Tesco launches "credit crunch" ale range

Published: 13 October, 2008

Tesco is launching a range of "credit crunch" ales, in a bid to cash in on the rising demand for ale and plug the gap left by falling lager sales.

Tesco is launching a range of "credit crunch" ales, in a bid to cash in on the rising demand for ale and plug the gap left by falling lager sales.

It is introducing a range of ales in 330ml sized bottles. The current standard size is 500ml.

The supermarket gaint hopes that the launch of the 'Magnificent Seven' - which include some of the UK's popular ales - will popularise the beer with cash strapped consumers and non ale drinkers who might not want to risk spending more spend on a drink they might not like.

Research by independent retail analysts TNS reveals that in the last year sales of lager have gone into decline while demand for ale has grown. In the last year the UK ale market has grown by 2% to be worth £414 million a year.

Tesco ale buyer, Ian Targett, said: "We are testing the water to see how popular our Magnificent Seven 330ml ales will be but if they are popular we will extend the range.

"On the continent and elsewhere in the world 330ml bottles are common and many British brewers do bottle up ales at that size but purely for the export market.

"We've been working with some of the biggest brewers in the UK who have either made their smaller export beers available over here for the first time or have made smaller bottles especially for us."

Two years ago Tesco stocked a range of 50 bottled ales but now stocks 300.

The Magnificent Seven ales range includes London Pride, Newcastle Brown, Spitfire, Hobgoblin, Old Speckled Hen and Brewdog IPA. Old Specked Hen is the UK's top selling bottled ale.

All of the Magnificent Seven ales, which will be featured in their own shelf space, will be initially available for £1.29p each.