If beer brands are to succeed they had better make it local

The global Covid-19 pandemic changed the world in many ways not least in how people think about their local communities. For many people local businesses and community groups suddenly became incredibly important as we all navigated the restrictions imposed by the virus. Lockdowns fostered a sense of belonging with more people keen to support local companies look after neighbours and promote their local identity.

Localism is a trend that has outlasted Covid. As countries around the world find themselves with rising inflation and a cost-of-living crisis people continue to be drawn to ideas products and organisations – whether in the political social economic or ecological spheres – that promote localism. Growing economic uncertainty and geopolitical disruption makes people seek out a sense of belonging as they become more attached to their local environment.¹

In response brands are making moves to link their own agendas to localism whether that is promoting their sustainability performance enhancing their transparency or highlighting how their business is benefitting local communities. In China for example many brands follow what’s known as Guochao the concept of incorporating traditional Chinese cultural elements into products showing that they understand and acknowledge what is important to local movements.

We all need local spirit

The trend for all things local came through loud and clear in the latest research from Panoptic IFF’s proprietary trend and foresight tool. It studies and identifies the most impactful shifts and dynamics shaping the short- mid- and long-term future of industries. By detecting early signals of where markets are heading and understanding the latest thoughts ideas and buying habits across many markets IFF can use the intelligence to drive innovation and create future-proof solutions.

The Panoptic research served up eight ‘lifestyle territories’ – the key influential drivers of change among consumers – as well as 30 ‘lifestyle trends’ that are most pertinent today.

One of the lifestyle territories identified by the research is Cultural Anchors reflecting the desire and demand for people to find meaning by anchoring themselves in cultural expressions and heritage. According to the analysis people are dismissing mass-produced goods in favour of products and experiences that are more unique and authentic. There is a growing interest in provenance and local cultures around the globe. People want to experience more personal and meaningful interactions with local communities. They appreciate products and businesses that understand local cultures and history. And there is more value being placed on the stories behind products brands and experiences.

One of the 30 trends to break through is what Panoptic refers to as ‘Local Spirit’ which reveals a desire for building and fostering a sense of pride provenance and local community belonging.

According to the analysis people have always formed communities around shared locations with pride and an appreciation for local culture expertise and ingredients. This communal spirit and stronger support for close networks and local entrepreneurs offer a sense of belonging while developing a local taste based on an authentic cultural heritage and narrative. More than ever near-sourcing is appealing to people who value sustainability driving the rediscovering and development of what is available in their own regions.

It is a trend backed up by complementary research which shows 53% of consumers say shopping with small and local businesses gives back to their communities and gives them more purpose in their shopping habits.² Around half (49%) of global consumers now say they pay more attention to the origin of the products they are purchasing.³

Examples of brands using it

More and more brands are taking advantage of the demand for localism by supporting communities through small-scale projects that empower local economies. They include:

• Nike Unite. This is a new concept for the sports apparel company designed to help locals connect more closely with sport. Each concept store ensures that only local people get hired and the design and visual merchandising is all about showcasing local partnerships with hometown athletes and local landmarks.⁴
• Deliveroo. The food delivery business has been working with Singapore Red Cross to deliver first aid training for its riders. It’s something the firm has already done in the UK and Ireland. Now Deliveroo riders are equipped with vital skills and first aid knowledge that could help them respond to situations when they are out in communities where they deliver food to people’s homes. “Our riders are a force for good in local communities and equipping our rider fleet with such essential skills can make a world of difference” says Deliveroo Singapore’s General Manager Siddharth Shanker.⁵
• McDonald’s. In the Summer of 2022 the fast-food chain supported Spanish farmers affected by wildfires by launching the ‘Burger That Could Not Be’. The profits from the limited edition product – merely an empty charcoal-black box to act as a reminder of the crops destroyed and all the burgers that would not be able to be produced due to agricultural losses – were donated to farmers struggling to rebuild after the wildfires destroyed more than 47000 acres of land in Valencia.⁶

What does local mean for a beer?

For beer makers the localism trend represents an opportunity to reconsider ingredients and enhance the traceability of products. Right now the sector is lagging behind. According to analysis by Bain around 90% of brands do not embed sustainability frequently in their communications.⁷ And 80% of beer companies showing ‘low’ levels of communication on sustainable themes including health diversity and inclusion waste emissions carbon and water.

Research by Mintel suggests consumers view locally produced goods favourably with 62% of Malaysian consumers say they would like to know more about the people who produce the food and drink they buy⁸ and 63% of American consumers say that they try to buy from local companies where possible. ⁹
In response Anheuser-Busch InBev (AB InBev) whose brands include Budweiser Stella Artois and Corona is focused on supporting local communities through its Smart Drinking initiative¹⁰ by promoting more responsible alcohol consumption creating safer environments for everybody. Meanwhile its business-to-business platform BEES¹¹ is using the power of digital technology to small- and medium-sized retailers who often face challenges in accessing financial services business skills development and the inputs needed to maintain and upgrade their stores.

The South Korean brewer Hite has teamed up with Joe White Maltings in Australia to develop a malt beer made exclusively from barley sourced from Tasmania. The special brew comes packaged in cans featuring a QR code which takes consumers to a map explaining the origins of the malt from barley farm to harvest malting including the dates times and processes involved.¹²

By serving up locally sourced products people have a chance to buy into authentic methods recipes and regional flavours. More and more breweries are responding to this demand by using locally sourced ingredients and embedding themselves in the communities where they’re based. Diageo which owns brands such as Guinness is supporting local communities in developing world countries such as Kenya. East African Breweries is procuring sorghum from 60000 smallholder farmers using the alternative to barley for its – Senator Keg product.¹³

Other examples include:¹⁴

• In Spain Damm’s Estrella Damm is made using barley from local farmers and malted with Mediterranean rice using an original recipe since 1876.
• BK’s Kronenbourg Bière Blonde d’Alsace made with ingredients sourced locally from eastern France including grains and hops.
• Citibrew HK’s Gentlemen Stout Beer brewed using Chinese herbal ingredients including red dates and longan.
• Great Northern Brewing has been brewing craft beer in the Rocky Mountains USA since 1995. Its Wild Huckleberry wheat lager one of its flagship beers is made with juice from local Montana huckleberries.

Conclusion

Locally sourced products – beer or otherwise – offer a way to bring local communities together creating a sense of society that more and more people crave. Enzymes can help beer makers overcome the challenge of low enzyme content of many adjuncts and help lower the viscosity in the process saving on energy and water and making breweries more sustainable. Crucially using local ingredients – and supporting local farming communities – can help brands effectively address the localism agenda.

But it’s important for brands to be authentic and transparent in doing so. For example companies will need to go further in giving consumers access to information that explains the local relevance of their products. They should also explain why local ingredients and products are more sustainable and how they are providing local communities with a source of income. Beyond product localisation brands must also demonstrate they understand the local culture how they fit into it and how their approach will benefit local people.

Localism is here to stay and brands will increasingly be expected to understand what that means so that they can continue being a positive member of communities everywhere.

Footnotes

¹ Marketing Week article https://www.marketingweek.com/localism-no-lockdown-fad.
² Semrush 2021.
³ IFF Human and Consumer Tracker 2021.
⁴ https://www.pymnts.com/news/retail/2020/nike-unite-community-stores-digital-focus.
⁵ https://riders.deliveroo.com.sg/en/news/rider-safety-month.
⁶ https://www.famouscampaigns.com/2022/08/mcdonalds-spain-has-created-the-burger-that-could-not-be-in-support-of-wildfire-torn-farms.
⁷ Bain https://www.bain.com/insights/sustainable-brands-in-your-future.
⁸ https://www.mintel.com/press-centre/food-and-drink/mintels-2022-global-food-and-drink-trends.
⁹ https://www.mintel.com/press-centre/food-and-drink/mintels-2022-global-food-and-drink-trends.
¹⁰ https://www.ab-inbev.com/smart-drinking/smart-drinking-goals/.
¹¹ https://www.ab-inbev.com/news-media/innovation/bees-is-the-fast-growing-e-commerce-platform-that-has-more-than-a-million-retailers-buzzing/.
¹² https://asiabrewersnetwork.com/news/hite-joe-white-collab-on-christmas-beer
¹³ https://farmbizafrica.com/12-machinery/2244-eabl-pays-sh1-5bn-to-its-60-000-small-scale-sorghum-farmers-in-the-region.
¹⁴ Sourced from Mintel’s GNPD https://www.mintel.com/global-new-products-database