Summary Presentation and Commentary 2014. Agenda -Momentum -Craft -Pricing -Presentation -Training.
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Transcript of Summary Presentation and Commentary 2014. Agenda -Momentum -Craft -Pricing -Presentation -Training.
There’s a beer revolution happening in Britain
- Trebling of breweries since millennium
- Three new breweries a week
- More beer styles than ever before
- Record CAMRA membership
- Mainstream media acceptance
And cask ale is at its heart
- Volume:- 2.2 million barrels – or 634 million pints a year
- Volume increase of 1.1% in 2013, and a further 1.3% in 2014 YTD
- Value:- £1.72 billion
- Value increase of 23% since 2010
- Share:- 16.1% of all on-trade beer
- Outperforming total on-trade beer by 4.5% - sixth consecutive year of outperforming the rest of the on-trade
Recruiting new drinkers – trade needs to catch up on fading stereotypes
- 15% of all cask drinkers tried cask ale for the first time in the last three years
- A third of all 18-34 year-olds have tried cask, and 65% of all new recruits are aged 18-34
- A third of all female alcohol drinkers have tried cask – and 75% of trialists still drink it
Awareness of craft beer
Mintel: six million UK adults say they have drunk craft beer in the last six months
A definition of craft brewing!
CraftPronunciation: /krɑːft
NOUN
1.An activity involving skill in making things by hand:
the craft of cobbling
[AS MODIFIER] Denoting or relating to food or drink made in a traditional or non-mechanized way by an individual or a small company:
craft brewing
a craft baker
Source: Oxford English Dictionary
Craft beer and cask ale
- Cask ale and craft beer are NOT the same.
- But most cask ale is craft beer.
- And in the UK, most craft beer is cask ale.
Pricing
- Off-trade ale is growing faster than lager, even though it is significantly more expensive
£3.98per litre
£2.47per litre
Why is this price premium reversed on-trade?
- Cask ale still trades at a price deficit even to standard lager
- Craft cask beer sells on average for £1 per pint less than craft keg beer
- Trade is setting a dangerous precedent, and missing a profit opportunity
Summary
- Cask is thriving within an improving beer market
- The craft beer boom is good for cask because most craft beer in the UK IS cask
- This underscores the weakness and danger of cask pricing versus other beers
- The consumer lacks knowledge about what makes cask so special – education provides potential for further growth
- But the licensee needs to invest more in staff training to fully exploit the potential for cask – and avoid the current growth of interest going into reverse