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Australia Beer Market Insights 2013

Australia beer market: Flat growth forecast for 2013

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2014-04-24 00:29:03 - Australia Beer Market Insights 2013 - a new market research report on

2012 saw the Australia beer market decline and flat performance is forecast for 2013. Continuing poor summers helped depress demand in 2012, and consumer confidence remained an issue, although the economic indicators run in Australia´s favor for the time being. Price rises were another key factor hitting volume in 2012.

Increases in consumer prices in 2012 contributed to the decline in the market, with a fairly successful attempt by brewers to shift away from volume discount and raise prices, combined with efforts by on-trade establishments to raise prices and reflect their cost structure.

Australians are drinking lower volumes of beer, but they are drinking a more diverse range of beer both by brand and style. The top five brands in 2012 accounted



for 42% of volumes between them, compared to 50% for the top five brands in 2002. Craft beers benefited in the move away from the top brands.

SABMiller´s takeover of CUB changed the industry significantly in 2012. First came a major realignment in brand licensing in Lion´s favour however, there are also signs that SABMiller is removing the strategic weakness that saw CUB´s owned brands decline more than Lion´s.

In any country, a cold and rainy summer holiday season significantly reduces people´s desire to drink beer. This is particularly important in a normally-warm country like Australia, where social occasions - whether at home or on licensed premises - are generally geared towards outdoor drinking.

Low consumer confidence has also impacted the market since 2011, throughout 2012 and into 2013. Although the macroeconomic indicators remain broadly in Australia´s favor, the public are aware of the problems that could be ahead.

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