Mealtimes with beer presents £85m Off-Trade sales opportunity

The pandemic has seen a shift towards in-home meal occasions with beer at their heart, presenting an £85m opportunity for the Off-Trade, according to the latest consumer insights from Budweiser Brewing Group.

Lockdowns saw many develop a new love for cooking and eating at home, with 2.2m households claiming to do so for entertainment more often than before the pandemic. This lasting habit has contributed to in-home meal occasions now growing ahead of the curve (+1.71 per cent in weight) compared with out-of-home meals. Many are also increasingly enjoying an alcoholic drink with meals at home; 71 per cent of Off-Trade alcohol purchases are made with food compared with 66 per cent in February 2020. Significantly, mealtimes now account for 43 per cent of all drinking occasions in the home.

Within this, beer sits at the heart of the mealtime occasion and ahead of the rest of the alcohol category. 63 per cent of at-home beer consumption takes place with food, compared to just 58 per cent for total alcohol. Beer is also seeing yearly growth in consumption across all key mealtime occasions. Overall, these changing behaviours equate to a significant £85m sales opportunities for stores.

Mark Wingfield-Digby

“Spending more time at home during lockdowns has fostered a lasting love and enjoyment of preparing meals for ourselves. A growing number of us are also choosing to pair those with an alcoholic drink and, for many, this is a beer,” says Mark Wingfield-Digby, Off-Trade Sales Director, Budweiser Brewing Group. “Understanding the new landscape of mealtime occasions, and how to merchandise beer and food effectively in-store, will be key for retailers to win this year.”

Budweiser Brewing Group has identified five key mealtime occasions, and highlighted how retailers can leverage these to capitalise on the £85m opportunity:

Weekend Special Meals

The most valuable mealtime occasion for retailers (worth £19.2m), Weekend Special Meals command the second-highest prize per occasion out of all mealtimes, with beer currently witnessing a +16 per cent YOY growth in consumption within this occasion, ahead of any other key mealtime occasion.

These are treat occasions and as such, premium, craft and world beers over-index. Canny retailers should stock up on a wide range of premium and super premium beer brands, such as Corona, Stella Artois, and Budweiser.

Everyday Meals

Stores shouldn’t forget about the humble Everyday Meal, worth a significant £15.5m for retailers. It holds a 22 per cent share of all drinking occasions in the home, and is the second most valuable mealtime occasion for the beer category.

The occasion tends to feature one-two people, with beer fulfilling the role of relaxing and refreshment alongside dishes such as pizza and steak. Continental beers over-index during these occasions so Leffe, which 87 per cent of consumers associate with food, is a strong candidate for retailers to cross merchandise alongside Everyday Meal fare.

Mediterranean/Mexican

This emerging mealtime occasion is currently worth £6.5m for the Off-Trade. While not the most valuable mealtime, the range of beers consumed during these occasions presents an opportunity for retailers. For example, continental, standard and premium lagers are a big part of the occasion.

In-store Mexican-themed display with fajitas and so premium beers like Corona can help to inspire shoppers to host themed nights. Corona in particular stands out as a key player within Mediterranean/Mexican meals, over-indexing during the occasion, so stocking this brand will be key to leveraging the occasion.

BBQs

A key beer sales driver in the warmer months, BBQs represent a £7.1m opportunity for the Off-Trade. This opportunity may be bigger than ever in Summer 2022, with Brits looking to reunite at outdoor gatherings following two years of Covid disruptions.

Burgers are a BBQ staple, consumed during nearly 20 per cent of these occasions, and best when accompanied by an ice-cold beer, and retailers can boost sales by cross-merchandising in store. Premium brands such as Corona and Stella Artois are among the top brands chosen for these occasions so stocking them should be top of mind for retailers. "Refreshing" is the driver for the beers enjoyed during BBQs, and these two premium brands cater to this need.

Evening Snacks

Finally, it’s important for retailers to not forget about the Evening Snack - which represents a huge £30.7m opportunity. Beer is consumed during a considerable 39 per cent of these occasions.

Continental, standard lagers are a big part of these occasions but some premium brands also over-index too here. Therefore to maximise sales, stores can showcase beer brands next to evening snack favourites.