subject: Beer producers turn to premium products and innovation [print this page] Beer producers turn to premium products and innovation
Beer producers turn to premium products and innovation.The Beer Production industry has had a difficult time of it in recent years. Already declining due to the ageing population and changing health and societal attitudes towards alcohol, beer consumption has been decimated by rising taxes, a ban on smoking in pubs, increasing competition from other alcoholic beverages and the most severe recession in half a century. There is little respite in sight in 2010-11, with only muted growth expected due to rising prices and some growth from the supermarket sector. IBISWorld estimates industry revenue will contract at an average annualised rate of 2.5% over the five years through 2010-11.
After enduring a challenging period, the industry should fare better during 2011-12, as the economy slowly recovers from recession. On-trade sales should benefit from more stable prices, growth in the number of family-oriented and gastro pubs, and generally stronger consumer confidence. A number of major sporting events, like the London Olympics in 2012-13, should prove a major impetus to industry growth over the next five years. Growth should moderate thereafter, as rising interest rates and taxes weigh on consumer spending, private-label beer increases market share, and government looks to tackle underage drinking and other alcohol-related social problems. Producers will increasingly look to premium lagers, low-carbohydrate beer and environmentally friendly branding to drive growth. Industry revenue is forecast to grow at an average annualised rate of 2.7% over five years through 2015-16.
Beer can be broadly segmented into three major types ale, lager and stout. Each type has its own unique characteristics and can vary between different regions of the country. Until recently, the majority of beer in the United Kingdom was ale and stout. Since the 1970s, however, lager has exploded in popularity, now making up almost three-quarters of the beer produced.
Lager
Lager is typically light, clear, sparkling and served cold. The word "lager" means storage in German. Lager beer undergoes a maturation process of between one to two weeks in cold storage to stabilise the beer and develop flavour. The key difference between ale and a lager is in fermentation; a lager is fermented at a much lower temperature, and with different yeast, than ale. Before 1960, lager accounted for less than 1% of the British beer market. Since then its growth has been phenomenal and it now accounts for almost three-quarters of the beer market in the United Kingdom. Common types of lager include pale lager, pilsner, nock, export and marzen.
