Review of Light & Mid Strength Beers 2005

It’s not just coincidence that as the baby boomer Grey Army heads north and west to warm those aging bones, we see a rise in low alcohol and midstrength beers. In fact, they now rank second in overall beers sales after the premium ranged products. No doubt that random breath test and drink drive campaigns have also contributed to more conservative attitudes towards alcohol consumption, but from what the older boys tell me, it’s the social embarrassment of not being able to ‘hold their grog like they used to’ that is the driving force behind their choice of drink.

The midstrength market was born in the early 1990s through Swan Gold (followed by Emu Draft and Carlton Midstrength) in WA and XXXX GOLD in QLD. The hot humid conditions of Far-North Queensland led many beer drinkers to begin looking for a bigger flavoured beer than the lights but still lower in alcohol than ‘heavies’. With both markets (Qld. & W.A.) formerly dominated by full strength beers, midstrength offered drinkers in these states a beer that suited their needs and lifestyle. After only a few years, the midstrength segment became the largest segment in both states. Today, midstrength beer is the second largest beer category in Australia accounting for 17.09% of total beer sales and growing at 3.6% per year. In Queensland, midstrength beer represents a staggering 48.6% of total beer sales, larger than the regular beer sales of 37.7%. Without a doubt, the midstrength revolution is a rapidly growing area of the beer market across all states and can no longer be seen purely as a Queensland or West Australian phenomenon.

Launched in 1991, XXXX GOLD transformed the QLD beer landscape and is now the state’s most popular beer. XXXX GOLD continued the great tradition of XXXX brewing heritage by being brewed with only the finest Australian barley and unique golden cluster hops. For almost 15 years, XXXX GOLD has been an integral part of the QLD community, supporting and sponsoring local sporting teams and community events, as well as having an association with Surf Life Saving in both QLD and WA.

A long running television campaign has also captivated QLD drinkers with well known characters Jacko and Marlin seen on television screens for more than five years. With XXXX GOLD found in practically every pub and club in QLD, it was only a matter of time before XXXX GOLD found its way across the border and into the pubs, hotels and homes of other Australian drinkers.

Outside Queensland, activities include XXXX Gold’s support of racing and cricket in many regional areas across the country and has partnered Surf Life Saving in WA for a few years This summer also sees a national pack promotion giving beer drinkers the chance to enjoy the good life by winning a holiday for themselves and their mates every year for the next 20 years. Other activities includes a major sampling program, as well as sponsorship of QLD and South Australian grassroots cricket, and some of QLD’s great sporting teams as well as the broadcast sponsorship of the ICC cricket super series on Channel 9.

In Western Australia the Midstrength category is also well developed, representing 26% of total WA beer market. Carton Midstrength (“Carlton Mid” as the bar call is known) is the market-leading brand at 50.9% of the mid strength category. Consumer/community and trade support for the Midstrength category and the Carlton Midstrength brand include support for the Royal flying Doctors Service, sponsorship of all AFL in WA, i.e. the West Coast Eagles, Fremantle Dockers and WAFL.

Current Carlton Midstrength trade support leverages the success of the recent “Shed” advertising and promotions campaign, which includes TV advertising, on-pack and on-premise consumer promotions. The Foster’s Australia is committed to the Midstrength category and its investment in Carlton Midstrength, an ‘opportunity’ brand, will continue into 2006 and beyond.

Australia’s third largest brewer, Coopers Brewery, says sales of Coopers Mild Ale have exceeded expectations since its launch in October last year.
The new beer, which has an alcohol content of 3.5%, is already outselling some of Coopers more established brands, including Dark Ale. Coopers Chairman and Marketing Director, Mr Glenn Cooper, said Mild Ale had quickly established itself as a serious player in the mid-strength beer sector, particularly in the Queensland and Western Australia where mid-strength beers have well established markets. “Mild Ale’s growth in Queensland and WA has been exceptional, but the product is also showing good take-up in the southern states, which do not have such a tradition of mid strength beers,” he said.

“One of its major advantages is that it is a mid strength beer that doesn’t taste like a mid strength beer. “It’s smooth, easy-drinking ale that’s similar in flavour profile to Coopers Pale Ale and Sparkling Ale, but slightly softer. “It’s an ideal beer for people who enjoy the taste of a full flavoured beer, but wish to limit alcohol consumption. Many people are telling us they are drinking Mild Ale simply because of the taste, not because it is lower in alcohol.” Mild Ale is fully brewed using a selection of barley and wheat malt with no added sugar. It then undergoes secondary fermentation in the bottle or can, the same process used in the production of Pale Ale and Sparkling Ale.
Many other reduced alcohol beers start out as normal strength beers, with alcohol being filtered out later, a process that also removes flavour.

This market was likely to grow as the population aged and people sought to limit their consumption of alcohol either for health or lifestyle reasons.
“Coopers Mild Ale is certainly contributing to the development of the mid-strength market, particularly on the southern States,” he said.
“If its growth continues, it will quickly become one of our major brands behind Pale Ale and Sparkling Ale. Mild Ale comprises one standard drink per 375ml bottle or can, compared to 1.3 standard drinks for Pale Ale and 1.7 for Sparkling Ale.

The Midstrength category is still largely undeveloped in New South Wales, Victoria, South Australia and Tasmania, traditionally regular beer markets. Their alternate preference is for Light, rather than Midstrength beer, due most likely to less exposure to the Midstrength category. However recent trends indicate consumer interest in the category and similarly strong growth would be predicted in these States – particularly the warm northern and western cities of NSW.