Table of Contents
Executive Summary
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- The market
- Steady value growth masks stagnating volumes
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- Figure 1: Forecast of UK value sales of white spirits and RTDs, 2010-20
- Figure 2: Forecast of UK volume sales of white spirits and RTDs, 2010-20
- Vodka remains vital to the white spirits market
- The off-trade outperforms the on-trade
- Companies, brands and innovation
- Diageo leads the way in both value and volume sales
- Smirnoff stretches further clear in the vodka segment
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- Figure 3: Retail value sales of the leading white spirits and RTD brands in the UK, 2014/15*
- Gin continues to thrive
- White rum hits stormy waters
- Tequila/Mezcal remains small
- RTDs’ mixed fortunes continue
- Total category adspend flatlines in 2014
- The consumer
- 63% of adults drink white spirits/RTDs
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- Figure 4: Usage of types of white spirits, September 2015
- Large supermarkets dominate off-trade sales
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- Figure 5: Willingness to spend on white spirits, per bottle, September 2015
- Vodka enjoys a number of positive associations
- Price hinders consumers’ willingness to experiment
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- Figure 6: Attitudes towards white spirits and RTDs, September 2015
- Flavoured variants enjoyed across the white spirits categories
- What we think
Issues and Insights
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- How can white rum reverse its fortunes?
- The facts
- The implications
- To flavour or not to flavour?
- The facts
- The implications
- Bridging the gap between brands and own-labels
- The facts
- The implications
- Smaller bottles could have large potential
- The facts
- The implications
The Market – What You Need to Know
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- Steady value growth masks stagnating volumes
- Vodka remains vital to the white spirits market
- The off-trade outperforms the on-trade
Market Size and Segmentation
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- Steady value growth masks stagnating volumes
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- Figure 7: Total value and volume sales of white spirits and RTDs, at current and constant prices, 2010-20
- Figure 8: Forecast of UK value sales of white spirits and RTDs, 2010-20
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- Figure 9: Forecast of UK volume sales of white spirits and RTDs, 2010-20
- Figure 10: Ratio of value and volume sales in the white spirits and RTDs market, by segment, 2015 (est)
- Vodka remains vital to the white spirits market
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- Figure 11: Total value and volume sales of vodka, at current and constant prices, 2010-20
- Figure 12: Forecast of UK value sales of vodka, 2010-20
- The gin-naissance continues
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- Figure 13: Total value and volume sales of gin, at current and constant prices, 2010-20
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- Figure 14: Forecast of UK value sales of gin, 2010-20
- White rums continue to struggle
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- Figure 15: Total value and volume sales of white rum, at current and constant prices, 2010-20
- Figure 16: Forecast of UK value sales of white rum, 2010-20
- Tequila/Mezcal in growth from a smaller base
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- Figure 17: Total value and volume sales of tequila/Mezcal, at current and constant prices, 2010-20
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- Figure 18: Forecast of UK value sales of tequila/Mezcal, 2010-20
- RTDs’ woes expected to continue
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- Figure 19: Total value and volume sales of RTDs, at current and constant prices, 2010-20
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- Figure 20: Forecast of UK value sales of RTDs, 2010-20
Channels to Market
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- The off-trade outperforms the on-trade
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- Figure 21: Value and volume sales of white spirits and RTDs, by channel, 2013-15
Market Drivers
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- Alcoholic drink prices continue to rise
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- Figure 22: UK excise duty rates for selected alcoholic drinks, 2003-15
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- Figure 23: RPI indexed annual change for alcoholic drink prices versus all items except housing, 2000-14
- An embattled on-trade industry
- UK consumers continue to cut back on alcohol
- Bridging the gender divide
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- Figure 24: Usage of types of dark spirits and liqueurs, by gender, July 2015
- Population changes could also impact the market
Key Players – What You Need to Know
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- Diageo leads the way in both value and volume sales
- Smirnoff stretches further clear in the vodka segment
- Gin continues to thrive
- White rum hits stormy waters
- Tequila/Mezcal remains small
- RTDs’ mixed fortunes continue
- Total category adspend flatlines in 2014
Market Share
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- Diageo leads the way in both value and volume sales
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- Figure 25: Leading manufacturers’ shares of white spirit and RTD sales in the UK off-trade, 2014/15*
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- Figure 26: Retail prices of selected white spirit brands (70cl bottles), October 2015
- Smirnoff stretches further clear in the vodka segment
- Many other vodka brands are thriving, while own-label takes a hit
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- Figure 27: Retail value sales of the leading vodka brands in the UK, 2012/13-2014/15
- Gin continues to thrive
- Strong performers elsewhere in the gin segment
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- Figure 28: Retail value sales of the leading gin brands in the UK, 2012/13-2014/15
- White rum hits stormy waters
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- Figure 29: Retail value sales of the leading white rum brands in the UK, 2012/13-2014/15
- Tequila/Mezcal remains small
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- Figure 30: Retail value sales of the leading tequila/Mezcal brands in the UK, 2012/13-2014/15
- RTDs’ mixed fortunes continue
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- Figure 31: Retail value sales of the leading RTD brands in the UK, 2012/13-2014/15
Brand Communication and Promotion
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- Total category adspend flatlines in 2014
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- Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure on white spirits and RTDs, by category, 2012-15
- BBFB and Diageo dominate leading brands’ adspend
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- Figure 33: Top 10 highest-spending brands in the white spirits and RTDs category, 2012-15
- Other selected campaigns
- TV remains the most popular channel for advertisers
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- Figure 34: Channels for advertising in the white spirits and RTDs category, 2012-15
Launch Activity and Innovation
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- NPD in vodka
- Absolut continues to lead the way in NPD activity
- Other selected vodka launches
- NPD in white rum
- NPD in gin
- NPD in RTDs
Brand Research
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- What you need to know
- Brand map
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- Figure 35: Attitudes towards and usage of selected white spirits brands, August 2015
- Key brand metrics
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- Figure 36: Key metrics for selected white spirits brands, August 2015
- Glen’s Vodka thrives in value associations
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- Figure 37: Attitudes, by white spirits brand, August 2015
- Tanqueray and Grey Goose seen as exclusive
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- Figure 38: Brand personality – macro image, August 2015
- Gordon’s enjoys traditional associations
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- Figure 39: Brand personality – micro image, August 2015
- Brand analysis
- Absolut promotes style and cool, but offers more accessibility than Grey Goose
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- Figure 40: User profile of Absolut, August 2015
- Smirnoff’s all-round image ensures that it continues to perform strongly
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- Figure 41: User profile of Smirnoff, August 2015
- Grey Goose has a particularly premium brand image
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- Figure 42: User profile of Grey Goose, August 2015
- Tanqueray is seen as a sophisticated brand but lacks the tradition of Gordon’s
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- Figure 43: User profile of Tanqueray, August 2015
- Gordon’s traditional perception drives strong usage among older groups
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- Figure 44: User profile of Gordon’s, August 2015
- Bacardi has an all-round image, but may be losing ground on Gordon’s
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- Figure 45: User profile of Bacardi, August 2015
- Glen’s is noted for value but lacks same strength of personality as others
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- Figure 46: User profile of Glen’s, August 2015
The Consumer – What You Need to Know
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- 63% of adults drink white spirits/RTDs
- Large supermarkets dominate off-trade sales
- White spirits could do more to leverage gifting opportunities
- Vodka enjoys a number of positive associations
- Price hinders consumers’ willingness to experiment
- Flavoured variants enjoyed across the white spirits categories
Usage of White Spirits and RTDs
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- 63% of adults drink white spirits and/or RTDs
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- Figure 47: Usage of types of white spirits, September 2015
- White rum and gin follow similar usage trends
- Tequila needs to move beyond its shot associations
- Pre-mixed drinks used by a quarter
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- Figure 48: Usage of types of RTDs, September 2015
- 17% of adults drink four or five types of white spirits
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- Figure 49: Repertoire of usage of white spirits, September 2015
- Vodka also garners the highest degree of favouritism
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- Figure 50: Favourite types of white spirits/RTDs, September 2015
Purchasing Locations and Spending on White Spirits and RTDs
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- Large supermarkets dominate off-trade sales
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- Figure 51: Off-trade locations for buying white spirits and RTDs, September 2015
- Specialists and online channel remain niche
- Gifting can be an effective means of encouraging trading up
- White spirits could do more to leverage gifting opportunities
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- Figure 52: Willingness to spend on white spirits, per bottle, September 2015
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- Figure 53: Buying white spirits as a gift, September 2015
Perceptions of White Spirits
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- Vodka enjoys a number of positive associations
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- Figure 54: Perceptions of white spirits, September 2015
- Gin is thriving but modernising could spark further growth
- Tequila’s image appears to revolve around shots
- White rum fails to stand out
- White spirits and premiumisation
Attitudes towards White Spirits and RTDs
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- Price hinders consumers’ willingness to experiment
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- Figure 55: Attitudes towards white spirits and RTDs, September 2015
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- Figure 56: Comparison of attitudinal responses of any agree for white spirits and RTDs vs the same statements asked for dark spirits and liqueurs, September 2015 and July 2015
- White spirits with mixers provide opportunities
- Price is more important than brand for many drinkers
- Interest in NPD and alcohol units driven by younger drinkers
Interest in Flavoured White Spirits
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- Flavoured variants enjoyed across the white spirits categories
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- Figure 57: Usage of flavoured types of white spirits, September 2015
- Fruit flavours lead the way in terms of flavours of interest
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- Figure 58: Interest in flavours of white spirits, July 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Abbreviations
Appendix – Market Size and Segmentation
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- Figure 59: Best- and worst-case forecasts for the total white spirits and RTDs market, by value, 2015-20
- Figure 60: Best- and worst-case forecasts for the total white spirits and RTDs market, by volume, 2015-20
- Figure 61: Best- and worst-case forecasts for the vodka market, by value, 2015-20
- Figure 62: Best- and worst-case forecasts for the vodka market, by volume, 2015-20
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- Figure 63: Forecast of UK volume sales of vodka, 2010-20
- Figure 64: Best- and worst-case forecasts for the gin market, by value, 2015-20
- Figure 65: Best- and worst-case forecasts for the gin market, by volume, 2015-20
- Figure 66: Forecast of UK volume sales of gin, 2010-20
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- Figure 67: Best- and worst-case forecasts for the white rum market, by value, 2015-20
- Figure 68: Best- and worst-case forecasts for the white rum market, by volume, 2015-20
- Figure 69: Forecast of UK volume sales of white rum, 2010-20
- Figure 70: Best- and worst-case forecasts for the tequila/Mezcal market, by value, 2015-20
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- Figure 71: Best- and worst-case forecasts for the tequila/Mezcal market, by volume, 2015-20
- Figure 72: Forecast of UK volume sales of tequila/Mezcal, 2010-20
- Figure 73: Best- and worst-case forecasts for the RTDs market, by value, 2015-20
- Figure 74: Best- and worst-case forecasts for the RTDs market, by volume, 2015-20
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- Figure 75: Forecast of UK volume sales of RTDs, 2010-20
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Appendix – Market Share
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- Figure 76: Leading manufacturers’ shares of white spirits and RTDs in the UK off-trade, 2014/15*
- Figure 77: Retail volume sales of the leading vodka brands in the UK, 2012/13-2014/15
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- Figure 78: Retail volume sales of the leading gin brands in the UK, 2012/13-2014/15
- Figure 79: Retail volume sales of the leading white rum brands in the UK, 2012/13-2014/15
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- Figure 80: Retail volume sales of the leading tequila/Mezcal brands in the UK, 2012/13-2014/15
- Figure 81: Retail volume sales of the leading RTD brands in the UK, 2012/13-2014/15
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