1. Global beer market trends
Alcohol category growth Beer growth trends
% %
100 Wine 10
80 Spirits 8
60
Central & South America
6
40
North America
Western Europe
Eastern Europe
4
Beer
Australasia
20
2
World
Africa
Asia
02 04 06 08 10 12
Beer share of alcohol trends in major Five year beer compound annual growth
emerging markets rate (CAGR) by region – 2003 to 2008
Source: Datamonitor Source: Canadean
Global growth trends in alcohol disposable incomes increased. In Western and South America and 3.0% in Africa
During the past five years, on a pure Europe, the prevalence of competitive shows the significant opportunity that still
alcohol-equivalent basis, beer has increased categories and a shift in beer consumption exists for premium beer sales in these regions.
its share of total alcohol consumption by away from on-premise outlets meant that There is sizeable potential in Colombia and
more than 200 basis points (bps) to 41.1%. CAGR was negative. More recently, Brazil where premium beers respectively
In 2008 the trend slowed somewhat and consumer spending in Eastern Europe claim 3.7% and 5.6% of total sales.
beer’s year-on-year share of total alcohol has also slowed – an indication, along with
consumption remained flat. In emerging already high per capita consumption, that The trend towards premium beer
markets, beer has generally shown higher the beer category is maturing. consumption has slowed somewhat in
growth than other alcohol categories as the recent economic downturn. However,
consumers gradually switch from local, Central and South America grew at a CAGR down-trading is limited and there are
generally high-alcohol, subsistence products of 6.3% over the period while North America notable instances of consumers continuing
towards attractively packaged, higher-quality, had modest growth at a 0.5% CAGR. Africa to trade up, both into beer and, within the
commercially produced beer. shows strong levels of growth with a five-year category, into premium products.
CAGR of 6.4%. Asia’s growth in beer over
In South and Central America, beer’s share the past five years remains the highest of any Beer segment trends
of total alcohol consumption is now 51.5% region, averaging 8.4%. China in particular
with increases in Colombia partly offset has seen growth in beer averaging 10.7%
by recent declines in Mexico and Brazil. per year, fuelled by the growing economy Premium 18%
In Eastern Europe, beer has been gaining and the increasing availability of beer.
Economy 13%
share from spirits for some time and now
accounts for 48.0% of alcohol consumption. Looking forward, there is a significant Mainstream 69%
The past five years have also seen consistent opportunity for the beer category to grow
gains in Africa and Asia where beer’s share at the expense of non-commercial forms
of commercially produced alcohol now of alcohol, particularly in Latin America,
stands at 49.0% and 32.8% respectively – Africa and Asia. In Africa, per capita
thanks, partly, to a greater emphasis on levels are still relatively low but accelerating, Segment mix within the global beer
quality and accessibility. and local players are expanding their category as at September 2008
portfolios in all segments. Asia, in general,
Source: Canadean
In more mature markets, a wider variety of is seeing rising incomes and higher levels
alcohol products compete in a sophisticated of beer consumption. In parts of Latin
marketing and retail environment. In North America, efforts by brewers to transform Industry consolidation trends
America, beer has been losing share as the beer category should boost per Over the past decade, the beer industry has
spirits have benefited from more extensive capita consumption. seen significant consolidation and this trend
marketing and greater availability in certain continued during 2008. On a pro forma
states. That said, beer’s share stabilised Beer segment trends basis, beer sales by the top 10 players now
at 56.3% during 2008 as the economy Over the past five years, the beer industry total approximately 65% of total global sales
slowed and brewers introduced innovative has seen a trend towards consumers trading compared to less than 40% at the start of
products, new packs and marketing up to more expensive beers. As a result, the century.
initiatives. In Western Europe, where beer premium beer has gained more than 40 bps
now claims 36.8%, the wine category has and now constitutes 17.9% of total beer In recent major developments, the division
increased its share as lower-cost offerings sales. For mainstream beer consumers, of Scottish and Newcastle’s business
have become more widely available. particularly in emerging markets, the most between Carlsberg and Heineken was
common trade-up proposition is to attractive, completed during the first half of 2008
Beer growth trends local, premium brands. while InBev acquired Anheuser-Busch
Over the past five years, the beer category in November 2008.
has maintained a compound annual growth In markets such as North America and
rate (CAGR) of 4.8% globally. Western Europe, premium beer’s share SABMiller and Molson Coors combined
of total sales is already well above the their operations in the USA and Puerto Rico
During this period, Eastern Europe saw global average. On the other hand, to form the new MillerCoors brewing joint
a high single-digit CAGR as personal premium’s share of 10.1% in Central venture from 1 July 2008.
6 Global beer market trends SABMiller plc Annual Report 2009