Beer

Sub-Category Report H2 2014

August 2015
 Executive summary
• Beer accounted for 34% share of the global alcoholic beverages category tracked
launches in H2 2014. Beer launches recorded a CAGR of 32.1% over the past 5
years, outperforming the alcoholic beverages category CAGR of 25.9%.

• Europe is the top region for beer launches tracked during H2 2013 to H2 2014. North
America ranks second.

• Heineken is the market leader in H2 2014 beer launches tracked. The top 7
companies account for 13% of the total H2 2014 sub-category launches tracked,
indicating a competitive market.

• During H2 2013 to H2 2014, ethical – packaging has been the leading positioning for
beer launches tracked. Top positionings vary when tracked launches are broken
down by region.

• The top 5 flavors are highly fragmented during H2 2013 to H2 2014. Lemon is the top
flavor for beer launches tracked during the period and also across most of the
regions.

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Source: Innova Database product launches tracked
 Methodology and notes
• This report is a product launch analysis for beer sub-category and initially presents a
brief analysis of the alcoholic beverages category. The report also dives deeper into
the product launch, positioning and flavor trends in the beer sub-category.

• For the purpose of semi-annual trends, the analysis covers the last 3 bi-annual
periods: H2 2013 to H2 2014, where H2 2014 represents second half of 2014.

• Geographic analysis covers six major regions – North America, Europe, Asia,
Australia/New Zealand, Latin America, and Middle East/North Africa (MENA). MENA
covers the following countries – Algeria, Egypt, Morocco, Tunisia, Bahrain, Iran,
Israel, Kuwait, Pakistan, Qatar, Saudi Arabia, Turkey and United Arab Emirates.

• Indexed product launch numbers are obtained by assigning ‘100’ to the start year
values and using 100 as the base calculating all later values in proportion to the
actual product launch numbers. CAGR stands for compounded annual growth rate.

3
Source: Innova Database product launches tracked
 Category Analysis

4 www.innovadatabase.com
 Relative development of beer product launches vs.
alcoholic beverages category
• Global tracked launches of beer have grown at 32.1% CAGR over the last 5 years.
The growth is greater than alcoholic beverages category (25.9%).

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Source: Innova Database product launches tracked
 Global alcoholic beverages category launches, by sub-
category
• Beer is the leading sub-category, accounting for approximately 35% share of overall
alcoholic beverages category launches tracked over the last 3 half years.

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Source: Innova Database product launches tracked
 Alcoholic beverages sub-category product launches, by
region, H2 2013-H2 2014
• Compared to other regions, beer's share of alcoholic beverages category launches
tracked is higher in Middle East/North Africa.

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Source: Innova Database product launches tracked
 Beer launches as percentage of alcoholic beverages
category launches, by region
• In H2 2014, beer launches as percentage of alcoholic beverages category launches
increased across North America, Europe and Latin America.

8
Source: Innova Database product launches tracked
 Sub-category Analysis

9 www.innovadatabase.com
 Global beer launches
• Tracked global beer launches fluctuated during the period H2 2012 to H2 2014. The
semi-annual growth, however, peaked at 81% in H1 2014.

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Source: Innova Database product launches tracked
 Beer launches, by region
• Europe is the most active market for beer launches tracked during H2 2013 to H2
2014, followed by North America.
• All the regions exhibited YoY increase in product launch activity in H2 2014 except
Asia and Middle East/North Africa. Australia/New Zealand recorded the highest
growth.

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Source: Innova Database product launches tracked
 Beer launches, by region
• Europe, with an average share of approximately 57%, is the leading region for beer
launches tracked over the last 3 half years. North America ranks second.

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Source: Innova Database product launches tracked
 Focus on seasonal, specific and premium styles

Heineken Winter Fiesta Pack Beers Guinness Draught Cerveza Carlsberg Elephant Premium Beer.
Of Mexico. Oscura: Dark Stout Beer. (Italy, Nov 2014)
(United States, Nov 2014) (Brazil, Dec 2014)
Description: 330ml of premium beer
Description: Twelve bottles of Beer of Description: Ready-to-drink dark with 7.2% alcohol content, in a glass
Mexico: Dos Equis Invierno - a Vienna stout beer with 4.2% alcohol bottle.
style lager crafted in Mexico especially content, in a 440ml aluminum can.
for the season. Limited edition.
Includes Dos Equis Invierno Winter
Bock that is a smooth Winter bock
style beer that adds a distinct and
seasonally relevant style.

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 Product Positioning Trends

14 www.innovadatabase.com
 Top 5 positionings for beer
• Ethical – packaging, with an average share of approximately 28%, is the leading
positioning for beer launches tracked during H2 2013-H2 2014.
• The total share of top 5 positionings fluctuated during the last 3 half years.

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Source: Innova Database product launches tracked
 Emerging minis
Super Bock Mini Pilsner Beer.
(United States, Oct 2014)
Description: Pilsner beer with rich
head, slight fruity aroma, refreshingly
crisp flavors and golden color.
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Kronenbourg 1664 Mini Cannette: Mini Cans Of
Premium Beers.
(France, Sep 2014)
Description: 10 x 250ml mini aluminum cans of
premium beers, held in a carton box.
 Fertile grounds for packaging NPD
Rodenbach Nooit Meer Oorlog 4/4
Limited Edition Beer.
(Belgium, Aug 2014)
Description: Limited edition beer with
5.2% alcohol content, in a 250ml
glass bottle. Simple, minimalistic
design.
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Jupiler Belgian Beer.
(Belgium, Jul 2014)
Description: Jupiler Belgian Beer
with 5.2% alcohol content, in a
330ml aluminum can. Aluminum
can with cold grip.
Birra Moretti Ricetta Originale:
Beer In Original Recipe.
(Italy, Oct 2014)
Description: 4L of original recipe beer
with 4.6% alcohol content, comes in a
plastic PET container with soccer
ball design.
 Top 5 positionings for beer, by region
• During H2 2013 to H2 2014, top positionings for beer launches tracked varied across
all the regions. Ethical – packaging is prominent in Europe, the leading region for
beer launches tracked over the last 3 half years.
Positioning types as % of total sub-category product launches tracked per region
(H2 2013 - H2 2014)

Price Premium
Ethical - Seasonal/In- Indulgent and
Region Total Products Traditional > or equal to
Packaging Out Products Premium
150%

North America 1,562 8% 29% 11% 3% 1%

Europe 3,378 37% 12% 17% 12% 4%

Asia 400 19% 14% 13% 20% 5%

Australia/New
96 2% 15% 11% 15% 0%
Zealand

Latin America 387 16% 15% 19% 13% 3%

Middle East/North
55 45% 0% 18% 33% 22%
Africa

Percentages may be greater than 100% due to multiple positionings per product

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Source: Innova Database product launches tracked
 Seasonal/in-out launches retain a major role
St Ambroise Special Reserve 2014
Imperial Stout Beer.
(France, Dec 2014)
Description: Special Reserve 2014
Imperial Stout beer with aged wood
of the bourbon, in a glass bottle held
in a cardboard tub. Contains 9.2%
alcohol by volume. Available in stores
across the province of Quebec for a
19 limited time.
Falcon Julbrygd: Christmas
Brew Beer.
(Sweden, Dec 2014)
Description: Christmas brew
beer with 3.5% alcohol content,
in an aluminum bottle.
Ugly Duck Ugly Christmas Danish Craft
Beer.
(Denmark, Dec 2014)
Description: Imperial Danish brown craft
ale beer with 7.5% alcohol content, in a
330ml glass bottle. Smooth and well
balanced. Its big round maltiness makes it
a perfect beer to pair with the rich foods of
Christmas.
 Distinctive look for traditional style products
Lasko Special Golding: Lager.
(Slovenia, Dec 2014)
Description: Traditionally brewed
lager made of mixed hops in a small
bottle.
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Alahovin Vanhan Tornin Vaalea
Olut: The Old Tower Light Beer.
(Finland, Dec 2014)
Description: Traditional Finnish
light beer with 4.7% alcohol
content, in a 330ml glass bottle.
Moulin Des Moines Panache Bio Pur
Malt Blonde: Organic Pure Malt
Blonde Beer.
(France, Dec 2014)
Description: A 330ml glass bottle of
organic pure malt blonde beer with less
than 0.3% alcohol content. Artisan
made.
 Premium beers find more shelf space

Amstel 1870 Premium Pilsener.
(Argentina, Dec 2014)
Description: 473ml of slow brewed
premium pilsner beer, in an
aluminum can.
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Skopsko Temno Beer.
(Macedonia, Dec 2014)
Description: Dark beer with 5.2%
alcohol content, in a 500ml glass
bottle. Premium quality.
Licher X2 Cola-Pilsner Mix.
(Germany, Dec 2014)
Description: 330ml of premium
pilsner mixed with cola, in a glass
bottle.
 Product Flavors Trends

22 www.innovadatabase.com
 Top 5 flavors for beer
• The top 5 flavors are highly fragmented and held a very low share during H2 2013 to
H2 2014.
• Lemon, with a stable share of 2%, remained the leading flavor for beer launches
tracked over the last 3 half years.

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Source: Innova Database product launches tracked
 Top 5 flavors for beer, by region, H2 2013-H2 2014
• Over the last 3 half years, lemon is the leading flavor across most of the regions.
Citrus is the top flavor in Asia, while malt ranks first in Australia/New Zealand. In
North America, both citrus and malt are equally popular.

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Source: Innova Database product launches tracked
 Lemon is the top flavor
Cerveza Dorada Ice Con Un Toque
De Limon: Beer With A Hint Of
Lemon.
(Guatemala, Aug 2014)
Description: Beer with a hint of
lemon, in a 350ml aluminum can.
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Warsteiner Radler Zitrone
Premium Brewed German Beer
With Lemon Flavor.
(Netherlands, Sep 2014)
Description: Premium brewed
German beer with lemon flavor,
in a 330ml glass bottle.
Peroni Chill Lemon Beer.
(Italy, Sep 2014)
Description: 3 x 330ml glass bottles of
fruit beer made with natural Italian malt
and lemons of the Italian coasts, in a
cardboard sleeve.
 Non-alcoholic beers opt for citrus flavors
Hb Hofbrau Alkoholfrei Zitrone:
Alcohol-Free Lemon Flavored
Lager Beer.
(Hungary, Dec 2014)
Description: Alcohol-free lager beer
with lemon flavor, in an easy-to-open
aluminum can.
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Litovel Cerny Citron Osvezujici Kaiser Iso Radler Alkoholfrei:
Nealko Z Piva: Refreshing Alcohol Free Beer.
Black Lemon Flavored Non (Austria, Sep 2014)
Alcoholic Beer.
Description: Mixed drink made of
(Czech Republic, Dec 2014)
70% alcohol free beer and 30%
Description: 500ml of refreshing citrus lemonade, in a 500ml
black lemon flavored non- aluminum can.
alcoholic beer with 0.5%
maximum alcohol content, in an
easy-to-open aluminum can.
 Versatile honey finds applications
Wells Waggle Dance Beer Brewed
With Honey.
(United Kingdom, Dec 2014)
Description: Beer brewed with
honey, in a 500ml glass bottle.
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Ksiazece Chlebowo Miodowe:
Honey Beer.
(Poland, Dec 2014)
Description: Beer with dry linden
honey flavor, combined with the
smell of freshly baked bread, which
brings to mind the same warm
sensations.
Bilboquet Microbrasserie
Mackroken Flower: Scotch Ale
Brewed With Honey.
(Canada, Nov 2014)
Description: Scotch ale beer brewed
with honey, in a 500ml glass bottle.
 Wide variety of fruit beers
Multi Brasses Fruit Beers.
(Canada, Nov 2014)
Description: Six bottles of fruit
beers (Blueberries, Apple,
Cranberries and Apples) in a
carton box.
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Liefmans Fruitesse On The
Rocks Fruitbier: Fruit Beer.
(Belgium, Dec 2014)
Description: A 250ml fruit beer
on the rocks. A refreshing fruit
beer, matured on cherries,
flavored with sugar and
sweetener.
Belville Peach Fruit Beer.
(Italy, Sep 2014)
Description: A delicate, refreshing mix of
beer and pear fruit which gives a
pleasant moment to all the family and
may be served to guests and friends in
any occasion. Comes in a 330ml glass
bottle.
 A touch of indulgence with dark, strong variations
Lasko Special Striptis: Strong Dark
Beer.
(Slovenia, Dec 2014)
Description: 0.33l of strong dark beer in
a small glass bottle. High level of
alcohol and extract. Well balanced with
a mild sweet malt touch and gentle
tones of roasted malt. Strong dark.
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Houblon Chouffe Dobbelen
Ipa Tripel: Double Ipa Triple
Extra Strong Beer.
(Belgium, Dec 2014)
Description: 330ml of extra
strong Ipa beer with 9%
alcohol content, in a glass
bottle.
Leikeim Wintertraum: Strong Beer
Speciality For Wintertime.
(Germany, Nov 2014)
Description: Strong beer specialty
for winter time. Comes in a 500ml
glass bottle.
 What’s next for beer? (1)
• Global beer launch numbers have generally seen a consistent upward trend over the
2009 to 2014 period, despite a slight setback in 2013. Overall CAGR is well ahead of
that for alcoholic beverages as a whole for that period. More recently, there were
downturns in H2 2013 and H2 2014, but in H2 2014 the drop followed very strong
growth in H1 2014 and totals remained ahead of those for H2 2013
• Beer is the leading category in terms of launch activity in the global alcoholic beverages
market, taking a 34% share in H2 2014, ahead of wine with 31%. Wine led in H2 2013
with 33%, ahead of beer with 31%, but strong growth in beer activity in H1 2014 took
beer well ahead, where it remained despite falling numbers in H2 2014
• There are also strong regional differences, with the share of beer well above average in
MENA at 48% and in North America ta 45%, falling to a well below average 205in
Australia/New Zealand and 22% in Asia. In both the latter countries, beer takes third
place behind both wine and spirits
• Launch activity in beer is highly fragmented, with the top seven companies accounting
for 13% of global introductions in H2 2014, probably reflecting the large number of
different types of products and local, regional, national and multinational brands. The
rise of craft brewers is reflected in the presence of Brewdog in the top seven; all the rest
are major multinational companies
• Product activity in beer has largely focused around rising interest in traditional and
artisan products, the growing use of seasonal and other limited-edition products and the
increasing use of premium-style positionings (contd)
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Source: Innova Database product launches tracked
 What’s next for beer? (2)
• The top positionings for beer launches reflect these trends, although the leading claim
is ethical-packaging, ahead of seasonal/in-out, traditional and indulgent & premium.
Seasonal/in-out positioning was used for nearly one-fifth of introductions in H2 2014,
up from 16% in H2 2013, probably reflecting initiatives to maintain interest in the
mature and highly competitive market
• As well as seasonal products, such as winter beer, there has also been activity in
limited edition lines, including premium options, beers with unusual flavors and/or
ingredients and special packaging/formulation for sporting and other major events
• Interest in traditional-style beers has been maintained via the growth in artisan and
craft beers, also often with high levels of more unusual and limited edition lines
• The majority of beer introductions feature no additional flavors. Lemon is the leading
flavor and that featured in a static 2% of launches in H2 2014. Citrus, honey,
grapefruit and malt featured in 1% each. Lemon was the leading flavor in Europe,
Latin America and the MENA region, while malt led in Australia/New Zealand and
featured just ahead of citrus and honey in North America. Citrus led in Asia, just
ahead of lemon and malt
• The use of citrus flavors in beer has included beer with a lemon flavor, shandy-style
mixes of beer and lemon and alcohol free beers featuring citrus options. Grapefruit
has been something of a fashion flavor in recent years, and there has also been
ongoing activity in beers featuring other fruits, including apple, pear and berries
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Source: Innova Database product launches tracked