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Beer in Italy

Euromonitor International

July 2019

B E E R I N I T A L Y P a s s p o r t i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Prospects ..................................................................................................................................... 1

“legge Di Bilancio 2019” Law Establishes A 40% Tax Reduction for Craft Breweries .............. 1 Expansion of Beer Industry Within the Italian Territory ............................................................. 1 Craft Beer and Beer Tourism in Italy ......................................................................................... 1

Competitive Landscape ................................................................................................................ 2

Heineken Taps in Early To the Rising Demand for Non-alcoholic Beer .................................... 2 Domestic Flea Launches Sans Papier – the First Beer Made Out of Air .................................. 2 Nastro Azzurro Launches Prime Brew Special Lager ............................................................... 2

Category Background ................................................................................................................... 2

Lager Price Band Methodology ................................................................................................ 2

Summary 1 Lager by Price Band 2017 ............................................................................ 2 Table 1 Number of Breweries 2013-2018 ................................................................. 3

Category Data .............................................................................................................................. 3

Table 2 Sales of Beer by Category: Total Volume 2013-2018 .................................. 3 Table 3 Sales of Beer by Category: Total Value 2013-2018 ..................................... 3 Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018 .................. 4 Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018 ..................... 5 Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018 ........................ 5 Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018 ........................... 5 Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018 ....... 5 Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018 .......... 6 Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 6 Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 7 Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018 .............................. 7 Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023 ................... 8 Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023 ...................... 9 Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-

2023 ............................................................................................................. 9 Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-

2023 ........................................................................................................... 10

B E E R I N I T A L Y P a s s p o r t 1

BEER IN ITALY

HEADLINES ▪ Beer records total volume growth of 2% to reach 1.7 billion litres in 2018

▪ Importance of craft beer shown by “Legge di Bilancio 2019”

▪ Flavoured/mixed lager registers the strongest total volume growth of 3% in 2018

▪ Average unit price continues to grow in 2018 as the interest in excellence encourages quality

purchases

▪ The presence and number of already numerous microbreweries in Italy is encouraged by a

40% tax reduction

▪ Beer to register a total volume CAGR of 2% over the forecast period to reach 1.9 billion litres

in 2023

PROSPECTS

“legge Di Bilancio 2019” Law Establishes A 40% Tax Reduction for Craft Breweries

On 30 December 2018 the “Legge di Bilancio” law was approved for introduction in 2019. This

law contained very positive news for beer brewers: a 40% tax reduction for craft breweries

producing less than 10,000 hectolitres per year. All domestic microbreweries enthusiastically

welcomed this new law, which strongly confirmed their relevance in the Italian market.

Over the forecast period, this support from the state will fuel the growth of one of the most

dynamic areas of the alcoholic drinks market. The savings will allow craft breweries to allocate

more funds to research and development for further innovation. This will result in quality

improvements that will help meet the increasing demand for quality and variety.

Expansion of Beer Industry Within the Italian Territory

New craft microbreweries were set up in 2018 in regions where there had not previously been

any. For example, in Valle D'Aosta, Sardegna and Trentino. According to trade experts, sales

within the same geographical area can be a good source of revenue for such producers. This is

because when a product is perceived as being developed specifically from a territory, this

becomes part of the regional culture and local consumers are therefore keen to explore it.

Over the forecast period, low-alcohol and even non-alcoholic beers have potential for growth,

driven by the health and wellness trend. Health-conscious consumers are more aware than ever

about the effects of the persistent consumption of alcohol. Furthermore, sporty people found

non-alcoholic beers to be a perfect hydration solution after a workout and it is also a good option

for pregnant women. Low-alcohol or non-alcoholic beer could therefore satisfy a number of

demands that were not previously considered in the beer industry.

Craft Beer and Beer Tourism in Italy

Tourism during the summer boosts on-trade beer sales. Thanks to the hot temperatures and

more convivial moments, consumers are more willing to drink beer than wine. In particular,

thanks to the regional differences and characteristics, craft beer benefits more from this trend.

Italians are looking for an original taste and a complete local experience through local food

and drink. In 2018, interesting connections between "active holidays" and "gourmet

B E E R I N I T A L Y P a s s p o r t 2

experiences" were detected. Craft beer producers are becoming increasingly likely to offer

special experiences to tourists, leading to the development of “beer tourism”. Usually, craft beer

breweries are small production environments that can welcome small groups of tourists.

COMPETITIVE LANDSCAPE

Heineken Taps in Early To the Rising Demand for Non-alcoholic Beer

In 2018, Heineken launched Heineken 0.0. This beer only contains 69 calories per 33cl bottle

and it is an alcohol-free product. With this launch under the well-known leading brand, Heineken

has demonstrated that it is ready to answer the demand for non-alcoholic beer, which is still in

an extremely nascent phase in Italy. The brand is a pioneer, helping drive the arrival of this new

type of beer in the Italian market.

Domestic Flea Launches Sans Papier – the First Beer Made Out of Air

After two years of research, Italian brewery Flea launched a major new innovation. This eco-

friendly and low-waste product is claimed to be a beer made out of air. The technology that was

created is similar to a dehumidifier, with important water savings made during production, as

water for the product is extracted from the air. All ingredients that are needed for the process of

making the beer are certified as organic and local. Purity and eco-sustainability are the main

claims that were used in its communication campaign, as well as the concept of a circular

economy.

Nastro Azzurro Launches Prime Brew Special Lager

In May 2018, domestic player Nastro Azzurro launched the new special lager Prime Brew, a

stronger version of its standard lager. Born from an idea of Alberto Marzaioli, the beer is not

filtered and produced only using the initial fermentation process. Nastro Azzurro wants to create

a new experience for consumers by creating a beer it claims is perfect for food combinations

during main meals, taking the place of wine.

CATEGORY BACKGROUND

Lager Price Band Methodology

▪ Among the most popular brands in Italy in 2018 were Heineken, Peroni, Peroni Nastro

Azzurro, Moretti, Beck’s, Paulaner, Ceres and Tennent’s.

Summary 1 Lager by Price Band 2017

Category Price range per litre

Premium EUR4.55 and above

Mid-priced EUR1.81-4.54

Economy EUR1.80 and below

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors that are considered in classification

B E E R I N I T A L Y P a s s p o r t 3

Table 1 Number of Breweries 2013-2018

2013 2014 2015 2016 2017 2018 TOTAL 552 826 959 1,034 1,057 1,083

Source: Euromonitor International Note: Law number 154 from 28 July 2016 defined craft beer as not being pasteurised or microfiltered and

being produced by small independent breweries producing a maximum amount of 200,000hl of beer per year

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Dark Beer 78.4 79.6 81.3 82.6 84.5 86.0 - Ale 40.7 40.6 40.9 41.2 41.8 42.2 - Sorghum - - - - - - - Weissbier/Weizen/ 37.7 39.1 40.4 41.5 42.8 43.8 Wheat Beer Lager 1,469.2 1,443.5 1,452.1 1,473.0 1,499.2 1,524.1 - Flavoured/Mixed Lager 6.3 6.6 7.1 7.7 8.1 8.4 - Standard Lager 1,462.9 1,436.9 1,445.0 1,465.3 1,491.1 1,515.8 -- Premium Lager 830.2 817.5 818.4 819.1 830.2 840.9 --- Domestic Premium 500.0 495.2 500.4 504.2 514.1 524.2 Lager --- Imported Premium 330.1 322.3 318.0 314.8 316.2 316.7 Lager -- Mid-Priced Lager 518.6 520.4 526.0 545.1 559.6 573.1 --- Domestic Mid-Priced 484.9 486.7 492.1 510.6 524.4 537.4 Lager --- Imported Mid-Priced 33.7 33.6 33.9 34.4 35.1 35.7 Lager -- Economy Lager 114.1 99.1 100.6 101.2 101.3 101.7 --- Domestic Economy 96.7 99.1 100.6 101.2 101.3 101.7 Lager --- Imported Economy 17.5 - - - - - Lager Non/Low Alcohol Beer 15.9 15.2 15.6 16.3 16.6 16.8 - Low Alcohol Beer - - - - - - - Non Alcoholic Beer 15.9 15.2 15.6 16.3 16.6 16.8 Stout 42.0 41.3 41.6 41.8 42.1 42.3 Beer 1,605.4 1,579.6 1,590.6 1,613.7 1,642.4 1,669.3

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 3 Sales of Beer by Category: Total Value 2013-2018

EUR million 2013 2014 2015 2016 2017 2018 Dark Beer 1,010.5 1,045.2 1,081.9 1,123.8 1,179.4 1,231.0

B E E R I N I T A L Y P a s s p o r t 4

- Ale 514.2 518.4 524.7 538.9 558.5 579.4 - Sorghum - - - - - - - Weissbier/Weizen/ 496.3 526.8 557.2 585.0 620.9 651.6 Wheat Beer Lager 6,463.3 6,458.8 6,490.7 6,625.0 6,872.7 7,163.9 - Flavoured/Mixed Lager 27.8 29.6 31.9 34.5 37.3 39.6 - Standard Lager 6,435.5 6,429.2 6,458.9 6,590.5 6,835.4 7,124.3 -- Premium Lager 4,747.7 4,743.8 4,748.3 4,799.6 4,960.3 5,159.2 --- Domestic Premium 2,464.2 2,456.8 2,479.7 2,524.2 2,633.0 2,758.2 Lager --- Imported Premium 2,283.5 2,287.0 2,268.6 2,275.4 2,327.3 2,401.0 Lager -- Mid-Priced Lager 1,579.9 1,590.1 1,610.6 1,686.9 1,765.8 1,850.9 --- Domestic Mid-Priced 1,432.8 1,442.0 1,460.6 1,534.3 1,606.8 1,686.4 Lager --- Imported Mid-Priced 147.0 148.1 150.0 152.6 158.9 164.5 Lager -- Economy Lager 107.9 95.2 100.0 104.0 109.3 114.2 --- Domestic Economy 89.6 95.2 100.0 104.0 109.3 114.2 Lager --- Imported Economy 18.3 - - - - - Lager Non/Low Alcohol Beer 48.9 45.8 46.9 49.1 51.2 53.5 - Low Alcohol Beer - - - - - - - Non Alcoholic Beer 48.9 45.8 46.9 49.1 51.2 53.5 Stout 447.4 443.7 453.7 457.0 468.4 479.4 Beer 7,970.1 7,993.5 8,073.2 8,255.0 8,571.7 8,927.9

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018

% total volume growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer 1.8 1.9 9.8 - Ale 1.0 0.7 3.7 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 2.6 3.1 16.3 Lager 1.7 0.7 3.7 - Flavoured/Mixed Lager 3.3 5.9 33.0 - Standard Lager 1.7 0.7 3.6 -- Premium Lager 1.3 0.3 1.3 --- Domestic Premium Lager 2.0 0.9 4.8 --- Imported Premium Lager 0.2 -0.8 -4.1 -- Mid-Priced Lager 2.4 2.0 10.5 --- Domestic Mid-Priced Lager 2.5 2.1 10.8 --- Imported Mid-Priced Lager 1.5 1.1 5.9 -- Economy Lager 0.4 -2.3 -10.9 --- Domestic Economy Lager 0.4 1.0 5.2 --- Imported Economy Lager - - - Non/Low Alcohol Beer 1.5 1.2 5.9 - Low Alcohol Beer - - - - Non Alcoholic Beer 1.5 1.2 5.9 Stout 0.5 0.1 0.7 Beer 1.6 0.8 4.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

B E E R I N I T A L Y P a s s p o r t 5

Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018

% local currency, current value growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer 4.4 4.0 21.8 - Ale 3.7 2.4 12.7 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 4.9 5.6 31.3 Lager 4.2 2.1 10.8 - Flavoured/Mixed Lager 6.0 7.3 42.3 - Standard Lager 4.2 2.1 10.7 -- Premium Lager 4.0 1.7 8.7 --- Domestic Premium Lager 4.8 2.3 11.9 --- Imported Premium Lager 3.2 1.0 5.1 -- Mid-Priced Lager 4.8 3.2 17.2 --- Domestic Mid-Priced Lager 4.9 3.3 17.7 --- Imported Mid-Priced Lager 3.5 2.3 11.9 -- Economy Lager 4.5 1.1 5.8 --- Domestic Economy Lager 4.5 5.0 27.4 --- Imported Economy Lager - - - Non/Low Alcohol Beer 4.4 1.8 9.4 - Low Alcohol Beer - - - - Non Alcoholic Beer 4.4 1.8 9.4 Stout 2.4 1.4 7.2 Beer 4.2 2.3 12.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Off-trade 1,012.5 996.9 1,008.3 1,027.5 1,046.5 1,063.8 On-trade 592.9 582.7 582.4 586.2 595.9 605.4 Total 1,605.4 1,579.6 1,590.6 1,613.7 1,642.4 1,669.3

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018

EUR million 2013 2014 2015 2016 2017 2018 Off-trade 2,201.4 2,209.5 2,246.7 2,316.1 2,407.2 2,502.8 On-trade 5,768.6 5,784.0 5,826.5 5,938.9 6,164.5 6,425.1 Total 7,970.1 7,993.5 8,073.2 8,255.0 8,571.7 8,927.9

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018

B E E R I N I T A L Y P a s s p o r t 6

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade 1.7 1.0 5.1 On-trade 1.6 0.4 2.1 Total 1.6 0.8 4.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018

% constant value growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade 4.0 2.6 13.7 On-trade 4.2 2.2 11.4 Total 4.2 2.3 12.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018 Heineken NV 28.3 28.2 28.3 28.2 28.8 Asahi Group Holdings Ltd - - 19.6 19.6 19.7 Birra Castello SpA 10.5 10.6 10.4 10.2 10.2 Anheuser-Busch InBev NV 8.0 7.8 7.6 7.4 7.4 Carlsberg A/S 6.0 5.9 6.2 6.4 6.4 Birra Forst SpA 4.9 4.8 4.7 4.7 4.7 Royal Unibrew A/S 3.8 3.7 3.7 3.6 3.5 Swinkels Family Brewers - - - - 1.8 NV Molson Coors Brewing Co - - 1.1 1.1 1.1 Warsteiner Brauerei 1.1 1.1 1.1 1.1 1.0 Haus Cramer GmbH & Co KG Oetker-Gruppe 1.6 1.5 1.4 1.2 1.0 Paulaner Brauerei GmbH 1.0 1.0 1.0 1.0 1.0 & Co KG Drive Beer Srl 0.7 0.8 0.8 0.7 0.7 Grupo Mahou-San Miguel SA 0.5 0.5 0.5 0.4 0.4 Erdinger Privatbrauerei 0.4 0.4 0.4 0.4 0.4 Weissbräu Werner Brombach GmbH C&C Group Plc 0.3 0.3 0.3 0.3 0.3 Bitburger Braugruppe GmbH 0.3 0.3 0.3 0.3 0.3 Ottakringer Getränke AG 0.3 0.3 0.3 0.3 0.3 Krombacher Brauerei Bhd 0.3 0.3 0.3 0.2 0.2 Schadeberg GmbH & Co KG Wells & Young's Brewing 0.2 0.2 0.2 0.2 0.2 Co Ltd Oettinger Brauerei GmbH 0.1 0.1 0.1 0.1 0.1 Diageo Plc 0.3 0.3 0.1 0.1 0.1 Bavaria NV 1.9 1.9 1.9 1.8 - SABMiller Ltd 20.9 21.0 - - -

B E E R I N I T A L Y P a s s p o r t 7

Modelo SA de CV, Grupo - - - - - Tarricone SpA - - - - - Others 8.5 9.2 9.6 10.4 10.1 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018 Heineken Italia SpA 25.7 25.6 25.8 25.7 26.3 Birra Peroni Srl 21.2 21.2 21.0 20.9 21.1 Birra Castello SpA 10.5 10.6 10.4 10.2 10.2 Carlsberg Italia SpA 6.3 6.2 6.5 6.6 6.7 InBev Italia srl 7.0 6.8 6.6 6.5 6.4 Birra Forst SpA 4.9 4.8 4.7 4.7 4.7 Ceres Italia SpA 3.8 3.7 3.7 3.6 3.5 Bavaria Italia srl 1.9 1.9 1.9 1.8 1.8 Dibevit Import Srl 1.7 1.7 1.7 1.7 1.7 Warsteiner Italia Srl 1.1 1.1 1.1 1.1 1.0 Radeberger Gruppe 1.6 1.5 1.4 1.2 1.0 Italia SpA Paulaner Italia Srl 1.0 1.0 1.0 1.0 1.0 Spaten-Franziskaner- 0.8 0.8 0.8 0.8 0.8 Bräu KGaA Drive Beer Srl 0.7 0.8 0.8 0.7 0.7 Brau Union 0.7 0.7 0.7 0.7 0.7 International GmbH San Miguel Fábrica de 0.5 0.5 0.5 0.4 0.4 Cerveza y Malta SA Erdinger Privatbrauerei 0.4 0.4 0.4 0.4 0.4 Weissbräu Werner Brombach GmbH Bitburger Braugruppe GmbH 0.3 0.3 0.3 0.3 0.3 Ottakringer Getränke AG 0.3 0.3 0.3 0.3 0.3 Krombacher Brauerei Bhd 0.3 0.3 0.3 0.2 0.2 Schadeberg GmbH & Co KG Wells & Young's Brewing 0.2 0.2 0.2 0.2 0.2 Co Ltd Kulmbacher Italia 0.1 0.1 0.1 0.1 0.1 Oettinger Brauerei GmbH 0.1 0.1 0.1 0.1 0.1 Diageo Italia SpA 0.3 0.3 0.1 0.1 0.1 Tarricone SpA - - - - - Others 8.6 9.3 9.6 10.5 10.2 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018

% total volume Brand (Global Brand Company 2015 2016 2017 2018 Owner) Peroni (Asahi Group Birra Peroni Srl - 13.0 13.1 13.2

B E E R I N I T A L Y P a s s p o r t 8

Holdings Ltd) Moretti (Heineken NV) Heineken Italia SpA 8.0 8.2 8.2 8.3 Heineken (Heineken Heineken Italia SpA 8.0 7.9 7.8 8.2 NV) Castello Birra Castello SpA 6.8 6.7 6.5 6.5 Dreher (Heineken NV) Heineken Italia SpA 4.3 4.4 4.4 4.4 Beck's (Anheuser- InBev Italia srl 4.3 4.2 4.1 4.0 Busch InBev NV) Alpen 7 Plato Birra Castello SpA 3.8 3.8 3.7 3.6 Peroni Nastro Birra Peroni Srl - 3.6 3.6 3.6 Azzurro (Asahi Group Holdings Ltd) Forst Birra Forst SpA 3.6 3.6 3.5 3.5 Ceres (Royal Ceres Italia SpA 3.3 3.2 3.2 3.1 Unibrew A/S) Peroni (SABMiller Birra Peroni Srl 13.1 - - - Ltd) Peroni Nastro Birra Peroni Srl 3.7 - - - Azzurro (SABMiller Ltd) Others Others 41.1 41.4 41.9 41.3 Total Total 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023

million litres 2018 2019 2020 2021 2022 2023 Dark Beer 86.0 87.1 88.1 89.1 89.9 90.8 - Ale 42.2 42.7 43.4 44.1 44.9 45.7 - Sorghum - - - - - - - Weissbier/Weizen/ 43.8 44.4 44.7 44.9 45.0 45.0 Wheat Beer Lager 1,524.1 1,552.4 1,588.1 1,627.6 1,673.4 1,724.6 - Flavoured/Mixed Lager 8.4 8.7 9.0 9.4 9.8 10.1 - Standard Lager 1,515.8 1,543.7 1,579.1 1,618.2 1,663.7 1,714.5 -- Premium Lager 840.9 854.1 872.0 892.7 918.5 948.5 --- Domestic Premium 524.2 536.7 552.8 571.8 595.5 623.1 Lager --- Imported Premium 316.7 317.4 319.2 320.9 323.0 325.4 Lager -- Mid-Priced Lager 573.1 587.8 604.9 622.9 641.7 661.6 --- Domestic Mid-Priced 537.4 551.5 567.8 585.1 603.2 622.4 Lager --- Imported Mid-Priced 35.7 36.3 37.1 37.8 38.6 39.2 Lager -- Economy Lager 101.7 101.9 102.2 102.6 103.4 104.3 --- Domestic Economy 101.7 101.9 102.2 102.6 103.4 104.3 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 16.8 17.0 17.4 17.9 18.4 19.0 - Low Alcohol Beer - - - - - - - Non Alcoholic Beer 16.8 17.0 17.4 17.9 18.4 19.0 Stout 42.3 42.5 42.8 43.2 43.6 44.0 Beer 1,669.3 1,699.1 1,736.4 1,777.7 1,825.4 1,878.5

B E E R I N I T A L Y P a s s p o r t 9

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023

EUR million 2018 2019 2020 2021 2022 2023 Dark Beer 1,231.0 1,263.6 1,288.4 1,313.4 1,335.7 1,355.8 - Ale 579.4 593.0 609.5 627.6 646.9 668.3 - Sorghum - - - - - - - Weissbier/Weizen/ 651.6 670.6 678.9 685.8 688.8 687.4 Wheat Beer Lager 7,163.9 7,412.7 7,694.2 8,011.5 8,373.2 8,784.1 - Flavoured/Mixed Lager 39.6 41.6 43.8 46.3 48.8 51.6 - Standard Lager 7,124.3 7,371.1 7,650.4 7,965.2 8,324.4 8,732.5 -- Premium Lager 5,159.2 5,336.3 5,540.8 5,779.6 6,055.9 6,377.2 --- Domestic Premium 2,758.2 2,879.7 3,026.6 3,198.6 3,407.3 3,660.3 Lager --- Imported Premium 2,401.0 2,456.5 2,514.2 2,581.0 2,648.6 2,716.9 Lager -- Mid-Priced Lager 1,850.9 1,917.1 1,987.7 2,059.4 2,137.2 2,218.5 --- Domestic Mid-Priced 1,686.4 1,747.9 1,813.2 1,879.5 1,952.2 2,028.1 Lager --- Imported Mid-Priced 164.5 169.3 174.5 179.9 185.0 190.4 Lager -- Economy Lager 114.2 117.7 121.8 126.2 131.3 136.8 --- Domestic Economy 114.2 117.7 121.8 126.2 131.3 136.8 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 53.5 54.8 56.4 58.3 60.4 63.1 - Low Alcohol Beer - - - - - - - Non Alcoholic Beer 53.5 54.8 56.4 58.3 60.4 63.1 Stout 479.4 484.6 491.2 498.8 507.2 515.2 Beer 8,927.9 9,215.6 9,530.2 9,881.9 10,276.5 10,718.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023

% total volume growth 2018/19 2018-23 CAGR 2018/23 Total Dark Beer 1.3 1.1 5.5 - Ale 1.3 1.6 8.4 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 1.3 0.5 2.7 Lager 1.9 2.5 13.2 - Flavoured/Mixed Lager 3.7 3.9 21.1 - Standard Lager 1.8 2.5 13.1 -- Premium Lager 1.6 2.4 12.8 --- Domestic Premium Lager 2.4 3.5 18.9 --- Imported Premium Lager 0.2 0.5 2.8 -- Mid-Priced Lager 2.6 2.9 15.4 --- Domestic Mid-Priced Lager 2.6 3.0 15.8 --- Imported Mid-Priced Lager 1.8 1.9 10.0

B E E R I N I T A L Y P a s s p o r t 1 0

-- Economy Lager 0.1 0.5 2.6 --- Domestic Economy Lager 0.1 0.5 2.6 --- Imported Economy Lager - - - Non/Low Alcohol Beer 1.4 2.5 13.3 - Low Alcohol Beer - - - - Non Alcoholic Beer 1.4 2.5 13.3 Stout 0.4 0.8 4.1 Beer 1.8 2.4 12.5

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

% local currency, constant value growth 2018/2019 2018-23 CAGR 2018/23 Total Dark Beer 2.6 1.9 10.1 - Ale 2.3 2.9 15.4 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 2.9 1.1 5.5 Lager 3.5 4.2 22.6 - Flavoured/Mixed Lager 5.1 5.5 30.4 - Standard Lager 3.5 4.2 22.6 -- Premium Lager 3.4 4.3 23.6 --- Domestic Premium Lager 4.4 5.8 32.7 --- Imported Premium Lager 2.3 2.5 13.2 -- Mid-Priced Lager 3.6 3.7 19.9 --- Domestic Mid-Priced Lager 3.6 3.8 20.3 --- Imported Mid-Priced Lager 2.9 3.0 15.7 -- Economy Lager 3.1 3.7 19.8 --- Domestic Economy Lager 3.1 3.7 19.8 --- Imported Economy Lager - - - Non/Low Alcohol Beer 2.3 3.3 17.8 - Low Alcohol Beer - - - - Non Alcoholic Beer 2.3 3.3 17.8 Stout 1.1 1.4 7.4 Beer 3.2 3.7 20.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources