 41
Market Share and Brands 42
Financial Results 43
Whitbread PLC 43
Company Structure 43
Market Share and Brands 44
Financial Results 44
Carlsberg-Tetley PLC 44
Company Structure 44
Market Share and Brands 45
Financial Results 45
Other Brewers 45
Anheuser-Busch European Trade Ltd 45
Wolverhampton & Dudley Breweries PLC 45
Vaux Group PLC 46
Greene King PLC 46
Mansfield Brewery PLC 46
Morland PLC 46
ADVERTISING AND PROMOTION 47

Table 20: Main Media Advertising Expenditure on Beer (£m), 1994-1998

47

Lager 47

Table 21: Main Media Advertising Expenditure on Lager Brands (£000), 1994-1998

48

Ale and Stout 49

Table 22: Main Media Advertising Expenditure on Dark Beer Brands (£000), 1994-1998

49

Trends in Advertising 50
Other Marketing Activity 51
Strengths, Weaknesses, Opportunities and Threats 52
STRENGTHS 52
WEAKNESSES 52
OPPORTUNITIES 52
THREATS 53
Buying Behaviour 54
CONSUMER PENETRATION 54

Table 23: Penetration of Beer by Type (% adults), 1994-1998

54

Packaged Beer 54

Table 24: Drinkers of Packaged Beer by Sex, Age and Social Grade (%), 1998

55

Draught Beer 55

Table 25: Drinkers of Draught Beers by Sex, Age and Social Grade (% adults), 1998

56

REGIONAL DIFFERENCES 57

Table 26: Drinkers of Draught Beers by Region (% adults), 1998

57

Table 27: Drinkers of Packaged Beers by Region (% adults), 1998

58

Table 28: Regional Expenditure on Beer and Cider (£ weekly and index), 1997/1998

59

Outside Suppliers to the Industry 60
IMPORTERS AND WHOLESALERS 60
PACKAGING 61

Table 29: Beer Packaging Trends by Volume - Packaged Beer Only (%), 1990-1998

61

Current Issues 63
EUROPEAN COMMISSION RULING ON THE TIES 63
WOLVERHAMPTON & DUDLEY BREWERIES 63
VAUX GROUP/SWALLOW 63
SCOTTISH COURAGE 63
BASS 64
OTHER CORPORATE DEVELOPMENTS 64
PUBLIC HOUSE DEVELOPMENTS 64
Forecasts 66
BRAND TRENDS 66
PRODUCT TRENDS 66
DEMOGRAPHIC INFLUENCES 66

Table 30: Trends in Key Population Groups (population in millions), 1997-2003

67

REGIONAL RATIONALISATION 67
FUTURE OF THE NATIONALS 68
DISTRIBUTION TRENDS 68
MARKET FORECASTS 68

Table 31: Forecast of Beer Sales at Current Prices (£m), 1999-2003

69

Company Profiles 70
Bass PLC 71
Carlsberg-tetley PLC 73
Diageo PLC 75
Scottish & Newcastle PLC 77
Whitbread PLC 79
Wolverhampton & Dudley Breweries PLC 81
Further Sources 83
Associations 83
Periodicals 84
Directories 85
General Sources 85
Hoppenstedt Bonnier Information Sources 86
Government Publications 87
Other Sources 88
Understanding TGI Data 90
Number, Profile, Penetration 90
Social Grade 91
Standard Region 91
Key Note Research 92
The Key Note Range of Reports 93

Executive Summary taken from 'Breweries & the Beer Market' by Key Note Ltd, price £279, to order your copy click here.