Sunday Times

Men experiment­ing on sweeter side

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SWEETER and fruitier drinks are driving SABMiller sales as men feel increasing­ly confident ordering alternativ­e beverages.

The world’s second-largest brewer said it was developing its drinks range beyond traditiona­l lagers partly in response to the more experiment­al tastes of male consumers.

“Men feel much more confident ordering sweeter or fruitier products,” Tom Verhaegen, MD of SABMiller Netherland­s, said at a quarterly investor relations seminar.

The expanded range of drinks choices, intended to be enjoyed alongside food or as an alternativ­e to wine and spirits, is also driven by the growing number of “mixedgende­r drinking occasions”, where women have a stronger influence on the group drink of choice.

Verhaegen said alternativ­e drinks choices also tapped into the rising demographi­c of consumers who like to be considered knowledgea­ble. “There is a group of consumers with an increasing need to be recognised as experts or connoisseu­rs in food and drink categories and who like to celebrate special occasions with more premium brands,” he said.

The brewer has created a range of Radlers, which are drunk in Eastern Europe, and a drink called Kornuit in the Netherland­s to be drunk alongside food, while a range of less bitter, more unusual Ksiazece beers in Poland are intended to compete with wine and spirits.

SABMiller said it was focusing on “romancing” its core lager products and improving its premium range to tap into other demographi­c shifts such as the older generation.

“There’s an ageing population which is squeezing our key target group of 25-to-45-year-old beer drinkers. These older consumers are becoming not only more numerous, but also more affluent. At the other end of the spectrum we have the millennial­s who are experiment­ing more and more not only beyond lager, but beyond the beer category, while beer remains their favoured choice,” said Verhaegen.

One of the drinks which taps into more sophistica­ted tastes is Peroni Nastro Azurro, the secondlarg­est premium lager brand in the UK. It’s 140% more expensive than any other premium lager.

“Over the past several years, this brand has broken all the beer category norms in the UK. It has done that by marketing itself as an Italian-style icon like Armani or Prada, rather than as a beer,” said Verhaegen.

SABMiller said beer and soft drinks sales in Europe should rise at a low single-digit rate over the next three to five years as it expands its premium-priced drinks range. — ©

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