The Aldi Irish Craft beer Festival: Winning Over New Craft Beer Consumers

The Aldi Irish Craft beer Festival kicks off on Sunday, 2nd October featuring 30 beers from across the island. This is the first time that beer has featured exclusively in promotional campaign run by the German discount supermarket chain in Ireland. Newspapers will be carrying the usual Aldi brochure but today’s features a two-page spread on beer.

The Aldi Irish Craft beer Festival line-up. Prices range from €2.49 to €2.99
The Aldi Irish Craft beer Festival line-up. Prices range from €2.49 to €2.99

The beers offer a good introduction to the quality and range of Irish beers being produced today. Prices start at €2.49 per bottle and for this low price you can enjoy the likes of Carrig’s always quaffable Pilsner or its chocolate-laden Coalface IPA. The majority of the beers are on sale for €2.69 per bottle including Mescan’s Westport Blond and Westporter Stout. A few also come in at €2.99 per bottle, including Dungarvan’s Mine Head, the award-winning Francis’ Big Bangin’ IPA and Brehon’s Stony Grey IPA. It’s not all glass by the way. Luminous cans of Rascal’s Wunderbar IPA will be standing out, alongside the brewery’s Big Hop Red.

Supermarkets have tended to include beer as a bolt-on to their wine offers but this is slowly changing. SuperValu, for example, have featured craft beer in both print and broadcast ads. Craft beer sales are up with Aldi alone experiencing double-digit growth in sales over the past year. Indeed, its Irish beer has grown over the years with an accompanying drop in imports stocked, with the exception of the likes of Hobgoblin and the odd German, Belgian or French offering. However, a Marston’s exclusive range for Aldi may start appearing on shelves from November. This will be similar to the tie-up that the brewery-chain does for Tesco.

A snapshot of the beers on offer during the promotion, including Golden Harvest Pale Ale produced by 12 Acres for Aldi
A snapshot of the beers on offer during the promotion, including Golden Harvest Pale Ale produced by 12 Acres for Aldi

It tends to be overlooked that Aldi has long-been a supporter of Irish craft beer. Its O’Shea’s range produced by Carlow Brewing has won a loyal following with customers. These beers happily sit alongside the O’Hara’s range on the shelves and given people a solid introduction into the world of craft beer. Aldi has followed this up with commissioning Laois’ 12 Acres to produce the fruity-finishing Golden Harvest Pale Ale. It remains to be seen if this will be a once off or will it be an ongoing collaboration.

Some orthodox craft beer snobs might turn their noses up at the thought of the large multiples, believing instead that independent beer should only be sold in independent retailers. This ignores the choice and freedom for the brewers to decide where their beer should be sold, whether on-trade or off-, independent or chain etc. Of course, it’s important that prices remain sustainable and they don’t seriously undercut other retailers.

Supermarkets remain an important sales channel for brewers wanting to reach new customers
Supermarkets remain an important sales channel for brewers wanting to reach new customers

Yes, these beers (with the exception of those brewed exclusively for Aldi) can be bought elsewhere. Thinking like that misses the point. The opportunity to access the widest customer-base for their products is nothing to be sneered at. The Aldi promotion will run across all its 126 in Ireland until stocks last. The beers will also feature in its media-buy. For the craft beer sector, a large client such as supermarket chain can buy a certain-degree of confidence with the banks or others in attracting finance, capital and investment. Brewing is hugely capital intensive, with pressures on working capital and the need to expand to satisfy a growing customer base.

Regardless, it’s great to see more attention on the sector.

Crafty ambitious to be among the the top 50

“We want to be one of the top 50 craft brewers in the world,” said Dr. Pearse Lyons. It’s as simple as that for one of Ireland’s most successful entrepreneurs. His ambition knows no bounds. It’s been a busy few years for Alltech in terms of growth. The company has sold off particular business units that were no longer of key focus and has also acquired a number of other companies to accelerate its growth. However, last week’s announcement was the first time that it purchased a brewery or two for that matter to boost its beverage division.

The ever-ambitious & entrepreneurial Dr. Pearse Lyons
The ever-ambitious & entrepreneurial Dr. Pearse Lyons

Alltech announced on 21 July that it has acquired The Station Works Brewery in Newry Co. Down and Cumberland Breweries Ltd, in Great Corby, Cumbria, England. The two breweries had been operating under the same ownership and had been positioning itself in the Irish market over the past number of months, on foot of its Finn Lager brand. Station Works had invested well on the branding and big hopes were being placed on its new Foxes Rock ale.

Station Works at the 2015 Alltech Craft Brews & Food Fair
Station Works at the 2015 Alltech Craft Brews & Food Fair

So what’s in it for Alltech? It gives them a foothold into Europe in terms of production and adds a few more beers to their portfolio. The distribution chain for Alltech is quite strong in Ireland but this deal potentially opens up the British market too. The Finn Lager could even be an attractive brand State-side. Foxes Rock could prove popular with the horsey-set (e.g. Leopardstown Races), which fits in with Alltech’s sponsorship strategy. More importantly it gives them two breweries with a combined output of 40,000 hectolitres. This gives them a platform to develop a new range of products or brew existing ones in Europe that could be sold to the local market as well as exporting further afield.

Station Works at the Irish Craft Beer & Whiskey Festival in March 2015
Station Works at the Irish Craft Beer & Whiskey Festival in March 2015

Some craft beer enthusiasts may find it difficult to accept Alltech as a “craft brewery” due to the fact that it’s part of a very large company. They’d point to the typical caveats of small, independent and traditional. As far as I’m concerned the brewery is craft. Yes, it may have corporate leanings but it’s also part of one of the biggest Irish family-owned start-ups. It’s a company that follows a path of increasing organically and through acquisitions, it’s the latter that mightn’t sit easily with everyone.

He literally wears his ambition
Literally wearing his ambition

The big question is where next for Alltech? In order to achieve the target of being in the top 50 of craft breweries worldwide, surely more take-overs can be expected. Wonder if any will come from those that have participated in the Alltech Brews and Food in recent years? There were more than a few of them that came from far and wide.