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CRAFTING PROFITS FROM BETTER BEER WITH IRI DATA SHOWING CRAFT BEER IN DOUBLE DIGIT DOLLAR GROWTH OFF-PREMISE, IS IT TIME TO LOOK AGAIN AT MAXIMISING THE OPPORTUNITY ON-PREMISE? CRAIG HAWTIN-BUTCHER TALKS TO SOME OF THE FASTEST GROWING BEER BRANDS AND MOST-AWARDED PUBLICANS FOR ANSWERS.
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ata just released by the off-premise data experts IRI show that craft beer is enjoying double digit dollar growth of 11.9%, or over half of the total beer growth, with just 10% share of the beer category dollar sales. What that means is, at least in the off-premise, craft beer is riding the wave of ‘premiumisation’ where drinkers are trading up to ‘higher quality’ offerings. But can this data tell the story on-premise too? Absolutely, says Stone & Wood’s Head Brewer Caolan Vaughan. “There’s a strong link between on and off premise success,” says Vaughan, whose Pacific Ale IRI confirms as the third highest value brand in dollar sales off-premise. “They are predominantly the same consumer switching the environment they enjoy their beer based on occasion. At Stone & Wood we partner equally with customers in both channels, maintaining a healthy balance between draught and pack beer.” Meanwhile IRI data confirms Stone & Wood’s Pacific Ale is also the fifth fastest-growing offpremise beer brand. IRI data also shows that
GROWTH CRAFT BEER BRANDS, OFF-PREMISE 1. Wild Yak Pacific Ale 2. Gage Roads Single Fin Summer Ale 3. James Squire 150 Lashes Pale Ale 4. Balter Brewing XPA 5. Stone & Wood Pacific Ale 6. Cricketers Arms Session Ale 7. Kosciuszko Pale Ale
domestic craft beer dominates craft beer sales – generating a whopping 96% of dollar sales and 95% of dollar growth.
CATEGORICALLY CRAFT It’s also important to distinguish between craft’s two key sub categories – Gateway Craft and Exploration Craft. Exploration Craft is consistently delivering growth whereas Gateway Craft growth has trended lower for each of the last four quarters. Exploration Craft delivered just over $2 out of every $3 in growth for craft beer from just over one-third of dollar sales. Sales for Gateway Craft in the latest quarter were more than $5 million lower than for the same quarter a year ago.
PUBLICANS TAKE NOTE
8. Young Henrys Newtowner Ale 9. Brookvale Union Ginger Beer 10. James Squire The Swindler Tropical Pale Ale Note: Top 10 growth brands are ranked in dollar sales growth and generate 56% of craft beer sales dollar growth. Source: IRI MarketEdge data MAT to 30/09/18 unless otherwise stated.
So what can the more traditional pubs learn from these figures and the rise of brewpubs? “That many people like to enjoy more than just mainstream beers,” says Steve Jeffares, co-founder of Stomping Ground – awarded Australia’s best brewpub. “That
AUSTRALIAN HOTELIER DECEMBER 2018 | 19