Molson Coors is Launching a 'Home Draught' Format for Three of its Brands in the UK

03 Jun 2010 • by Natalie Aster

Brewing giant Molson Coors is set to release three of its UK brands in a new keg-style format, designed for consumers looking to replicate the on-trade experience at home. The release coincides with the FIFA World Cup, and while this has historically been a lucrative occasion for pubs and bars, the brewer hopes to capitalize on consumers choosing to watch games at home rather than in the on-trade.

Molson Coors has launched a 'Home Draught' system for its Carling, Grolsch and Coors Light brands in the UK, which will be available in major supermarkets such as Sainsbury and Morrisons. The kegs are shaped to fit neatly into a fridge, and are designed to provide a true draught beer experience, traditionally associated with the on-trade.

The UK off-trade sector has benefitted from the numerous challenges currently facing pubs, bars and restaurants. However, the decline in the on-trade is also down to a wider, long-established trend, which has seen a marked shift in alcohol drinking behaviors. Alcohol consumption in the UK on-trade peaked in the late 1970s and has been subject to a slide ever since.

Many consumers consider their home to be a safe haven in recessionary times, and are happy to replace going out with staying in. Consequently, products that can help to recreate the on-trade experience at home have become increasingly popular, while heavy supermarket discounting has created fierce competition in the off-trade as retailers intensify their efforts to snare custom.

The kegs will be available for purchase in time for the FIFA World Cup in June, which promises to be a very important event for the alcohol industry in the UK. Events such as this have often given a boost to the on-trade sector, but Molson Coors is looking to capitalize on those consumers who choose to watch games in their own homes.

The launch of this new format comes at a time when many consumers will be planning social occasions in their homes. However, competition is fierce in the at-home market, and the company will face significant threats from rival brands and formats. Replicating an on-trade experience in the home is not a new concept in the alcohol industry, and Molson Coors must ensure that its new packaging delivers on its promises in an increasingly crowded market.

Related Research

• Beer, Cider and FABs in the US to 2013
• MarketWatch: Drinks - March 2010
• Alcoholic Drinks - Global Group of Eight (G8) Industry Guide
• Molson Coors Brewing Company - SWOT Analysis