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Insight of the Day: Kronenbourg on launching a sub brand to recruit non-beer drinkers to the category

The article discusses the challenges and opportunities facing beer brands in response to changing consumer lifestyles and behaviors. Here are the key points:

1. Changing Consumer Habits: Dharmesh Rana, director of marketing for premium brands at Carlsberg Marston’s Brewing Company, highlights the importance of recognizing and adapting to shifts in consumer habits. As consumer preferences evolve, beer brands must address these changes to ensure long-term growth.

2. High Penetration of Beer: Despite the challenges, beer remains the largest alcohol category globally, with a high level of penetration among consumers. In the UK, over three in five adults (62%) consume beer, indicating its continued popularity.

3. Challenges for Beer Brands: While beer is ingrained in the cultural fabric of many countries, brands cannot rely solely on this historical presence for sustained growth. The article suggests that beer brands must actively respond to changing consumer preferences and behaviors to remain relevant.

4. Launch of Sub-Brand: Kronenbourg, a well-known beer brand, is mentioned as an example of a beer company launching a sub-brand to attract non-beer drinkers to the category. This strategy reflects an acknowledgment of the need to appeal to a broader audience and adapt to evolving consumer tastes.

5. Long-Term Growth Strategy: Rana emphasizes the importance of beer brands "facing into" changing consumer trends to achieve long-term growth. This likely involves innovation, marketing strategies, and product diversification to meet the needs of evolving consumer segments.

Overall, the article underscores the importance of agility and adaptation for beer brands in navigating the evolving landscape of consumer preferences and behaviors. Launching sub-brands and exploring new strategies may be essential for ensuring continued relevance and growth within the beer category.

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