Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- Changing drinking patterns
- Stagnant volume sales, but growth by value
- Lager dominates the beer market
- Healthy growth for wine…
- …but is outperformed by spirits and liqueurs
- Off-trade sales are gaining ground
- A high number of mergers and acquisitions
- The British enjoy a drink or two
- Active new product development
- Further growth expected
Market Drivers
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- High per capita consumption
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- Figure 1: UK per capita consumption of alcoholic drinks*, 1999-2004
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- Figure 2: Per capita consumption of alcohol in Europe, 1970-2002
- Competition from soft drinks
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- Figure 3: UK soft drinks consumption, 1999-2003
- Increasing consumption despite high taxes
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- Figure 4: Excise duty rates on alcoholic drinks in Europe, 2004
- Under-25s shape consumption patterns
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- Figure 5: Trends and projections in UK population, by age group, 1999-2008
- Figure 6: Trends and projections in the UK population, by socio-economic group, 1999-2008
- Rising affluence gives a boost
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- Figure 7: PDI and consumer expenditure, at constant 1999 prices, 1999-2008
- Strict regulations
- Women in key role in changing drinking habits
- The New World simplifies the wine market
Market Size and Trends
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- Small increases by volume
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- Figure 8: UK volume sales of alcoholic drinks, 1999-2004
- Figure 9: UK value sales of alcoholic drinks, at current and constant prices, 1999-2004
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- Figure 10: Average prices of UK alcoholic drinks, 1999-2004
- Figure 11: Indexed UK sales of alcoholic drinks, 1999-2004
- Beer accounts for the bulk of sales
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- Figure 12: UK volume sales of alcoholic drinks, by sector, 1999-2004
- Figure 13: UK value sales of alcoholic drinks, by sector, 1999-2004
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- Figure 14: Indexed UK volume sales of alcoholic drinks, by type, 1999-2004
Market Segmentation
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- Beer and cider
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- Figure 15: UK volume sales of beer, 1999-2004
- Figure 16: UK value sales of beer, at current and constant prices, 1999-2004
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- Figure 17: UK volume sales of beer, by type, 1999-2004
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- Figure 18: UK value sales of beer, by type, 1999-2004
- Figure 19: UK volume sales of beer, % share by sector, 2004
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- Figure 20: UK volume sales of cider, 1999-2004
- Figure 21: UK value sales of cider, at current and constant prices, 1999-2004
- Wine
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- Figure 22: UK volume sales of wine, 1999-2004
- Figure 23: UK value sales of wine, at current and constant prices, 1999-2004
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- Figure 24: UK volume sales of wine, by type, 1999-2004
- Figure 25: UK value sales of wine, by type, 1999-2004
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- Figure 26: UK volume sales of wine, % share by sector, 2004
- Spirits and liqueurs
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- Figure 27: UK volume sales of spirits and liqueurs, 1999-2004
- Figure 28: UK value sales of spirits and liqueurs, at current and constant prices, 1999-2004
- Figure 29: UK volume sales of spirits and liqueurs, by type, 1999-2004
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- Figure 30: UK value sales of spirits and liqueurs, by type, 1999-2004
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- Figure 31: UK volume sales of spirits and liqueurs, % share by sector, 2004
Distribution
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- In-home drinking is gaining ground
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- Figure 32: UK volume sales of alcoholic drinks, by distribution channel, 1999-2004
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- Figure 33: UK value sales of alcoholic drinks, by distribution channel, 1999-2004
- Beer has the largest proportion of on-trade consumption
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- Figure 34: UK volume sales of beer, by distribution channel, 1999-2004
- Figure 35: UK value sales of beer, by distribution channel, 1999-2004
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- Figure 36: UK volume sales of cider, by distribution channel, 1999-2004
- Figure 37: UK value sales of cider, by distribution channel, 1999-2004
- The bulk of wine is still drunk at home
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- Figure 38: UK volume sales of wine, by distribution channel, 1999-2004
- Figure 39: UK value sales of wine, by distribution channel, 1999-2004
- Rising spirits consumption has benefited both the on- and off-trade
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- Figure 40: UK volume sales of spirits and liqueurs, by distribution channel, 1999-2004
- Figure 41: UK value sales of spirits and liqueurs, by distribution channel, 1999-2004
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- Figure 42: UK volume and value sales of alcoholic drinks, by distribution channel, 2004
- Trading base – on-trade
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- Figure 43: Number of licensed premises in England and Wales, 1998-2004
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- Figure 44: Major UK pub groups, by number of outlets, 2005
- Trading base – off-trade
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- Figure 45: Number of off-licences in the UK, by outlet type, 2000-03
The Supply Structure
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- Beer and cider
- Increasing consolidation
- Scottish & Newcastle leads the beer market
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- Figure 46: Manufacturers’ volume shares of the UK beer market, 1999-2004
- Figure 47: Brands’ value shares in the UK on-trade beer sector, 2000-04
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- Figure 48: Brands’ value shares in the UK off-trade beer sector, 2000-04
- Strongbow is the best-selling cider brand
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- Figure 49: Brands’ value shares in the UK on-trade cider sector, 2000-04
- Figure 50: Brands’ value shares in the UK off-trade cider sector, 2000-04
- Wine
- Imports of New World wines register substantial growth
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- Figure 51: UK imports of still wine by country of origin, 1999-2003
- Figure 52: Leading UK still wine brands, by volume, 2004
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- Figure 53: Leading UK still wine brands, by value, 2004
- Figure 54: Value ranking for top 20 UK branded wines, 2004*
- Spirits and liqueurs
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- Figure 55: Brands’ value shares of spirits in the UK off-trade sector*, 2003-04
- Companies and brands
- Scottish & Newcastle
- Carling Brewers (Coors)
- Interbrew UK
- Carlsberg UK
- Diageo
- Allied Domecq
- Bacardi-Martini
- Maxxium UK
- Constellation Brands
New Product Development
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- Premium lager features strongly in beer launches
- Single-serve packaging in wine
- Numerous line extensions in spirits and liqueurs
- New product launches 2004-05
- Beer and cider
- Wine
- Spirits and liqueurs
The Consumer
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- Figure 56: Alcohol consumption and frequency of consumption, by country, 2004
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- Figure 57: Trends in alcohol consumption, by gender and country, 2002-04
- Trends in alcohol consumption – winners and losers
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- Figure 58: Trends in alcohol consumption, 2002-04
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- Figure 59: Trends in alcohol consumption, by type of drink, 2002-04
- Current consumption patterns
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- Figure 60: Alcohol consumption, by gender and age, 2004
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- Figure 61: Alcohol consumption, by income and working status, 2004
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- Figure 62: Alcohol consumption, by region, 2004
- Consumption by type of drink – beer and wine
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- Figure 63: Penetration of beer and wine, by type, by gender, 2004
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- Figure 64: Consumption of beer and wine, by type, by gender and age, 2004
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- Figure 65: Consumption of alcohol, by type, by income and working status, 2004
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- Figure 66: Consumption of beer and wine, by type, by region, 2004
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- Figure 67: Consumption of beer and wine, by type, by presence of children and household size, 2004
- Consumption by type of drink – spirits and liqueurs
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- Figure 68: Penetration of spirits and liqueurs, by type, by gender, 2004
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- Figure 69: Consumption of whisky, by type, by gender and age, 2004
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- Figure 70: Consumption of spirits and liqueurs, by type, by gender and age, 2004
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- Figure 71: Consumption of whisky, by type, by income and working status, 2004
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- Figure 72: Consumption of spirits and liqueurs, by type, by income and working status, 2004
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- Figure 73: Consumption of whisky, by type, by region, 2004
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- Figure 74: Consumption of spirits and liqueurs, by type, by region, 2004
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- Figure 75: Consumption of whisky, by type, by presence of children and household size, 2004
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- Figure 76: Consumption of spirits and liqueurs, by type, by presence of children and household size, 2004
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- Figure 77: Top three preferred drinks, by age, 2004
- Frequency of drinking
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- Figure 78: Frequency of drinking alcohol, by choice of drink, 2004
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- Figure 79: Frequency of drinking alcohol, by drinkers, 2004
- Lifestyle statements
- Media attitudes
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- Figure 80: Attitudes towards media, by choice of alcoholic drink, 2004
- Drinking in and out of home
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- Figure 81: Attitudes towards entertainment, by choice of alcoholic drink, 2004
- Quality and price
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- Figure 82: Attitudes towards quality and price, by choice of alcoholic drink, 2004
- Brands and shopping
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- Figure 83: Attitudes towards shopping and brands, by choice of alcoholic drink, 2004
- Interest in new drinks
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- Figure 84: Attitudes towards drinking habits and trying new drinks, by choice of alcoholic drink, 2004
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Prospects
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- A favourable economic setting
- Cultural issues are more complicated
- Lager set to continue to triumph
- Good prospects for wine
- In search of the next big thing in spirits
- The off-trade will gain further ground
Forecast
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- Cultural as well as economic considerations
- Markets with a level of maturity
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- Figure 85: Forecast for UK volume sales of alcoholic drinks, 2004-09
- Static volume result of drinks swapping
- Rejuvenated spirits slowing
- Focus on adding value
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- Figure 86: Forecast for UK value sales of alcoholic drinks, at current sterling prices, 2004-09
- Growth in value maintained
- Premium products to gain across the board
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- Figure 87: Forecast for UK value sales of alcoholic drinks, at current euro prices, 2004-09
- Trading up apparent in real growth
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- Figure 88: Forecast for UK value sales of alcoholic drinks, at 2004 sterling prices, 2004-09
- A wide consumer base reflected in input factors
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