Table of Contents
Executive Summary
-
- Impact of COVID-19 on white spirits and RTDs
-
- Figure 1: Short-, medium- and long-term impact of COVID-19 on white spirits and RTDs, 11 March 2021
- The market
- Fall in value sales in 2020 nearly wipes out strong growth over 2015-19
- Declining volume sales coupled with inflation expected for 2020-25
-
- Figure 2: Total value sales of white spirits and RTDs, 2015-25
- Gin sees the fastest growth over 2015-20, but white rum and RTDs are the star performers in 2020
-
- Figure 3: Value sales of white spirits and RTDs, by segment, 2015 and 2020
- On-trade closures send market value plummeting in 2020
- No rise in spirits duties in 2021, but increased administration post-Brexit raises costs for operators
- Ageing UK population will hamper category growth
- Companies and brands
- Leading spirits brands face increased competition
- Premium launches continue in both white spirits and RTDs in 2020
- Brands respond to the pandemic in their 2020 advertising
- Gordon’s is the most trusted brand, while Malibu is seen as the most fun
-
- Figure 4: Attitudes towards and usage of selected brands, December 2020
- The consumer
- Usage of white spirits falls in 2020 despite retail sales growth
-
- Figure 5: Usage of white spirits, by type, October 2020
- COVID-19 outbreak alters usage occasions for white spirits and RTDs
-
- Figure 6: Behaviours relating to white spirits and RTDs, October 2020
- Spirits with historical recipes and cocktail-making kits can help companies to tap into the home cocktail making trend
-
- Figure 7: Interest in innovation in white spirits and RTDs, October 2020
- Premium products have the chance to shine
-
- Figure 8: Attitudes towards white spirits and RTDs, October 2020
- A stronger health focus is needed in the category
- Focus on at-home occasions will help to drive sales in 2021
-
- Figure 9: Qualities associated with selected types of white spirits and RTDs, October 2020
Issues and Insights
-
- Innovate with healthier variants to tap into consumers’ increased health consciousness since COVID-19
- Home cocktail-making trend offers good opportunities for the category
- Target outdoor social occasions more strongly when marketing RTDs
The Market – Key Takeaways
-
- Fall in value sales in 2020 nearly wipes out strong growth over 2015-19
- Declining volume sales coupled with inflation expected for 2020-25
- Gin sees the fastest growth over 2015-20, but white rum and RTDs are the star performers in 2020
- On-trade closures send market value plummeting in 2020
- No rise in spirits duties in 2021, but increased administration post-Brexit raises costs for operators
- Ageing UK population will hamper category growth
Market Size and Forecast
-
- COVID-19 outbreak hit the total value of the market, but sales should bounce back with the re-opening of the leisure sector
-
- Figure 10: Short-, medium- and long-term impact of COVID-19 on white spirits and RTDs, 11 March 2021
- Fall in value sales in 2020 nearly wipes out strong growth over 2015-19
- Volume sales remain in growth in 2020 due to strong retail sales performance
-
- Figure 11: Total sales of white spirits and RTDs, by value and volume, 2015-25
- Declining volume sales coupled with inflation expected for 2020-25
- Ongoing restrictions and income squeeze to slow on-trade recovery in 2021
- Income squeeze to dent off-trade sales in 2021
- On-trade to regain ground in 2022, but tempered by alcohol moderation trend and continued homeworking
- Ageing population to hinder volume sales for 2020-25
- Inflation expected in the category over 2020-25
-
- Figure 12: Total value sales of white spirits and RTDs, 2015-25
- Figure 13: Total volume sales of white spirits and RTDs, 2015-25
- Market drivers and assumptions
-
- Figure 14: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 3 March 2021)
- Learnings from the last recession
-
- Figure 15: Growth in total value and volume sales of white spirits and RTDs, 2007-12
- Forecast methodology
Market Segmentation
-
- Gin’s meteoric rise over 2015-20 boosted the entire category
-
- Figure 16: Total value and volume sales of white spirits and RTDs, by segment, 2015-20
- White rum gains from the at-home cocktail making trend and the hot summer
Channels to Market
-
- On-trade closures send market value plunging in 2020
-
- Figure 17: UK value and volume sales of white spirits and RTDs in the on- and off-trade, by type, 2018-20
- Strong retail sales performance allows total volume sales to rise despite on-trade losses
- Long hot summer of 2020 boosts RTDs through retail
Market Drivers
-
- Multiple factors affect white spirits prices
- Spirits duty rise called off in 2020, but alcohol duties are under review
- Government cancels planned rise in alcohol duties in 2021
- Increased administration costs post-Brexit and exchange rates are crucial for the white spirits category
- Decline in exports could drive down domestic prices
- Success of Minimum Unit Pricing in Scotland prompts calls for England to follow suit
- Sales decline expected in 2021 amid pressure on household incomes
- Ageing population offers little support for either white spirits or RTDs
-
- Figure 18: Usage of white spirits and RTDs, by age group, October 2020
- UK government consults on nutritional labelling for alcoholic drinks
- COVID-19 restrictions hit the hospitality sector hard in 2020
- Growth in UK distilleries continues despite pandemic
Companies and Brands – Key Takeaways
-
- Leading spirits brands face increased competition
- Premium launches continue in both white spirits and RTDs in 2020
- Brands respond to the pandemic in their 2020 advertising
- Gordon’s is the most trusted brand, while Malibu is seen as the most fun
Market Share
-
- Smirnoff sees sales slip as competition heats up in the vodka category
-
- Figure 19: Leading brands’ sales and shares in the UK retail vodka market, by value and volume, 2017/18-2019/20
- Flavour innovation drives JJ Whitley’s meteoric rise in 2020
- Own-label benefits from shoppers trading down
- Gordon’s grows sales comfortably but faces increased competition
-
- Figure 20: Leading brands’ sales and shares in the UK retail gin market, by value and volume, 2017/18-2019/20
- Bacardi reaps the rewards of white rum’s revival in 2020
-
- Figure 21: Leading brands’ sales and shares in the UK retail white rum market, by value and volume, 2017/18-2019/20
- Malibu benefits from the hot summer of 2020
- Sierra benefits from growth in Tequila/mezcal, but faces increased competition
-
- Figure 22: Leading brands’ sales and shares in the UK retail Tequila/mezcal market, by value and volume, 2017/18-2019/20
- Gordon’s RTDs do not see the same success as its gins
-
- Figure 23: Leading brands’ sales and shares in the UK retail RTD alcoholic drinks market, by value and volume, 2017/18-2019/20
- WKD outperforms the wider RTDs category
Launch Activity and Innovation: White Spirits
-
- Premium spirits are well-placed to succeed
- Premium spirits launches highlight their British provenance and unique ingredients
-
- Figure 24: Examples of premium white spirits launches highlighting provenance and unique ingredients, 2020
- Spirits brands innovate with environmentally-friendly packaging options
- Absolut explores part-recycled and paper bottles
- Bullards launches refill scheme for spirits
-
- Figure 25: Bullards Coastal Gin – Bottle and refill pouch, 2020
- Sustainable claims are rare in white spirits
- Cooper King goes carbon negative
- Nordic Spirits claims world first with vodka made from regeneratively farmed grain
- New English vodka brand invites people to share in its tree-planting initiative
-
- Figure 26: Examples of white spirits launches highlighting their environmental conservation efforts, 2020-21
- Retail spirits launches support the hospitality sector
-
- Figure 27: Examples of white spirits launches pledging support for the hospitality sector, 2020
- One Gin expands its range
- New flavoured spirits appear in an array of colours
- More pink gins appear …
- … and are joined by pink rums
-
- Figure 28: Examples of pink gins and rums, 2020
- Leading brands release citrus flavours
-
- Figure 29: Gordon’s Sicilian Lemon Distilled Gin, 2020
- Shimmering gin adds visual flair
-
- Figure 30: Asda Extra Special Cola Cube Gin, 2020
- Seasonal launches continue
- JJ Whitley launches watermelon flavour for summer
- Lone Wolf marks Cinco de Mayo 2020 with Cactus & Lime Gin
-
- Figure 31: Lone Wolf Cactus & Lime Gin
- Winter flavours can help to encourage more year-round usage of white spirits
-
- Figure 32: International examples of white spirits launches with winter flavours, 2020
- Figure 33: One Gin Sage & Apple Premium London Dry Gin, 2020
- Lower-ABV ‘gin’ highlights its low calorie status
-
- Figure 34: Loca-Lab Minus 33 spirit drinks range
- Anno Spirits launches “world’s strongest gin”
- McQueen uses AR bottle labels to engage consumers amid COVID-19 restrictions
Launch Activity and Innovation: RTDs
-
- Further NPD activity in premium RTDs in 2020
- Leading and niche brands look to recreate the bar experience with RTD cocktails
-
- Figure 35: Examples of premium RTDs promoted as allowing users to recreate the bar experience at home, 2020
- All Shook Up highlights juice content and innovates with bag-in-box format
- Aldi launch should appeal to those with a less sweet tooth
-
- Figure 36: Examples of premium RTDs launches with an emphasis on ingredients, 2020
- WKD offers “grown-up flavours” and “cocktail perfection” with new MIXD range
- Spirits brands launch RTD versions
-
- Figure 37: Examples of new RTD launches by white spirits brands, 2020
- RTDs could do more to target the winter months
-
- Figure 38: Examples of RTDs launches with winter flavours, 2020
- Leading alcoholic drinks brands release hard seltzers
-
- Figure 39: Examples of hard seltzers launches, 2020
- White Claw expands its range
- Opportunities for more hard seltzers with a craft positioning
- Manchester Drinks puts a particular focus on health
- Served looks to appeal on both health and ethical grounds
-
- Figure 40: Further examples of hard seltzers launches, 2020-21
- Lidl launch marks a rare example of an own-label hard seltzer
-
- Figure 41: Lidl Nordic Wolf Cherry & Cranberry Hard Seltzer, 2020
Launch Activity and Innovation: Low and No Alcohol
-
- Non-alcoholic spirits alternatives enter the mainstream
- Gordon’s launches zero-alcohol variant
- Pink variants aim for a craft positioning
-
- Figure 42: Examples of pink non-alcoholic spirits alternatives, 2020
- Smaller British brands highlight their ethical sourcing
-
- Figure 43: Examples of non-alcoholic spirits alternatives with a strong emphasis on ethical sourcing, 2020
- Newcomer brand claims to be “both premium and accessible in terms of price point”
- Non-alcoholic RTDs look to build a sophisticated image
- Agua de Madre brings kefir trend into the RTDs sphere
-
- Figure 44: Examples of low-/non-alcoholic RTDs, 2020
Advertising and Marketing Activity
-
- Advertising spend falls in 2020
- Diageo leads on spending
-
- Figure 45: Total above-the line, online display and direct mail advertising expenditure on white spirits^ and RTDs, 2019-20 (sorted by 2020)
- Gordon’s looks to associate its Lemon variant with glamorous Italian lifestyles
-
- Figure 46: Instagram post by Gordon’s promoting its Sicilian Lemon variant, September 2020
- Interactive social media campaign for Gordon’s 0.0% looks to tap into the power of user recommendations
- Whitley Neill focuses on expertise and provenance in Christmas campaign …
- … and partners with Michelin-starred chef on food pairings
- Influencers give details of their ‘gin rituals’
- Bacardi highlights how fun is possible even under stay-at-home orders
- Craft Gin Club pushes the excitement and anticipation of monthly gin deliveries
- Absolut focuses on creativity and anticipates post-pandemic reunions
- WKD branches out with cocktail recipes and meal pairing suggestions
- Targeting students on Freshers’ Week
- Selected responses to the COVID-19 restrictions
- Gordon’s runs virtual pub quizzes in partnership with YouTube.
- Bombay Sapphire focuses on creativity in Christmas campaign
-
- Figure 47: Facebook post by Bombay Sapphire as part of its ‘12 Days of Creativity’ campaign, December 2020
- Grey Goose provides cocktail delivery service
- Hendrick’s makes a tongue-in-cheek response to the home exercise trend
- Nielsen Ad Intel coverage
Brand Research
-
-
- Figure 48: Attitudes towards and usage of selected brands, December 2020
- Key brand metrics
-
- Figure 49: Key metrics for selected brands, December 2020
- Brand attitudes: Gordon’s is the most trusted brand
-
- Figure 50: Attitudes, by brand, December 2020
- Brand personality: Malibu scores highest on the fun factor
-
- Figure 51: Brand personality – macro image, December 2020
- Gordon’s has the strongest image as traditional
-
- Figure 52: Brand personality – micro image, December 2020
- Brand analysis
- Hendrick’s has a sophisticated and stylish image
-
- Figure 53: User profile of Hendrick’s, December 2020
- Gordon’s traditional image helps it to be the most trusted brand
-
- Figure 54: User profile of Gordon’s, December 2020
- Smirnoff is seen as accessible and high quality
-
- Figure 55: User profile of Smirnoff, December 2020
- Absolut enjoys high user satisfaction, and is seen as (somewhat) pure
-
- Figure 56: User profile of Absolut, December 2020
- Bacardi scores well on accessibility and fun
-
- Figure 57: User profile of Bacardi, December 2020
- Malibu’s focus on beach holidays boosts its reputation for fun
-
- Figure 58: User profile of Malibu, December 2020
- WKD is especially favoured by under-35s
-
- Figure 59: User profile of WKD, December 2020
-
The Consumer – Key Takeaways
-
- Usage of white spirits falls in 2020 despite retail sales growth
- COVID-19 outbreak alters usage occasions for white spirits and RTDs
- Spirits with historical recipes and cocktail-making kits can help companies to tap into the home cocktail-making trend
- Premium products have the chance to shine
- A stronger health focus is needed in the category
- Focus on at-home occasions to drive sales in 2021
Impact of COVID-19 on Consumer Behaviour
-
- First lockdown boosts at-home drinking …
- … but sales decline is likely in 2021 as people cut back on discretionary spending
- Under-35s feel the pandemic’s economic impact most keenly
-
- Figure 60: Those reporting that they or someone else in their household had lost their job or been furloughed as a result of the COVID-19 outbreak, by age group, surveyed 10-19 November 2020
- Consumer wariness of bars/restaurants will slow on-trade recovery
- Consumers’ renewed health focus will boost the alcohol moderation trend
- Good opportunities for healthier variants
- Shoppers’ efforts to minimise time spent in-store gives the advantage to familiar brands
- Growth in online retail offers multiple opportunities
- Four in 10 users are more interested in supporting small British brands since the outbreak
- Shops should promote local brands to tap into the localism trend
-
- Figure 61: Outdoor advertisement by London Borough of Wandsworth encouraging people to shop locally in order to support their community, 2020
- Focus on sustainability to capitalise on consumers’ increased environmental awareness
Usage of White Spirits and RTDs
-
- Usage of white spirits falls in 2020
-
- Figure 62: Usage of white spirits, by type, October 2020
- Ageing UK population offers little support to white spirits
- Drinking with a single mixer leads for all types of white spirits apart from Tequila/mezcal
-
- Figure 63: Drinking of different serves of white spirits, by type, October 2020
- Usage of flavoured white spirits also falls in 2020
-
- Figure 64: Usage of flavoured white spirits, by type, October 2020
- A third of adults drink RTD alcoholic drinks
-
- Figure 65: Usage of RTDs, by type, October 2020
Interest in Innovation in White Spirits and RTDs
-
- White spirits and RTDs with historical recipes spark interest
-
- Figure 66: Interest in innovation in white spirits and RTDs, October 2020
- Scope for expansion in white spirits with a strong historical focus
-
- Figure 67: Examples of white spirits with on-pack references to history, 2018-21
- History offers a rich seam of inspiration for RTDs
-
- Figure 68: International inspiration: Pampelonne Sparkling Wine Cocktails French 75, 2019
- Potential for link-ups between spirits and premium soft drinks brands on retro RTDs
- Offer recipe suggestions to tap into the homemade cocktails trend
- Link up with TV/film streaming services to create immersive experiences
- Cocktail-making kits appeal particularly to under-25s
- Good opportunities for own-label
- Cocktail kit delivery services would harness the growth in online retail …
- … and could help the on-trade to recoup some of its lost sales
- Alcoholic iced coffee RTDs are an untapped opportunity
-
- Figure 70: International examples of drinks blending coffee with alcohol, 2017-20
Behaviours Relating to White Spirits and RTDs
-
- Outdoor socialising was a major purchase driver for RTDs in 2020
-
- Figure 71: Behaviours relating to white spirits and RTDs, October 2020
- Brands use social media and on-pack serving suggestions to encourage use at picnics
-
- Figure 72: Instagram post by Gordon’s promoting its RTDs as being good for picnics, August 2020
- Figure 73: Examples of RTDs promoted on-pack as being good for picnics, 2020
- Opportunities for RTDS to continue to benefit from the picnic trend in 2021
- ‘Picnic meal deals’ and in-store positioning can help to drive sales
- Promote low/no-alcohol RTDs as a better-for-you option
- Home cocktail-making trend offers opportunities for white spirits
-
- Figure 74: Those reporting new or changed cocktail making habits since the COVID-19 outbreak, by age group, October 2020
- Offer recipe suggestions in-store and through online retail to drive purchase
-
- Figure 75: La Fée absinthe bottle with fold-out recipe booklet, 2020
- Vary recipes by season to maintain consumer engagement
- Group cocktail components together in-store as a further incentive
- Harness the power of social media to drive consumer excitement
- Money concerns serve to limit experimentation within the category
- Promote different serves as a low-cost way to experiment
- Craft brands must push the message that value is more than just price
- Miniature bottles can appeal both on value and health grounds
- Call out the number of servings per bottle to boost value-for-money image
-
- Figure 76: Inspiration from other categories: Nescafé Gold Blend outlines the number of servings per pack, 2020
Attitudes towards White Spirits and RTDs
-
- Premium spirits and RTDs have the chance to shine
-
- Figure 77: Attitudes towards white spirits and RTDs, October 2020
- London bars offer cocktail delivery services during the lockdowns
-
- Figure 78: Instagram post by Nightjar promoting its Speakeasy at Home service, November 2020
- Opportunities for cocktail delivery services remain even once venues re-open
- Need to educate consumers on white spirits’ zero-sugar status
- A quarter of adults see non-alcoholic versions of white spirits as more interesting than standard soft drinks
- Focus on celebrating everyday achievements to drive usage frequency
- Use in-store promotions to boost non-alcoholic spirits
-
- Figure 79: Display at Sainsbury’s Fulham Wharf promoting its range of alcohol alternatives, 2021
Qualities Associated with Selected Types of White Spirits and RTDs
-
- Gin is the most widely seen as relaxing
-
- Figure 80: Qualities associated with selected types of white spirits and RTDs, October 2020
- Promote tea-based cocktails to strengthen emotional associations
- Focus on small-scale at-home celebrations to drive sales in 2021
- Few see any type of white spirit or RTDs as versatile
- Highlight the variety of possible serves to boost versatile image
- Meal pairing suggestions would help to drive usage
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Share
-
-
- Figure 81: Leading brand owners’ sales and shares in the UK retail vodka market, by value and volume, 2017/18-2019/20
- Figure 82: Leading brand owners’ sales and shares in the UK retail gin market, by value and volume, 2017/18-2019/20
- Figure 83: Leading brand owners’ sales and shares in the UK retail white rum market, by value and volume, 2017/18-2019/20
- Figure 84: Leading brand owners’ sales and shares in the UK retail tequila/mezcal market, by value and volume, 2017/18-2019/20
-
- Figure 85: Leading brand owners’ sales and shares in the UK retail RTD alcoholic drinks market, by value and volume, 2017/18-2019/20
-
Appendix – Launch Activity and Innovation
-
-
- Figure 86: New product launches in the UK retail white spirits and RTDs market, by top 20 claims, 2016-20 (sorted by 2020)
-
Appendix – Advertising and Marketing Activity
-
-
- Figure 87: Total above-the line, online display and direct mail advertising expenditure on white spirits^ and RTDs, 2019-20, by top five advertisers
-
Appendix – Usage of White Spirits and RTDs
-
-
- Figure 88: Usage of flavoured white spirits (any), by age group, October 2020
-
Back to top