"Beer volumes are increasing in
outlets that offer a broader range
of services and products"
World ofHeineken 38 summer 2008
attributed to the smoking ban; sufficient
studies have not been conducted to isolate
the effect. And in certain cases, volumes have
actually increased. France Boissons, which
distributes around 80 per cent of Heineken's
on-premise beer volume in France, notes
diverging effects.
"Over the past few months, coffee volume has
been stable, but we have had to compensate
with an increase in the number of clients,"
says Ludovic Auvray, Sales Marketing
Director at France Boissons, a leading
distributor of beverages including beer and
coffee in that country. "What we're seeing
here is that coffee consumption per outlet
has decreased, with consumers who used to
have one or two cups of coffee in the morning
are now doing so at home. At the same time
though, beer volumes are actually increasing
in outlets that offer a broader range of
services and products, such as lunch-time
cafés and restaurants."
ADAPTING TO THE NEW LANDSCAPE
The introduction of a total ban on smoking
in the on-trade sector has implications that
extend beyond sales volumes alone. In many
markets there has been a cultural shift in how
consumers perceive and experience a visit to
a bar or restaurant.
In most countries, a smoking sub-culture
has developed, with patrons often gathering
outside an outlet as a group, rather than
sitting inside a purpose-built smoking room.
These outdoor areas are becoming a new
social hotspot, and many operators are
catching on. "Only a few operators in Italy
have built designated smoking rooms, opting
rather for a well-structured open air section,
with outdoor heaters for the colder months,"
says Lorenzo Viganö.
"The pub culture in Ireland has changed
dramatically since the smoking ban has
come into force," says Declan Farmer. "While
many pubs have seen a decrease in sales,
others have reported an increase. Successful
publicans in the current marketplace have a
food offering and are continuously investing
in upgrading their premises to meet the
demands of the modern consumer." He adds
that having the space to offer a smoking
alternative is equally important.
At the same time, smoking bans are also
altering the competitive environment of
the on-trade sector in certain markets. "In
Finland, only a limited number of outlets have
invested in purpose-built smoking rooms,
as these tend to be costly and must adhere
to stringent ventilation specifications," says
Sami Asikainen. "Outlets with these smoking
areas have a competitive advantage and are
continuing to attract more customers."
With the introduction of a smoking ban in
the Netherlands in July, very few on-premise
operators have made significant adaptations.
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