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.
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
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
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.
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
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.
£20.million from Molson.
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.