The French beer market: an innovative market?

As we saw in the previous article, the French beer market is really decreasing (-3% in 2013 according to Les Echo’s). That’s why; many producers such as Kronenbourg or Heineken invest lot of money in their innovative sector in order to be more attractive and to offer a wide range of product. How these two leaders carry on staying attractive in this hard market? What are their strategies? What are their competitors? Customers, are they receptive? Such amount of questions we will try to answer in this article.

First of all, we can note that their targets are completely different. Indeed, Kronenbourg embodies the image of cheap beer (however, not like the 86 brand) so their client are overall young people and people of more than 35 years: “Even if we address all the age brackets, we are better in two populations, grants Fabien Duvilla, director of the brand Kronenbourg. At the young people who adopt a festive consumption and at the men of more than 35 years, consumer with incomes means”. Popular drink, Kronenbourg is in being the image of the French market: people in the average and modest incomes consume 70% of the beer volumes. However, Heinekens attracts above all the small consumer’s, the urban, the women and the South of France where the culture of beer is non-existent. This concentration highlights a real willing, strategy of Heineken: “The regular consumption in the traditional regions of the North and from the east of France tends to decrease while the beer is developing in the South”, according to Cyril Charzat Marketing Director in Heineken. We can note these differences between these two brands in their packaging. Kronenbourg seems to have a non-relevant packaging for his best seller whereas Heineken develops more sensual and more attractive for the women for example. 

Moreover, since a few years, these two leaders develop more and more innovative beer in order to be more attractive. For example, Kronenbourg develops a “fruity” beer. Kronenbourg tries hard to adapt himself to a market in profound transformation with funny/pop packaging. If trendy beer (Skoll) and of abbey (Grimbergen) continues to gain ground, carried by the rise in the range of the market, classic beers, them, take a nose dive (7,7%). And it is true for several years. "Kro" is the first victim with a declining market share (0,7) even if it keeps its leader's place in this category. 

On its side, Heineken enhances several tastes for its Desperados Brand but it does not create a fruity with its brand Heineken.

Finally; customers seems really to appreciate this new kind of consumption. Indeed, five months only after its launch in mass-market retailing, K by Kronenbourg detains 0,3 point of market shares Volume. It already occupies 5% of the segment of beers trends. Around 270 000 homes were convinced by the fresh and fruity taste, an identical score as Skoll score (according to Kronenbourg site).