Table of Contents
Introduction and Abbreviations
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- Introduction
- The youth obsession
- Sophisticated consumers boost sales of wine
- Round-the-clock drinking
- Current issues
- Pressing challenges
- Scope and reports of relevance
- Definitions
- Beer
- Wine
- Spirits and liqueurs
- Consumer research
- Lifestage and Special Groups
- ACORN
- Advertising data
- Abbreviations
Premier Insight
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- Appeal of older drinkers
Executive Summary
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- A massive but sluggish market
- A sea of lager, but a rising tide of wine
- Rising prosperity drives sales of premium drinks
- Is the UK going continental?
- Drinking comes home, but drinking habits are slow to change
- Advertising spend remains high and based around the big brands
- Grocery multiples are the nation's favourite barmen
- Globalisation dominates supply
- Binge drinking – something must be done…
- …especially about the under-25s
Market Factors
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- Changing nature of the British pub
- Importance of young drinkers
- Women taking the lead
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- Figure 1: Trends and projections in UK population, by age group, 2000-09
- Growing number of ABs boosts values
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- Figure 2: Trends and projections in the UK population, by socio-economic group, 1999-2008
- Rising affluence spurs premiumisation
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- Figure 3: PDI and consumer expenditure, at constant 2000 prices, 2000-09
- Employment patterns
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- Figure 4: Trends in workforce, by gender, 2000-05
- Licensing reform opens up opportunities
- Tackling the binge drinking culture
- Recommended safe drinking levels
- Drink-driving
- Overview of drinking in pubs
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- Figure 5: Daytime and evening pub visiting, 2000-04
- Eating out trends
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- Figure 6: Frequency of eating out, 2001-05
- UK excise duty and cross-Channel purchasing
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- Figure 7: Excise duty rates on alcoholic beverages in Europe, 2005*
Drinking Consumption Trends
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- Per capita consumption
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- Figure 8: UK per capita consumption of alcoholic drinks, 1999-2004*
- Consumption rising steadily in comparison to other EU countries
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- Figure 9: Alcohol consumption per head in Europe, 1970-2003
- Soft drink consumption also on the rise
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- Figure 10: UK soft drinks consumption, 1999-2003
- Consistent market value growth
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- Figure 11: UK consumer expenditure on alcoholic beverages, at current and constant prices, 1995-2005
- Drinking in and out of the home
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- Figure 12: GB adults’ frequency of consumption of alcoholic beverages in and out of the home, 1996-2005
- Shifting consumption patterns – consumer perception
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- Figure 13: GB drinking habits over past five years, 2005
- Increased alcohol consumption among young and single
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- Figure 14: Drinking habits in the UK, by demographic sub-group, May 2005
- Influences on drinking patterns
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- Figure 15: Factors affecting drinking habits, 2002-05
- Surprising findings by gender
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- Figure 16: Factors affecting drinking habits, by gender, age, socio-economic status, region, working status, marital status and presence of children, May 2005
- What affects drinking habits?
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- Figure 17: Factors affecting drinking habits, by lifestage, Mintel’s Special Groups, ACORN category and commercial TV viewing, May 2005
- Avoiding hangovers is primary motive
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- Figure 18: Changes in drinking habits, by changes in attitude/status, May 2005
Market Size and Trends
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- Strong growth despite off-trade discounting
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- Figure 19: UK retail value sales of alcoholic beverages, at current and constant prices, 2000-05
- Lager and wine dominate
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- Figure 20: UK retail value sales of alcoholic beverages, by type, 2001-05
- Volumes lag behind values
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- Figure 21: UK retail volume sales of alcoholic beverages, by type, 2001-05
- Retail prices under pressure
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- Figure 22: Average retail prices of alcoholic beverages, by sector, 2000-05
- Pricing disparity between on- and off-trade
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- Figure 23: Estimated split, on- and off-trade retail sales of alcoholic beverages, by value and volume, by type, 2005
- Beer
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- Figure 24: UK retail value sales of beer, at current and constant prices, by on- and off-trade, 2000-05
- Figure 25: UK volume sales of beer, 2000-05
- Lager
- Premiumisation boosts values
- Volume growth outstrips value
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- Figure 26: UK retail value sales of lager, at current and constant prices, by on- and off-trade, 2000-05
- Ales and stout
- Poor performance of ales drags sector down
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- Figure 27: UK retail value sales of ales and stout, at current and constant prices, by on- and off-trade, 2000-05
- Cask-condition ales take biggest hit
- Ale needs to be clearly differentiated from lager
- Still wine
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- Figure 28: UK retail value sales of still wine, at current and constant prices, by on- and off-trade, 2000-05
- On-trade now catching on
- Demystification in action
- Whisky
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- Figure 29: UK retail value sales of whisky, at current and constant prices, by on- and off-trade, 2000-05
- White spirits
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- Figure 30: UK retail value sales of white spirits, at current and constant prices, by on- and off-trade, 2000-05
- Cider
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- Figure 31: UK retail value sales of cider, at current and constant prices, by on- and off-trade, 2000-05
- Flavoured alcoholic beverages
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- Figure 32: UK retail value sales of FABs, at current and constant prices, by on- and off-trade, 2000-05
- Champagne
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- Figure 33: UK retail value sales of champagne, at current and constant prices, by on- and off-trade, 2000-05
- Alcoholic mixables
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- Figure 34: UK retail value sales of alcoholic mixables, at current and constant prices, by on- and off-trade, 2000-05
- Other dark spirits
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- Figure 35: UK retail value sales of other dark spirits, at current and constant prices, by on- and off-trade, 2000-05
- Liqueurs
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- Figure 36: UK retail value sales of liqueurs, at current and constant prices, by on- and off-trade, 2000-05
- Sparkling wine
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- Figure 37: UK retail value sales of sparkling wine, at current and constant prices, by on- and off-trade, 2000-05
- Port
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- Figure 38: UK retail value sales of port, at current and constant prices, by on- and off-trade, 2000-05
- Other fortified wine
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- Figure 39: UK retail value sales of other fortified wine, at current and constant prices, by on- and off-trade, 2000-05
- Sherry
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- Figure 40: UK retail value sales of sherry, at current and constant prices, by on- and off-trade, 2000-05
- Low- and no-alcohol beverages (LABs)
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- Figure 41: UK retail value sales of LABs, at current and constant prices, by on- and off-trade, 2000-05
Advertising and Promotion
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- One of the most heavily advertising consumer markets
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- Figure 42: Main monitored media advertising expenditure on alcoholic beverages, 2000-05
- Lager support rises ahead of total market
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- Figure 43: Main monitored media advertising expenditure on alcoholic beverages, by sector, 2000-04
- Guinness dominates adspend
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- Figure 44: Top 25 beverage brands, by main monitored advertising expenditure, 2000-04
Distribution
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- Gradual shift towards the off-trade
- Multiples squeeze the independents
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- Figure 45: Number of licensed premises in the UK, 1999-2004
- On-trade
- Considerable rationalisation among new pub companies
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- Figure 46: Major UK pub groups, 2005
- Shifting dynamics in the on-trade
- Understanding the drinking occasion
- Off-trade
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- Figure 47: Number of off-licences in the UK, by outlet type, 2000-03
- Unique distribution system
- Changing shopping habits transform the off-trade
- Volume distribution – on- versus off-trade
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- Figure 48: Distribution of alcoholic beverages in the UK, by volume, 2001-05
- Beer
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- Figure 49: Distribution of beer in the UK, by volume, 2001-05
- Lager
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- Figure 50: Distribution of lager in the UK, by volume, 2001-05
- Ales and stout
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- Figure 51: Distribution of ales and stout in the UK, by volume, 2001-05
- Wine
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- Figure 52: Distribution of still wine in the UK, by volume, 2001-05
- Cider
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- Figure 53: distribution of cider in the UK, by volume, 2001-05
- FABs
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- Figure 54: Distribution of FABs in the UK, by volume, 2001-05
- Whisk(e)y
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- Figure 55: Distribution of whisky in the UK, by volume, 2001-05
- White spirits
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- Figure 56: Distribution of white spirits in the UK, by volume, 2001-05
- Alcoholic mixables
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- Figure 57: Distribution of alcoholic mixables in the UK, by volume, 2001-05
- Liqueurs
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- Figure 58: Distribution of liqueurs in the UK, by volume, 2001-05
- Sparkling wine
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- Figure 59: Distribution of sparkling wine in the UK, by volume, 2001-05
- Low-alcohol beverages
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- Figure 60: Distribution of LABs in the UK, by volume, 2001-05
- Other dark spirits
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- Figure 61: Distribution of other dark spirits in the UK, by volume, 2001-05
- Champagne
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- Figure 62: Distribution of champagne in the UK, by volume, 2001-05
- Fortified wine
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- Figure 63: Distribution of other fortified wine in the UK, by volume, 2001-05
- Figure 64: Distribution of sherry in the UK, by volume, 2001-05
- Figure 65: Distribution of port in the UK, by volume, 2001-05
The Supply Structure
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- Ceaseless quest for economies of scale
- Intense consolidation since 1990
- Global brewing trends impact the UK
- Manufacturer and brand shares
- Beer
- Lager
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- Figure 66: Brewers’ shares in lager, by volume, 2002 and 2004
- Ales and stout
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- Figure 67: Brewers’ shares in ales and stout, by volume, 2002 and 2004
- On- versus off-trade beer
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- Figure 68: Brand shares in on-trade beer, by value, 2002 and 2004
- Figure 69: Brand shares in off-trade beer, by value, 2002 and 2004
- Wine
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- Figure 70: Brand shares in still wine, by value, 2002 and 2004
- Whisk(e)y
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- Figure 71: Brand shares in whisky, by value, 2002 and 2004
- White spirits
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- Figure 72: Brand shares in white spirits, by value, 2002 and 2004
- Cider
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- Figure 73: Brand shares in cider, by value, 2002 and 2004
- FABs
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- Figure 74: Brand shares in FABs, by value, 2002 and 2004
- Champagne
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- Figure 75: Brand shares in champagne, by value, 2002 and 2004
- Alcoholic mixables
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- Figure 76: Brand shares in alcoholic mixables, by value, 2002 and 2004
- Other dark spirits
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- Figure 77: Brand shares in other dark spirits, by value, 2002 and 2004
- Liqueurs
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- Figure 78: Brand shares in liqueurs, by value, 2002 and 2004
- Sparkling wine
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- Figure 79: Brand shares in off-sales of sparkling wine, by volume, 2002 and 2004
- Port
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- Figure 80: Brand shares in port, by value, 2002 and 2004
- Sherry
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- Figure 81: Brand shares in sherry, by value, 2002 and 2004
- Other fortified wine
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- Figure 82: Brand shares in other fortified wine, by value, 2002 and 2004
- Low-alcohol drinks
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- Figure 83: Brand shares in low-alcohol drinks, by volume, 2002 and 2004
- Company profiles
- Scottish & Newcastle
- Market leadership in seven countries
- Focus on five key brands
- Potential acquisition target
- Coors Brewers Ltd
- Interbrew UK
- Carlsberg UK
- Diageo
- Good things come to those who wait
- Tackling the issue of responsible drinking
- Allied Domecq
- Bacardi-Martini
- Maxxium UK
- Constellation Brands
Attitudes Towards Alcohol and Drinking
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- Attitudes and perceptions
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- Figure 84: Attitudes towards alcohol, 2002-05
- Moderation – anathema to the young
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- Figure 85: Attitudes towards alcohol, by demographic sub-group, May 2005
- Need for a sympathetic drinking environment
- Potential premium drinks targets
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- Figure 86: Further attitudes towards alcohol, by demographic sub-group, lifestage and Mintel’s Special Groups, May 2005
- Health and stress relief
- Other responses net low results
- Drinking at home
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- Figure 87: Attitudes towards drinking at home, 2002-05
- Cost of entertaining influences results
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- Figure 88: Attitudes towards drinking at home, by demographic sub-group, May 2005
- Strong demarcation between in-home and out-of-home drinkers
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- Figure 89: Further attitudes towards drinking at home, by demographic sub-group, May 2005
- An element of disingenuity in response
- Drinking out of home
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- Figure 90: Attitudes towards drinking out of home, 2002-05
- Presence of children makes out-of-home drinking ‘occasional’
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- Figure 91: Attitudes towards drinking out of home, by demographic sub-group, May 2005
- Average weekly alcohol consumption
- Element of disingenuity in response
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- Figure 92: Average weekly units of alcohol consumed, by demographic sub-group, May 2005
- Steep upward trend in units consumed
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- Figure 93: Average weekly units of alcohol consumed, by change in drinking habits in last five years, May 2005
- Illness and bereavement result in greater alcohol intake
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- Figure 94: Average weekly units of alcohol consumed, by reasons for changing drinks or amount drunk in last five years, May 2005
- Practising what they preach
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- Figure 95: Average weekly units of alcohol consumed, by attitudes towards alcohol, May 2005
- Televised sporting events influence consumption
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- Figure 96: Average weekly units of alcohol consumed, by in-home drinking habits, May 2005
- On-trade drinking stimulates heavier consumption
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- Figure 97: Average weekly units of alcohol consumed, by out-of-home drinking habits, May 2005
- Effect of attitudes on consumption patterns
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- Figure 98: Changes in patterns of alcohol consumption, by attitudes towards drinking, May 2005
- Reasons for changing drinking habits
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- Figure 99: Changes in drinking habits, by reasons for change, May 2005
- Effect of drinking habits at home on shifts in consumption
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- Figure 100: Changes in patterns of alcohol consumption, by drinking habits at home, May 2005
- Effect of drinking habits at home on reasons for changing habits
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- Figure 101: Reasons for changing drinking habits, by drinking habits at home, May 2005
- Effect of drinking habits out of home on shifts in consumption
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- Figure 102: Changes in patterns of alcohol consumption, by attitudes towards drinking out of home, May 2005
- Effect of drinking habits out of home on reasons for changing habits
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- Figure 103: Reasons for changing drinking habits, by attitudes towards drinking other than at home, May 2005
Popular Drinks in Home and Elsewhere
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- Larger repertoire for in-home drinking
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- Figure 104: Drinks most likely to be taken at home and in the pub, May 2005
- Most popular drinks
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- Figure 105: Alcoholic drinks most likely to be consumed at home and in the pub, by demographic sub-group, lifestage and Mintel’s Special Groups, May 2005
- Wine consumption weighted towards off-trade
- Lager – a man’s drink
- Bitter/ale – the preserve of the pub
- Whisky and vodka – distinctly different target audiences
- Assessing enthusiasm – repertoire drinking
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- Figure 106: Matrix of repertoire drinking, May 2005
- Repertoire drinking at home
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- Figure 107: Matrix of in-home alcoholic drinks consumption, May 2005
- Repertoire drinking out of home
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- Figure 108: Matrix of out-of-home alcoholic drinks consumption, May 2005
- Repertoire drinking at and out of home
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- Figure 109: Matrix of alcoholic drinks consumed in-home, by alcoholic drinks consumed out of home, May 2005
- Repertoire drinking – drinking multiple types of drink
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- Figure 110: Drinks most likely to be drunk by in-home drinkers who drink one or more than one type of alcoholic drink, May 2005
- Limited in-home repertoires among the young
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- Figure 111: Multiple drinking among in-home drinkers, by demographic sub-group, lifestage and Mintel’s Special Groups, May 2005
- Smaller repertoire out of home
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- Figure 112: Drinks most likely to be drunk by out-of-home drinkers who drink one or more than one type of alcoholic drink, May 2005
- The impact of age
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- Figure 113: Multiple drinking among out-of-home drinkers, by demographic sub-group, lifestage and Mintel’s Special Groups, May 2005
Assessing Key Targets – Drinking Typologies
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- Cluster 1 – Apathetic Drinkers (53% of sample)
- Cluster 2 – Anti-alcohol (17% of sample)
- Cluster 3 – Health Benefits (10% of sample)
- Cluster 4 – Connoisseurs (9% of sample)
- Cluster 5 – Social Drinkers (11% of sample)
- Attitudes of typology groups
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- Figure 114: Attitudes towards alcohol, by general drinking clusters, May 2005
- Typology demographics
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- Figure 115: Mintel general drinking clusters, by demographic sub-group, May 2005
- Shifting drinking habits among typology groups
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- Figure 116: Change in drinking habits, by general drinking clusters, May 2005
- Factors influencing drinking patterns among typology groups
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- Figure 117: Reasons for changing drinking habits, by general drinking clusters, May 2005
- Attitudes towards alcohol among typology groups
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- Figure 118: Attitudes towards in-home drinking, by general drinking clusters, May 2005
- Attitudes towards out-of-home drinking among typology groups
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- Figure 119: Attitudes towards out-of-home drinking, by general drinking clusters, May 2005
The Future
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- The social context
- Binge-drinking and the social debate
- Off-trade growth will continue
- Little prospects for rapid market expansion
Forecast
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- Further consistency expected
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- Figure 120: Forecast of the total UK alcoholic drinks market, 2005-10
- Figure 121: Forecast of the UK drinks market, by segment and value, at current prices, 2005-10
- Figure 122: Forecast of the UK drinks market, by segment and value, at 2005 prices*, 2005-10
- More winners than losers
- Winners
- Lager
- Still wine
- Whisky
- White spirits
- Champagne
- Alcoholic mixables
- Liqueurs
- Other dark spirits
- Port
- Losers
- Ale & stout
- Cider
- FABs
- Sparkling wine
- Sherry & other fortified wine
- Factors used in the forecast
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