14 minute read
marketing activity to put the sparkle back into the soft drinks sector after a challenging year
On a winning streak
As lockdown restrictions are being lifted in stages, beer sales through the convenience channel are expected to remain strong. What’s more, the return of international sport –including the Euros –will be a strong driver of at-home beer consumption this summer.
During the pandemic, the forced closure of pubs and bars moved many drinking occasions into the home, triggering substantial growth in the beer category. Although hospitality outlets are now reopening, ongoing restrictions mean that it will be some time before on-trade beer sales return to pre-COVID levels. Consquently, so far this year, beer is continuing to perform well through the off-trade.
“We have seen sustained demand so far this year, with beer category sales growing by 37% year on year (Nielsen),” reports Jessica Markowski, wholesale sales director at
Budweiser Brewing Group UK&I.
Jessica Markowski, wholesale sales director, Budweiser Brewing Group UK&I
“We’re forecasting that 2021 will be another huge year for beer, with the total category growing by double digits and the convenience channel set to grow ahead of the market compared to the last year of regular trading in 2019 (BBG).”
The premiumisation trend accelerated in 2020, she notes. “Last year, premium lager and world beer contributed the most absolute value growth to the overall beer category, so wholesalers should ensure that both segments are well represented in their depots,” she says. “Offering a strong range of premium beers, such as Stella Artois, Budweiser and Corona, will help stores cater to this premiumisation trend.”
Until mid October, Corona is being supported with a campaign titled ‘From the Natural World’, which looks to inspire people to rediscover the joy of their local natural environment. The campaign is running across TV, video on demand, digital out of home, online, social media and audio.
To underline the brand’s links with nature, Corona packaging now bears the message: ‘Brewed with 100% Natural Ingredients: Water, Barley, Hops, Maize. Beer carbonated before bottling’.
As three out of five beers are now consumed with food (Kantar), there is an opportunity for the trade to capitalise on this trend by cross-merchandising. “Wholesalers can advise customers to create bundles, such as beer and pizza meal deals which proved popular last year,” suggests Markowski.
The rescheduled Euros will result in a big summer for beer in the off-trade, and the Budweiser family will play a major part in this, she adds. “Bud Light is the official sponsor of the England Men’s Football team, and given that 55% of shoppers are more likely to opt for ‘official sponsor’ brands over their usual beer choices (WAA), this presents a unique sales opportunity for wholesalers,” she says.
C&C Group has kicked off its largest ever off-trade promotion for Tennent’s Lager, which has renewed its partnership with the Scottish FA.
Consumers buying promotional 10, 12 and 15-packs of Tennent’s have the chance to win one of over 4,500 prizes, including personalised Tennent’s football tops, mini footballs, captain’s armbands, and vouchers for the Tennents.co.uk online store.
Consumers scan an on-pack QR code, which takes them to a microsite where they can enter the competition and find out if they have won a prize.
In another football-themed promotion, Carling, the UK’s No.1 lager brand (CGA & Nielsen) from Molson Coors, has teamed up with Umbro to give people the chance to win one of 10,000 limited-edition football shirts.
Consumers finding a special golden can hidden in a multipack can claim their prize online by entering a unique code on the Carling website.
The promotion is dual branded and communicated on 10can and 18-can multipacks. This will help retailers to tap into the excitement ahead of the summer of football and drive sales of mid and large packs. The campaign will also be supported by PoS material to help retailers drive awareness in stores, as well as a social campaign with ‘Joe Football’. Molson Coors has removed plastic rings and introduced a recyclable and sustainable cardboard sleeve for can multipacks for its major brands, including Carling and Coors.
Removing plastic rings follows a number of steps recently taken by Molson Coors to reduce its environmental impact, including trialling low-carbon, circular-economy glass beer bottles for Staropramen. It also recently announced that it has become the first major brewer in the UK to produce all of its beers and ciders using 100% renewable electricity.
A total of 70% of UK consumers would be more likely to purchase a beer made in a sustainable way (YouGov). In 2020, BrewDog became the first Carbon Negative beer company, so it takes twice as much carbon out of the air as it emits, and it has just introduced the world’s first carbon neutral beer brand – Lost Lager – into the convenience channel.
A German-style pilsner, Lost Lager (4.5% abv) is brewed using wind power, a third less water and would-be waste bread in the malt bill. It is available in 660ml glass bottles and 4 x 440ml and 10 x 440ml can multipacks.
Lost Lager is being supported by a £6 million investment, including a £2.5 million campaign featuring online, social and out-of-home activity, as well as product giveaways. In addition, BrewDog has acquired a 12,000+ hectare ‘Lost Forest’ in Scotland where it will plant a tree for every multipack sold. BrewDog claims to be the fastest growing supplier within the top 10 brewers, with sales up 65.9% to £158 million, ahead of both the craft beer category (+49.3%) and total beer (+33.6%) (Nielsen).
“One of the biggest areas of growth and a key trend for wholesale is craft beer,” says Alex Dullard, head of customer marketing. “14.4% of British households have purchased craft beer in the last 12 months (Nielsen), and it is the No.1 category that shoppers buy ‘because they felt like it’ (Shopper Intelligence). This means it is a category that cannot be ignored!
“62% of convenience shoppers agree it is worth paying more for good quality beer or wine (YouGov), and craft beer shoppers actually spend more when in-store (BrewDog/ Dunnhumby), so ensuring you are showcasing consumers’ favourite brands will help retailers identify the best brands to stock to increase basket spend,” he adds.
Another trend affecting beer is format, says Dullard. Cans have now overtaken bottles as the vessel with the largest value share in craft beer (77% versus 23%, Nielsen). In addition, total growth in craft beer is being driven by multipack cans – nine of the top 10 SKUs in craft are multipack cans (Nielsen). BrewDog is a beacon for the craft beer category, and holds eight of the top 10 craft beer SKUs (Nielsen).
At 56% awareness amongst convenience shoppers, purchase intent of BrewDog brands is consistently ahead of the market, with one in 10 considering purchasing when in store (YouGov). “However, limited distribution within the channel means that retailers and wholesalers are missing out on valuable sales,” says Dullard. BrewDog Punk IPA is the No.1 craft beer (Nielsen); other brands that should be considered by wholesalers are BrewDog Hazy Jane and BrewDog Elvis Juice.
Value sales of Asahi Super Dry, the No.1 Japanese beer in the UK (CGA), have soared by 90.6% year on year in the impulse channel, contributing an additional £2.4 million to the super premium beer category (Nielsen).
As part of a threeyear partnership with electronic music platform Resident Advisor, the brand recently invited consumers to ‘Discover Tokyo’ by taking a 45-minute virtual journey through the streets of the city, with original music composed by three renowned artists: DJ Nobu, Honey Dijon and Kerri Chandler.
Tim Clay, managing director of Asahi UK, says: “We want to continue to build on the success of Asahi Super Dry and ensure we are keeping it front of mind for consumers.” CCM
BrewDog co-founders James Watt (left) and Martin Dickie at the company’s ‘Lost Forest’ in Scotland.
For further information:
Asahi UK (01483) 718100 BrewDog (01358) 724924 Budweiser Brewing Group UK&I (0870) 241 1124 C&C Group (07757) 672196 Molson Coors (01283) 511000
Hard seltzers to appeal to British consumers
Funkin recently launched a selection of ready-to-drink Hard Seltzers (4.5% abv) in 330ml cans.
Available in three variants –Passion & Mango, Strawberry & Raspberry and Lemon & Lime –the drinks feature triple distilled vodka, sparkling water and fruit flavours. There are fewer than 97 calories per can.
With 71% of consumers opting to try a sparkling, alcoholic water drink and one in six consumers considering calorie content when ordering a mixed drink (CGA), there is a clear appetite for a refreshing, tasty and healthier seasonal drink, says the company.
The UK consumer is fairly new to the concept of hard seltzers, which became the unofficial No.1 drink with US consumers in 2019. Funkin, which claims to be the most recognised go-to cocktail brand in Britain, is ‘perfectly positioned’ to introduce this new range that is specifically geared towards the British palate.
Ben Anderson, Funkin’s marketing director, says: “We’re really excited about the launch of our Hard Seltzers. We’re positive that the range will become part of consumers’ drinking repertoire.”
Funkin 020-7328 4440
New four-pack
Halewood has extended its Lambrini RTD range with a new four-pack (rsp £5) for all four flavours – Cherry, Rhubarb, Mango and Strawberry.
Lambrini is the UK’s No.1 perry brand (Nielsen). The introduction of the 4 x 250ml pack follows the successful launch of the Lambrini cans range earlier this year, and has been designed to help retailers tap into the growing consumer demand for convenient formats to enjoy both at home and on the move.
Halewood has also announced that Dead Man’s Fingers Banana Rum is now a permanent line.
Halewood International 0151-480 8800
Whiskey liqueur
Biggar and Leith, importer of spirits and fancy foods from around the globe, has unveiled a new drinks brand, Shanky’s Whip.
The smooth, black whiskey liqueur is based on a combination of Irish spirits and aged pot still whiskey, blended with the natural flavour of vanilla and infused with caramel. It has an abv of 33% and an rsp of £24.
Distilled in Co. Cavan and blended and bottled by Shanky & Shireman under bond in Ireland, Shanky’s Whip is available in the UK via distributor Craftwork.
Craftwork (02382) 145596
Off-trade launch Distribution deal
Budweiser Brewing Group UK&I has launched Bud Light Seltzer in the UK off-trade following its success in the US.
Comprising an alcoholic sparkling water with natural fruit flavours, the 4% abv product is available in lemon-lime, passionfruit, and strawberry variants.
Bud Light Seltzer has 95 calories per 330ml can and is designed to appeal to those looking for refreshing, naturally flavoured options. It comes in single cans (rsp £2) and a variety six-pack.
The new product has been named as the first ever official hard seltzer sponsor of the Men’s England football team.
Budweiser (0870) 241 1124
Molson Coors has secured a long-term partnership with independent family business Southwestern Distillery, home to super-premium craft Cornish gin brand Tarquin’s Gin.
Products include Tarquin’s Cornish Dry Gin, Tarquin’s Rhubarb & Raspberry Gin and Tarquin’s British Blackberry Gin, as well as new Twin Fin Rum.
Southwestern Distillery is based near Padstow, close to the Molson Coors owned Sharp’s Brewery, and the two companies have already collaborated to develop the limited-edition Tarquin’s Hopster Gin.
Molson Coors (0345) 6000 888
Haribo extends its vegetarian selection
PRODUCT OF THE MONTH
Haribo has introduced two new products suitable for vegetarians.
Haribo Sour Sparks, which are big enough to bite into twice, are lightning bolt-shaped pieces in three flavour combinations: cola and lemon, apple and cherry, and raspberry and pineapple.
Claire James, trade marketing manager, says: “There is a huge appetite for sour treats; combine this with the demand for vegetarian lines and it’s clear that this presents a strong sales opportunity for retailers.”
The second new product is Haribo Starbeams, a mix of soft jelly and foam sweets in three fruit flavours –cherry, apple, and lemon –with added fruit juice.
“Appealing to consumers that enjoy a softer eating experience and a comforting treat, Haribo Starbeams is the very first foam sweet to join our vegetarian range,” explains James.
She adds: “Both Sour Sparks and Starbeams deliver the fun, quality and taste that consumers know and love from Haribo.”
The two new lines are available in non-priced-marked and £1 rsp pricedmarked packs (160g), with an on-pack flash to highlight that the sweets are suitable for vegetarians.
Haribo (01977) 600266
Extra support Helping pubs
Mars Wrigley has launched a new TV campaign for Extra Chewing Gum.
Designed to keep gum top of mind and relevant to the events of our times, the tongue-in-cheek ‘Get Your Ding Back‘ campaign features a number of characters in memorable lockdown moments ‘re-entering the real world’.
With a positive forecast predicted for gum sales, the campaign will support the category as refreshing on the go becomes relevant again.
Brand manager Chirag Shah says: “The advert will create lots of smiles, which in turn will drive sales.”
Mars Wrigley (01753) 550055
KP Snacks and premium snack brand Tyrrells are running a competition offering pubs the opportunity to win one of four £10,000 garden makeovers.
To qualify for entry, pubs need to purchase three cases of Tyrrells 40g crisps. The winners will receive £5,000 worth of Tyrrells branded pub garden merchandise and £5,000 to spend on whatever their garden needs most.
In addition, five runners-up will be given 10 cases of 40g Tyrrells Crisps.
Sarah Lawson, marketing manager, says: “At Tyrrells, we want to do our bit to help pubs get back on their feet.”
KP Snacks (0845) 601 7583
JTI has introduced Sterling Rolling Tobacco Essential 30g at £12.35 rsp.
The new ‘less for less’ option, with no filters or papers, has the lowest price point within the Sterling Rolling range.
In addition, it comes in a paper insert pouch pack, which contains less aluminium, and the blend generates less leaf waste compared to other RYO brands due to its whole leaf blend.
Stephane Berset, head of marketing, says: “The new Essential format aims to offer a great value tobacco option for customers, whilst staying true to Sterling’s reputable quality.”
JTI UK (01932) 372000
Digital campaign
Tata Consumer Products is backing Tetley Cold Infusions with a new digital campaign spearheaded by two-times Olympic gold medallist swimmer Rebecca Adlington.
The social, video-on-demand and influencer activity features a clear message: ‘Simple, natural flavour – add a little fruitiness to your water’.
A total of 39% of Tetley Cold Infusions are consumed when out and about. Glimpses of warmer weather and the prospect of returning to something near normal have sparked interest in the category again –sales of Tetley Cold Infusions have seen 13.7% volume growth in recent weeks (Nielsen).
Tata Consumer Products 020-8338 4000
