Erdinger plots alcohol-free expansion in UK grocery

Erdinger is exploring how it can grow its alcohol-free beer offer with new pack formats and flavours, as the German brewer looks to expand further in its biggest export market by volume.

Having established Erdinger Alkoholfrei in the UK off-trade with listings across retailers including Sainsbury’s, Tesco, Morrisons and Waitrose, Erdinger was now exploring “further development” of its alcohol-free portfolio, senior regional sales director Sven Groß told The Grocer.

“Looking at how the market is developing we’re exploring on how to further develop Erdinger Alkoholfrei,” he said. “Will it be a flavour? Will it be different pack formats? Will it be something completely different? We are not yet decided.”

Erdinger Alkoholfrei was first launched in 2001 and positioned as an isotonic sports recovery beverage for athletes. It now accounts for around a third of all Erdinger sales globally and is a key growth driver for the business amid declining beer consumption in established European markets.

The business was therefore now exploring how it could extend Erdinger Alkoholfrei further into the fast-growing functional beverages segment, Erdinger CEO Stefan Kreisz revealed.

“At the moment, we are just doing experiments,” he said. “It will need to fit within our brand world. We are not looking into making a Red Bull. It will be natural, cereal-based and most likely carbonated.”

Speciality beer target

Meanwhile, the brewer has set its sights on becoming the number one speciality beer brand in UK grocery, having recently expanded its roster by launching Erdinger Brauhaus Helles in 300 Sainsbury’s stores.

The Sainsbury’s launch came alongside a significant development of the retailer’s German beer offering. This presented an opportunity for Erdinger to position itself as an authentic Bavarian brewer, differentiated from pseudo‑import ‘world lagers’, said Groß.

“The UK is a big lager market and we hope in the next few years we can further develop the distribution of the [Erdinger Brauhaus] brand,” he said. “At the moment there are some beers that have the taste of the particular region but that are actually brewed in the UK.

“If you look at what is happening in the market there is still a trend towards less but better, and therefore we believe there are people who will take time to really choose their beer and would rather pay a little premium for something really authentic.”

New Erdinger campaign

To further push Erdinger’s premium credentials, the brand is to roll out a new campaign next year promoting “the Bavarian joy of life”.

Unlike Erdinger’s previous UK ATL campaign, which featured then-Liverpool manager Jürgen Klopp, the new push would seek to develop a deeper emotional connection to the Erdinger brand, export sales director Andreas Kahrs revealed.

“The combination with Jürgen was very much about the product,” he said. “It was very much about showing and showcasing the product. Now we are going more into the emotional. We want to invite consumers to be part of our lifestyle and the joy of Bavarian life.”

Groß added: “We want to show that there is more to Bavarian beer than just festivals like the Oktoberfest. It’s about being outside in the mountains, meeting friends at the lakes, having BBQs and going to the beer garden.”