2. Half Acre Beer Company
Craft Brewery here in Chicago (est. 2006)
Maurizio Fiori (Co - Founder)
3. Why we are here?
American Craft Beer is number one in the world
Europe alone has increased American Craft Beer imports dramatically
up 46% from 2012-2013
up 37% from 2014-2015
4. Why are we here?
Market analysis on the beer industry trends in Europe
Sweden, Denmark, Germany, UK
Country specific reports on
Alcohol and beer consumption trends and consumer behaviors
Competitive landscape and players
Price points
Beer trade associations
Beer expos/events (special focus on US beers)
List of potential partners to start a beer business in that country
Penetrate European Market with Half Acre Beer
5. Strategy
Divide Europe up and research
Sweden, Denmark, Germany, U.K., Italy, France
Research beer profiles
● Who, What, Why?
Assessed different battle plans for entering European Markets
Export/import, build brewpub, open specialty store?
6. Sweden pop:9.5 mil.
Largest importer of American Craft Beer
Imported 43,000 barrels in 2013 (~16%)
Spends 1.3 billion usd on beer annually
Government restricts sale of alcohol to government owned stores
“Systembolaget”
Purchase age 20+
Brooklyn Brewery
Second largest market outside New York
7. Germany pop: 82 mil.
92% of sales beer (ABV 2.5%-6%)
Beer consumption increase by 2.8% in 2014
Spent 9.4 billion on beer in 2014
Eric Ottaway, the general manager of Brooklyn Brewery,
“sells a 12-ounce bottle of Brooklyn Lager in upscale grocery stores for the equivalent of $4.20 —
almost three times its typical American price.”
New trend in germany “taste for american beer”
younger population
american style breweries
9. United Kingdom pop: 64.1
mil.
Spends $393.19 annually, per person, on beer
Great Britain imports 22,320 barrels of american craft beer
Brands like Sierra Nevada and Sam Adams are easy to find in the UK
At the Great British Beer Festival, the U.S. Brewers Association sponsored the
International Beer Without Borders area and featured 180 beers from 26
American craft brewers
Sales tax for beer imports are 20%
Import restrictions
Personal imports of alcoholic drinks from outside the EU are subject to
health and trade regulations (high probability)
The higher the alcohol by volume, the higher the import duty paid by the
importer.
10. United Kingdom
Great British Beer Festival (Aug. 11-15th, Olympia, London)
will host over 55,000 drinkers across two halls (one big, one small)
each hall will have bars serving ales from hundreds of breweries
Offers food and merchandise stalls
Plus side with the UK?
no language barriers
11. France
pop. 66 mil.
Spends 4b USD on beer annually (about $3.00 per litre)
Duty Free, 20% Sales tax, Excise of €43.98 ($48.70 USD)per hectoliter
Many bars are owned or heavily financed by international giants
Craft beer scene is on its beginning stages and growing rapidly
“Craft beer fits perfectly with the ‘eat less, eat better’ trend that we see in
Paris,” says Abergel of Brasserie Parisis.
Deck & Donohue beers were available at 20 bars and restaurants within
two months of opening.
Over 500 breweries nationwide
Beer consumption in France is Europe’s second-lowest, after Italy
only 16% of drinkers choose beer
Overall beer sales down 1.7%, craft beer sales up 8.8% (NY Times 2013)
12. Italy
pop. 61.1 mil.
Spends 1.8b USD on beer annually (about $2.20 per litre)
Beer with a unit price of €4.55 ($5.04 USD) and above is considered premium
in Italy.
Commercial imports subject to health and trade regulations
40 craft breweries reported in 2005 to over 500 in 2014.
Sam Adams is the only major player in American craft beer imports
403,800 gallons of beer exported to Italy in 2014
13. Spain
pop: 47.2 mil.
Spends 1.9b USD on beer annually.
($1.50 per liter)
Consumption of beer in general has
been decreasing annually
Consumers tend to stay true to local
breweries.
Craft beer image is slowly increasing
Annual Barcelona Beer Festival
hundreds of craft beer brands
gather (even US breweries)
have different types of
workshops (blindfold
tasting,cooking
workshops, educational,
etc)
21. Recommendation
E-Commerce site to sell beer directly to European consumers
Pros
● Subscription based
● No brick and mortar
● Growing market
● Inexpensive
Cons
● Delayed orders (quality)
● Can’t taste product before purchase
● Security (credit card information)
● Easy to Copy for competition
● Margins?
33. Costs
60 € - cost to consumer
30 € - ideal profit (100%)
30€ - $12(11€)(cost of wholesale beer) = 19€ (money to ship)
19€ - 6€ = 13€ (how much we can spend to ship and store each case)
13€ x 1920(20 pallets of 96 cases) = 24960€
3500€ to ship in container
3500/1920(cases per container) = 1.82€ per case
13€ - 1.82€ = 11.18€ to play with
