Craft beers gaining popularity
Craft beers made by independent brewers are still small players - making up 2 per cent of the market, or 6 per cent if Coopers is factored in.
But their popularity is growing rapidly, as is the popularity of premium overseas beers –including those brewed under licence in Australia – which grew by 11.2 per cent in the year to last November.
They now make up 9 per cent of the beer market.
A common view is that premium imports - such as market-leader Corona along with Heineken, Beck's and Grolsch - have become bridges, encouraging drinkers across to ales and craft brews.
While beer consumption in Australia fell by more than 5 per cent in the year to November - its lowest level since the 1940s - local craft beer enjoyed double-digit revenue growth, including 25 per cent for Fremantle's Little Creatures.
Coopers' production reached a record last year, and has averaged 10 per cent annual growth over the past 15 years.
In the past decade, market leader VB's share fell from 25 per cent to about 13 per cent.
Foster's has suffered most from the onslaught of smaller brewers as Melbourne is the epicentre of craft beer production and demand.
Australia has latched on to the global trend of "premium-isation" with a small but fast-growing segment of consumers willing to pay a little more for what they perceive as better-quality beer.
Those at Foster's are quick to point out their overwhelming priority will always be the big brands, with the craft and premium market growing from a very small base.
But the success of craft beers in some foreign markets - such as the US, where they now make up 9 per cent of the market - is inspiring smaller brewers.
The largest craft players - Coopers and Little World Beverages, owner of Little Creatures - and small members of the Australian Real Craft Brewers Association share similar challenges in taking on the big two.
The toughest is the difficulty of setting up supply chains and getting access to pub taps when major brewers hold contracts with hoteliers, raising the price of getting on tap to prohibitive levels.
People seeking new tastes beyond the generic flavours of local blonde lager are altering the market, irrespective of income or age.
What we’re seeing now in the beer market can be compared to the coffee revolution – most people turn up their noses at instant coffee, and the same taste evolution is occurring with cheeses and other foods. People are seeking flavour and, with drinking, more are going for quality rather than quantity.
Source
But their popularity is growing rapidly, as is the popularity of premium overseas beers –including those brewed under licence in Australia – which grew by 11.2 per cent in the year to last November.
They now make up 9 per cent of the beer market.
A common view is that premium imports - such as market-leader Corona along with Heineken, Beck's and Grolsch - have become bridges, encouraging drinkers across to ales and craft brews.
While beer consumption in Australia fell by more than 5 per cent in the year to November - its lowest level since the 1940s - local craft beer enjoyed double-digit revenue growth, including 25 per cent for Fremantle's Little Creatures.
Coopers' production reached a record last year, and has averaged 10 per cent annual growth over the past 15 years.
In the past decade, market leader VB's share fell from 25 per cent to about 13 per cent.
Foster's has suffered most from the onslaught of smaller brewers as Melbourne is the epicentre of craft beer production and demand.
Australia has latched on to the global trend of "premium-isation" with a small but fast-growing segment of consumers willing to pay a little more for what they perceive as better-quality beer.
Those at Foster's are quick to point out their overwhelming priority will always be the big brands, with the craft and premium market growing from a very small base.
But the success of craft beers in some foreign markets - such as the US, where they now make up 9 per cent of the market - is inspiring smaller brewers.
The largest craft players - Coopers and Little World Beverages, owner of Little Creatures - and small members of the Australian Real Craft Brewers Association share similar challenges in taking on the big two.
The toughest is the difficulty of setting up supply chains and getting access to pub taps when major brewers hold contracts with hoteliers, raising the price of getting on tap to prohibitive levels.
People seeking new tastes beyond the generic flavours of local blonde lager are altering the market, irrespective of income or age.
What we’re seeing now in the beer market can be compared to the coffee revolution – most people turn up their noses at instant coffee, and the same taste evolution is occurring with cheeses and other foods. People are seeking flavour and, with drinking, more are going for quality rather than quantity.
Source
