Rabobank releases quarterly report on global beer sector

Global financial service company Rabobank has released a report on how the global beer sector reacted to the coronavirus pandemic and how it will fare looking ahead.

The report said that across the globe, the beer sector had suffered from the COVID-19 pandemic in the early stages of 2020.

In some countries such as South Africa, alcohol consumption was restricted, while others like Mexico classified brewing as a non-essential activity and ceased beer production.

Francois Sonneville, senior analyst of beverages at Rabobank, said that in most countries, consumers faced a lockdown and the on-premise channel was closed, creating varying degrees of pain for nearly all brewers.

“In North America, the overall market has held up relatively well, helped by its reliance on off-trade sales and stellar e-commerce growth,” Sonneville said.

“Brewers large and small have proved surprisingly nimble and adaptable — which may lead to notable changes to the on-premise moving forward.”

Craft brewers, who are more dependent on the on-trade, have so far avoided closures, although the winter might impact those dependent on outdoor seating.

In Europe, on-trade markets have been hit hard, especially in tourist areas, and beer going stale in kegs has caused additional problems.

The report said that as new COVID cases are on the rise and there is an increased risk of a second lockdown, chain integration might help to lower costs.

Despite a sharp recovery in China, the loss of summer sales will hang over 2020 Asian beer volumes.

The report said that since China comprises 70% of total Asian beer consumption, it is critical to recovery.

Thailand and Japan have shown smart recoveries in Q3 2020, but for the rest of Asia there are mixed fortunes.

Image courtesy of Rabobank.