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 rise in 2016
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- Figure 1: Forecast of UK value sales of white spirits and RTDs, 2011-21
- Companies and brands
- Smirnoff continues to dominate vodka
- Fruit and sweet flavours widely seen in NPD
- Major players move into craft
- Category adspend rises
- Smirnoff excels on brand image
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- Figure 2: Attitudes towards and usage of selected brands, November 2016
- The consumer
- 56% drink white spirits
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- Figure 3: Usage of white spirits, by type, September 2016
- White spirits/RTDs are most popular when relaxing at home
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- Figure 4: Occasions when white spirits and RTDs are drunk, September 2016
- Flavour is the top way to add value
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- Figure 5: Attributes worth paying more for when buying white spirits, September 2016
- Interest in lower-alcohol/healthier versions
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- Figure 6: Attitudes towards white spirits and RTDs, September 2016
- What we think
Issues and Insights
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- Flavour is the top way to add value
- The facts
- The implications
- Major players move into craft
- The facts
- The implications
- Long-established brands trump smaller producers
- The facts
- The implications
- Potential for lower-alcohol/healthier versions
- The facts
- The implications
The Market – What You Need to Know
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- Sales rise in 2016
- Vodka leads the market
- The on-trade leads on values
- Alcohol duty stays flat
- New guidelines put the spotlight on alcohol consumption
Market Size and Forecast
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- Value and volume sales rise in 2016
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- Figure 7: Total value and volume sales of white spirits and RTDs, at current and constant prices, 2011-21
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- Figure 8: Forecast of UK value sales of white spirits and RTDs, 2011-21
- Figure 9: Forecast of UK volume sales of white spirits and RTDs, 2011-21
- The impact of the EU referendum vote
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- Figure 10: Alternative scenarios for the white spirits and RTDs market, 2016-21
- Figure 11: Alternative scenarios for the white spirits and RTDs market, at current prices, 2016-21
- Brexit vote has limited impact on consumers’ finances
- The market in 2008-09
- Savvy habits are already established
Market Segmentation
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- Vodka leads the market
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- Figure 12: Total value and volume sales of vodka, at current and constant prices, 2011-21
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- Figure 13: Forecast of UK value sales of vodka, 2011-21
- Gin’s growth continues
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- Figure 14: Total value and volume sales of gin, at current and constant prices, 2011-21
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- Figure 15: Forecast of UK value sales of gin, 2011-21
- White rum sees sluggish performance
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- Figure 16: Total value and volume sales of white rum, at current and constant prices, 2011-21
- Figure 17: Forecast of UK value sales of white rum, 2011-21
- Tequila/Mezcal sees value growth, driven by on-trade performance
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- Figure 18: Total value and volume sales of tequila/Mezcal, at current and constant prices, 2011-21
- Figure 19: Forecast of UK value sales of tequila/Mezcal, 2011-21
- RTDs continue to suffer
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- Figure 20: Total value and volume sales of RTDs, at current and constant prices, 2011-21
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- Figure 21: Forecast of UK value sales of RTDs, 2011-21
Channels to Market
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- The on-trade leads on values
- Off-trade top for volumes
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- Figure 22: UK value and volume sales of white spirits and RTDs in the on- and off-trade, by type, 2014-16
Market Drivers
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- Alcohol duty stays flat
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- Figure 23: UK excise duty rates for selected alcoholic drinks, 2006-16
- Figure 24: Consumer price indices for all items, wine, beer and spirits (2006=100), 2006-16
- Consumer caution could hit discretionary spending
- New guidelines put the spotlight on alcohol consumption
- Opportunities for lower/no-alcohol (or calorie) drinks
- Number of distilleries sees continued growth in the UK
- Demographic changes could impact the market
- Ageing population presents a challenge
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- Figure 25: Usage of white spirits, by age, September 2016
- Dominance of C1s and C2s demonstrates the need to push value for money
Companies and Brands – What You Need to Know
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- Smirnoff continues to dominate vodka
- Gin brands benefit from ongoing popularity, with Gordon’s leading
- Leading rum brands see sales rise, despite category dip
- RTDs see slight retail growth from pre-mixed cans
- Fruit and sweet flavours widely seen in NPD
- Major players move into craft
- Category adspend rises
- Smirnoff excels on brand image
Market Share
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- Smirnoff continues to dominate vodka
- Other brands also see growth
- New Amsterdam sees strong growth as the newcomer to the segment
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- Figure 26: UK retail value sales of the leading vodka brands, 2014/15 and 2015/16
- Gin brands benefit from ongoing popularity, with Gordon’s leading
- Bombay Sapphire enjoys impressive growth
- Sipsmith positions itself as a strong craft brand
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- Figure 27: UK retail value and volume sales of the leading gin brands, 2014/15 and 2015/16
- Leading rum brands see sales rise, despite category dip
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- Figure 28: UK retail value and volume sales of the leading white rum brands, 2014/15 and 2015/16
- Tequila/Mezcal brands remain limited
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- Figure 29: UK retail value and volume sales of the leading tequila/Mezcal brands, 2014/15 and 2015/16
- RTDs see slight retail growth, coming from pre-mixed cans
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- Figure 30: UK retail value and volume sales of the leading RTD brands, 2014/15 and 2015/16
Launch Activity and Innovation
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- Flavour innovation
- Fruit flavours are widely seen
- Gin embraces new flavours
- Indulgent flavours also prove popular in NPD
- Smoky/smoked flavours have potential
- Major players move into craft
- Retailers look to premiumisation
- Provenance offers a premium cue
- Making more of British credentials
- Consumer interest in health provides an incentive to NPD
- Calorie content
- Sugar content
- Exploring reduced or no alcohol content
- Frozen cocktail trend continues in RTDs
Advertising and Marketing Activity
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- Total category adspend rises
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- Figure 31: Total above-the-line, online display and direct mail advertising expenditure on white spirits and RTDs, 2013-16
- Figure 32: Above-the-line, online display and direct mail advertising expenditure on white spirits and RTDs, by category, 2013-16
- Diageo’s Smirnoff and Gordon’s lead spend
- Smirnoff looks to inclusivity
- Gordon’s ramps up spend in 2015 and 2016
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- Figure 33: Above-the-line, online display and direct mail advertising expenditure on white spirits and RTDs, by top 10 brands (sorted by 2015), 2013-16
- Bacardi supports its Bombay Sapphire and Grey Goose brands
- Retailers push spirits ranges
- New Amsterdam targets Millennials
- Brands look to alternative marketing initiatives
- WKD unveils Blush Hour campaign
- Glen’s signs Westlife star as brand ambassador
- Absolut pushes #AbsolutNights
- Malibu embraces connected bottles to engage with its audience
- Belvedere’s #makethedifference campaign looks to charity
- Tanqueray teams up with luxury brands for Perfect Ten campaign
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 34: Attitudes towards and usage of selected white spirit brands, November 2016
- Key brand metrics
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- Figure 35: Key metrics for selected white spirit brands, November 2016
- Brand attitudes: Smirnoff excels on trust
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- Figure 36: Attitudes, by white spirits brand, November 2016
- Brand personality: Malibu is seen as the most fun, Smirnoff and Bacardi as most accessible
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- Figure 37: Brand personality – Macro image, November 2016
- Gordon’s seen to be most traditional; Malibu stands apart as feminine
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- Figure 38: Brand personality – Micro image, November 2016
- Brand analysis
- Bombay Sapphire enjoys an upmarket image
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- Figure 39: User profile of Bombay Sapphire, November 2016
- Smirnoff boasts a strong brand image
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- Figure 40: User profile of Smirnoff, November 2016
- Grey Goose is seen most widely as worth paying more for
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- Figure 41: User profile of Grey Goose, November 2016
- Bacardi enjoys widespread appeal
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- Figure 42: User profile of Bacardi, November 2016
- Gordon’s continues to be seen as traditional
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- Figure 43: User profile of Gordon’s, November 2016
- Malibu is seen to be the most fun, and feminine
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- Figure 44: User profile of Malibu, November 2016
- Glen’s Vodka has the weakest brand image
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- Figure 45: User profile of Glen’s Vodka, November 2016
The Consumer – What You Need to Know
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- 56% drink white spirits
- White spirits/RTDs are most popular when relaxing at home
- Flavour is the top way to add value
- Long-established brands trump smaller producers
- Real fruit flavour innovation garners greatest interest
- Interest in lower-alcohol/healthier versions
- Openness to craft drinks from big manufacturers
Usage of White Spirits and RTDs
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- 56% drink white spirits
- Vodka is the most popular type
- The young drive gin renaissance
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- Figure 46: Usage of white spirits, by type, September 2016
- White spirits are most commonly drunk with a mixer
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- Figure 47: Usage of white spirits, by type and choice of mixer, September 2016
- Vodka also leads flavoured varieties
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- Figure 48: Usage of flavoured white spirits, September 2016
- Almost a quarter of 18-34s drink five types of white spirits
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- Figure 49: Repertoire of usage of types of white spirits, September 2016
- 18-44s are most likely to drink RTDs
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- Figure 50: Usage of RTDs, September 2016
Occasions for Drinking White Spirits/RTDs
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- White spirits/RTDs are most popular when relaxing at home
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- Figure 51: Occasions when white spirits and RTDs are drunk, September 2016
- The young drink white spirits before/on a night out; older users when relaxing at home
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- Figure 52: Selected occasions when white spirits are drunk, by age, September 2016
- RTDs are popular when out and about among Londoners
Attributes worth Paying More for
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- Flavour is the top way to add value
- White spirits’ traditional proposition has centred on subtle flavours
- Botanicals put gin in a strong position to push flavour
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- Figure 53: Attributes worth paying more for when buying white spirits, September 2016
- Naturalness appeals to 44%
- Long-established brands trump smaller producers
Interest in White Spirits and RTDs
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- Real fruit flavour innovation garners greatest interest
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- Figure 54: Interest in buying different types of white spirits and RTDs, September 2016
- 24% are interested in low-calorie RTDs
Attitudes towards White Spirits and RTDs
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- Potential for lower-alcohol/healthier versions
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- Figure 55: Attitudes towards white spirits and RTDs, September 2016
- No-added-sugar proposition appeals to almost half
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- Figure 56: White spirits and RTDs – CHAID – Tree output, September 2016
- Openness to craft versions from big manufacturers
- Matching mixers to gins as a means of exploration
- Premium mixers attract activity
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Forecast Methodology
- CHAID – Methodology
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- Figure 57: White spirits and RTDs – CHAID – Table output, September 2016
Appendix – Market Size and Forecast
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- Figure 58: Best- and worst-case forecasts for the total white spirits and RTDs market, by value, 2016-21
- Figure 59: Best- and worst-case forecasts for the total white spirits and RTDs market, by volume, 2016-21
- Figure 60: Best- and worst-case forecasts for the vodka market, by value, 2016-21
- Figure 61: Best- and worst-case forecasts for the vodka market, by volume, 2016-21
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- Figure 62: Forecast of UK volume sales of vodka, 2011-21
- Figure 63: Best- and worst-case forecasts for the gin market, by value, 2016-21
- Figure 64: Best- and worst-case forecasts for the gin market, by volume, 2016-21
- Figure 65: Forecast of UK volume sales of gin, 2011-21
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- Figure 66: Best- and worst-case forecasts for the white rum market, by value, 2016-21
- Figure 67: Best- and worst-case forecasts for the white rum market, by volume, 2016-21
- Figure 68: Forecast of UK volume sales of white rum, 2011-21
- Figure 69: Best- and worst-case forecasts for the tequila/Mezcal market, by value, 2016-21
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- Figure 70: Best- and worst-case forecasts for the tequila/Mezcal market, by volume, 2016-21
- Figure 71: Forecast of UK volume sales of tequila/Mezcal, 2011-21
- Figure 72: Best- and worst-case forecasts for the RTDs market, by value, 2016-21
- Figure 73: Best- and worst-case forecasts for the RTDs market, by volume, 2016-21
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- Figure 74: Forecast of UK volume sales of RTDs, 2011-21
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Appendix – Market Drivers
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- Figure 75: Trends in the age structure of the UK population, 2011-21
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Appendix – Market Share
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- Figure 76: UK retail volume sales of the leading vodka brands, 2014/15 and 2015/16
- Figure 77: UK retail value and volume sales of the leading vodka manufacturers, 2014/15 and 2015/16
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- Figure 78: UK retail volume sales of the leading gin brands, 2014/15 and 2015/16
- Figure 79: UK retail value and volume sales of the leading gin manufacturers, 2014/15 and 2015/16
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- Figure 80: UK retail volume sales of the leading white rum brands, 2014/15 and 2015/16
- Figure 81: UK retail value and volume sales of the leading white rum manufacturers, 2014/15 and 2015/16
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- Figure 82: UK retail volume sales of the leading tequila/Mezcal brands, 2014/15 and 2015/16
- Figure 83: UK retail value and volume sales of the leading RTD manufacturers, 2014/15 and 2015/16
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