Table of Contents
Executive Summary
-
- The market
- Consumer cutbacks on alcohol affect the craft segment
- Ageing UK population to hinder craft drinks
- New craft entrants heat up the competition in alcoholic drinks
- Companies and brands
- Leading players continue to acquire craft brands
- Few alcohol launches use the term ‘craft’ on-pack
- Larger companies look to tap into the craft trend
- NPD trends include standout packaging, flavours and low/no alcohol
- Craft brands raise their profile by linking with music and movies
- The consumer
- Three in 10 adults buy craft drinks
-
- Figure 1: Buying of standard and craft alcoholic drinks, June 2018
- Price and brand are key influences on alcohol buying
- Craft labels have little influence even on craft buyers
-
- Figure 2: Alcoholic drinks buying factors, June 2018
- Strong links between craft alcohol buying and foodie-ism
- Unique flavour and quality ingredients are the most widely seen as important for craft
-
- Figure 3: Factors seen as most important for an alcoholic drink to be considered ‘craft’ , June 2018
- Flavour profile labelling and quality awards can help craft drinks to win new users
-
- Figure 4: Behaviours relating to craft alcoholic drinks, June 2018
- Craft drinks enjoy a strong feel-good factor
-
- Figure 5: Craft alcohol buyers’ behaviours, June 2018
- Consumers are split on the importance of heritage
-
- Figure 6: Attitudes towards craft alcoholic drinks, June 2018
- What we think
Issues and Insights
-
- Perception that acquisitions lead to a decline in quality pose an issue for large companies taking over craft brands
- The facts
- The implications
- Craft drinks in on-trend flavours should appeal
- The facts
- The implications
- Scope to further mine the feel-good factor around craft drinks
- The facts
- The implications
The Market – What You Need to Know
-
- Consumer cutbacks on alcohol affect the craft segment
- Ageing UK population to hinder craft drinks
- New craft entrants heat up the competition in alcoholic drinks
Market Drivers
-
- ‘Craft’ term remains unregulated
- Multiple factors affect alcohol prices
- Inflation hits the category
- Scotland introduces minimum unit price for alcohol
- Stronger craft cider could be hit by extra duties
- A third of buyers have cut back on alcohol for health reasons
- Ageing UK population offers little support to craft drinks
- Smaller brands benefit from supermarkets expanding their craft ranges
- Continued growth in breweries and distilleries
Companies and Brands – What You Need to Know
-
- Leading players continue to acquire craft brands
- Few alcohol launches use the term ‘craft’ on-pack
- Larger companies look to tap into the craft trend
- NPD trends include standout packaging, flavours and low/no alcohol
- Craft brands raise their profile by linking with music and movies
Takeovers and Acquisitions
-
- Acquisitions of smaller brands in various alcoholic drinks sectors from 2013-18
-
- Figure 7: Selected acquisitions of craft brands by major companies^, 2013-18
- Beer
- Heineken moves on two craft brands
- Beavertown acquisition provokes a backlash in some quarters
- Carlsberg snaps up troubled London Fields
- Fullers takes over Dark Star
- Lion of Australia buys Fourpure
- White Spirits
- Beam Suntory looks to reassure consumers after Sipsmith acquisition
- Cider
- Molson Coors acquires Aspall
- BrewDog looks to shake up the cider market with Hawkes investment
Launch Activity and Innovation
-
- Few alcohol launches use the ‘craft’ term on pack
- Gin boom drives rise in small-batch gins
-
- Figure 8: UK alcoholic drinks launches, by selected terms featured on-pack, 2014-18 (sorted by 2017)
- Heineken puts the spotlight on its brewers with Maltsmiths
-
- Figure 9: Example of Heineken’s Maltsmiths brand, 2018
- Pub chains collaborate with craft brewers
- Retailers expand their own-label alcohol ranges with craft products
- Beer
- White spirits
-
- Figure 10: Examples of own-label craft alcoholic drinks, 2017-18
- Craft brands explore unusual flavours
- Craft brewers extend into other categories
- Low/no alcohol beers from craft brewers emphasise their full flavour
- Giving further detail on low/no alcohol products’ flavour
-
- Figure 11: Low/no alcohol craft beer launches, UK, 2017-18
- Unusual packaging formats help with on-shelf standout
- Craft brewer unveils beer in wine-style bottles
- The Uncommon launches English wine in a can
- Beer Hawk adds to Beer Bullets range
-
- Figure 12: Beer Hawk Beer Bullet plus beers included, UK, 2017
- Craft brands take inspiration from a variety of sources
- Ethical products from craft brands should boost feelgood associations
- McGuigan launches small-batch wines
Advertising and Marketing Activity
-
- BrewDog republishes its recipe book
- Maltsmiths highlights its perfectionism
- Camden Town launches its first TV campaign
- Outdoor campaign focuses on pleasure
- Craft brands raise their profile at cultural events
- Linking with music and film
- Music event with craft beers promoted as way for people to support local industry
- Tiny Rebel sponsors Spotify playlists
- Whitley Neill invites people to inhale ‘gin mist’
The Consumer – What You Need to Know
-
- Three in 10 adults buy craft drinks
- Price and brand are key influences on alcohol buying
- Craft labels have little influence even on craft buyers
- Strong links between craft alcohol buying and foodie-ism
- Unique flavour and quality ingredients are the most widely seen as important for craft
- Flavour profile labelling and quality awards can help craft drinks to win new users
- Craft drinks enjoy a strong feelgood factor
- Consumers are split on the importance of heritage
Buying of Standard and Craft Alcoholic Drinks
-
- Three in 10 adults buy craft alcohol drinks
- More men than women buy craft
-
- Figure 13: Buying of standard and craft alcoholic drinks, June 2018
- Ale/bitter is the most widely bought craft alcohol type
- Uptake of craft white spirits is low despite the buzz around gin
-
- Figure 14: Buying of standard and craft alcoholic drinks, by drinks type, June 2018
Alcoholic Drinks Buying Factors
-
- Price is the primary influence on alcoholic drinks buying
- Introductory offers can help challenger brands to attract users
-
- Figure 15: Alcoholic drinks buying factors, June 2018
- Brand loyalty is strong in alcohol
- Brand loyalty is on a par between craft and standard alcohol buyers
- Craft label has little influence even on craft buyers
Expertise and Interest in Trends among Alcoholic Drinks Buyers
-
- Over half of people who follow food/drink trends buy craft alcohol
- Various opportunities for craft producers to build associations with food trends
- Trendy on-trade venues will need to ensure good selection of craft drinks
-
- Figure 16: Expertise and Interest in Trends among alcoholic drinks buyers, June 2018
- A third of buyers like to be the first to try new alcoholic drinks
- Sense of connoisseurship is higher among younger consumers
Factors Seen as Most Important for Craft Alcoholic Drinks
-
- Flavour and ingredients are most widely seen as important for craft
-
- Figure 17: Factors seen as most important for an alcoholic drink to be considered ‘craft’, June 2018
- Many who prioritise unique flavour also prioritise quality ingredients
- Hand-made products signal craft to a third
-
- Figure 18: Heat map of areas seen as indicating a craft product^, June 2018
- Ownership is seen as important by three in 10
- Acquisitions of craft brands by larger companies can lead to a backlash
- Need for large companies acquiring craft brands to reassure the public
- Small-batch production is associated with craft by three in 10
- Small-batch production carries some quality associations …
- …but has little effect on buying
Behaviours relating to Craft Alcoholic Drinks
-
- Various opportunities for craft drinks to attract new users
- On-shelf labelling on flavour profile appeals particularly to under-35s ...
-
- Figure 19: Behaviours relating to craft alcoholic drinks, June 2018
- … and would encourage 40% of non-users to buy craft
- Quality awards would encourage half of alcohol buyers to buy craft
- Collaborative drinks enjoy wide appeal
Craft Alcohol Buyers’ Behaviours
-
- Strong feel-good factor for craft drinks
-
- Figure 20: Craft alcohol buyers’ behaviours, June 2018
- Recommendations are key to driving trial of craft drinks
- ‘Shared wisdom’ marketing messages can allow brands to harness the power of recommendations
Attitudes towards Craft Alcoholic Drinks
-
- Consumers are split on the importance of heritage
- Good opportunities for small-batch variants from established brands
-
- Figure 21: Attitudes towards craft alcoholic drinks, June 2018
- Only a minority feel that own-label drinks cannot be craft
- Tangible references to production methods can help own-label to build a craft positioning
- Collaborations between own-label and craft brands should appeal
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Factors seen as Most Important for Craft Alcoholic Drinks
-
-
- Figure 22: Original images of products featured in focus group study of on-pack terms seen as indicating a craft product, June 2018
-
Back to top