Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Market size and forecast for the total UK white spirits and RTD market, by value, 2006-16
- Market factors
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- Figure 2: Factors influencing the decision to drink alcohol at home, May 2011
- Companies, brands and innovation
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- Figure 3: Top five off-trade brands in the RTD/white spirits categories by value sales in 2011, and year-on-year growth
- The consumer
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- Figure 4: Which occasions people drink vodka, gin and the new RTDs on, January 2012
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- Figure 5: Proportion of drinkers per spirit that drink it on its own, with a mixer or as part of a cocktail, January 2012
- Figure 6: Attitudes towards vodka, January 2012
- What we think
Issues in the Market
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- How can the market maintain value growth against declining volume sales?
- What are the main obstacles to and opportunities for the new RTD market’s growth?
- How can gin finally turn its potential into sales?
- Are dark spirits becoming the new white spirits?
Future Opportunities
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- Patriot Games
- Home of the Senses
Internal Market Environment
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- Key points
- Trend towards in-home drinking picks up pace…
- Different consumer mindset
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- Figure 7: Factors influencing the decision to drink alcohol at home, May 2011
- Different drinking occasions
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- Figure 8: Most popular occasions for drinking alcohol at home and out of home, May 2011
- …fuelling a rise of premiumisation in spirits...
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- Figure 9: Attitudes towards premiumisation and alcohol, by gender and age, December 2010
- …as well as the importance of discounting
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- Figure 10: Index of changing grocery shopping habits, by gender, age and socio-economic group, November 2011
- The challenge of making a profit in a high-tax market
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- Figure 11: Current UK excise duty rates for spirits/RTDs in their standard retail format compared to beer, cider and wine, February 2012
- Capitalising on the trend towards local, small, artisan brands
Broader Market Environment
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- Consumer spend is under increasing pressure
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- Figure 12: Change in average weekly earnings compared to inflation and consumer confidence, January 2007-October 2011
- 2012 will be a challenging trading environment
- Rise in ABC1s underpins the continued importance of premiumisation
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- Figure 13: Forecast adult population trends, by socio-economic group, 2006-16
- Impact of an ageing population
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- Figure 14: Forecast adult population trends, by age, 2006-16
Competitive Context
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- Key points
- A declining pool of drinkers…
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- Figure 15: Proportion of UK population who drink alcohol, 2007-11
- …who demand more choice and variety than before
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- Figure 16: Penetration of major alcohol types in order of popularity, 2007-11
- Are white spirits starting to go out of fashion?
- Consumers are gaining a sweeter tooth
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- RTDs dominate innovation
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- Figure 17: Proportion of new product launches in the UK white spirits and RTDs market, by sub-category, 2007-11
- Experimenting around RTD cocktail formats
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- Figure 18: Some examples of interesting innovation around RTD cocktail packaging, May 2011-January 2012
- Vodka flavour innovation is moving beyond fruit
- White spirits lead the way in stylish, standout packaging
Market Size and Segmentation
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- Key points
- Total white spirits/RTDs market declines by 89 million litres in six years
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- Figure 19: Market size and forecast for the total UK white spirits and RTD market, by volume and value, 2006-16
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- Figure 20: Market size and forecast for the total UK white spirits and RTD market, by value, 2006-16
- Premiumisation will help drive vodka sales to £2.6 million by 2016
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- Figure 21: Market size and forecast for the UK vodka market, by volume and value, 2006-16
- Figure 22: Market size and forecast for the total UK vodka market, by value, 2006-16
- The gin revival fails to materialise
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- Figure 23: Market size and forecast for the UK gin market, by volume and value, 2006-16
- Figure 24: Market size and forecast for the total UK gin market, by value, 2006-16
- White rum is performing steadily but tequila growth remains stunted
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- Figure 25: Market size and forecast for the UK other white spirits market, by volume and value, 2006-16
- Figure 26: Market size and forecast for the total UK other white spirits market, by value, 2006-16
- New RTDs stem continued decline of alcopops
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- Figure 27: Market size and forecast for the UK RTD market, by volume and value, 2006-16
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- Figure 28: Market size and forecast for the total UK RTD market, by value, 2006-16
- Forecast methodology
Market Share
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- Key points
- Smirnoff consolidates its position as number one vodka
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- Figure 29: Market value and share of top five vodka brands in the off-trade, 2010 and 2011
- Gin’s modest growth is being boosted by premium brands
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- Figure 30: Market value and share of top five other white spirits brands in the off-trade, 2010 and 2011
- New breed of RTDs leads to first annual growth in off-trade for years
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- Figure 31: Market value and share of top five RTD brands in the off-trade, 2010 and 2011
Companies and Products
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- Key points
- Brown-Forman
- Bacardi-Martini
- Diageo
- First Drinks Brands
- Pernod Ricard
- Glen Catrine
- Global Brands Limited
Brand Research
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- Figure 32: Attitudes towards and usage of brands in the white spirits sector, January 2012
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- Figure 33: Attitudes, by white spirit brand, January 2012
- Brand personality
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- Figure 34: White spirit brand personality – macro image, January 2012
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- Figure 35: White spirit brand personality – micro image, January 2012
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- Figure 36: White spirit brand usage, January 2012
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- Figure 37: Satisfaction with various white spirit brands, January 2012
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- Figure 38: Consideration of white spirit brands, January 2012
- Figure 39: Consumer perceptions of current white spirits brand performance, January 2012
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- Figure 40: White spirits brand recommendation – Net Promoter Score, January 2012
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- Figure 41: White spirits brand index, January 2012
- Figure 42: White spirits brand index vs. recommendation, January 2012
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- Figure 43: Target groups, January 2012
- Figure 44: White spirits brand usage, by target groups, January 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Four – Habitual Shoppers
- Group Five – Individualists
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Brand Communication and Promotion
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- Key points
- Above-the-line marketing support remains strong
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- Figure 45: Topline above-the-line advertising spend in the UK white spirits and RTDs market, 2009-11
- Smirnoff’s investment is paying off
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- Figure 46: Highest-spending brands in the white spirits/RTD market in terms of advertising, January 2009-November 2011
- Diageo is driving ad investment
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- Figure 47: Highest-spending advertisers in the white spirits/RTD market, January 2009-November 2011
Channels to Market
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- Key points
- Off-trade revenue now accounts for 46% of the total market
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- Figure 48: Value sales and share of white spirits/RTDs, in the on- and off-trade, 2006-11
- Multiples see revenues increase by a fifth in the past three years
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- Figure 49: Value sales of white spirits/RTDs, by channel, 2009-11
- The rise of online alcohol purchasing
Consumer Usage
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- Key points
- Vodka remains comfortably the leading UK white spirit
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- Figure 50: Consumption of white spirits and RTDs, January 2012
- New RTDs are continuing to attract new UK drinkers
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- Figure 51: Consumption of the new and RTDs, 2011 versus 2012
- White spirits attract the young in droves
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- Figure 52: Indexed consumption of white spirits (in any format) by type, by gender and age, January 2012
- Is there room for flavoured gin?
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- Figure 53: Proportion of drinkers per spirit that drink it on its own, with a mixer or as part of a cocktail, January 2012
- A fifth of vodka drinkers drink it at least three times a week
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- Figure 54: Proportion of drinkers of each product who consume it at least three times a week, 2011
Occasions for Drinking White Spirits and the New RTDs
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- Key points
- About partying more than relaxing
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- Figure 55: Which occasions people drink vodka, gin or the new RTDs on, in order of popularity, January 2012
- Seven in ten 18-34s drink them before they go out
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- Figure 56: Which occasions 18-34-year-olds drink vodka, gin or the new RTDs on, in order of popularity, January 2012
- Gin struggles to compete with vodka as a sociable/party choice
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- Figure 57: Which occasions people drink vodka, gin and the new RTDs, January 2012
- New RTDs seen as ideal for outdoor meal occasions
Consumer – Attitudes towards Vodka
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- Key points
- Vodka’s mixability is its main strength
- Premiumisation is a key driver for consumers…
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- Figure 58: Attitudes towards vodka, January 2012
- …especially male drinkers
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- Figure 59: Net difference in attitudes towards vodka – women versus men, January 2012
- Flavoured vodka appeals to 18-24s by offering convenience and variety
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- Figure 60: Indexed attitudes towards vodka – 18-24-year-olds versus all, January 2012
Consumer – Attitudes towards the New Type of RTDs
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- Key points
- Two major barriers are holding back RTDs...
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- Figure 61: Attitudes towards the new type of RTDs, January 2012
- …but convenience is much more valued among the younger cohort
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- Figure 62: Net difference in attitudes towards the new RTDs – under-35s versus over-35s, January 2012
- The importance of maintaining their distance from alcopops
Appendix – Internal Market Environment
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- Figure 63: Factors influencing the decision to drink alcohol at home, by demographics, May 2011
- Figure 64: Next most popular factors influencing the decision to drink alcohol at home, by demographics, May 2011
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- Figure 65: Occasions when consumers have drunk alcohol at home, by demographics, May 2011
- Figure 66: Changing grocery shopping habits, by gender, age and socio-economic group, November 2011
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Appendix – Market Size and Forecast
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- Figure 67: Best- and worst-case forecast of total UK white spirits/RTD sales, by value, 2011-16
- Figure 68: Best- and worst-case forecast of total UK white spirits/RTD sales, by volume, 2011-16
- Figure 69: Best- and worst-case forecast of total UK vodka sales, by value, 2011-16
- Figure 70: Best- and worst-case forecast of total UK vodka sales, by volume, 2011-16
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- Figure 71: Best- and worst-case forecast of total UK gin sales, by value, 2011-16
- Figure 72: Best- and worst-case forecast of total UK gin sales, by volume, 2011-16
- Figure 73: Best- and worst-case forecast of total UK other white spirits sales, by value, 2011-16
- Figure 74: Best- and worst-case forecast of total UK other white spirits sales, by volume, 2011-16
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- Figure 75: Best- and worst-case forecast of total UK RTD sales, by value, 2011-16
- Figure 76: Best- and worst-case forecast of total UK RTD sales, by volume, 2011-16
- Figure 77: Market size and forecast for the total UK white spirits and RTD market, by volume (litres), 2006-16
- Figure 78: Market size and forecast for the total UK vodka market, by volume (litres), 2006-16
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- Figure 79: Market size and forecast for the total UK gin market, by volume (litres), 2006-16
- Figure 80: Market size and forecast for the total UK other white spirits market, by volume (litres), 2006-16
- Figure 81: Market size and forecast for the total UK RTDs market, by volume (litres), 2006-16
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Appendix – Brand Research
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- Figure 82: Brand usage, January 2012
- Figure 83: Brand commitment, January 2012
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- Figure 84: Brand momentum, January 2012
- Figure 85: Brand diversity, January 2012
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- Figure 86: Brand satisfaction, January 2012
- Figure 87: Brand recommendation, January 2012
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- Figure 88: Brand attitude, January 2012
- Figure 89: Brand image – macro image, January 2012
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- Figure 90: Brand image – micro image, January 2012
- Figure 91: Profile of target groups, by demographics, January 2012
- Figure 92: Psychographic segmentation, by target group, January 2012
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- Figure 93: Brand usage, by target group, January 2012
- Brand index
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- Figure 94: Brand index, January 2012
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Appendix – Consumer Usage
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- Figure 95: Consumption of vodka, and how it was consumed, by demographics, January 2012
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- Figure 96: Consumption of gin, and how it was consumed, by demographics, January 2012
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- Figure 97: Consumption of tequila, and how it was consumed, by demographics, January 2012
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- Figure 98: Consumption of white rum, and how it was consumed, by demographics, January 2012
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- Figure 99: Consumption of any of the new RTDs, by demographics, January 2012
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- Figure 100: Consumption of RTD spirits with mixer in a can, by demographics, January 2012
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- Figure 101: Consumption of RTD cocktails, by demographics, January 2012
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Appendix – Occasions for Drinking White Spirits and the New RTDs
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- Figure 102: Most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
- Figure 103: Next most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
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- Figure 104: Most popular occasions for drinking vodka, by demographics, January 2012
- Figure 105: Next most popular occasions for drinking vodka, by demographics, January 2012
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- Figure 106: Most popular occasions for drinking gin, by demographics, January 2012
- Figure 107: Next most popular occasions for drinking gin, by demographics, January 2012
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- Figure 108: Most popular occasions for drinking ready-to-serves, by demographics, January 2012
- Figure 109: Next most popular occasions for drinking ready-to-serves, by demographics, January 2012
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- Figure 110: Most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
- Figure 111: Next most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
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- Figure 112: Most popular occasions for drinking vodka, by demographics, January 2012
- Figure 113: Next most popular occasions for drinking vodka, by demographics, January 2012
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- Figure 114: Most popular occasions for drinking gin, by demographics, January 2012
- Figure 115: Next most popular occasions for drinking gin, by demographics, January 2012
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- Figure 116: Occasions for drinking ready-to-serves, by demographics, January 2012
- Figure 117: Most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
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- Figure 118: Next most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
- Figure 119: Most popular occasions for drinking vodka, by demographics, January 2012
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- Figure 120: Next most popular occasions for drinking vodka, by demographics, January 2012
- Figure 121: Occasions for drinking gin, by demographics, January 2012
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- Figure 122: Most popular occasions for drinking ready-to-serves, by demographics, January 2012
- Figure 123: Next most popular occasions for drinking ready-to-serves, by demographics, January 2012
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- Figure 124: Most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
- Figure 125: Next most popular occasions for drinking vodka, gin and ready-to-serves, by demographics, January 2012
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- Figure 126: Most popular occasions for drinking vodka, by demographics, January 2012
- Figure 127: Next most popular occasions for drinking vodka, by demographics, January 2012
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- Figure 128: Most popular occasions for drinking gin, by demographics, January 2012
- Figure 129: Next most popular occasions for drinking gin, by demographics, January 2012
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- Figure 130: Most popular occasions for drinking ready-to-serves, by demographics, January 2012
- Figure 131: Next most popular occasions for drinking ready-to-serves, by demographics, January 2012
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Appendix – Attitudes towards Vodka
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- Figure 132: Most popular attitudes to vodka, by demographics, January 2012
- Figure 133: Next most popular attitudes towards vodka, by demographics, January 2012
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Appendix – Attitudes towards the New Type of RTDs
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- Figure 134: Most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
- Figure 135: Next most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
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- Figure 136: Most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
- Figure 137: Next most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
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- Figure 138: Most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
- Figure 139: Next most popular attitudes towards ready-mixed spirits/cocktails, by demographics, January 2012
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