Spanish brewer Damm is accelerating its international expansion and diversifying its product offerings in response to shifting global market dynamics and changing consumer preferences. With a presence in approximately 130 markets, the company continues to build on the international success of its flagship brand, Estrella Damm, while exploring growth opportunities beyond traditional beer.
Expanding Global Footprint
Damm’s international business, which currently contributes 20% of the company’s total turnover, aims to increase that share to 25% within the next few years. The company has recently strengthened its presence in key markets such as the UK, through distribution partnerships with Japan’s Kirin and local brewer Northern Monk, and in China, where it has formed an alliance to distribute Japanese beer brand Orion.
“Estrella Damm is now consistently available in over 85 markets,” said Juan González Gil, head of Damm’s international business. “Our partnership with Football Club Barcelona also reinforces our global appeal, particularly among younger consumers who are drawn to brands with heritage and aspirational value.”
Responding to Market Trends
Across international markets, Damm is observing a clear consumer shift toward premium beers and more diverse flavor profiles. This trend is supported by the growing popularity of world lagers that appeal to a new generation of beer drinkers.
“In markets like the US and UK, there’s a distinct move toward off-trade consumption,” González Gil noted. “We’ve responded with eye-catching packaging, including limited editions like our FC Barcelona cans, and are activating marketing campaigns at retail points of sale.”
In China, the company is capitalizing on the country’s burgeoning luxury segment through its gastronomic beer Inedit. Marketed as a high-end product, Inedit has seen rapid growth and is now primarily consumed in on-trade channels, where it is perceived more as a luxury beverage than a traditional beer.
Meanwhile, in the US, Damm’s gluten-free beer Daura addresses the growing demand for functional beverages. Consumers in developed markets are increasingly seeking products that are low in calories, vegan, alcohol-free, or offer other health-related benefits.
Navigating Trade Barriers and Tariffs
Tariffs remain a persistent challenge in international trade. Damm’s approach to mitigating such risks involves establishing a more localized presence in core markets, thus transforming from a traditional export-focused business to a fully integrated international operation.
“Every year, a country might impose a 30% to 100% tariff increase,” González Gil explained. “However, our premium positioning and functional products like Daura help buffer against price sensitivity.”
Emerging trade agreements, such as the pending deal between the European Union and Mercosur countries, are expected to ease tariff pressures and open new opportunities for international brewers.
Targeting Younger Generations
Damm is also adjusting its marketing and product development strategies to align with the values and behaviors of Generation Z. Unlike previous generations, younger consumers prioritize experiences, authenticity, and diversity in product choice.
“Premium now means different things—heritage still matters, but so does cultural relevance,” González Gil said. “For instance, Barcelona, where Estrella Damm originates, is an aspirational city for many young consumers.”
The brewer is leveraging music and cultural festivals like Primavera Sound and Sonar in Barcelona to enhance brand engagement. Notably, 60% of Sonar attendees are international, highlighting the potential for global resonance.
Broadening the Beverage Portfolio
Recognizing that beer alone cannot fulfill all consumer needs, Damm has expanded its product range to include non-alcoholic and low-alcohol options, as well as soft drinks. A recent agreement with Nestlé allows Damm to produce, market, and distribute Nestea in Spain.
The company has also launched innovations like Rosa Blanca (3.4% ABV) and Damm Lemon (3.2% ABV) in the UK. These additions are aimed at capturing varied consumption moments and competing more effectively in a beverage landscape that now includes a wide array of alternatives beyond beer.
Adapting to a Changing Industry
Damm’s willingness to adapt reflects a broader shift in the brewing industry, where legacy brands are increasingly being challenged by new entrants and shifting consumer preferences.
“In many markets, we’ve seen dominant brands lose significant market share,” said González Gil. “We’ve learned from those experiences and are more proactive in developing a credible, diverse portfolio anchored by Estrella Damm.”
By investing in innovation, expanding geographically, and staying attuned to evolving consumer habits, Damm is positioning itself as a versatile player ready to lead in the next chapter of global beverage trends.
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