Scottish Brewer Ventures into World Lager Market
Tennent Caledonian Breweries (TCB), one of Scotland's leading brewers, is making a fresh attempt to break into the lucrative "world lager" market. The company is launching its Tennent's 1885 brand in supermarkets and off-licences across Scotland and Northern Ireland in the coming weeks. Previously only available abroad, the brand will now be positioned alongside popular competitors such as Peroni, Budvar, and Baltika.
Learning from Past Failures
TCB previously faced challenges in cracking the world lager market back in the 1990s with the Tennent's Gold Bier brand. Despite multiple relaunches and positive consumer tests, the brand failed to gain traction. However, armed with valuable insights from extensive consumer research, TCB believes its Tennent's 1885 brand has the potential for success.
Tennent's 1885 Brand Specifications
Brewed in Glasgow at the Wellpark brewery, the 1885 brand is named after the year in which the company first produced it. The beer will be available in 330ml bottles rather than cans, with an alcohol content of 5%. This slightly higher alcohol content sets it apart from Tennent's Lager, which has an alcohol content of 4%. The target market for Tennent's 1885 includes young adults aged 25 to 34.
New Opportunities for Growth
While Tennent's Lager sales are on the rise in Scotland, TCB sees an untapped market for another world lager brand. The world lager sector is rapidly expanding, with sales growing 20% in the past three years, reaching a total value of £3 million. Nicola Trainor, Tennent's senior brand manager, reassured that the new brand will not cannibalize the market share of InBev's other world lager offerings and believes there is still significant consumer demand for a fresh option.
Expansion and Market Strategy
TCB is planning to extend the Tennent's 1885 brand to selected bars in the coming months. As Morrisons supermarkets lead the way by stocking the brand in the next two weeks, Tesco, Sainsbury, Asda, and other off-licences will follow suit in subsequent weeks. Patrick Duffy, managing editor of Scottish Licensed Trade News, notes that focusing on supermarkets initially can be beneficial, given InBev's strong bargaining position with major supermarket groups.
Tennent's Lager Continues to Dominate
Despite the foray into the world lager market, Tennent's Lager remains a top contender. Sales of Tennent's Lager grew by 1.4% in the off-sales market and 3% in bars last year, solidifying the brand's share of the total lager market at 33.8% and 50.7%, respectively. It continues to hold the number one position in both markets.
Exploring World Lager and Hotel Pairings
The growing popularity of world lagers presents an exciting opportunity for hotels to enhance their beverage offerings and provide unique experiences for guests. Pairing world lagers with various culinary delights or designing exclusive tasting menus can add a touch of distinction to a hotel's dining options.
With a diverse range of flavors and styles found in world lagers, hotels can curate a beer selection that caters to different palates and complements their menu offerings. For example, lighter lagers may be paired with refreshing seafood dishes, while bold and robust lagers can enhance the flavors of hearty meat-based meals.
Hotels with on-site breweries can take the experience a step further by offering brewery tours or organizing beer tasting events. These activities not only create memorable experiences for guests but also provide opportunities to introduce and promote world lager brands, such as Tennent's 1885, to a wider audience.
Collaborations between hotels and local or international breweries can be mutually beneficial. Hotels can showcase regional or specialty world lager brands that may not be widely available, creating an exclusive and desirable offering for guests. Simultaneously, breweries gain exposure and reach new customers through the hotel's clientele.
To ensure success in this venture, hoteliers should conduct market research and identify consumer preferences when it comes to craft and world lagers. This information can help inform the selection and positioning of world lagers within the hotel's bars and restaurants, ensuring they align with the tastes and expectations of their target demographic.
By embracing the trend of world lagers, hotels can elevate their beverage programs, differentiate themselves from competitors, and provide guests with distinctive experiences that celebrate the international beer culture. With careful curation, creative pairings, and engaging events, hotels can tap into the world lager market and enhance the overall guest experience.