Beer in Ireland
Euromonitor International's Beer in Ireland market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 61 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Dark beer; Lager by origin; Lager by price platform; Low/non- alcohol beer; Stout
Executive summary
Lager continues to replace stout in importance, with 2008 volume sales of 339 million litres and 175 million litres, respectively, a dramatic change from the beginning of the review period. Although it is generally accepted by the industry that stout will continue to experience an inevitable decline in Ireland, poor weather in the summer of 2007 led to better than expected sales – helping to mitigate the erosion of Diageo’s market share.
Cocooning continues to contribute to a contraction in the on-trade, while bolstering the off-trade. On-trade volume fell by 4% in 2008, which slightly exceeded the previous year’s contraction of 3%. As the price war in supermarkets begins to tone down, the off-trade sector’s volume expanded by 7% over the year, lower than the 2007 increase of 9%.
Imported premium lager showed very strong growth of 43% in volume terms in 2008, with an on-trade volume increase of 54% and an off-trade rise of 38%. The relatively large proportion of immigrants in Ireland, as well as Irish drinkers’ curiosity regarding imported beers, has caught the eye of brewers and distributors. These parties have increased distribution to both the on- and off-trade channels, bolstering volume in the subsector.
Commodity prices have increased sharply, as have fuel costs, leading to higher distribution. This led to an average unit price increase of €0.29 per litre in the on-trade in 2008. Despite rising input costs, the average unit price in the off-trade increased by only €0.02 per litre, due mainly to the price wars amongst supermarkets.
According to the Irish Revenue Commissioners, the average alcohol by volume (ABV) content of beer across the entire sector is 4.18%. Non-alcoholic beer accounted for rather less 1% of total beer volume in 2008, while low-alcohol beer accounted for an even smaller share.
According to the Irish Brewers Association, draught beer represents over 56% of total beer sales, cans for over 21% and the remaining proportion is composed of bottles. While draught volume decreased in 2008, sales of bottles in the on-trade increased by over 20% from 2007 levels. Ireland has no deposit system for bottles or cans; furthermore, kegs are rarely sold directly to consumers.
Production, Imports and Exports
Diageo announced that it will make a capital investment of €650 million in its brewing facilities. The plan entails upgrading the famous St James’s Gate brewery and building a new additional brewery in Dublin by 2013. This will result in the closure of Diageo’s Kilkenny and Dundalk breweries, while operations at the Waterford brewery will be streamlined – resulting in some reduction of output.
The grey or parallel market (which exists because of the price differentials between national and distribution boundaries) is having a significant effect in the off-trade market. Some manufacturers estimate that the grey market may account for up to 15% of total beer volume sales. Figures from the Irish Revenue Commissioners suggest that beer imports increased by over 37% in 2008. While some of this growth can be attributed to the increasing size of the imported premium lager subsector, a large proportion of this growth stems from domestically brewed beers being imported via the grey market. In an environment where supermarkets and convenience stores are battling on price, it is likely that the grey market will continue to be a driving force in the Irish beer sector.
While the growth rate of imported lagers has significantly outperformed that of domestic lager, with a 19% increase in 2008, compared with a 2% decline, domestic lager still accounts for a much larger proportion of total lager volume, at 82%. In particular, lagers imported from Poland have grown considerably, as Polish immigrants (who are mainly aged 20-35) compose about 5% of the nation’s population.
In 2007, the distributor Eurobeers went bankrupt. Importing over 200 types of beer with little marketing to back any particular brand, the company’s business strategy was not focused enough to compete in the Irish market. In 2008, the absence of Eurobeers led to a reduction in the range of brands available in the specialist retailer channel.
Table of contents
ALCOHOLIC DRINKS IN IRELAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Alcoholic drinks growth disappearing
Cocooning set to stay
Diageo continues to lead, but loses ground
Supermarkets/hypermarkets lead off-trade sales
Battening down the hatches in the global financial crisis
KEY TRENDS AND DEVELOPMENTS
Irish Consumers Continue Cocooning
Distribution Shifts After Abolition of Groceries Order
Rural Pubs Suffering from Drink-driving Legislation
Immigrant population fluctuation unsettles alcoholic drinks market
Guinness Suffers Amid Slowing Stout Sales
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2007-2008
MARKET BACKGROUND
LEGISLATION
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008- Guinness
Table 4 Selling Margin of a Typical Imported Wine Brand 2008 – Jacobs Creek
Table 5 Selling Margin of a Typical Imported Spirits Brand 2008 – Smirnoff Red
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 8 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 9 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 17 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 3 Research Sources
LOCAL COMPANY PROFILES - IRELAND
BULMERS LTD - ALCOHOLIC DRINKS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bulmers Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 Bulmers Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Bulmers Ltd: Competitive Position 2007
COOLEY DISTILLERY PLC - ALCOHOLIC DRINKS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Cooley Distillery Plc: Key Facts
Summary 8 Cooley Distillery Plc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Cooley Distillery Plc: Production Statistics 2005
COMPETITIVE POSITIONING
FINDLATERGRANTS - ALCOHOLIC DRINKS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 FindlaterGrants: Key Facts
Summary 11 FindlaterGrants: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 FindlaterGrants: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 FindlaterGrants: Competitive Position 2007
IRISH DISTILLERS LTD - ALCOHOLIC DRINKS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Irish Distillers Ltd: Key Facts
Summary 15 Irish Distillers Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Irish Distillers Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 17 Irish Distillers Ltd: Competitive Position 2007
PORTERHOUSE BREWING CO, THE - ALCOHOLIC DRINKS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Porterhouse Brewing Co, The: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 19 Porterhouse Brewing Co, The: Production Statistics 2007
COMPETITIVE POSITIONING
BEER IN IRELAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 20 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2003-2008
Table 23 Sales of Beer by Subsector: Total Value 2003-2008
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 25 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 30 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 31 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 32 Beer Exports by Country of Destination: Total Value 2002-2007
Table 33 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 34 Beer Imports by Country of Origin: Total Value 2002-2007
Table 35 Company Shares of Beer by National Brand Owner 2003-2007
Table 36 Company Shares of Beer by Global Brand Owner 2003-2007
Table 37 Brand Shares of Beer 2004-2007
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 39 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013