More than 80% of people working in the beer sector believe that the category will grow by 12.8% or more during 2015, according to research by Butcombe Brewery.
The survey, which questioned suppliers, retailers and wholesalers, highlighted the inconsistencies of current beer category labelling, showing that the majority of respondents (65%) preferred ‘Premium Bottled Ales’ (PBA) to other labels such as ‘British Beers’ or ‘Speciality Ales’.
Regardless of the product labelling debate, nearly all (90%) of respondents believed that the space given to the category would stay the same or increase.
As far as pricing is concerned, the survey found that 30% of respondents believe that prices will decrease over the next twelve months, whilst half of the sample suggested that pricing would remain the same and 20% or those asked predict an increase in price.
Views regarding the impact of ‘Craft Ale’ on the PBA market were varied with many respondents commenting positively for example: “craft ale will expand the category and bring in new purchasers”, whilst others believed: “craft ale will steal bottled ale space but won’t deliver on sales as expected”.
The survey also revealed that stocking local /regional ales and multi-buy promotions were considered by respondents to be the most important factors regarding selling-in product ranges.
Just over half of respondents felt that the bottled ale category should be merchandised by style. Just over a third (37%) felt that merchandising by brewery was important. Interestingly, merchandising by price was least preferred with less than 5% selecting this option.
When asked which retailers, wholesalers or brewers were having a positive impact on the PBA sector and the reasons for this, responses included: “Big four provide profile and understanding. Discounters and promotions can devalue brands”.
Martin Holland, off-trade sales director for Butcombe, said: “I’m delighted with the high response rate of the survey, not only is the quantitative information illuminating but the commentary shows a great passion for the category and high confidence in the sector.”
