Supermarket chain Tesco expands its craft beer range

Considering the skimpy margins at British retailers, it was no surprise really that Britain’s leading supermarket chain Tesco has increased its craft beer range by almost a third, to over 70 brands drawn from 30 UK and international brewers.

Tesco said that this was in response to consumer demand as sales of craft beer have risen by 40 percent. But one should not rule out Tesco’s pecuniary concerns either.

In order to create some space on its beer shelves, someone had to give way. Spectacularly, it was Britain’s major brewer Heineken, which saw the number of its listed SKUs fall from 53 to 22. Among them would have been brands whose margins were not as good as those enjoyed by craft beer.

Next to such well-known craft brands like BrewDog, Goose Island (AB-InBev), Sam Adams and Brooklyn, shoppers can now find a sour beer by Derbyshire-based Thornbridge’s Tart Bakewell beer, which is selling for GBP 1.90 (USD 2.45) for a 330 ml bottle.

Tesco’s craft beer buyer Chloe Harrison was quoted as saying: “Britain’s thirst for craft beer shows no sign of slowing down. It’s a drink that is popular with both millennial and older drinkers looking for a more artisan experience and exciting flavours.”

The number of UK craft brewers has grown 65 percent from 1,026 in 2011 to around 1,700 today, more per capita than any other nation in the world.

However, only 23 percent of UK adults drink craft beer, according to Mintel’s 2016 beer report.