Alcohol – beer & cider 2021: pandemic beer habits hold strong

Brits are still necking beer at home with gusto. The supermarkets have shifted an extra 112.6 million litres of lager, ale and stout in the past 12 months, resulting in a £324.3m gain.

It’s a powerful performance similar to that of 2020, when weather was often hot and hospitality venues were largely off-limits. At-home boozing was frequently the only option – and it clearly carried on into 2021.

“People are continuing to replicate experiences which they would normally enjoy in pubs or bars,” Diageo head of off-trade development Hannah Dawson told The Grocer in April. “Even once pubs reopen, we expect people to continue creating memorable occasions at home.”

She was right. As such, Guinness Draught is the fastest-growing ale with value sales up 18.4% on a 23.4% rise in volumes. BrewDog Punk IPA has had a similarly buoyant 12 months: its unit sales are up by 16.2%. That’s in part thanks to more Brits having cash to splash on posh booze.

Lost Lager this year made an extra £5.2m in grocery, after BrewDog unveiled a new recipe in January. It claimed the reformulated brew was the “world’s first carbon negative lager”, made using wind power, a third less water than the industry standard, and waste bread that would otherwise be discarded. Sales were buoyed by a spike in demand for larger multipacks and BrewDog’s Buy One Get One Tree offer, which allows shoppers to plant a tree via the Eden Reforestation Project.

“A large percentage of people have actually become better off as they spent less on commuting, holidays, shopping and eating out,” says BrewDog head of customer marketing Alex Dullard. “This meant they had more funds available to treat themselves at home, ultimately benefiting alcohol, and specifically premium alcohol.”

This has happened in lager, too. “We identified premiumisation as a key driver over three years ago, and it remains an overwhelming trend in this market,” says Heineken off-trade category director Alexander Wilson. He points to the performance of Birra Moretti, which is worth £39.7m more than last year. In fact, it’s lager’s fastest-growing brand, followed by Peroni (up £33.1m).

Premiumisation is similarly evident in cider. The sector has lost value, but higher-priced lines have grown. Henry Westons Vintage, for instance, is up by £13.4m (29%), while cheaper Strongbow Dark Fruit has lost £20.2m. That’s cause for concern, warns Chris Milton, sales director at rival brand Thatchers. “As the biggest brand in the category, if Strongbow has a problem, cider has a problem,” he says.