SIBA: retailers failing to see beer opportunities

February 5, 2007: The Society of Independent Brewers (SIBA) has called on multiple retailers to latch on to the opportunities involving the selling of local beers.

In its fifth annual Local Brewing Industry Report, SIBA documents the continued growth in demand for local beer and claims that trading with local breweries offers incremental sales opportunities in an otherwise tough beer market. However, many retailers are still missing out.

The benefits of exploiting an increased consumer interest in local food and drink are shown to be increasingly realised by enlightened retailers, says SIBA, but the multiple retail market, in particular, is making slow progress in widening the availability of local beer.

The report highlights:

l 7.5% annual growth in local beer sales
l 1,300 jobs created in the local brewing industry in the last five years on the back of growing consumer demand
l fewer than one in three local brewers trading with pub-owning brewers
l poor access to the on-trade forcing local brewers to deliver beyond the radius normally associated with local produce
l the majority of local brewers saying they would reduce their delivery radius by 25% if they could gain wider access to local pubs
l half of local brewers not trading with multiple supermarkets, with low price expectations cited as the biggest stumbling block
l the success of SIBA’s direct delivery scheme in accommodating multiple retailers’ administrative requirements

Pointing to the sales impact of offering a choice of local ales, Keith Bott, SIBA chairman, commented: "There are opportunities for retailers here and now, waiting to be exploited. Changing the multiples’ inertia will result in real momentum for beer."