Beer in Italy
Euromonitor International's Beer in Italy 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.
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Tables: 79 | Publication date: Jan 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
Despite reaching a higher consumption level than during the historic period, Italy still holds last place among European countries for beer consumption. One of the reasons behind this trend is that beer is considered as a “summer drink” in Italy. However, beer is becoming increasingly appreciated by consumers in Italy, who increasingly also drink it in wintertime. Beer is increasingly considered as a trendy beverage, and is increasingly appreciated for its being natural and genuine. Its low alcohol content is particularly appreciated: at present beer with a low alcohol content – around 5 abv – accounts for almost 95% of Italian beer sales, and low alcohol beer for an increasing 1%.
The rate of growth in 2008 was higher than the review period average, in both volume and value terms. The volume increase was due to a better knowledge of beer by Italian consumers, who are drinking it not only when eating a pizza but more as a drink before or after the main meal. Growth in value terms was due to increasing consumption, as well as to an increase in the average price, an increase that was only partially absorbed by manufacturers, mostly in the case of the off-trade channel.
The fastest growth was registered by low/non-alcohol beer. Although it still remains a small niche, accounting for only 1% of sales, low/non-alcohol beer was the best-performing area in the final years of the review period, helped by campaigns emphasising the danger of driving under the influence of alcohol. There is increasing concern about the considerable number of car accidents involving young people who have drunk too much. Government authorities are investing significant amounts of money in campaigns stressing the need to choose non-alcoholic or low alcohol drinks. For this reason, manufacturers are including low/non-alcohol beers in their ranges and are supporting them with significant advertising campaigns like, for example, Moretti Zero and the new non-alcoholic beer by Carlsberg Italia under the Swiss Feldschlösschen umbrella brand.
Unit prices grew due to increasing demand for premium and speciality products, as well as to increases in tax and the cost of raw materials. The result of the unit price increase caused a sales division: on the one hand the increasing demand for premium, more expensive products and on the other the growth of economy products for those consumers limited by reduced purchasing power. This widening market bipolarisation led to a crisis in standard products, favoured neither by high quality nor attractive prices.
The rising cost of raw materials and distribution resulted in a beer unit price increase, mostly of imported beer. In fact, locally-produced beer suffered less from the global raw materials unit price increase since Italy is trying to reduce the imports of both malt and hops, producing them locally in an effort to depend less on products that are suffering from a global shortage. However, the higher costs were partially passed on to consumers, with a mean unit price average increase of €0.10 per litre.
Another notable trend in beer was consumers’ discovery of beers other than lager, which was the only type of beer known in Italy until a few years ago and which still accounts for the vast majority of sales. Stout and dark beer are considered “speciality” beers and is only a niche. They are regarded as beers for beer lovers, although their space on the shelves of super-/hypermarkets is increasing considerably. In particular, stout has registered a positive performance due to Guinness’s promotion of 33cl draught cans in packs. Stout and dark beer are most appreciated in the on-trade channel, where consumers are usually looking for new tastes and aromas and are ready to try new types of beer. A positive performance was also registered by strong beers (strong ales, Trappist ales, bock and doppelbock beers, for example), with Italian consumers being attracted not only by their alcohol content but also by their flavour.
The key trend on the Italian market in the latter part of the review period was the increasing demand for premium products. This trend continued to drive the sector, despite unfavourable economic conditions. This growth of premium products was due mostly to Italian consumers’ better knowledge of beer, based on efforts by leading producers to advertise the basic characteristics of the different beers. The result of some information campaigns was an increasing appreciation of premium products since the attributes of some beers – ie stout, ales etc – are still completely unknown to Italian consumers. On the other hand, the decrease in purchasing power obliged some consumers to return to economy products, mostly produced in Italy. The growth of premium and super-premium products on the one hand, and of economy beers on the other hand resulted in a decrease in standard beer sales, suffering from both their lack of quality and their uncompetitive prices.
Both the off- and on-trade channels performed positively in 2008. Positive results seen in the off-trade channel were due mostly to the widening of its beer offer, increasing the amount of space on the shelves as well as the number of references. Discount stores also performed well, with growth higher than that registered in the last years of the review period, due to the better performance of economy products, in which this channel is strongest. Specialist shops benefited from the increasing success of speciality and premium products, since they usually offer particular types of beer not usually available in supermarkets/hypermarkets. On the other hand, independent food stores are registering a continuous decrease in share, since they cannot compete with the grocery channel in terms of price and choice.
The on-trade registered positive growth in both value and volume terms. Beer consumption is still high in dedicated outlets such as pubs, and is the traditional drink to consume when eating pizza. Moreover, beer is slowly substituting wine, the traditional drink in restaurants and bars, due to a new trend trying to pair traditional Italian recipes with beer instead of wine. It is worth observing that, despite the economic crisis and unfavourable weather conditions, the beer drinking tendency is increasingly appreciated, mostly by young people who are used to drinking it in pubs and nocturnal bars.
The Italian law only states the different saccharometric degrees that a beer contains, dividing it into non-alcoholic (with a saccharometric content of >3° and <8°), light (between >5° and <11°), speciality (>13°) and double malt (>15°). However, the average abv alcohol content of lager beer is from 4.5° to 5.5° and >5.5% for dark and stout beer.
The most popular types of packaging on the Italian market are cans and glass bottles. In 2007, draught beer accounted for 15% of volume sales, returnable glass bottles for 8%, non-returnable bottles for 69% and cans for 8%. According to Assobirra data, the use of draught beer increased by 15% in the last year and returnable glass by almost 2%. On the other hand, the use of returnable bottles decreased by 2% and cans by 1%.
Production, Imports and Exports
In 2007, total production of beer was 1.3 billion litres, an increase of 5% on the previous year’s production. According to Assobirra, the Italian association of beer producers, the 15 domestic beer production plants were able to satisfy 73% of internal demand. This was a positive trend leading to a very significant figure, never before reached by the Italian beer industry.
The overall Italian beer production was 1.3 billion litres in 2007, while the internal consumption was 1.8 billion litres, corresponding to per capita consumption of 31 litres. Italy exported 1,680,000 hectolitres of beer, the best export figure ever achieved by the domestic beer industry. These data saw the Italian beer industry placed ninth in Europe among beer producers, ahead of countries with a very long and proud beer tradition, such as Austria, Denmark or Ireland. Imported beers are very greatly appreciated by Italian consumers, who are gradually learning about the different beer types. There are 200 foreign producers active in the Italian market, selling their products either directly or through independent importers-distributors.
Germany accounted for the largest share of beer imports into Italy, accounting for 59% of beer imports in 2007. Usually, Germany exports its beer surplus to the north of Italy, favoured by very different types of tax in the two countries. It was followed by the Netherlands with an 11% share, and Denmark with 9%. The best performance was registered by Poland, with a very significant 165% volume increase. This growth was due to the increasing number of joint ventures between Italian distributors and Polish beer producers. Imported lager accounted for 25% of total volume sales of lager in 2007. The vast majority of imported lagers are premium products, produced mostly in countries with a significant beer tradition, such as Germany, Denmark, Belgium and the Netherlands. Many well-known lager brands, such as Heineken, Amstel, Henninger and Tuborg, are, however, produced locally under licence, and are therefore not included in the import figures. Exports increased by almost 31% in 2007, to 107 million litres. The most important country for Italian beer exports is the UK (26 million litres), albeit with a decrease of 22% in volume terms in 2007, followed by South Africa (20 million litres) and the US (11 million litres). The three biggest importers of Italian beer (UK, South Africa and US) accounted more than half of total Italian beer exports at 54%.
The differences between the figures published in this report and apparent consumption relate largely to the different research methodology used. While Euromonitor International’s figures reflect actual volume sales to consumers, apparent consumption indicates the total volume which “stays in the country” (ie production plus imports minus exports), which does not necessarily equate to real sales to consumers. For example, not all the imported beer is necessarily sold to consumers in the year of importation.
Table of contents
ALCOHOLIC DRINKS IN ITALY : MARKET INSIGHT
EXECUTIVE SUMMARY
A Good Performance in 2008 Thanks to “Young” Drinks
Italians Prefer It Premium
Heineken Leads in 2007
Supermarkets/hypermarkets the Leading Distribution Channel
Good Prospects, Yet Reliant on Economic Conditions
KEY TRENDS AND DEVELOPMENTS
Unfavourable Economic Prospects
Going Crazy for Premium Brands?
Busier Lifestyles Drive Changes in Italians’ Drinking Habits
Changing Attitudes to Alcohol in Italy
Innovation – Fuelling Manufacturers’ Value Growth
Specialist Retailers
Market Merger and Acquisition Activity
Summary 1 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
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 5 Selling Margin of a Typical Imported Wine Brand 2008
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008
Operating Environment
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
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 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - ITALY
BIRRA PERONI SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Birra Peroni SpA: Key Facts
Summary 4 Birra Peroni SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Birra Peroni SpA: Competitive Position 2007
CAMPARI MILANO SPA, DAVIDE - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Campari Milano SpA: Key Facts
Summary 7 Campari Milano SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Campari Milano SpA, Davide: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Campari Milano SpA, Davide: Competitive Position 2007
CANTINA LA VIS E VALLE DI CEMBRA SCARL - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Cantina La Vis e Valle di Cembra Scarl: Key Facts
Summary 11 Cantina La Vis e Valle di Cembra Scarl: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Cantina La Vis e Valle di Cembra Scarl: Competitive Position 2007
CARLSBERG ITALIA SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Carlsberg Italia SpA: Key Facts
Summary 14 Carlsberg Italia SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Carlsberg Italia SpA: Competitive Position 2007
CASA VINICOLA ZONIN SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Casa Vinicola Zonin SpA: Key Facts
Summary 17 Casa Vinicola Zonin SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Casa Vinicola Zonin SpA: Competitive Position 2007
CAVIRO - COOPERATIVE AGRICOLE VITI-FRUTTICOLTORI ITALIANI RIUNITI ORGANIZZATI SCARL - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 19 CAVIRO Scarl: Key Facts
Summary 20 CAVIRO Scarl: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 21 CAVIRO Scarl: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 22 CAVIRO Scarl: Competitive Position 2007
CAVIT - CANTINA VITICOLTORI, CONSORZIO CANTINE SOCIALI DEL TRENTINO SCARL - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 23 CAVIT Scarl: Key Facts
Summary 24 CAVIT Scarl: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 25 CAVIT Scarl: Competitive Position 2007
FLLI GANCIA & C SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 26 Flli Gancia & C SpA: Key Facts
Summary 27 Flli Gancia & C SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 28 Flli Gancia & C SpA: Competitive Position 2007
HEINEKEN ITALIA SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 29 Heineken Italia SpA: Key Facts
Summary 30 Heineken Italia SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 31 Heineken Italia SpA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 32 Heineken Italia SpA: Competitive Position 2007
ILLVA SARONNO SPA - ALCOHOLIC DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 33 Illva Saronno SpA: Key Facts
Summary 34 Illva Saronno SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 35 Illva Saronno SpA: Competitive Position 2007
BEER IN ITALY
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 36 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013