The popularity of craft beer is continuing to broaden but consumers are increasingly keen for the category to be properly defined.
A poll by Mintel showed 38% of those surveyed had bought a craft alcoholic drink brand in the three months to November 2015 but 30% of Brits who buy alcoholic drinks don’t understand what the term ‘craft’ means. A total of 59% said they wanted the industry to define the term.
When it comes to their own definition, the Mintel research shows a unique flavour is most widely used to define an alcoholic drinks brand as ‘craft’, cited by 47%. Other factors include a brand which uses high quality ingredients (42%), takes more time or care in production (41%) and one which produces drinks in small volumes, for instance a microbrewer (41%).
Over a third (35%) of Brits who buy alcoholic drinks say that brands cannot be ‘craft’ if they are acquired by large companies and 28% agree that brands cannot be ‘craft’ if they get too large in size. Over half (54%) of those who buy alcoholic drinks say that buying craft alcoholic drinks is a good way to support small businesses.
Chris Wisson, senior drinks analyst at Mintel, said: “The lack of an industry-agreed definition has not hindered the growth of craft so far, but it has led to the term being misinterpreted and increasingly, misused. Consumers are likely to become increasingly demanding of brands which claim to be ‘craft’, and the onus is on these brands to ensure that they can provide clear evidence of their craft credentials. The uncertainty around the term dilutes its ability to differentiate brands or justify a higher price. This suggests the need to reference other, more tangible points of difference to capture customers’ attention.”
Two in five (41%) Brits who buy alcoholic drinks say that you often get less for your money with craft alcoholic drinks, for example smaller bottles for the same price, while only 28% say that craft drinks are worth paying more for.
One in four (24%) beer buyers are willing to spend over £4 on a pint of craft beer in the on-trade and 21% are unprepared to even go above £3 per pint. On the other hand, 5% of beer buyers are prepared to exceed £5 on a pint of craft beer.
“Many craft beers are justifiably more expensive than mainstream brands, reflecting economies of scale but also the ingredients used. While consumer interest in seeing a wider variety of beers in the on-trade should benefit craft variants, overpricing poses a potential barrier to the continued growth of the segment.” Wisson added.
Over a third (38%) of adults purchased a craft alcoholic drink in the three months to November 2015, while 69% bought mainstream brands of alcoholic drinks.
One in four (26%) Brits who buy alcoholic drinks say they like to go to craft drinks events and festivals, whilst 23% say they prefer buying craft drinks over mainstream drinks, rising to 34% of men aged 25-34. Indeed, Mintel research shows that the most likely craft buyers are men, with 46% of men buying a craft brand in the three months to November 2015.
Approaching three quarters (70%) of Brits who buy alcoholic drinks say that taste is more important than the producer of the drink.
Wisson said: “The importance attached to taste is likely to be driving the interest in craft-style products from larger drink producers. This suggests that the large drinks companies can tap into the craft movement either by producing their own craft products or by acquiring smaller companies, with their success ultimately likely to be determined by the actual quality of the drinks.”
