Paulaner, the sixth biggest Bavarian brewer, has instructed the property firm Christy & Co to find franchise partners to open up to 10 new sites across the UK over the next few years. It intends to open a variety of food service outlets to provide an “authentic” experience to the consumer, known as Bräuhaus, Wirtshaus, and Bierhaus. Its aim is to tap into the UK consumer demand for authentic beer. However, Paulaner should ensure they understand the rapidly changing market due to inflation.
The German brewery was founded in 1634 by the Paulaner Order of Mendicant Friars in Munich. In 1979, the Schörghuber family took over the majority of the Paulaner Brewery. The company offers beer types including pilsners, light and dark lagers, light beers, alcoholic-free beers and some seasonal beers. Paulaner is a heritage brand and has been one of the official beers of Oktoberfest since 1818. The Paulaner brand has slowly expanded globally, becoming well known in the US as well as setting up beer pubs in Singapore, Bangkok, Shanghai, Beijing and Manila.
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The Bavarian beer company is now looking to expand into the UK, which was the third-largest bar and pub market globally in terms of value (USD) in 2022. Lars Ecart, the managing director of Paulaner, has stated that “we are convinced that we can achieve great success with our Paulaner breweries and pubs in the UK. The market is ready for us.” Paulaner offers a wide range of beer and always claims to provide a “premium” and “authentic” lager, which aligns with UK consumers’ growing desire for more premium beer.
As seen in GlobalData’s 2023 Q2 consumer survey, 27% of UK consumers state that when buying alcoholic drinks, high quality represents good value for money. In addition, the authentic experience will help entice UK beer lovers to new locations, with 67% of consumers stating that authenticity is either “essential” or “nice” to have when buying a product.
However, UK consumers are increasingly concerned with rising prices due to inflation. 78% are either extremely or quite concerned about being able to maintain their current lifestyle in the cost-of-living crisis, indicating that consumer spending on goods such as beer could decrease. On top of this, consumers are prioritising their health and well-being, which could lead to them drinking less alcohol.
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Paulaner Brauerei GmbH & Co KG is set to enter one of the largest bar and pub markets in the world and is looking to take advantage of the beer culture in the UK by providing an authentic Bavarian beer experience through a multitude of outlets catering to a wide variety of consumers. However, despite strong recent growth within the sector, inflation is weighing down on consumers’ spending ability and could potentially lead to a decrease in beer consumption. Hence companies entering the UK market will have to ensure that they provide a range of prices and promotions on their products to help increase affordability during the cost-of-living crisis.
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