Fuller’s, the London brewer and pub operator, has outlined plans for its brands to respond to the “challenging” beer market, including the microbrewery craft beer “explosion” that it expects to “stabalise” soon.
In a presentation to analysts, Ian Bray, managing director of Fuller’s Beer Company – who also said the days of the session-drinking “boozer” are passing - highlighted that while the total beer market grew last year slightly by value, volumes are dropping. However’ cask ale’s share is increasing, growing to 15% of all on-trade beer sales last year from 14% in 2010.
One key challenge is the “microbrewery explosion”, with tax breaks for smaller brewers “driving fragmentation”, some outlets “overwhelmed by choice” and some brewers competing on price.
Fullers’ strategy includes:
- Positioning London Pride to “capitalise on the coming consumer demand for reliable and renowned beers”
- Updating its bottle and graphics to “optimise standout in the off trade”
- Launching its Frontier craft lager
- Entering the craft cider category through its purchase of Cornish Orchards
- Developing a seasonal programme to bring interest to ales in its pubs
- Launching Westside drinks to provide the route to market for these initiatives.
Bray said he expected the microbrewery cask explosion to stabilise soon but craft will continue to grow. He said the days of session-drinking “boozers” are passing, distribution will continue to fragment and choice will be even broader.
