Table of Contents
Issues in the Market
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- Definition
- Abbreviations
Future Opportunities
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- Liqueurs can benefit from the ‘fresh factor’
- Tapping into Cocktail Nostalgia
Market in Brief
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- A tale of two markets
- Traditional liqueur sales will keep market afloat
- Frequency, frequency, frequency
Internal Market Environment
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- Key points
- Drinking in slow but steady decline…
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- Figure 1: Trends in proportion of the UK population drinking alcohol, 2005-09
- … and the on-trade is feeling the pain
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- Figure 2: Trends in alcohol drinking in-home versus out-of-home, 2005-09
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- Figure 3: Trends for index of household spend in real prices (2005 = 100), by quarter, for spirits, wine and beer, 2006 Q1-2009 Q2
- Liqueurs helped by the rise in popularity of cocktails
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- Figure 4: Consumer attitudes towards trying new drinks, by drink type, July 2009
- … something which has not translated to in-home – yet
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- Figure 5: Trends in cooking habits, May 2009-January 2010
- The limitations of seasonality
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- Figure 6: Trends for quarterly penetration of liqueur drinking in Britain, 2006 Q1-2009 Q3
- Striking a balance between naughty and nice
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- Figure 7: Personal concerns of UK consumers, January 2010
Broader Market Environment
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- Key points
- Liqueurs hit by escalating duty
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- Figure 8: Trends for changes in duty for liqueurs, 2002-10
- But are supermarkets’ wings about to be clipped?
- Consumer spend will remain weak in 2010
- Timely growth in 25-34s
- ABC1 growth will continue unabated
Competitive Context
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- Key points
- Among spirits, only vodka and whisky have a higher penetration
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- Figure 9: trends for consumption of different alcohol drinks in the past 12 months (ranked by 2009), 2005-09
- Within spirits, only ARTDs are experiencing a steeper decline in users
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- Figure 10: Trends for penetration of different types of spirits consumed, pre-economic downturn (2005-07) compared to post (2007-09)
- Liqueurs is a more female-friendly spirit than vodka
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- Figure 11: Usage index (100 =a verage) of liqueurs compared to vodka, gin and whisky, by gender, age group and socio-economic group, 2009
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Liqueurs target desserts occasion
- Liqueurs as part of pre-mixed cocktails
Market Size and Forecast
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- Key points
- Liqueurs have been struggling to hold their own in a tough marketplace
- Cosmetically the category will remain stable but not in real terms
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- Figure 12: Forecast of volume and value sales of the total liqueurs market, 2005-15
- Factors used in the forecast
Market Segmentation
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- Key points
- Cream-based liqueurs will struggle
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- Figure 13: Forecast of volume and value sales of the cream-based liqueurs market, 2005-15
- Traditional liqueurs will benefit from on-trade cocktail revenue
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- Figure 14: Forecast of volume and value sales of the traditional liqueurs market, 2005-15
- Figure 15: Forecast of volume share of the total liqueurs market, by segment, 2005-15
- Shooters are on a downward spiral
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- Figure 16: Forecast of volume and value sales of the shooters market, 2005-15
Companies and Products
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- Key points
- Cellar Trends
- Diageo
- First Drinks
- Pernod Ricard
Brand Elements
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- Key points
- Brand map
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- Figure 17: Attitudes towards and usage of liqueur brands, May 2010
- Brand qualities of liqueur brands
- Baileys rules the roost
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- Figure 18: Personalities of various liqueur brands, May 2010
- Experience of liqueur brands
- Baileys most popular, Luxardo little known
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- Figure 19: Consumer purchase of various liqueur brands, May 2010
- Brand consideration for liqueur brands
- Baileys most off-putting, others similarly considered
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- Figure 20: Consideration of various liqueur brands, May 2010
- Brand satisfaction for liqueur brands
- Baileys best for buyers, Luxardo less appealing
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- Figure 21: Satisfaction with various liqueur brands, May 2010
- Brand commitment to liqueur brands
- Baileys has highest loyalty
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- Figure 22: Commitment to various liqueur brands, May 2010
- Brand intentions for liqueur brands
- Sweet liqueurs have similar retention
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- Figure 23: Future usage intentions for various liqueur brands, May 2010
- Brand recommendation for liqueur brands
- Baileys most recommended, Luxardo a let down
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- Figure 24: Recommendation of various liqueur brands, May 2010
- Cointreau
- What the consumer thinks
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- Figure 25: Attitudes towards the Cointreau brand, May 2010
- Disaronno
- What the consumer thinks
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- Figure 26: Attitudes towards the Disaronno brand, May 2010
- Baileys
- What the consumer thinks
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- Figure 27: Attitudes towards the Baileys brand, May 2010
Channels to Market
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- Key points
- On-trade decline hits liqueurs revenue
- Liqueurs increasingly reliant on multiple grocers
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- Figure 28: UK distribution of liqueurs by volume, by trade sector, 2007-09
Brand Communication and Promotion
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- Key points
- Advertising spend has increased despite economic downturn
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- Figure 29: Spend per year on above-the-line advertising for liqueurs, 2005-09
- Advertising reflects popularity of liqueur sales over Christmas
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- Figure 30: Average spend on above-the-line advertising for liqueurs, by month, 2005-09
- Investment in Baileys has driven the market
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- Figure 31: Top spending liqueur advertisers aggregated over the period, 2007-09
- Figure 32: Top spending liqueur brands aggregated over the period, 2007-09
The Consumer – Usage
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- Key points
- Either love them or hate them
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- Figure 33: Proportion of people who drink liqueurs and those who would or would not consider drinking them in future, March 2010
- Limited crossover between cocktail and neat liqueur drinkers
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- Figure 34: Proportion of people who drink liqueurs neat, as part of cocktails, and/or both, March 2010
- Liqueurs capture a younger, upmarket audience…
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- Figure 35: Liqueur drinkers over the past 12 months, by demographics, March 2010
- … but for 18-24s, their experience of liqueurs is all about cocktails
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- Figure 36: Net difference* between those who drink liqueurs as part of a cocktail compared to those who drink them neat, by age group, socio-economic group and gender, March 2010
- Liqueur ‘rejecters’ are mainly downmarket, older men
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- Figure 37: Those who have no intention of drinking liqueurs in the future (rejecters), by gender, age group and socio-economic group, March 2010
- Increasing in-home occasions a priority
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- Figure 38: Frequency of drinking liqueur either in-home or out-of-home, 2010
The Consumer – Attitudes Towards Liqueurs
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- Key points
- Liqueurs’ indulgent positioning is a double-edged sword
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- Figure 39: Attitudes towards drinking liqueurs, March 2010
- Women need to be given an excuse to indulge in liqueurs more often
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- Figure 40: Net difference* between statements on liqueurs, women compared to men, March 2010
- Cocktail drinking has shaped younger drinkers’ perceptions of liqueurs
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- Figure 41: Net difference* between statements on liqueurs, under-45s compared to over-45s, March 2010
- Calorie content surprisingly not a barrier to women
The Consumer – Occasions for Drinking Liqueurs
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- Key points
- Like it or not, liqueurs are synonymous with Christmas…
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- Figure 42: Liqueur drinking occasions in the past year, March 2010
- … but cocktails are expanding liqueurs into new occasions
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- Figure 43: Net difference* between occasions for people who drink liqueurs neat, compared to as a cocktail, March 2010
- Liqueur occasions for the younger ‘cocktail generation’
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- Figure 44: Net difference in drinking occasions for liqueurs in the past year, over-45s compared to under-45s, March 2010
Appendix
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- Consumer research
- Advertising data
- Focus groups
Appendix – Internal Market Environment
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- Figure 45: Trends in healthy lifestyles and eating/snacking habits, 2005-09
- Figure 46: Calories contained in typical serves of different alcohol types, 2009
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Appendix – Broader Market Environment
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- Figure 47: GDP, PDI, consumer expenditure, at constant 2005 prices (ie real terms), 2005-15
- Figure 48: Trends in the age structure of the UK population, 2005-15
- Figure 49: Forecast adult population trends, by socio-economic group, 2005-15
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Appendix – Brand Communication
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- Figure 50: Liqueurs, top ten spending advertisers, 2007-09
- Figure 51: Top ten liqueur brands, by advertising spend, 2007-09
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- Figure 52: Spend by media type for the liqueurs and spirits category, 2005-09
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Appendix – The Consumer – Usage
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- Figure 53: liqueur drinkers over the past 12 months, by demographics, March 2010
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- Figure 54: Liqueur non-drinkers over the past 12 months, by demographics, March 2010
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Appendix – The Consumer –Attitudes Towards Liqueurs
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- Figure 55: Most popular attitudes towards drinking liqueurs, by demographics, March 2010
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- Figure 56: Next most popular attitudes towards drinking liqueurs, by demographics, March 2010 (continued)
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- Figure 57: Other attitudes towards drinking liqueurs, by demographics, March 2010 (continued)
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- Figure 58: Net difference between statements on liqueurs, neat liqueur drinkers compared to cocktail liqueur drinkers, March 2010
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Appendix – The Consumer – Occasions for Drinking Liqueurs
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- Figure 59: UK value sales of alcoholic drinks, by type, 2007
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- Figure 60: Occasions people have drunk liqueurs in the past year, by demographics, March 2010
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- Figure 61: Next most popular liqueur drinking occasions in the past year, by demographics, March 2010 (continued)
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- Figure 62: Liqueur drinking occasions in the past year by whether people drink them neat or as part of a cocktail, March 2010
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