Table of Contents
Issues in the Market
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- Key themes
- Definition
- Abbreviations
Future Opportunities
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- Guiding the errant young ones
- Get a taste of this
Market in Brief
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- Switch to in-home
- Wine dominates at the supermarket
- Discounting blamed for binge culture
- Minimum pricing faces opposition
- And would not necessarily help the on-trade
Market Environment
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- Key points
- Drinking in decline
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- Figure 1: Trends in alcohol consumption, 2006-10
- Switching to in-home
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- Figure 2: Frequency of alcohol consumption (in home, out of home and all (in or out of home)), 2010
- Tesco dominates the in-home market
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- Figure 3: Supermarkets share of alcohol sales vs share of all groceries 52 w/e 12 July 2009
- On-trade continues to suffer
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- Figure 4: Statements on drinking habits, 2006-10
- Where duty is still an issue
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- Figure 5: Duty increase, by alchol type, 2003-10
- Demographic changes will further fuel the shift
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- Figure 6: Index of statements on drinking habits, by gender, age, and socio-economic group (100=average), August 2010
Legislative Factors Affecting Supermarkets
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- Key points
- The Scottish look to lead the way
- Could the rest of the UK follow?
- Changes to licensing laws
- Supermarkets keen to show responsibility
- Key views on minimum/alternative pricing
Competitive Context
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- Key points
- On-trade under pressure
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- Figure 7: Percentage of people who bought alcohol from various outlets in the last year, 2000-09
- Off-licences and independents
- Booze cruises can no longer compete
- Online goes from strength to strength
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- Figure 8: Online alcoholic beverage retail market, 2005-15
- Figure 9: Average unique users per month for online supermarkets, May 2009-August 2010
Who’s Innovating?
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- Key points
- Wine advisers
- Utilising mobile technology
- US turns to vending
Brand Communication and Promotion
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- Key points
- Supermarkets continue above-the-line investment
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- Figure 10: Advertising spend by leading supermarkets on alcoholic drinks, 2005-10*
- Tesco leads the way
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- Figure 11: Share of spend on above-the-line advertisiing on alcoholic drinks, by supermarket, 2008-09
- Wine has prominence
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- Figure 12: Top ten brands advertised by select leading supermarkets on alcoholic drinks, 2008-10*
Consumer Usage – How Much Do They Spend and On What?
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- Key points
- Weekly spend is marginal for most
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- Figure 13: Expenditure on alcohol at the supermarket in a typical week, August 2010
- A small group spend £20 plus
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- Figure 14: Index of those spending £19 or less and £20 or more at the supermarket in a typical week, by gender, age, socio-economic group and supermarket used (100 = average), August 2010
- Wine and beer dominate supermarket choice
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- Figure 15: Types of alcohol bought from the supermarket in the last 12 months, august 2010
- Wine and beer drinkers
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- Figure 16: Index of wine drinkers compared to beer, by gender, age, socio-economic group and supermarket used (100 = average), August 2010
- Occasional drinks
- Choice differs by age
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- Figure 17: Types of alcohol drunk in the last 12 months, by age, August 2010
Consumer Usage – Which Discounts Appeal the Most?
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- Key points
- Consumers look to discounts
- Alcopops top promotions
- Older consumers aren’t as interested in promotions
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- Figure 19: Net difference of promotions/discounting of alcohol taken advantage of at supermarkets in the last 12 months, under-45s versus over-45s, August 2010
- The rich and poor both like a bargain
Consumer Attitudes Towards Discounting
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- Key points
- Are discounts really a loss leader?
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- Figure 20: Index of any agree on statement ‘I sometimes choose which supermarket to shop at based on who has the best offers on alcohol’, by supermarket used, (average = 100) August 2010
- Affordability
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- Figure 21: Attitudes towards purchasing alcohol at supermarkets, August 2010
- Brand loyalty
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- Figure 22: Index of any agree with attitudes towards purchasing alcohol at supermarkets, by age, (average = 100), August 2010
- Stocking up
- Consumer confusion
- Discounts fuelling binge buying/drinking?
- A British problem
- Pre-loading gets the blame
- Perception that the home is a more responsible venue?
Consumer Attitudes Towards Minimum Pricing
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- Key points
- A costly endeavour
- The effect on binge drinking
- Minimum pricing wouldn’t necessarily help pubs
- Anti-nanny state
- Most consumers say it wouldn’t affect their behaviour
- Consumers unlikely to drink less overall
- Or trade down to cheaper brands
Consumer Targeting Opportunities
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- Key points
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- Figure 29: Consumer clusters for alcohol purchasing in supermarkets, August 2010
- Moderates (29%)
- Pro minimum pricing (32%)
- Price driven (27%)
- Discount driven (12%)
Appendix – Market Environment
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- Figure 30: Trends in alcohol consumption, 2006-10
- Figure 31: GDP, PDI, consumer expenditure and savings, at constant 2010 prices, 2005-15
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- Figure 32: Trends in consumption of alcoholic drinks two to three times a week or more, by alcoholic drink, 2006-10
- Figure 33: Drinking occasions in home for beer/lager/ale/cider, by demographics, 2010
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- Figure 34: Drinking occasions in home for beer/lager/ale/cider, by demographics, 2010
- Figure 35: Trends in the age structure of the UK population, 2005-15
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- Figure 36: Forecast adult population trends, by socio-economic group, 2005-15
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Appendix – Brand Communication and Promotion
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- Figure 37: Advertising spend by leading supermarkets on alcoholic drinks, 2005-10*
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Appendix – Consumer Usage – How Much Do They Spend and On What?
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- Figure 38: Weekly spend on alcohol at the supermarket, August 2010
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- Figure 39: Weekly amount spent on alcohol at supermarkets, by demographics, August 2010
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- Figure 40: Brand repertoire of alcoholic drinks, by age group, 2009
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Appendix – Consumer Usage – Which Discounts Appeal the Most?
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- Figure 41: Types of alcohol bought from the supermarkets in the last 12 months, by promotions/discounting of alcohol taken advantage of at supermarkets in the last 12 months, August 2010
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- Figure 42: Promotions/discounting of alcohol taken advantage of at supermarkets in the last 12 months, by demographics, August 2010
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Appendix – Consumer Attitudes Towards Discounting
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- Figure 43: Attitudes towards purchasing alcohol at supermarkets, by demographics, August 2010
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- Figure 44: Most popular money spent on alcohol at supermarkets in a week, by demographics, August 2010
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- Figure 45: Next most popular money spent on alcohol at supermarkets in a week, by demographics, August 2010
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- Figure 46: Attitudes towards purchasing alcohol at supermarkets, by demographics, August 2010
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- Figure 47: Attitudes towards purchasing alcohol at supermarkets, by demographics, August 2010
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- Figure 48: Attitudes towards purchasing alcohol at supermarkets, by demographics, August 2010
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Appendix – Consumer Attitudes Towards Minimum Pricing
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- Figure 49: Statements on minimum pricing of alcohol at supermarkets, by promotions/discounting of alcohol taken advantage of at supermarkets in the last 12 months, August 2010
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- Figure 50: Statement on minimum pricing of alcohol at supermarkets, by demographics, August 2010
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Appendix – Consumer Targeting Opportunities
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- Figure 51: Target groups, by demographics, August 2010
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