Today: May 27, 2016, 4:24 am

Australia beer market: Lion & Foster's the dominant industry players
Beer in Australia - a new market research report on 2014-04-21 09:25:04
Following the loss of strong licensed international brands by Foster´s, including Carlsberg, Kronenbourg, Corona Extra, Stella Artois, Guinness and Kilkenny, the company lost its crown as the number one beer company in Australia. Foster´s´ share was 41% in 2012, behind Lion´s share of 46%. The contracts won by Lion will aid the company in holding its number one place.

As craft beer establishes itself within the market, a colossal demand is driving the opening of new microbreweries and the expansion of ranges at current microbreweries. With the same objective, to bring high-quality, original beer to the market, microbrewers are improving the stature of beer in Australia. Craft beer is beer which is produced by a brewery that brews up to 15,000 barrels per year.

Craft beer generally offers a point of difference compared to mainstream beers, whether it be via flavour, quality of ingredients or style. In addition, craft beer enjoys further benefit from a recent excise reform for microbreweries, introduced by the federal government in 2012. Microbreweries are now eligible to receive an excise refund of 60% of excise paid, up to a maximum amount of A$30,000 per financial year, increased from A$10,000. Both off-trade and on-trade providers have also opened up shelf and fridge space for the fast-growing niche craft segment.

Over the forecast period, total beer volume will continue to gradually decline as the premiumisation effect takes place and consumers drink less beer, but higher-quality beer. The total beer category is expected to see a contraction at -1% volume CAGR over the forecast period whilst premium lager is expected to see a positive volume CAGR of 3%.

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