How much is the UK beer category worth?
The UK Beer category is worth £5.27bn in the total market1. In impulse, including convenience and independent stores, this figure stands at £1.3bn1, so there is a real opportunity for wholesalers when it comes to supporting their retailer customers. It remains a vital and relevant category, one that has a huge consumer audience, and at HEINEKEN UK we’re both excited and encouraged by the traction that Premium Lager is gaining within this, with Cruzcampo® being a star performer.
Is the market in growth and what is driving that growth?
While volumes have experienced a slight decline, Beer remains stable in value in the UK year-on-year – revealing a shift in how shoppers interact with the category as a whole, in light of trends such as premiumisation and moderation1. This bigger picture is really important, especially when we look at Lager – which represents 70% of Beer sales. The Lager category is huge, including a wide range of brands and products spanning three distinct segments: Classic Lager, Premium Lager, the largest segment, which is in growth, and World Lager, the most premium segment which is also seeing growth.
HEINEKEN UK delivered £39m worth of growth to the Beer category last year, more than any other brewer1, with new product innovation being key to us leading the category. As a business we were in the fortunate position to be able to deliver an impressive 46%2 of all the NPI launched in 2024 and we had some of the best performing new product innovation launches. This of course includes the iconic Cruzcampo®, which is now worth £50m2.
Tell us about Cruzcampo® and its journey in the UK market since launching in 2023?
Founded in Sevilla in 1904, Cruzcampo® is an authentic Spanish Lager, launched into the UK market in 2023 by HEINEKEN UK. We noticed that Spanish Lager was growing in popularity among UK consumers and therefore jumped on the opportunity to launch a high quality, yet affordable, option to cater for the growing demand for Mediterranean Lagers, and to drive incremental purchase in the category among new fans of Spanish Beer. The brand was launched in the wholesale channel with impactful, stand-out depot activations and support for retailers in stores such as POS kits and display units.
This investment paid off – after only six months in the Off-Trade, Cruzcampo® had become the ninth bestselling NPD in the market, and number two for category incrementality3. This achievement was bolstered by Cruzcampo® officially taking its place as the biggest brand launch in over a decade for total trade, based on Value in the first year of launch4. This is a clear testament to the strength of the brand’s positioning, and the impact of our launch strategy – with the percentage of repeat buyers being the highest of any Spanish Lager brand in the category5.
Above all, we have embraced Cruzcampo®’s authentic Sevillian credentials and desirability of its relaxed and spontaneous culture. This has really resonated with the UK market and supercharged the brand’s success.
How is the brand currently performing in the wholesale channel?
Cruzcampo® is performing extremely well in the wholesale and convenience channel. It is currently the fastest growing Beer brand in value terms – with sales reaching £39.8M, which is growth of +76.6%6.
The brand performs particularly well over key trading periods such as summer, when shoppers can pair a refreshing Cruzcampo®, brewed to be enjoyed in the heat of the Andalucian sun, with delicious Spanish Tapas and be transported to the cobbled streets and courtyards of Sevilla. Spanish Lager plays perfectly into those moments of celebration where people may want to treat themselves to something a little more special, and authentic, without breaking the bank – and Cruzcampo® helps wholesalers play into this.
What category trends are driving this performance?
One of the key drivers for Cruzcampo®’s growth across wholesale and convenience has been the shift in shopper behaviour. We know that shoppers in this channel are now seeking quality tasting products in our category with 47% of total shoppers focussed on quality over saving money7. Cruzcampo® delivers on refreshing taste credentials and has stand out packaging, making it easy for shoppers to find it in depots and stores.
We also know that consumers enjoy discovering drinks with depth and culture. Across the board in the channel, we’ve seen Spanish Beers growing in importance – in 2024, we saw sales of Spanish Lager increase by +18%, which outperformed total channel Beer growth8. Consumers are embracing the brands that can tell an authentic story, and Cruzcampo® has been well-placed to tap into this trend.
We ensure the brand’s Sevillian heritage is brought to life through a number of different touchpoints – for example, our vibrant coloured tile pattern which now features across all secondary packaging and POS which is inspired by the beautiful ceramic tiles that adorn Sevilla.
How does Cruzcampo® fit within the broader HEINEKEN UK portfolio?
HEINEKEN UK has the broadest range of beers across brewers in the UK with a balanced portfolio of versatile brands in every segment of the category. We believe there is a beer for everyone, and this is proven through us reaching more consumers than anyone else and any other brewer9.
Cruzcampo® is designed as a mainstream Spanish lager that offers all the advantages of a premium beer at an affordable price, while tapping into that demand for credible heritage and flavour discovery. This is key for maintaining strong growth, even in a time of tightening budgets as shoppers look for quality options at accessible price points.
How have you made the brand unmissable to consumers?
Cruzcampo® has been backed by effective advertising, and consistently-delivered, excellent taste profiles. The brand’s first UK marketing campaign, ‘Choose to Cruz’, reached more than 24 million consumers following a £10m investment. Running from April to July 2024, the campaign appeared across TV, VOD, OOH, radio, digital audio and social media, alongside influencer activity.
‘Choose to Cruz’ highlighted the brand’s authentic Sevillian heritage, tapping into the demand for Mediterranean styles during the peak summer season, while also speaking to the more relaxed drinking occasions that the brand is so well suited to.
What kind of marketing support is backing the brand this year?
This year sees a continuation of our Choose to Cruz campaign, inspiring consumers to live in the moment and go with the flow – just like they do in Sevilla. Alongside rerunning the 20s ad across TV and VOD, we’ve introduced new elements to the plan to drive awareness and consideration, such as contextual assets across OOH, social, digital and Spotify and most recently, taking over Piccadilly Lights. We still have more to come – so watch this space.
How are you helping wholesalers and convenience retailers maximise the opportunity?
Since the launch in 2023, we have worked to drive the association between Cruzcampo® and Spanish culture and supercharge consumer engagement with the brand. As part of the ‘Choose to Cruz’ campaign we also ran a limited-edition gift-with-purchase mechanic to bring a taste of Sevilla into consumers’ homes, including a Cruzcampo® ceramic tile coaster or pint glass when purchasing a pack of Cruzcampo®. Activities such as these have helped us to drive positive brand sentiment with consumers and drive footfall into local stores.
We are always looking at ways to engage and reward our retailer partners, and in 2024 we ran an activation with Booker, with every 20 cases of Cruzcampo® purchased resulting in an automatic entry into a prize draw, with the grand prize being a trip to Sevilla. This gave us an opportunity to give something back and create some real excitement with those customers.
New for this year, we have launched 24x330ml packaged formats to help foodservice operators including Spanish restaurants offer an authentic Spanish Lager option where draught may not be available, ensuring consumers can always enjoy the light-bodied beer during the most relevant occasions.
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