Beer in Switzerland
Euromonitor International's Beer in Switzerland 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: 63 | Publication date: Feb 2009
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- 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
The total volume growth of beer in 2008 was stronger than in 2007 and was also stronger than the total volume CAGR of beer over the review period as, although in 2008 the weather was not that great, volume demand increased due to the UEFA EURO 2008 football championship, which took place in Switzerland in June and which had a very positive impact on total volume sales. Feldschlössen Getränke AG/Carlsberg A/S, the official supplier of beer for the event, produced over 3 million extra litres of beer just for this event in order to meet demand.
Non-alcoholic beer was the most dynamic category in beer in terms of total volume growth in 2008 as it benefited highly from UEFA EURO 2008, as only non-alcoholic beer was allowed in stadiums. Carlsberg A/S produced 300,000 additional litres of Carlsberg Non Alcoholic to meet demand in stadiums in Austria and Switzerland and this helped to boost on-trade volume sales of beer. On the whole, non-alcoholic beer is much more popular in on-trade outlets than in off-trade outlets, as consumers drink it when they have to drive. In addition non-alcoholic beer also benefited from the increasing trend of health and wellness in Switzerland in 2008. Brands such as Erdinger Alkoholfrei have helped to improve the image of non-alcoholic beer, which is slowly shedding its image of not being real beer. Instead it is starting to be seen as a healthy alternative to other types of non-alcoholic drinks.
Average unit prices in beer in 2008 continued to develop in two opposite directions, as on one hand the pricing of mid-priced products in beer was very much under pressure due to strong competition while on the other hand, the pricing of products from small and medium-sized breweries increased, as consumers were prepared to pay a little more for domestic specialty products. Furthermore, the cost of raw materials, such as malt and hops, packaging and energy increased in 2008, which led to increases in overall production and distribution costs. Large companies were unable to pass these costs onto consumers, as competition in beer is highly price driven. However small breweries were able to pass on these additional costs, at least in part, as competition among specialty products in beer is not so much driven by price.
Stout and dark beer recorded consistent positive total volume growth over the review period as a consequence of saturation in standard lager and increased demand for more variety among Swiss consumers, especially young consumers. However, despite the relatively strong total volume and total value growth of stout and dark beer over the review period, both categories have not succeeded in escaping niche status, as they accounted for total volume shares of just below 1% and just over 2% respectively of beer in 2008. The leading brands are Feldschlösschen Dunkle Perle in dark beer, with a total volume share of nearly 57% in 2007, and Guinness in stout with a total volume share of nearly 72%. Stout and dark beer are mainly consumed in the on-trade channel in Irish-, British- or Australian-themed pubs.
Total volume sales of beer were driven predominantly by standard lager in 2008, in particular domestic standard lager which achieved total volume growth of nearly 3% and total volume sales of 212 million litres largely as a result of increased availability.
The retail volume growth of beer continued to be stronger than the foodservice volume growth of beer in 2008 as a result of the strict drink-driving legislation that is in place in Switzerland as well as smoking bans which deterred various consumers from visiting foodservice establishments. Whereas at the beginning of the review period Swiss consumers used to frequently socialise with friends and have a glass of beer during their lunch break or in the evening, by the end of the review period this habit had started to fade out, due mostly to the increasing trend of health and wellness and the strict regulations regarding drink driving and smoking. Therefore, consumers have started to consume more beer at home, which has had a positive impact on retail volume sales of beer.
The typical alcohol content of products in beer in Switzerland is 4.8% abv for lager, 5.5% abv for dark beer and 4.2% abv for stout. Due to the health and wellness trend and the strict drink-driving regulations, there is a trend towards consumption of products with reduced alcohol content, for example the popularity of products with 2.4% abv has increased.
In Switzerland, two-thirds of products in beer are distributed in returnable packaging, with 30% of products in barrels and 24% of products in returnable bottles while 24% of products are packaged in nonreturnable and 22% of products are packaged in metal beverage cans. PET bottles are highly uncommon in beer in Switzerland. Large retailers such as Coop Schweiz and Denner AG do not have a deposit system therefore they only sell beer in glass bottles and metal beverage cans which are not reusable. However the Swiss are very strong at recycling therefore 90% of metal cans and 95% of glass bottles are recycled. On-trade establishments and specialised drink retailers generally rely on a deposit system, as this simplifies handling.
Production, Imports and Exports
Beer production deteriorated in 2004 and 2005 but it started to increase again in 2006 and 2007 despite the numerous problems that Swiss manufacturers faced in 2007, namely very high distribution costs and increases in the cost of raw materials such as hops and malt as well as huge increases in the cost of fossil fuels. In 2007 production of beer amounted to just over 353 million litres of beer.
Even though domestic breweries could increase their turnover by 1.5% to over 351 million litres, the share of domestic beer declined from 81.7 to 80.9%, reflecting the increase of imports by 7.1% from 18.5% in 2006 to 19.1% in 2007. In 2007, nearly 84 million litres of beer were imported into Switzerland with the largest volume shares of imported beer, of 46% and nearly 23%, originating from Germany and France respectively. Although exports of beer continued to increase at a rapid rate in 2007 exports nevertheless accounted for a share of less than 2% of volume production of beer in 2007.
In 2008 imported lager accounted for total volume shares of nearly 16% in beer and of over 16% in lager while domestic lager accounted for total volume shares of over 79% in beer and of nearly 84% in lager.
In volume terms production and imports of beer together amounted to 437 million litres in 2007 while apparent consumption was just below 432 million litres, as it does not include non-alcoholic beer, total volume sales of which amounted to nearly 5 million litres in 2007. The remaining divergence can be attributed to cross-border sales.
Table of contents
ALCOHOLIC DRINKS IN SWITZERLAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Alcoholic drinks achieves slight growth despite saturation
UEFA EURO 2008 positively impacts alcoholic drinks
Heineken Switzerland AG takes over domestic brewery Eichhof Group
Supermarkets/hypermarkets and discounters, the leading distribution
channels
Stagnation of the market expected
KEY TRENDS AND DEVELOPMENTS
Swiss economic situation positively impacts demand for “premium” products
Increased public concern regarding “binge drinking”
UEFA EURO 2008 has positive impact on alcoholic drinks
Reduced alcohol content used as a sales pitch
Specialist retailers
Summary 1 Leading Specialist Retailers 2007
Market merger and acquisition activity
MARKET BACKGROUND
Legislation
Summary 2 Opening hours of Swiss cantons
TAXATION AND DUTY LEVIES
Summary 3 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 1 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 2 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 3 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 4 Selling Margin of a Typical Imported Wine Brand 2008
Table 5 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 6 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 9 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 18 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 4 Research Sources
LOCAL COMPANY PROFILES - SWITZERLAND
EICHHOF GROUP - ALCOHOLIC DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Eichhof Group: Key Facts
Summary 6 Eichhof Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Eichhof Group: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 8 Eichhof Group: Competitive Position 2007
FELDSCHLöSSEN GETRäNKE AG - ALCOHOLIC DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Feldschlössen Getränke AG: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 10 Feldschlössen Getränke AG: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 Feldschlössen Getränke AG: Competitive Position 2007
MOSTEREI MöHL AG - ALCOHOLIC DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Mosterei Möhl AG: Key Facts
Summary 13 Mosterei Möhl AG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Möhl AG: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Mosterei Möhl AG: Competitive Position 2007
PROVINS VALAIS - ALCOHOLIC DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Provins Valais: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Provins Valais: Competitive Position 2007
SCHENK SA - ALCOHOLIC DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Schenk SA: Key Facts
Summary 19 Schenk SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 20 Schenk SA: Competitive Position 2007
BEER IN SWITZERLAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 21 Lager by Price Band 2008
Published Data Comparisons
SECTOR DATA
Table 23 Sales of Beer by Subsector: Total Volume 2003-2008
Table 24 Sales of Beer by Subsector: Total Value 2003-2008
Table 25 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 26 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 27 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 31 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 32 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Value 2002-2007
Table 34 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 35 Beer Imports by Country of Origin: Total Value 2002-2007
Table 36 Company Shares of Beer by National Brand Owner 2003-2007
Table 37 Company Shares of Beer by Global Brand Owner 2003-2007
Table 38 Brand Shares of Beer 2004-2007
Table 39 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 40 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 41 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013