Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Sales expected to rise 4% in 2016
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- Figure 1: Forecast of UK value sales of dark spirits and liqueurs, 2011-21
- Inflation set to see volume sales stagnate
- New alcohol guidelines draw more attention to health risks
- Brexit is set to push up prices of imported alcohol
- Domestic products can benefit from the weaker pound
- Companies and brands
- The lead held by Famous Grouse slips
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- Figure 2: Leading brands’ sales and shares in the UK retail whisky market, 2015/16*
- A few standout performances
- An NPD push for Scotch whisky
- Johnnie Walker will be the first Scotch whisky with nutritional labels
- Adspend slips to a four-year low in 2015
- The consumer
- 62% of Brits drink dark spirits/liqueurs
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- Figure 3: Usage of dark spirits, by type, July 2016
- Taste is the main sticking point – particularly for women
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- Figure 4: Barriers to drinking dark spirits, July 2016
- A challenge facing new brands and small producer
- Premium varieties are the most popular
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- Figure 5: Preferences regarding selected attributes of dark spirits and liqueurs, July 2016
- Recommendations are most likely to sway 18-24s
- Trial packs can encourage experimentation
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- Figure 6: Dark spirit/liqueur product enticements, July 2016
- Young consumers are hungry for more serving suggestions
- Spicy flavours appeal to half of 18-34s
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- Figure 7: Attitudes towards dark spirits and liqueurs, July 2016
- What we think
Issues and Insights
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- Giving serving suggestions more visibility in-store is needed
- The facts
- The implications
- Own-label can tap into savvy shopping habits to grow its share
- The facts
- The implications
- Opportunities are ripe for more hot/spicy flavour innovation in liqueurs
- The facts
- The implications
The Market – What You Need to Know
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- Sales expected to rise 4% in 2016
- Price rises in the on-trade
- Off-trade growth from all segments
- Inflation set to see volume sales stagnate
- New alcohol guidelines draw more attention to health risks
- Brexit is set to push up prices of imported alcohol
- Domestic products can benefit from the weaker pound
Market Size, Segmentation and Forecast
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- Sales expected to rise 4% in 2016
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- Figure 8: Total value and volume sales of dark spirits and liqueurs, at current and constant prices, 2011-21
- American brands are driving growth in whisky
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- Figure 9: Total value and volume sales of whiskies, at current and constant prices, 2011-21
- A big jump in volume sales of brandies
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- Figure 10: Total value and volume sales of brandies, at current and constant prices, 2011-21
- A slowdown for rum, but nonetheless impressive growth
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- Figure 11: Total value and volume sales of rums, at current and constant prices, 2011-21
- Liqueurs
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- Figure 12: Total value and volume sales of liqueurs, at current and constant prices, 2011-21
- The future
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- Figure 13: Forecast of UK value sales of dark spirits and liqueurs, 2011-21
- Figure 14: Forecast of UK volume sales of dark spirits and liqueurs, 2011-21
- The impact of the EU Referendum
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- Figure 15: Alternative scenarios for the dark spirits and liqueurs market, 2016-2021
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- Figure 16: Alternative scenarios for the dark spirits and liqueurs market, at current prices, 2016-21
- No immediate impact on consumers’ finances
- The risk of an economic slowdown and rising prices
- The market was in a different place in 2008-09
- Savvy habits have been retained by many
Channels to Market
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- On-trade value share budges upward
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- Figure 17: Value and volume sales of dark spirits and liqueurs, by channel, 2014-16
- Figure 18: Value and volume sales of dark spirits and liqueurs in the off-trade, by segment, 2014-16
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- Figure 19: Value and volume sales of dark spirits and liqueur in the on-trade, by segment, 2014-16
Market Drivers
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- New alcohol guidelines draw more attention to health risks
- A ‘quality over quantity’ mindset
- Sales of dark spirits and liqueurs rebound despite the woes of the wider alcohol market
- Ageing population is a challenge
- Some cost relief for alcohol producers
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- Figure 20: UK excise duty rates for selected alcoholic drinks, 2004-16
- Brexit pushes up prices of imported alcohol
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- Figure 21: Consumer Price Indices for all items, alcoholic beverages and spirits, January 2000-July 2016
- Domestic products can benefit from the weaker pound
- Consumer confidence and spending
Companies and Brands – What You Need to Know
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- The lead held by Famous Grouse slips
- Three Barrels grows its share, but Bardinet is a rising star
- Baileys extends its lead
- Captain Morgan extends its lead with 14% growth
- An NPD push for Scotch whisky
- Johnnie Walker will be the first Scotch whisky with nutritional labels
- Adspend slips to a four-year low in 2015
Market Share
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- The lead held by Famous Grouse slips
- Jack Daniel’s is the star performer
- Competition heats up from own-label
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- Figure 22: Leading brands’ sales and shares in the UK retail whisky market, 2014/15- 2015/16
- Figure 23: Leading manufacturers’ sales and shares in the UK retail whisky market, 2014/15- 2015/16
- Three Barrels grows its share, but Bardinet is a rising star
- Rémy Martin holds its own
- Own-label on a downward trajectory
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- Figure 24: Leading brands’ sales and shares in the UK retail brandy/Cognac market, 2014/15- 2015/16
- Baileys extends its lead in liqueur
- Disaronno leapfrogs Pimm’s into third position
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- Figure 25: Leading brands’ sales and shares in the UK retail liqueur market, 2014/15- 2015/16
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- Figure 26: Leading manufacturers’ sales and shares in the UK retail liqueur market, 2014/15- 2015/16
- Captain Morgan extends its lead with 14% growth
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- Figure 27: Leading brands’ sales and shares in the UK retail rum market, 2014/15- 2015/16
Launch Activity and Innovation
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- An NPD push for Scotch whisky
- More adventurous NPD in the Scotch whisky market
- Premiumised packaging for the Famous Grouse range
- Diageo brings back Johnnie Walker Green Label to drive growth in Scotch
- Johnnie Walker will be the first Scotch whisky with nutritional labels
- Compass Box campaign promotes greater transparency
- A premiumisation drive from mainstream brands
- Haig Club diversifies to appeal to a younger audience
- Packaging redesigns keep brands contemporary
- An effort to educate and make whisky less intimidating…
- Grants reveals the impact of alchemy in its trio of whiskies
- A restructure from Jameson aims to help shoppers navigate
- …while The Glenlivet puts whisky drinkers to the test
- Limited edition packaging designs continue to drive NPD
- Marking events
- Highlighting people
- Tie-ups with fashion
- Liqueurs
- Jägermeister looks to distance itself from the Jägerbomb
- Mr Black has built its brand around cold brew coffee
- Baileys launches new dairy-free Almande variant
Advertising and Marketing Activity
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- Adspend slips to a four-year low in 2015
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- Figure 28: Total above-the line, online display and direct mail advertising expenditure on dark spirits and liqueurs, by category, 2012-16
- Baileys take pole position in adspend
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- Figure 29: Top 15 highest-spending brands in the dark spirits and liqueurs category, above-the line, online display and direct mail advertising, 2012-16
- A push to show a different side of the Jägermeister brand
- Jack Daniel's celebrated its 150th anniversary with a global scavenger hunt
- The first global campaign for Johnnie Walker
- Glenfiddich turns to virtual reality
- Major campaign for Captain Morgan in 2016
- Honest opinions are welcomed in Laphroaig’s campaign
- More advertisers turn to the widescreen
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- Figure 30: Share of total above-the line, online display and direct mail advertising expenditure on dark spirits and liqueurs, by channel, 2012-16
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 31: Attitudes towards and usage of selected brands, July 2016
- Key brand metrics
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- Figure 32: Key metrics for selected brands, July 2016
- Brand attitudes: Baileys stands out as the most trusted and reputable brand
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- Figure 33: Attitudes, by brand, July 2016
- Brand personality: Jägermeister and Pimm’s are perceived as most fun and vibrant
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- Figure 34: Brand personality – Macro image, July 2016
- Aside from a masculine image, Jim Beam and Captain Morgan struggle to differentiate
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- Figure 35: Brand personality – Micro image, July 2016
- Brand analysis
- Baileys
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- Figure 36: User profile of Baileys, July 2016
- Disaronno
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- Figure 37: User profile of Disaronno, July 2016
- Pimm’s
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- Figure 38: User profile of Pimm’s, July 2016
- Captain Morgan
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- Figure 39: User profile of Captain Morgan, July 2016
- Jim Beam
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- Figure 40: User profile of Jim Beam, July 2016
- Southern Comfort
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- Figure 41: User profile of Southern Comfort, July 2016
- Jägermeister
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- Figure 42: User profile of Jägermeister, July 2016
The Consumer – What You Need to Know
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- 62% of Brits drink dark spirits/liqueurs
- Dark spirits preferred by men, while women more likely to drink liqueurs
- Taste is the main sticking point – particularly for women
- Recommendations are most likely to sway 18-24s
- Trial packs can encourage experimentation
- A challenge facing new brands and small producers
- Premium varieties are the most popular
- Young consumers are hungry for more serving suggestions
- Spicy flavours appeal to half of 18-34s
Usage of Dark Spirits and Liqueurs
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- 62% of Brits drink dark spirits/liqueurs
- Men are the core users of dark spirits
- Notable differences in the preferences of the older and younger generation
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- Figure 43: Usage of dark spirits, by type, July 2016
- Only single malt whisky is most commonly drunk neat
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- Figure 44: Ways of drinking dark spirits, by type, July 2016
- Women are the core drinkers of liqueurs
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- Figure 45: Usage of liqueurs and flavoured dark spirits, by type, July 2016
- Cream liqueurs typically enjoyed without a mixer
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- Figure 46: Ways of drinking liqueurs and flavoured dark spirits, by type, July 2016
- 18-24s have the widest repertoires
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- Figure 47: Repertoire of usage of dark spirits and liqueurs, July 2016
Barriers to Drinking Dark Spirits
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- Taste is the main sticking point – particularly for women
- A need to disrupt taste perceptions among non-likers of dark spirits
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- Figure 48: Barriers to drinking dark spirits, July 2016
- One in seven non-drinkers simply doesn’t think to have dark spirits
Dark Spirit and Liqueur Preferences
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- The nation is divided in their preference for brands versus own-label
- Aldi and Lidl are a beacon for own-label
- A challenge facing new brands and small producer
- Premium varieties are the most popular
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- Figure 49: Preferences regarding selected attributes of dark spirits and liqueurs, July 2016
- Older consumers have the strongest allegiance to UK producers
- Transparent packaging is preferred
Product Enticement
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- Recommendations are most likely to sway 18-24s
- Trial packs can encourage experimentation
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- Figure 50: Dark spirit/liqueur product enticements, July 2016
- Free gifts attract over a quarter of under-35s.
Attitudes towards Dark Spirits and Liqueurs
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- Young consumers are hungry for more serving suggestions
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- Figure 51: Attitudes towards dark spirits and liqueurs, July 2016
- Spicy flavours appeal to half of 18-34s
- One in three men would be prepared to pay more for craft dark spirits
- Scope for even large producers to tap into the popularity of ‘craft’ spirits
- Exclusivity chimes with two fifths of under-35s
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Forecast methodology
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 52: Best- and worst-case forecasts for the total dark spirits and liqueurs market, by value, 2016-21
- Figure 53: Best- and worst-case forecasts for the total dark spirits and liqueurs market, by volume, 2016-21
- Figure 54: Best- and worst-case forecasts for the whisky market, by value, 2016-21
- Figure 55: Best- and worst-case forecasts for the whisky market, by volume, 2016-21
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- Figure 56: Forecast of UK value sales of whisky/whiskey, 2011-21
- Figure 57: Forecast of UK volume sales of whisky/whiskey, 2011-21
- Figure 58: Best- and worst-case forecasts for the brandy market, by value, 2016-21
- Figure 59: Best- and worst-case forecasts for the brandy market, by volume, 2016-21
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- Figure 60: Forecast of UK value sales of brandy, 2011-21
- Figure 61: Forecast of UK volume sales of brandy, 2011-21
- Figure 62: Best- and worst-case forecasts for the rum market, by value, 2016-21
- Figure 63: Best- and worst-case forecasts for the rum market, by volume, 2016-21
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- Figure 64: Forecast of UK volume sales of rum, 2011-21
- Figure 65: Forecast of UK volume sales of rum, 2011-21
- Figure 66: Best- and worst-case forecasts for the liqueurs market, by value, 2016-21
- Figure 67: Best- and worst-case forecasts for the liqueurs market, by volume, 2016-21
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- Figure 68: Forecast of UK value sales of liqueurs, 2011-21
- Figure 69: Forecast of UK volume sales of liqueurs, 2011-21
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Appendix – Market Share
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- Figure 70: Leading manufacturers’ sales and shares in the UK retail brandy/Cognac market, 2014/15- 2015/16
- Figure 71: Leading manufacturers’ sales and shares in the UK retail rum market, 2014/15- 2015/16
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