Stefan Stang (MD of Germany’s Private Brauerelen Bayern), presented some remarkable facts about the Global beer market from the IBE (Independent Brewers of Europe) at the Brau Beviale event in London on the 19th of May.
Did you know 67% of French breweries and 60% of Spanish breweries state IPA’s are their most popular styles?
The Czech’s unsurprisingly have 79% saying Pilsner and remarkably, 100% of Swiss brewers saying Pale Lagers are their most popular style.
The big drinkers are the the Czech Republic with the average person drinking twice the amount of beer over their UK cousins – and 4x more than the average French person.
The IBE’s study is hard to ignore when it comes to drinking trends. 71% of Europeans claim to have reduced their alcohol consumption and 25% of 25-35 year old Europeans have stopped buying alcohol. What we’ve all felt happening is definitely real and not limited to just the UK.
Good news? Average spend is up 7.5% to €21.69 across Europe so people are still price tolerant and 45% of IBE brewers expect their sales to increase in the next 12 months.
Ever wondered how the countries differ in how they consume beer? The Czech Republic love draught beer (85% packaged into kegs) with the UK coming close at 81% of all beer kegged by indie breweries. In contrast Finland is 90% cans so don’t go looking for a pint in Stockholm.
As we know, the UK is continually moving to lower strength beers. We’re told it’s to moderate alcohol intake but an alternate reality is the money saved by breweries in duty paid on beers that are 3.4% ABV and below. This has led to indies in the UK brewing to an average of 4.2% ABV compared to the Dutch who are averaging at 6.4% ABV. Curious about Europe overall? Well, it’s 5.1% so bang in the middle.
Other interesting facts include that only 1% of beer brewed by IBE brewers is exported and 75% of members support local good causes which can only try to validate their ‘Luke Skywalker’ status as being on the right side of the business of beer conversation.
Low and No, unsurprisingly, dominated the discussion on ‘what’s going to save the beer industry’? Lots of positivity on the growth numbers but the IBE survey a reminder that some countries aren’t getting the messaging with Finnish brewers claiming to brew 0% of their beers as Low/No and the French at 1% of their total volume.
This led me to have a great conversation with Stefan as I’m a firm believer that the beer industry needs to balance the oppressive and relentless obsession with demonising alcohol. Breweries are continually bombarded with regulations when it comes to what they can’t do with their marketing, positioning and messaging. This is all fine, but the simple fact is that great beer is amazing. Nothing comes close to the reward of the first cold pint of lager on a hot day or sipping a 12% beer that’s been barrel aged to perfection. Moments that make you glad to be alive and this is something that’s hugely missing in the way beer is presented to people.
Those teenagers who are encountering beer for the first time have only heard the negatives. Is it any surprise they’re not drinking? Mainstream advertising doesn’t allow for anyone under 25 to be featured and they certainly can’t be seen to be actually enjoying themselves drinking beer. It’s a nonsense. We need to reclaim the beauty of beer. We need to get real people posting their OMG and everyday experiences of beer being their friend. Obviously, this needs to be caveated with the need to observe responsibility and to drink in moderation – I’m not arguing with this – but let’s not forget that a great beer is a wonderful thing. It’s been wonderful for centuries and some of the breweries across Europe can testify to their beers truly standing the test of time by being brewed for centuries. Every brewery should have a ‘home run’ beer that they know is amazing, the one they’re most proud of. Sure, show your brewing chops by doing some esoteric beers that are fascinating but have the confidence to say ‘these are our big hitters’ either for simplicity or punch.
Let’s stop focusing on the new and untested as this is one of the contributors to the collapse of the modern beer market. Who wants to run the risk of their first beer being anything other than a stone-cold winner? Have the confidence to go with what you know you like. If this happens to be a Budweiser then getting indie breweries shaming ‘big beer’ just doesn’t work for me. When the entire beer industry is declining then this is not the time to play David vs Goliath. The reality is that ‘big beer’ has sausage fingers that aren’t delicate or nuanced. They’re great at doing simple things in volume but this leaves an enormous market for those who can operate on a level the big-boys can’t even consider.
The IBE report stated that 61% of their brewers have a turnover of less than €500k and 76% below €1m. These are not turnover numbers that are worrying ‘big beer’ who can’t operate on this kind of small scale. Rather than obsess about how unfair the big brewers are, pivot to your advantage and celebrate what you can do that they can’t. Rarely does shaming your competition work to your advantage. It’s not a good look to the consumer, especially when some of the big brewery beers aren’t actually badly brewed. Their ability to brew on such an industrial scale may lack romance but it’s incredibly efficient and that’s what allows them to produce beer so cheaply per litre. Small breweries can’t compete with this scale so why keep on saying it’s unfair? Just play to your advantages, build local community support, brew what they can’t, charge more for it as many people will pay for quality over quantity. Be happy in your lane.
And what about Brau Beviale? It’s definitely worth checking out what they’re doing in November as it’s going to be a great showcase for global brewing. The full ‘grain to glass’ experience will be available with every stage of the production of beer represented at the show. If you have anything you ever wanted to know about beer then they’ve got your back. Panel discussions, talks, exhibitors and their hosting the mighty European Beer Star awards. Early bird tickets are available with some left for the pre-party so get your flights booked to Nuremberg and check their site for deals on hotels and all the other information you’ll need to get packed and heading over.
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