A detailed market research report on the Australia beer industry. Researched and published by Canadean.
Introduction and Landscape
Why was the report written?
This report comprises of high level market research data on the Australia beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and analysis on beer market trends, brands, brewers, packaging, distribution channels, market valuation and pricing.
What is the current market landscape and what is changing?
2012 saw the Australian beer market decline and a flat performance is forecast for 2013
What are the key drivers behind recent market changes?
Continuing poor summers helped depress demand in 2012, and consumer confidence remained an issue, although the economic indicators run in Australia's favor for the time being. Price rises were another key factor hitting volume in 2012.
What makes this report unique and essential to read?
The Australia Beer Market Insight report is designed for clients needing a quality in-depth understanding of the dynamics and structure of the Beer market. The report provides a much more granular and detailed data set than our competitors. All data has been researched, brand upwards, by an experienced 'on-the-ground' industry analyst who conducts face-to-face interviews with key producers, leading companies in allied industries, distributors and retailers.
Key Features and Benefits
This report provides readers with an excellent way of gaining a thorough understanding of the dynamics and structure of the Australia Beer industry. Data includes volumes from 2008 to 2012 plus forecasts for 2013, enabling historical and current trend analysis.
This report provides readers with in-depth market segmentation: mainstream, premium, super premium, discount, alcoholic strength, local segmentation, beer type.
This report provides data and analysis of the performance of both domestic and imported brands and reports on new product activity in 2012.
This report provides an analysis of industry structure, reports on company volumes and contains brewer profiles for major brewers
This report provides distribution channel data (on- vs off-premise) and discusses the latest trends in the key sub-channels. Packaging data includes consumption volumes by pack material, type, size, refillable vs non-refillable, multi-serve vs single serve. Market valuation data and pricing data, including beer consumption by price segment/distribution channel and selected consumer beer prices are also included.
Key Market Issues
Increases in consumer prices in 2012 contributed to the decline in the market, with a fairly successful attempt by brewers to shift away from volume discount and raise prices, combined with efforts by on-trade establishments to raise prices and reflect their cost structure.
Australians are drinking lower volumes of beer, but they are drinking a more diverse range of beer both by brand and style. The top five brands in 2012 accounted for 42% of volumes between them, compared to 50% for the top five brands in 2002. Craft beers benefited in the move away from the top brands.
SABMiller's takeover of CUB changed the industry significantly in 2012. First came a major realignment in brand licensing in Lion's favour however, there are also signs that SABMiller is removing the strategic weakness that saw CUB's owned brands decline more than Lion's.
In any country, a cold and rainy summer holiday season significantly reduces people's desire to drink beer. This is particularly important in a normally-warm country like Australia, where social occasions - whether at home or on licensed premises - are generally geared towards outdoor drinking.
Low consumer confidence has also impacted the market since 2011, throughout 2012 and into 2013. Although the macroeconomic indicators remain broadly in Australia's favor, the public are aware of the problems that could be ahead.
At a share-of-throat level, beer has been losing share to cider, with absolute growth in cider sales in Australia in 2012 almost equal to beer's decline.
The most immediate result of SABMiller takeover, was a major realignment in brand licensing in Lion's favour, with many international brewers taking advantage of the change-of-control clause in their contracts to terminate their agreement with Foster's.
PL took share from mainstream beer in 2012. PL lines are becoming more enhanced and differentiated eg the Woolworths launched the Sail and Anchor craft beer range in 2012, which aims to take on craft ranges like James Squires at a comparable price point, based on its quality and consumer desire for diversity
The top 10 brands in the Australian beer market in 2012 performed averagely over the course of the year, with five showing growth and five showing decline.
On-premise consumption was down to 35% in 2012 compared to 39% in 2008. The off-premise has been boosted by continued de regulation of bottle shops, supermarkets becoming more important and the expansion of hard discounters alcohol ranges.