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Fuller Smith and Turner
         PLC.

 An analysis by Juliane Gundersen
Agenda
 Background
     The Cask, The Beer and The UK Market
 Fullers – From My POV
 Fullers SWOT Analysis
 Sharp’s Doombar
 Conclusion
Background
   25 million drinkers
   700,000 jobs,
   £18 billion retail value
   3,000 different beers
   650 operating breweries,
   200,000 licensed premises.
   2.5 million pints of Export
   £6 billion a year in VAT and duty
   £38.2 million invested into Sports and Music
The Cask, The Beer and The UK, Market

   2 system of production
       Low quality mass market
       High quality brewed local ale

   Cask beer grew 5%

   Cask ale outperformed the total beer market
    
        Cask accounts for 15.2% of total on-trade beer volumes

   Regional and local cask ale brewers increased volume
    by 1% and 5% respectively,
    
        Multinational brewers decreased volume by 11%
The Cask, the Beer and The UK, Market
   121,000 people started drinking cask ale,
        18-24 year old cask drinkers grew by 17%

   3,000 more pubs started selling cask ale

   Premium Bottled and Canned Ale recruiting over 100k more shoppers
        Standard Canned Ale lost 210k shoppers.

   Dark beer sector dropped by 12.2% (in value terms) since 2006.
        9.6% growth from 2011 to 2015.

   85% of beer sold in the UK is produced in the UK with a predominantly UK
    supply-chain

   The UK grocery retail sector now represents over 80% of the beer market
Fullers – From My POV
 Ale – not on the agenda
 Manly drink
 No information
     Premium ale
  
      Quality
 Strong competition
 Bottles
 Pubs
Fullers Strengths
 A well known brand
 Quality products
 Independent family brewery   - full control
 Strong fan base
 Strong pub base
Fullers Weaknesses
 “Old man’s” image
 Lack of creativity and innovation
 Company structure
 Limited capacity at brewery site.
Fullers Opportunities
 Resources for new products
 Staff education
 Increased export
 Expansion
Fullers Threats
   Tax and VAT               Increased
   Laws and regulations       consumption at home
   Micro breweries           Competition
   Consumer trends           Acquisition
   Increased wine
    consumption
Doombar
 2003 10,000
 2008  45,000
 2011  83,000
 A growing brand
     £2.2m in new brewery
     £500.000 in marketing
 Expansion
Doombar SWOT
   Strengths                     Opportunities
    
        Financial backup           
                                       Expansion
         • Molson Coors           Threats
    
        Contemporary Image            “Beer of the moment”
       Strong fan base                 • Competition
   Weaknesses                        Consumer trends
    
        Lack of support from
        CAMRA
    
        Too image focused
Doombar
“Our branding is young and modern, we
 don’t go for the cartoon-like images and
we don’t pretend that we have a 300-year
history behind us. Doom Bar is a modern,
         progressive drink brand.”
Conclusions
 Strong brand
  
      Safe fan base
     Safe structure
 Lack of innovation
 Competition
 Midlife crisis
 Solution
     Education

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  • 1. Fuller Smith and Turner PLC. An analysis by Juliane Gundersen
  • 2. Agenda  Background  The Cask, The Beer and The UK Market  Fullers – From My POV  Fullers SWOT Analysis  Sharp’s Doombar  Conclusion
  • 3. Background  25 million drinkers  700,000 jobs,  £18 billion retail value  3,000 different beers  650 operating breweries,  200,000 licensed premises.  2.5 million pints of Export  £6 billion a year in VAT and duty  £38.2 million invested into Sports and Music
  • 4. The Cask, The Beer and The UK, Market  2 system of production  Low quality mass market  High quality brewed local ale  Cask beer grew 5%  Cask ale outperformed the total beer market  Cask accounts for 15.2% of total on-trade beer volumes  Regional and local cask ale brewers increased volume by 1% and 5% respectively,  Multinational brewers decreased volume by 11%
  • 5. The Cask, the Beer and The UK, Market  121,000 people started drinking cask ale,  18-24 year old cask drinkers grew by 17%  3,000 more pubs started selling cask ale  Premium Bottled and Canned Ale recruiting over 100k more shoppers  Standard Canned Ale lost 210k shoppers.  Dark beer sector dropped by 12.2% (in value terms) since 2006.  9.6% growth from 2011 to 2015.  85% of beer sold in the UK is produced in the UK with a predominantly UK supply-chain  The UK grocery retail sector now represents over 80% of the beer market
  • 6. Fullers – From My POV  Ale – not on the agenda  Manly drink  No information  Premium ale  Quality  Strong competition  Bottles  Pubs
  • 7. Fullers Strengths  A well known brand  Quality products  Independent family brewery - full control  Strong fan base  Strong pub base
  • 8. Fullers Weaknesses  “Old man’s” image  Lack of creativity and innovation  Company structure  Limited capacity at brewery site.
  • 9. Fullers Opportunities  Resources for new products  Staff education  Increased export  Expansion
  • 10. Fullers Threats  Tax and VAT  Increased  Laws and regulations consumption at home  Micro breweries  Competition  Consumer trends  Acquisition  Increased wine consumption
  • 11. Doombar  2003 10,000  2008  45,000  2011  83,000  A growing brand  £2.2m in new brewery  £500.000 in marketing  Expansion
  • 12. Doombar SWOT  Strengths  Opportunities  Financial backup  Expansion • Molson Coors  Threats  Contemporary Image  “Beer of the moment”  Strong fan base • Competition  Weaknesses  Consumer trends  Lack of support from CAMRA  Too image focused
  • 13. Doombar “Our branding is young and modern, we don’t go for the cartoon-like images and we don’t pretend that we have a 300-year history behind us. Doom Bar is a modern, progressive drink brand.”
  • 14. Conclusions  Strong brand  Safe fan base  Safe structure  Lack of innovation  Competition  Midlife crisis  Solution  Education

Editor's Notes

  1. 25 million drinkers 700,000 jobs, £18 billion a year retail value 3,000 different beers 650 operating breweries, including 600 micro breweries. 200,000 licensed premises. 2.5 million pints of British beer drunk every day overseas. £6 billion a year in VAT and duty £38.2 million a year invested into Sports and Music
  2. Cask beer grew 5% by value in 2009 to £1.4 billion, against a 2% decline in the total UK beer market 1 Cask ale outperformed the total (on- and off-trade) beer market in volume terms: cask volumes were steady, compared to a 4.1% decline overall.
  3. Ale is an oldman’s drink, nothing that attracts women – wrong colour, texture and form. Many drink – Guiness, rugby, sport, very dark ale scrams out man. No info – Don’t really know anything about ale, high volume of calories. Never heard about premium ale. Cheap mans beer. All look brown, and old. Never notice it on the shelf or anywhere else. Except the pump clips in pubs. Competition  Massive power, stella and peroni, loads of offers in the shop and good advertisment. Bottles: One generic bottle, all look the same. A lot of writing on them, easier to pick up a case of stella for £15. Pubs 
  4. Doom Bar has achieved international cult status, is one of the fastest growing beer brands in the UK and the best selling cask beer in the South West of England. Expansion  off-trade from 3million too £20 millions.
  5. £20.million from Molson.
  6. Molson Coors Wales and West managing director Martyn Cozens said: "It's a relatively young brand. "It has a contemporary image with the Cornish surfing and sailing which adds to the brand's credentials." He said the company is planning to invest £2m to £3m in the Rock site this year. There are also plans to take the Cornish beer across the Atlantic. "An area of opportunity we see is in the export market particularly in North America and Canada," Mr Cozens said. Molson Coors said it had no intention of making Doom Bar anywhere else than Rock. Notes: having Molson investing in cask ale sends out a message that the trend for real ale is growing and big multinational companies are looking to invest back into it again. Molson mentioned that for a long time they have been looking at expanding their portfolio and cask ale was one of them. They were attracted to doom bars contemporary and fresh feel.