There is more to this summer's decline in lager sales than just bad weather, says a new report from market research specialist Mintel. The report suggests that brewers are facing a shrinking market in the long term not just the short term, as consumers increasingly shun lager in favour of more sophisticated drinks. The company forecasts an 8% decline in volume sales of lager over the next five years. The market has already fallen 5% in volume since 2005 with value slumping 4%. Analysts do not expect to see any kind of recovery in the near future. Earlier this month, brewer S&N said that although it had posted a 7.8% increase in overall revenues in the first six months of the year, severe weather had hit its performance. It denied claims this was part of a longer-term trend. "In our latest half-year results, we stated that the terrible weather during the early summer was key to the total UK beer market declining 17% in June," said Craig Clarkson, head of customer marketing (off-trade). "However the latest data also shows S&N UK's core beer brands have gained in share in both the on and off-trades. By working with retailers to grow and add value to the beer and cider categories, we are confident there are further opportunities for growth in lager." Mintel suggests consumers are turning to cider and wine, particularly rosé, in place of lager. "Drinkers now realise there is more to life than just a pint of lager," said Mintel.

Topics