Crafty business

Carlow Brewing Company which brews O'Hara's craft beers has quadrupled its capacity to meet demand

Ireland's craft beer market has experienced dynamic growth as consumers become accustomed to quality craft offerings and demand greater choice, writes Gillian Hamill

Brand Central

16 April 2013

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AT A GLANCE: CRAFT BEERS

Craft beers’ current market share of the overall Irish drinks industry is 0.3% and volumes for 2012 are estimated to have grown by 44% (Source: Bord Bia)
Carlow Brewing Company reports it has quadrupled its capacity in order to satisfy current and future projected demand
Blue Moon is the number one craft beer in the US market
Molson Coors states Blue Moon is growing at +100% year-on-year in Ireland
Smithwicks Pale Ale is the number one selling pale ale in the off-trade market (Source: AC Nielsen 12wk end Oct ’12)

Demonstrating the popularity of craft beers in Ireland, a number of pubs have opened in recent years that are managing to attract trend-setting customers by focusing on a unique craft beer offering. Many consumers are increasingly keen to enjoy these beers and those discovered on their travels abroad, at home. In fact, according to market analyst Mintel, tasty craft beers can help the beer category regain growth. "Lager can undoubtedly innovate its way out of its current slump," says Jonny Forsyth, senior drinks analyst, Mintel. "If ever there was doubt about the importance of innovation in driving sales this can be dispelled by the value which flavoured vodkas plus pear and other fruit-flavoured ciders have added to their respective youth-orientated categories."

Growing demand

Irish craft beers can also capitalise on their local, ‘homegrown’ credentials. This was clearly demonstrated by the return of the Irish Craft Beer Village for six days last month at George’s Dock in Dublin’s IFSC district, which allowed visitors to sample a wide range of craft beers.

According to the event’s organisers, the Irish craft beer industry is "going through a tremendous renaissance at the moment, with almost 30 independent beer and cider producers on the island".

According to Stephanie Moe of Bord Bia’s Small Business Division, while the global beer market has seen demand stagnate since the recession took hold in 2008, it hasn’t been "all bad news for brewers targeting the more developed European and US markets; a growing trend for craft beers, evident in the US market in recent years, seems to be taking hold in Europe". She quoted Paul Gatza, director of the Brewers Association (US), who noted: "Small and independent craft brewers are organically growing their share and slowly gaining shelf and restaurant menu space."

New brewers joining market

Writing in 2011, Moe said craft brewing has been slower to emerge in Ireland than some other traditional brewing countries. She observed that while an initial emergence of craft brewers was evident in the 1980s and 1990s, many didn’t survive. However the Franciscan Well, Carlow Brewing Company and the Porterhouse have all survived from this time and have been joined in recent years by a growing number of new brewers. The craft beer sector in Ireland is an increasingly dynamic one with the last two years seeing the addition of another five breweries.

Carlow Brewing Company which brews O’Hara’s craft beers has quadrupled its capacity to meet demand

Moe added: "The fact that Irish microbreweries are able to thrive alongside international multi-brand portfolio giants such as Heineken and Diageo, clearly reflects a growing global demand for authentic craft beers with unique character. But it is certainly not ‘an easy sell’ for these new breweries. Irish consumers are opening-up to these new, flavourful, craft beers but it is a slow process involving their education."

More recently, Cathryn Hargan from Bord Bia’s Food & Beverage Division commented on a research report the food board had conducted on Ireland’s craft brewing sector. "This is a dynamic and growth sector within the Irish drinks industry," said Hargan. "The current market share of the industry is 0.3% and volumes for 2012 are estimated to have grown by 44%. Exports of craft beer are also on the increase as companies develop business in new markets."

Capacity for consistency in Carlow

Carlow Brewing Company has been around since 1996 and is well established in both domestic and export markets.

O’Hara’s award-winning craft beers are available in 50cl and 33cl bottle sizes

Seamus O’Hara, founder, says: "We have seen a steady increase in our sales in Ireland for a number of years, but this has really started to gain significant momentum over the past 18 months or so, in both the on and off-trade. A growing number of consumers are seeking more flavoursome beers and also want to support local businesses creating jobs around the country. At Carlow Brewing we have quadrupled our capacity to ensure we are well positioned to satisfy current and future projected demand. We have also invested heavily in our quality systems to ensure that we deliver the consistent high quality product and service that customers purchasing a premium product deserve."

O’Hara’s has an award-winning portfolio of craft beers available in 50cl and 33cl bottle sizes. This includes the group’s traditional Irish Stout and Irish Red, Leann Folláin extra stout for those seeking a step up in flavour, the increasingly popular dry-hopped Irish Pale Ale and the refreshingly crisp Curim wheat beer. Seamus O’Hara also promises that the company will soon be adding to this range. "We are working on a number of new products, including seasonals and limited editions, so watch this space. The great thing is that once people get a taste for craft beer they won’t settle for anything less – so I believe we will continue to see significant growth in the sales of Irish craft beers over the next few years and further proliferation in the range of products available. We are also seeing a big upswing in the number of stockists as Irish craft beer has become a must have category and retailers are filling this gap in their higher margin premium beverage offerings."

For more information, contact Carlow Brewing Company, Muine Bheag Business Park, Royal Oak Road, Bagenalstown, Co Carlow. Telephone: +353 (0) 59 9720509.

Blue Moon from Colorado, USA, is available in 355ml bottles within the off-trade

No need to be blue with 100% growth

Available in draught and in 355ml bottles, Blue Moon, from The Craft Collection, is a genuine Northern American craft beer that was born in 1995 at the SandLot Brewery in Denver, Colorado. Blue Moon, the number one craft beer in the US market, has fast become a hero brand within the Irish craft beer category with its distinctive natural spice and subtle fruit flavour proving a hit with Irish drinkers. With the increased consumer demand, more and more on-trade outlets in Ireland are seeking to stock Blue Moon which is growing at +100% year-on-year.

Look out for the Blue Moon spring seasonal range which includes Blue Moon Valencia Grove Amber – a balanced and medium bodied beer, providing a smooth transition from the hearty winter seasonals to the refreshing short sleeve weather seasonals to come.

To find out more about Blue Moon and its seasonal range, contact the representative from The Craft Collection – Des McCann, world beer and craft specialist, Molson Coors, on 00353 (0) 87 1211755.

Top selling pale ale in off-trade

The launch of Smithwick’s Pale Ale in 2011 marked the first extension of the Smithwick’s range since 1983 and is one which Smithwick’s believes will help build its market share and attract a new audience.

Smithwick’s Pale Ale is craft brewed in individual batches using the finest ingredients: aromatic Amarillo hops, 100% pale ale malt and the prized Smithwick’s yeast. The result is a fuller tasting beer with a long finish, a rich golden colour and a creamy head.

Smithwick’s Pale Ale is now the number one selling pale ale in the off-trade

Benefitting from over 300 years Irish brewing experience, and the much loved heritage of the Smithwick’s brand, Smithwick’s Pale Ale is an excellent opportunity to grow the craft ale category by encouraging lager and cider drinkers to trade up and to try something new.

Since launch, Smithwick’s Pale Ale has gone from strength to strength, and is now the number one selling pale ale in the off-trade (Source: AC Nielsen 12wk end Oct ’12), outselling both Irish and international pale ales.

Smithwick’s Pale Ale is available in a 500ml bottle format from 1,000 off-licences nationwide. Based on the success of the Pale Ale, Smithwick’s traditional Superior Irish Ale is now also available in 500ml bottle format.

Smithwick’s will be supported throughout 2013 with an extensive marketing and advertising campaign, including TV, out of home and in-store support.

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