Table of Contents
Executive Summary
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- The market
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- Figure 1: Forecast UK value sales of white spirits and RTDs, 2009-19
- Market factors
- Changes in the UK’s age structure bring challenges and opportunities
- Overall alcohol intake falls
- Spirits duty frozen in 2014 Budget
- Companies, brands and innovation
- Innovation
- Market share
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- Figure 2: Value share of top-selling white spirit and RTD brands in the off-trade, 2014*
- Brand Communication and Promotion
- The consumer
- Vodka remains the most popular white spirit
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- Figure 3: Usage of white spirits by type, September 2014
- Quality of ingredients is key for brands targeting the premium tier
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- Figure 4: Important factors in defining a premium white spirit, September 2014
- Sophisticated flavours can help attract older drinkers to flavoured vodka
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- Figure 5: Attitudes towards white spirits, September 2014
- ‘Craft’ is undefined and misunderstood, and holds little appeal to many
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- Figure 6: Attitudes towards craft white spirits, September 2014
- Flavoured ciders are taking the place of alcopops
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- Figure 7: Attitudes towards pre-mixed drinks in cans or bottles, September 2014
- What we think
Issues and Insights
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- Bottled RTDs need a complete overhaul
- The facts
- The implications
- Operators continue to market ‘craft’ spirits, despite little consumer understanding
- The facts
- The implications
- The removal of the tax escalator set to boost white spirit volume sales
- The facts
- The implications
Trend Application
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- Prove it
- Slow It All Down
- Locavore
Market Drivers
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- Key points
- Changes in age structure will bring challenges and opportunities
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- Figure 8: Trends in the age structure of the UK population, 2009-14 and 2014-19
- Overall alcohol consumption continues to fall
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- Figure 9: Trends in UK per capita consumption of 100% alcohol, 2009-13
- 2014 Budget sees the tax escalator removed
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- Figure 10: HM Treasury estimated changes in volume consumption of alcohol, 2014/15-2018/19
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Big brands opting for natural over novelty when it comes to flavour
- Brands opt for hybrid spirits to attract new users
- Aged expressions are popping up in tequila, gin and rum
Market Size and Segment Performance
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- Key points
- Value sales grew by 4.5% in 2014 while volumes remained stagnant
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- Figure 11: UK value and volume sales of white spirits and RTDs, 2009-19
- Figure 12: Forecast UK value sales of white spirits and RTDs, 2009-19
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- Figure 13: Forecast UK volume sales of white spirits and RTDs, 2009-19
- Figure 14: UK value sales of white spirits and RTDs in the on- and off-trade, by product category, 2012-14
- Figure 15: UK volume sales of white spirits and RTDs in the on- and off-trade, by product category, 2012-14
- Vodka remains the leading segment by some distance
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- Figure 16: UK value and volume sales of white spirits and RTDs, at current and constant prices, 2009-19
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- Figure 17: Forecast UK value sales of vodka, 2009-19
- Figure 18: Forecast UK volume sales of vodka, 2009-19
- Gin category continues to prosper
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- Figure 19: UK value and volume sales of gin, at current and constant prices, 2009-19
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- Figure 20: Forecast UK value sales of gin, 2009-19
- Figure 21: Forecast UK volume sales of gin, 2009-19
- White rum sales set to be surpassed by dark/golden/spiced rum in 2015
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- Figure 22: UK value and volume sales of white rum, at current and constant prices, 2009-19
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- Figure 23: Forecast UK value sales of white rum, 2009-19
- Figure 24: Forecast UK volume sales of white rum, 2009-19
- RTDs see further decline
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- Figure 25: UK value and volume sales of RTDs, at current and constant prices, 2009-19
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- Figure 26: Forecast UK value sales of RTDs, 2009-19
- Figure 27: Forecast UK volume sales of RTDs, 2009-19
- Tequila set for further growth
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- Figure 28: UK value and volume sales of RTDs, at current and constant prices, 2009-19
- Figure 29: Forecast UK value sales of Tequila, 2009-19
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- Figure 30: Forecast UK volume sales of Tequila, 2009-19
- Forecast methodology
Market Share
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- Key points
- Russian Standard’s ascent continues as Smirnoff cements lead
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- Figure 31: Value sales of top-selling white spirit and RTD brands* in the off-trade 2012/13 and 2013/14
- Bombay Sapphire, Tanqueray and Hendrick’s perform strongly in gin
- Bacardi and Malibu both see their share decline marginally
Companies and Products
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- Bacardi-Martini
- Company overview and brand portfolio
- Recent activity, brand communication and promotion
- Brown-Forman
- Company overview and brand portfolio
- Recent activity, brand communication and promotion
- Diageo
- Company overview and brand portfolio
- Recent activity, brand communication and promotion
- William Grant & Sons
- Company overview and brand portfolio
- Recent activity, brand communication and promotion
- Pernod Ricard
- Company overview and brand portfolio
- Recent activity, brand communication and promotion
Brand Communication and Promotion
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- Key points
- Pernod Ricard cutbacks severely impact total market adspend
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- Figure 32: Topline above-the-line advertising spend in the UK white spirits and RTDs market, 2011-14
- Diageo continues to invest heavily in its brands
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- Figure 33: Highest-spending companies for above-the-line advertising in the white spirits/RTD market, 2011-14
- Figure 34: Highest-spending brands in above-the-line advertising in the white spirits/RTDs market, 2011-14
- Bacardi-Martini advertising spend falls by almost half in 2013
- Belvedere launches its first cinema campaign
Brand Research
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- Brand map
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- Figure 35: Attitudes towards and usage of brands in the white spirits sector, September 2014
- Correspondence analysis
- Brand attitudes
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- Figure 36: Attitudes, by white spirits brand, September 2014
- Brand personality
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- Figure 37: White spirits brand personality – macro image, September 2014
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- Figure 38: White spirits brand personality – micro image, September 2014
- Brand experience
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- Figure 39: White spirits brand usage, September 2014
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- Figure 40: Satisfaction with various white spirits brands, September 2014
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- Figure 41: Consideration of white spirits brands, September 2014
- Brand recommendation
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- Figure 42: Recommendation of selected white spirits brands, September 2014
The Consumer – Usage of White Spirits
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- Key points
- Vodka remains the nation’s favourite white spirit
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- Figure 43: Usage of white spirits, September 2014
- Premium brands could focus on promoting neat drink
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- Figure 44: Usage of white spirits neat, with a mixer, or as part of a cocktail, by category, September 2014
- Just over a third of adults drink pre-mixes
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- Figure 45: Usage of pre-mixed drinks in a bottle/can, September 2014
The Consumer – Attitudes towards Premium White Spirits
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- Key points
- Quality of ingredients is key for brands targeting the premium tier
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- Figure 46: Important factors in defining a premium white spirit, September 2014
- Specific country or region of origin matters to only 23% of drinkers
- Taste and traditional production methods appeal to older drinkers
The Consumer – General Attitudes towards White Spirits
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- Key points
- Older consumers more likely to be loyal to their favourite white spirit
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- Figure 47: Attitudes towards white spirits, September 2014
- Sophisticated flavours can help attract older drinkers to flavoured vodka
- Tequila’s shot reputation is preventing increased usage among 18-24s
The Consumer – Attitudes towards Craft White Spirits
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- Key points
- ‘Craft’ is undefined and misunderstood, but this is irrelevant to many
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- Figure 48: Attitudes towards craft white spirits, September 2014
- Brands should focus on production methods and ingredients before ‘craft’
- Transparency of ownership matters
The Consumer – Attitudes towards RTDs
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- Key points
- Flavoured ciders are taking the place of alcopops
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- Figure 49: Attitudes towards pre-mixed drinks in cans or bottles, September 2014
- RTDs are failing to win over consumers on value and convenience
- Quality is not an issue for most
Appendix – Market Size and Forecast
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- Figure 50: Best and worst case forecasts for the white spirits and RTDs market, by value, 2014-19
- Figure 51: Best and worst case forecasts for the white spirits and RTDs market, by volume, 2014-19
- Figure 52: Best and worst case forecasts for the vodka market, by value, 2014-19
- Figure 53: Best and worst case forecasts for the vodka market, by volume, 2014-19
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- Figure 54: Best and worst case forecasts for the white rum market, by value, 2014-19
- Figure 55: Best and worst case forecasts for the white rum market, by volume, 2014-19
- Figure 56: Best and worst case forecasts for the gin market, by value, 2014-19
- Figure 57: Best and worst case forecasts for the gin market, by volume, 2014-19
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- Figure 58: Best and worst case forecasts for the tequila market, by value, 2014-19
- Figure 59: Best and worst case forecasts for the tequila market, by volume, 2014-19
- Figure 60: Best and worst case forecasts for the RTD market, by value, 2014-19
- Figure 61: Best and worst case forecasts for the RTD market, by volume, 2014-19
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Appendix – Market Share
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- Figure 62: Value sales of top-selling vodka brands in the off-trade 2012/13 and 2013/14
- Figure 63: Value sales of top-selling gin brands in the off-trade 2012/13 and 2013/14
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- Figure 64: Value sales of top-selling RTD brands in the off-trade 2012/13 and 2013/14
- Figure 65: Volume sales of top-selling white spirit and RTD brands in the off-trade 2012/13 and 2013/14
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- Figure 66: Volume sales of top-selling vodka brands in the off-trade 2012/13 and 2013/14
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Appendix – Prices of white spirits and RTDs
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- Figure 67: Retail prices of selected vodkas, per 70cl bottle, December 2014
- Figure 68: Retail prices of selected gins, per 70cl bottle, December 2014
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