Beer business environment

**

 

Sources: alcoolinfoservice, INSEE, lentreprise.lexpress.fr, TNS media intelligence, lefigaro.fr, lesechos.fr, 
Oursocialmedia.com, leparisien.fr, lci.tf1.fr, et-apres.fr.

Beer on the French market

As a huge agricultural country, France is the first global exporter of malt.

In 2011 beer market in terms of turnover is 2 billion € and the individual consumption is roughly 30 liters per year.

Nonetheless this does not benefit the French companies.

Indeed, three major foreign companies, such as Kronenbourg, Heineken and InBev share 85% of the French market against some 200 micro-breweries. The latter are the only ones who resist in France against an overall decrease in beer consumption. 

The beer market declined by 30% in 30 years…

According to the report on 15 June 2012 by the Brewers of France, the traditional beer consumption has declined.

The turnover is 2 billion € in 2011, against 2.3 billion € in 2010.

French people, however first in terms of mineral water, are ones of the lowest consumers of beer in Europe, at the 14th place.

At the same time, the market is changing, with a decrease in the consumption of traditional beers in favor of beers called “specialty” such as abbey, brown, white or flavored beers, most prestigious, and therefore more expensive

One solution: innovation

An important factor explaining the drop in consumption over the last thirty years is the increase of communication campaigns against alcohol.

So, to boost consumption, brewers do not hesitate to step into the niche of non-alcoholic or low alcohol beers like for instance Heineken with its non-alcoholic Buckler or Panach’.

Brands have also improved their packaging to attract younger consumers or trendy and connected people.

In 2002, for example, Heineken asked to the French designer Ora-ïto to work on its bottle, and then it launched the aluminum bottle. And the other hand Philippe Starck was reached on the products of the line “1664” belonging to Kronenbourg.

The key role of distribution in France

In France Beer is sold mainly in supermarkets (72% of sales) and the “out of home” distribution (cafes, hotels and restaurants etc.) accounts for 28% of sales.

To better “attack” the market, many brewers have their own distributors. Thus, “Heineken France” owns “France Boissons”, French leader in the “out of home” distribution of beer.

2012: Sales volume of beers in France, following the distribution channels

In France, Kronenbourg and Heineken account for nearly 80% of the market volume. Distribution, innovation and strategic alliances are parameters to struggle against the declining consumption.

Sources:

http://lentreprise.lexpress.fr/
http://www.01men.com/editorial/344245/mode-tendance/http://www.journaldunet.com/management/0602/0602120biere.shtmlhttp://en.wikipedia.org/wiki/History_of_beer