Table of Contents
Issues in the Market
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- Definition
- Beer
- Cider
- Wine
- Spirits & liqueurs
- Consumer research
- Abbreviations
Market in Brief
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- Adrift on a sea of booze?
- Wine is more popular than beer
- Binge drinking hits the headlines
- Goodbye to the traditional pub
- Booze while you shop
- Living at a premium
- Back to the future
Internal Market Environment
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- Key points
- Less can be more
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- Figure 1: Per capita volume consumption of alcoholic drinks among the UK adult population (15+), by type, 2002-07
- UK not Europe’s booziest…but we try harder
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- Figure 2: Long-term trends in per capita alcohol consumption in Europe, 1970-2005
- Drinking is really a middle-aged habit
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- Figure 3: Alcohol consumption in last 12 months, by age, 2002-07
- A nation of softies
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- Figure 4: UK consumption and expenditure on soft drinks, 2002-06
- Alcohol, health and a changing climate
- The ‘new war against alcohol’
- Binge drinking and social responsibility – Government action
- Advertising restrictions?
- The price is right
- A licence to drink?
- No booze without smoke?
Broader Market Environment
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- Key points
- The Peter Pan effect
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- Figure 5: Structure of the UK population, by age and gender, 2002-12
- Favourable employment situation benefits sales
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- Figure 6: UK workforce and employment, by gender, 2002-12
- Binge-drinking is highest in less affluent regions...
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- Figure 7: Adult population trends, by socio-economic group, 2002-12
- …but well-off areas have little to crow about
- Buoyant economy since 2002, but outlook is less rosy
Who’s Innovating?
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- Key points
- The UK tops new launches chart
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- Figure 8: New product launches in alcoholic drinks, by sector, by country, 2007
- Wine launches dip notably in 2006
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- Figure 9: Trends in new product launches in alcoholic drinks in the UK, by sector, 2002-07
- Increasing premiumisation
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- Figure 10: Trends in new premium product launches in alcoholic drinks, by country, 2002-07
- New product development – lager
- Ales & stouts
- Cider
- Wine
- Spirits & liqueurs
Market Size and Forecast
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- Key points
- Market in volume and value decline
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- Figure 11: UK volume sales of alcoholic drinks, 2002-12
- Figure 12: UK value sales of alcoholic drinks, at current and constant prices, 2002-12
- Beer still outselling all other drinks in volume terms
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- Figure 13: UK volume sales of alcoholic drinks, by type, 2002-12
- Premiumisation helps values
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- Figure 14: UK value sales of alcoholic drinks, by type, in sterling terms, 2002-12
- What the future holds
- Can ale reinvent itself as cider has?
- Cider – a remarkable transformation
- Wine packaging is changing – screw tops and boxes are more acceptable
- Infrequent spirits buying for in-home drinking concentrated at Christmas
- Forecast
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- Figure 15: UK volume sales of alcoholic drinks and per capita consumption (adults aged 15+), 2002-12
- Alcohol market has peaked
- Beer market continuing slow decline
- Wine demand set to peak in 2010
- Cider phenomenon to peak in 2008
- Spirits & liqueurs remains stagnant
- Factors used in the forecast
Segment Performance
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- Key points
- Beer
- The great depression
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- Figure 16: UK volume sales of beer, 2002-12
- Beer accounts for 44% of all alcohol expenditure, but sales are declining
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- Figure 17: UK value sales of beer, at current and constant prices, 2002-12
- Lower-alcohol variants ready for success
- Specialities benefit from brand awareness amongst the young
- Cider
- Sweet taste of success
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- Figure 18: UK volume sales of cider, 2002-12
- Magners revitalises the category
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- Figure 19: UK value sales of cider, at current and constant prices, 2002-12
- Cider sees a resurgence of product development
- Successfully attracting younger drinkers, and women
- Wine
- More accessible and greater choice
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- Figure 20: UK volume sales of wine, 2002-12
- Deep discounting affects value performance
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- Figure 21: UK value sales of wine, at current and constant prices, 2002-12
- Benefiting from the health aware? – red wine takes over half the market
- Grocery multiples help shoppers to choose wines more easily
- Supermarkets bring champagne to the masses, but sales still peak at Christmas and New Year
- Fortified wine also in need of reinvention
- Spirits & liqueurs
- Changing drinking habits have an adverse effect on demand
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- Figure 22: UK volume sales of spirits and liqueurs, 2002-12
- Figure 23: UK value sales of spirits and liqueurs, at current and constant prices, 2002-12
- White spirits form the largest sector – due to popularity with younger drinkers
- Again, under-35s hold the key to success
- Cocktails also bringing younger consumers to spirits
Market Share
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- Key points
- Continued consolidation
- But local brands remain important
- Concentrated beer supply, but room for regionals
- Cider led by S&N with Magners in second place
- Wine is largely unbranded, but brands are making headway
- Spirits & liqueurs controlled by three multinationals
Companies and Products
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- Bacardi-Martini
- Constellation Brands
- Coors Brewers UK (CBL)
- Diageo
- InBev UK
- Pernod Ricard
- Scottish & Newcastle
Brand Communication and Promotion
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- Key points
- Italy and Germany see more drinks advertising than the UK
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- Figure 24: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07
- Key multinationals invest the most in their brands
- Magners and Bulmer’s brands received most support in 2007
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- Figure 25: Main monitored media advertising expenditure on alcoholic drinks in the UK, Jan-Sept 2007
Channels to Market
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- Key points
- From pub to home
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- Figure 26: UK volume sales of alcoholic drinks, by sector, by distribution channel, 2002-07
- Food grows in importance to the on-trade
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- Figure 27: UK volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007
- On-trade takes its largest share of volumes (and value) in beer
- Low prices attract consumers to the off-trade…
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- Figure 28: UK value sales of alcoholic drinks, by sector, by distribution channel, 2002-07
- …but attract criticism
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- Figure 29: UK value sales of alcoholic drinks, % share by distribution channel, by sector, 2007
The Consumer – Pan-European Overview
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- Key points
- 87% and steady
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- Figure 30: Alcohol consumption, by country, 2005-07
- Brits prefer to drink at home, perhaps with a takeaway
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- Figure 31: Indexed attitudes towards eating and drinking, by all adults, by country, 2007
- Special offers have led to expectations of low prices
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- Figure 32: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007
The Consumer – Alcohol Consumption in the UK
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- Key points
- The young are not the biggest drinkers, the 35-54s are
- Affluence is linked to increased drinking – due to lifestyles rather than prices
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- Figure 33: Alcohol consumption in last 12 months, by demographic sub-group, 2007
- Men prefer beer, women wine
- Wine needs to woo the young
- Most spirits weighted towards men, except liqueurs and mixables
- White spirits have youth appeal, dark spirits less so
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- Figure 34: Consumption of beer and wine, by type, by demographic sub-group, 2007
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- Figure 35: Consumption of spirits & liqueurs, by type, by demographic sub-group, 2007
- Increased frequency of drinking
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- Figure 36: Trends in frequency of drinking, 2002-07
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- Figure 37: Frequency of drinking alcohol, by choice of drink, 2007
- Beer gives way to wine and champagne becomes more popular than whisky
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- Figure 38: Trends in alcohol consumption, by type of drink, 2002-07
Consumer Attitudes
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- Key points
- Home sweet home
- Drinkers are open to new products, but wine drinkers are relatively conservative
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- Figure 39: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007
- Room for alcohol within a healthy diet?
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- Figure 40: Attitudes towards alcohol and health, by choice of alcoholic drink, 2007
- Positive environment for premiumisation
- Aspirational sparkling wine, champagne and gin drinkers
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- Figure 41: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007
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