Beata Gował: In 2023, Poles drank 400 million half-liter bottles of beer less than the previous year – according to data from NielsenIQ and the Association of Employers in the Beer Industry – Browary Polskie. This is the fifth consecutive year of falling consumption of this drink. To what extent did the increases in beer prices, both in stores and bars, contribute to this? Could these increases have been avoided?
Piotr Chęcielewski, Carlsberg Polska: The past few years have brought numerous challenges to the beer industry, but the beer market is gradually rebuilding after the global pandemic and record inflation in our country. Beer consumption in Europe fell from 377 million hl in 2019 to 345 million hl in 2020, and by 2022 two-thirds of the losses were recovered, reaching 366 million hl. In Poland, the beer market has decreased by 6 million hl over the last 5 years, with the biggest drop of 2.2 million hl last year, but this year, after the first six months, we see a slowdown in the downward trend. This is important because we are the third largest beer producer in Europe, the second largest FMCG category in Poland, and beer, as a national product, supports the national economy.
The beer price increases were driven by extremely high inflation, rising costs for raw materials, energy and packaging, and higher excise duties. It is important to note that the price increases introduced did not cover the full increase in costs that would affect producers. They were a prerequisite for maintaining business profitability and preserving jobs. Looking globally, despite the numerous difficulties, high production, energy and raw material costs, the number of breweries in Europe is growing steadily from 8,976 in 2016 to 12,876 in 2022, which shows that the fascination with the world of beer is not waning.
Perhaps this year’s hot summer and the accompanying sporting events that consumers are looking forward to, such as Euro 2024 and the Olympic Games, will halt the downward trend in beer sales volumes?
The data from the first half of the year shows that the market is holding steady at the same level as last year. In the context of recent history, where declines have been very noticeable, its slowdown can be considered a success. However, occasions that favoured collective support, such as Euro 2024 and the Olympic Games, did not significantly increase demand in the category. I think we still need some time to recover and create a more optimistic feeling among consumers. Beer is a drink of social celebration and good atmosphere, so, to put it simply, people should be willing to look for opportunities to drink beer.
Last year, the top sellers were the more expensive beers in the top and ultra-premium segments, which had seen growth in previous years, and the cheaper beers in the economy segment. Why is this happening?
Economic crises always have a negative impact on consumer choices, reducing the purchasing power of household budgets. How does it work? Consumers of top and ultra-premium beers chose cheaper options. In turn, consumers of beers in the economy segment reduced their shopping basket (-10%), meaning they went to the store less often and, when they did go there, they bought less beer than before. It is worth noting that in these difficult times, consumers still preferred branded beers (98% of the market) to retailers’ own brands. This is an appreciation of our work in offering a quality proposition to the consumer and a confirmation that investments in building the brand, its unique proposition and image are profitable.
How do you retain customers and acquire new ones?
We offer quality products that meet consumer needs and are appreciated by beer critics. We are strengthening our portfolio in key segments and maintaining our position as a leader in innovation in the category. The beer category remains a sector with prospects. PFor example, in Poland, non-alcoholic beers account for approximately 5.5% of the beer market value. Meanwhile, in Spain and Germany – the largest beer producers in Europe – this segment accounts for almost 10% of the market. We have our magnets that attract consumers. Carlsberg Polska’s range includes non-alcoholic beers from Okocim, Somersby, Garage and the excellent Žatecký 0.0%, brewed with Žatecký hops, considered the father of all European hop varieties.
Our strength is innovation, which wins numerous awards every year. For example, this season we have prepared a functional product – Garage Hydro Rave 0.0% – a beer with hydrating properties. For those looking for fewer calories, we offer Somersby Light Pink Grapefruit and Somersby Light Apple. Mentioning these proposals, we find ourselves in the flavored beer segment, where our Somersby, Garage and Okocim brands are leaders. Flavored beers are a response to the consumer’s desire to discover new taste experiences. When it comes to attracting consumers, we must not forget the premium segment – specialty beers. Our proposal 1664 Blanc – a white beer with citrus notes – responds to the need to look for richer flavor bouquets and unconventional ingredient combinations. As I mentioned earlier, Poles choose branded beers (almost 98% of the market), and we brew excellent beers, creating visible advertisements and engaging campaigns for consumers, which translates into effective reach to the target audience.
Many breweries are expanding their offerings each year with new flavors or energy-boosting beers. What about Carlsberg? Will these solutions help stem the decline in sales in the beer industry?
In 2012, we introduced consumers to the Somersby brand, which is now the leading flavoured beer brand in Poland. For years, we have supported the development of this segment, expanding our portfolio with flavoured versions of the Okocim brand and introducing the innovative Garage brand, which allows us to maintain our leading position in this segment. Brewing beer is an art, we like to draw inspiration from other beverage categories and consumer expectations. I will mention here Harnaś Lodoherbata, which was born out of consumerism. Last year we started exploring the energy drink category, this year – functional ones. We observe and address trends in flavoured beers. We focus on innovation and development.
What really influences the beer category in the Polish market? An aging society?
Demographic factors such as the ageing population in Poland limit the number of new consumers entering the beer category. In addition, we have changing lifestyles and social trends that limit overall alcohol consumption and household wealth. On top of that, we can add a negative narrative around beer and high excise taxes. Today’s beer culture is sociable, tasty and low-alcohol. The amount of alcohol consumed in beer is decreasing every year, and supporting the development of the non-alcoholic beer segment is an important step in building a culture of prudent alcohol consumption. Beer is also a seasonal category and the climate determines the level of consumption. At the same time, there are category drivers. New consumption contexts, such as the need for non-alcoholic soft drinks, or functional drinks with hydrating or energizing properties. Beer fits perfectly into the widely known gastronomy and the party culture that is developing in Poland.
Breweries in Poland do not significantly increase their spending on media advertising from year to year. Does this mean that ATL advertising does not work?
Today we have much greater advertising opportunities than we did 5 or 10 years ago. The development of the Internet and streaming platforms has changed the way consumers search for information. Completely new marketing communication tools and innovative visual techniques are constantly being created, often combining the digital environment with realism. This leads to a greater diversification of brands’ activities. When talking about beer advertising, it is worth remembering that it is legally limited and the entire category is committed to an ethical advertising message. Therefore, among other things, as part of self-regulation – i.e. regulation not resulting from state law – we belong to the Advertising Ethics Council, which has developed additional standards that the industry must follow when creating responsible advertising messages.
The beer’s main target audience, i.e. young consumers, is a very technologically advanced generation, the Internet generation, who are almost constantly with them every day. Is Carlsberg therefore shifting its focus in communication from traditional media to the Internet?
The Internet plays a key role in our marketing strategy and is an integral part of many 360-degree campaigns. Although television is still very important, it is no longer sufficient. The advantage of the Internet is the ability to interact, engage the consumer and offer them a more immersive brand experience, which goes beyond sound and image. In addition, this experience can be personalized, which makes each consumer feel noticed and special. It is also worth noting that Everyone is present on the Internet, not just the younger generation.
What are the biggest marketing challenges facing Carlsberg and the entire beer industry?
The industry must restore the glory of beer culture in Poland. We have reason to be proud, just like the Czechs. We are on the podium in terms of beer production in the EU and many countries would like to be in our position. Brewing is a beautiful art, beer offers a richness of flavours, is a low-alcohol drink and, in addition, has a wide range of non-alcoholic versions. Beer is social, accompanies happy moments and, as research shows, is chosen for its taste rather than its alcohol content. We are the largest FMCG beverage industry in Poland and by purchasing raw materials for beer production, we support Polish producers and farmers. We are an important link in the Polish economy – more than PLN 18 billion of total added value we generate, more than PLN 114.6 billion. jobs in breweries and related sectors. Therefore, all legal regulations that affect us must be created in dialogue with us, because they affect not only the category and consumers, but also industries such as trade, gastronomy, agriculture and logistics. Like Carlsberg Polska, we must naturally increase the awareness of our brands. Without this, consumers will not try our products. And we know that if they do, they will stay with us. In addition, we must look for areas of growth in the category, optimizing marketing tools, finding the best ways to reach consumers, all while maintaining the ethics of beer advertising.
Consumers increasingly value brand authenticity, so value-based communication, including sustainable development, will become increasingly important. This fits in with global trends in corporate social responsibility. It is worth remembering that beer is not just a drink, but also a culture – connecting people, celebrating moments and creating shared experiences.
What trends in the beer market can we talk about in the coming months?
As I mentioned, we are experiencing a slowdown in the downward trend in beer sales volume and expect it to continue in the fall. Double-digit market growth can be seen in the non-alcoholic beer segment. Flavored beers are showing stable volume, but lagers, which are on a downward trend, require attention and stabilization, which we will address with our actions.
