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Non-traditional beer drinkers are drinking more beer, says Bierfest organiser
The US market is often used as a benchmark for the local beer industry, although South Africa's craft beer boom experienced a decade lag. Noteworthy is the decrease in the US mass beer market, whilst craft brew shows no sign of slowing sales.
With around 2,530 craft breweries operating in the US and demand growing, increasingly sponsorship deals are being sealed with the micro operations rather than the multinationals, recognising the marketing reach potential with an average 20% growth in sales year on year.
The proliferation of microbreweries in South Africa, many Cape Town-based, now number around 150, as the craze for quaffing custom-made, uniquely styled ales and pales using quality ingredients, minus the preservatives, catch on. Mass-produced lagers now compete with personality-infused beers - so that amber and pale ales, alt biers, stouts, smoked malt beers and seasonal brews now enjoy 30% market share. Predictions for 2016 are even higher at 35%.
Variety and diversity
Explaining the rise in the ranks of craft beer, Tops at Spar Bierfest organiser Andrew Douglas said: "I think the variety and diversity of new beers on offer has disrupted behaviour with regard to beer consumption. Most traditional beer drinkers will always have a staple brew, but I think, just like wine, increased variety and the romantic notions of craft or batch brewing entices consumers to try something new."
South Africans have long been used to lager-style beer, the latter normally fermented with bottom-fermenting yeast at lower temperatures for longer, making it a difficult beer to brew on a small scale. Ales are generally brewed using top-fermenting yeast at higher temperatures, for shorter periods and in smaller batches, perfect for micro-enterprise interpretations.
Absorbing shifting trends, the impact on the global beer landscape has been significant with consolidation and acquisition changing the goalposts. SABMiller is a case in point with its procurement of London-based modern craft beer brewer, Meantime Brewing Company. This deal will seal a kick start for SABMiller as it taps into the fastest-growing UK beer market.
SAB, which holds 90% of the local beer market share, was also quick to merge commercial interests with beer nous in the transformation of its test brewery at No 3 Fransen Street into an ale-making enterprise. The emergence of three types of Weiss - Krystal, Dunkel and Honey, along with a Cream Ale, Irish Red Ale and an IPA - are among the selection that will keep beer drinkers smiling as they become increasingly spoilt for choice.
Jack Black, CBC, Darling, Boston, Triggerfish, Devil's Peak, Wild Beast, Bold Hurst, Stellies, Citizen and Mitchells (brewed since the 90s) are the local brews with enticing labels increasingly featuring on the shelves and on tap across the spread of South African delis, beer houses, eateries and food markets. The top-five craft brewers constitute around 3.7m litres of an 8m litre market.
Wine farms on board
Even wine farms are climbing on to the craft beer bandwagon with Nano breweries being established alongside cellars and biltong and beer tastings elbowing the traditional cheese and wine partnerships out of the way. Informal markets are also a proposition for craft beers, although the challenges of distribution and price hold sway. Tavern owners seem keen to test the water here as the need to offer customers something authentic and different could be good for the bottom line.
Local consumer trends show that craft beers are largely sold through on-premise outlets, offering massive growth-scope through channel expansion. Common practice is for micro-brewers to broaden their brand reach through tastings, beer routes, pairings and festivals.
"We have noticed larger numbers of non-traditional beer drinkers drinking more beer. I'm sure Tops at Spar Bierfest has helped a little along the way due the sheer size of the event comparatively but collectively all craft beer festivals (of which there are now many to choose from) should take the credit," said Douglas.
The marketing value of craft beer festivals is huge, with variety key to the spice of life. Here people circulate, taste, interact with the beer makers and learn about the techniques and processes that culminate in a great drinking experience, paired with food and fun.
For five years in a row the Tops at Spar Bierfest has done just that. This year the Nedbank Golf Challenge will be partnered with the bierfest at Sun City and everything from Bavarian meals, lederhosen, Oompah bands, frauleins and, of course, beer, will replicate the Munich Oktoberfest experience and keep the South Africa beer-loving public thirsting for more.
All packages can be booked at www.bierfest.co.za.