Budweiser Brewing Group, which brews beers including Budweiser, Stella Artois and Corona, is forecasting that by 2025, 70 per cent of total beer consumption will be of brands in the premium or super-premium category.
Covid-19 cemented the trend towards premiumisation as shoppers sought out known and trusted brands. As a result, super-premium is now the number one growing segment in the overall beer category, growing two times ahead of the total category. The premium and super-premium category now equates to 61.7 per cent of total of beer value in the Off-Trade.
Key to the success of the premium and super-premium category will be World Beer, which is currently worth £1.1bn and has grown in value by £0.5 billion since 2017. The segment presents a unique sales opportunity for retailers with two thirds of World Beer spend coming from shoppers with two or more beers in their repertoire. Popularity of the segment is evident through the UK’s number one World Beer, Corona, which saw its rate-of-sale grow 25 per cent last year.
The trend towards premiumisation is also replicated in the no-and-low category. The premium no-and-low beer category grew 23 per cent YOY as consumers sought to treat themselves whilst moderating their alcohol consumption. Brand is the most important factor for consumers when deciding which no-and-low product to buy – ahead of calories, ingredients, taste claim and ABV, cementing the opportunity around premium no-and-low options. Budweiser Zero and Stella Artois Alcohol Free are premium options that build on the success of their parent brands. Both beers have proven a hit with consumers, growing significantly ahead of the total no-and-low category and showing triple digit growth across both volume and value.
Mark Wingfield-Digby
“Covid-19 had massive long-term implications on how Brits consume beer. As we look ahead to 2022 and beyond, premiumisation is our big bet,” said Mark Wingfield-Digby, Off-Trade Sales Director at Budweiser Brewing Group. “Combined with the increased momentum for at-home beer consumption, there’s a huge opportunity for retailers to drive sales through a robust premium line-up.”
