The British craft beer breweries taking over the world

21/10/2014
UK microbreweries’ export is booming with rising international demand and a growing thirst for British beer
UK microbreweries’ export sales are booming as increasing international demand for craft products coincides with a growing thirst for British beer. The trend is causing SMEs to look overseas, developing new markets and expanding their business offering.
Derbyshire-based Thornbridge Brewery’s export sales have doubled over the past two years, increasing from 10% to 30-35% of turnover, according to marketing manager Alex Buchanan.
“It came from people knocking on our door. Social media’s been important too. We can tweet about a new beer and we’re getting responses from all over the world asking to buy it,” says Buchanan. The business exports to 33 countries, including Sweden, the US, Italy and Norway, and has just added a Mexican distributor that approached them after checking online reviews.

The domestic market for craft beer is becoming increasingly popular, with the Society of Independent Brewers’ members survey suggesting craft beer production increased by 7% last year.
Part of the reason the sector’s small businesses are flourishing is the introduction of progressive beer duty in 2002, which means they pay less tax than their larger counterparts. This means that even though an average of 31 pubs close every week, the number of breweries has doubled over the past four years, according to industry trade body Camra.
Competition from local breweries, particularly over beer taps in bars and restaurants, is adding to the argument for smaller brewers to look at overseas markets.
Camden Town Brewery launched its export business 12 months ago. Head brewer Alex Troncoso says the diversity offered by exports is important. “From a wider business sense it’s important not to have all your eggs in one basket. It’s good to spread beer through a few different markets. We’re picking and choosing our markets, and it’s growing from a tiny base.”
Breweries say it’s crucial to identify good local distributors in new markets.
Troncoso says his sales in Sweden have been built through a relationship with a local distributor. The partner informs them of any tenders from the government-owned off-licence monopoly, for example, and helps manage submitting samples.
BrewDog opened in 2007 and has grown to become Scotland’s largest independent brewery - it exports to 50 countries and has bars in five - although it’s resolute in its status as a craft brewer. Exports account for 60% of sales and co-founder James Watt says meeting local distributors was a crucial element of building the business.
“Visit them. Strike up relationships with like-minded partners. Don’t just fall for the first people you come across, but spend some time finding people who share your ethos and passion for what you do. That will translate to their market, and will prove invaluable to ensuring strong sales and the experience of your brand locally,” says Watt.
Working with local distributors isn’t just about the technical aspects of translating labels, tax and regulation, but understanding how the terminology and culture differs between different markets. For example, brands like Newcastle Ale are common in the UK, but trendy in North America. What’s defined as ale differs across Europe.
Travelling can be expensive for small businesses and the need to research new markets and support products can dictate which countries companies target.
Cumbria-based microbrewery Hardknott, which generates 20% of its revenue from exports, sells beer in Italy, Spain and Ireland, and is about to launch in Scandinavia.
Hardknott founder Dave Bailey says the company did look at Canada, but the travel costs, product transportation issues and difficulty dealing with the country’s state monopoly meant it would be unsustainable. “We can’t just jump in a plane. Some of the nearer countries you can, but as you get further afield face-to-face is quite difficult to arrange and the further you go from your business the more support you need to give that product and the more difficult that becomes,” says Bailey.
It’s also important to ensure pricing in export markets will be sustainable and what price pressures you might face, says Troncoso. “It is important to not just look for volume, but also for a sustainable selling price. I think a lot of smaller companies think that exporting is going to be the holy grail, but you do it and realise that you are competing with everyone and there are a lot of people out there who have better economies of scale, which ultimately drive the prices down.”
Beer festivals are a popular way for brewers to promote products, meet customers and network with potential retailers.
UK Trade & Investment organises trade trips and can advise on preparing for exports through its Passport to Export and Overseas Market Introduction Service programmes, both of which are popular with small businesses. However, the matched funding element for travel was dropped earlier in the year.
Whatever the hurdles in market research, identifying local partners and supporting products, it’s clear the changing perception of British beer is in-part responsible for the growing export market. New figures from HMRC suggest 20.6 million extra pints of British beer were exported in 2013, compared to 2012.
“It’s only been in the last 12-18 months that British beers have become popular, we’ve had a fight to get over preconceptions. In Amsterdam they were quite traditional,” says Buchanan, who adds Germany is starting to open up, providing a potential audience of 80 million people who are big beer drinkers.
Even considering travel constraints, choosing which market to target can be overwhelming. Breweries that have successfully grown their export say they worked hard to develop an idea of where their beer and brand would work.
“There’s a thirst for British craft beer worldwide,” says Bailey. “We have a got a USP that’s profitable, the question is how do you market yourself?”
Watt, who helped build BrewDog into one of the fastest growing food and drinks businesses in the UK over the past seven years, recommends small businesses approach the process with a level of optimistic caution.
“Concentrating on what you do best is always key and turning your back on a domestic market that’s doing well would be ill-advised. But if you see an opportunity overseas ... take the chance,” he says.

Fonte:http://www.theguardian.com/small-business-network/2014/oct/21/british-craft-beer-breweries-export?CMP=new_1194

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