Traditionally known as imported beer, the international beer segment has evolved significantly. While many brands were once exclusively brewed in their home countries, a large portion of these beers are now produced globally. Despite this shift, international beer remains a crucial pillar of the beer market.
Total International Beer: Conflicting Share Performance
Our On-Premise Measurement service (OPM) tells us that international beer makes up 23% of all beer sales. While our Omnishopper solution shows that number is slightly lower in retail – making up 20% of beer sales.
A look at how this share is changing may point to the different situations in each channel. In the On-Premise, international beer value share is gaining (+0.2), while it sees more concerning value share declines in the Off-Premise (-1.7) over the L52 weeks vs YA.
Country of Origin: Shifting Preferences
The momentum of a certain stout brand has given rise to significant share gains for Irish beers (+0.6) in the On-Premise, and more subdued gains in the Off (+0.2). Understandable given the serve ritual associated with these beer styles.
Japanese beer rounds out the only other country of origin gaining share in the On-Premise (+0.2). Reinforcing a continued shift away from traditionally popular beers from Germany (-0.2) and Mexico (-0.1).
While in the Off-Premise, outside of Irish, it is Dutch beer that performs best in terms of share gains (+0.7). With Mexican, Italian, and German beers losing the most share.
On-Premise: A Quest for Uniqueness and Serve Perfection
Both channels point to shifting preferences in this segment. With serve, Instagram-ability, and a rise in popularity of travel destinations likely drivers for Irish and Japanese beers positive trend in the On-Premise. A look at our On-Premise-User-Study validates this:
Uniqueness of flavour (cited by 43% of consumers as a defining quality vs 32% in 2023) and is consistently served well (31% vs 24%) are the top two qualities consumers use to define a good quality international beer – both demonstrating considerable rises in importance vs YA.
A flavour forward approach to positioning and messaging around uniqueness are important to drive consumption. While bartender buy-in to perfect serve strategies is crucial to support the premium credentials of the brands in this segment.
Off-Premise: Shifting Supplier Focuses
The proliferation of country-inspired brews produced by Australian brewers and shifts in distribution/ownership agreements could be underpinning the dynamics at play in the retail world. With Mexican beer particularly subject to lookalike brands, and Italian beer to ownership changes – it could explain their respective positions as the two biggest share losers.
On the flip side, Dutch beers prove a stand-out and show a potential path-forward; investment in brand and the right type of innovation can drive growth. Notably – Omnishopper panel data reveals a sizable portion of Dutch beer growth driven by switching behaviour (growth from shoppers directly replacing purchases of one product with another). With Australian, Italian, and German beers the main sources of switching gains.
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Evidently On-Premise trends can influence off-premise trends and vice-versa. In the case of international beer – cultural trends are ignited in the On-Premise and can impact preferences in bottle-shops.
Understanding the similarities and differences between trends and drivers in each channel is crucial to a successful Omni-channel, through-the-line brand strategy.
To gain deeper insights into beer dynamics across both On-Premise and Off-Premise markets, and enhance your understanding of the Australian liquor landscape, contact Tom Graham, Senior Manager at CGA by NIQ here.
Originally published in National Liquor News
