Table of Contents
Executive Summary
-
- The market
- Inflation and strong performances in certain segments drive growth over 2013-18
- Ageing UK population to hinder dark spirits and liqueurs sales 2018-23
-
- Figure 1: Total Value sales of dark spirits and liqueurs, 2013-23
- Whisky sales remain flat in 2018, while dark rum’s rise continues
- Off-trade gains at the expense of on-trade in 2018
- Multiple factors affect the price of spirits
- Companies and brands
- The Famous Grouse loses ground in the whisky segment
-
- Figure 2: Leading brands’ shares in the UK retail whisky market, 2017/18*
- Mixed results for Diageo brands
- Premium and limited edition launches continue in 2018
- Liqueurs continue to explore on-trend flavours
- Marginal dip in advertising spend in 2017
- Baileys is the most trusted brand, while Jameson has a traditional image
- The consumer
- Half of UK adults drink dark spirits
-
- Figure 3: Usage of dark spirits, by type, July 2018
- Four in ten adults drink liqueurs/flavoured dark spirits
-
- Figure 4: Usage of liqueurs and flavoured dark spirits, by type, July 2018
- Scotch whisky tends to be chosen for relaxing at home, while dark rum and bourbon win for parties
- Tasting sessions and recommendations are key means to drive trial
-
- Figure 5: Prompts to try a new dark spirit, July 2018
- Ingredients and ageing are seen as key for premium dark spirits/liqueurs
-
- Figure 6: Factors seen as defining a premium dark spirit, July 2018
- Opportunities for premium dark spirits/liqueurs
- Less sweet-tasting liqueurs have wide appeal
-
- Figure 7: Behaviours relating to dark spirits and liqueurs, July 2018
- Winter bias in dark spirits drinking restricts usage occasions
-
- Figure 8: Dark spirit drinkers’ behaviours, July 2018
- What we think
Issues and Insights
-
- Premium products could benefit amid the alcohol moderation trends
- The facts
- The implications
- Recommendations and sampling are key to driving dark spirits trial
- The facts
- The implications
- Opportunities for exciting flavour innovation in liqueurs
- The facts
- The implications
The Market – What You Need to Know
-
- Inflation and growth in certain segments drive growth over 2013-18
- Ageing UK population to hinder dark spirits and liqueurs sales 2018-23
-
- Figure 9: Total Value sales of dark spirits and liqueurs, 2013-23
- Whisky sales remain flat in 2018, while dark rum’s rise continues
- Off-trade gains at the expense of on-trade in 2018
- Multiple factors affect the price of spirits
Market Size and Forecast
-
- Inflation and growth in certain segments drive growth over 2013-18
- Inflation and mixed volume sales results expected for 2018-23
- Ageing population to hinder volume sales growth
-
- Figure 10: Total Value and volume sales of dark spirits and liqueurs, 2013-23
- Figure 11: Total Value sales of dark spirits and liqueurs, 2013-23
- Forecast methodology
Market Segmentation
-
- Weakness of blended whisky impedes the entire segment in 2018
- Inflation expected for 2018-23, though to a lesser extent than for other dark spirits
- Minimal growth anticipated for whisky volume sales
-
- Figure 12: Total Value and volume sales of whisky, 2013-23
-
- Figure 13: Total Value sales of whisky, 2013-23
- Dark rum’s meteoric rise slows in 2018
- Volume sales to slow further over 2018-23
-
- Figure 14: Total Value and volume sales of dark rum, 2013-23
- Figure 15: Total Value sales of dark rum, 2013-23
- Little change in brandy/Cognac/Armagnac sales in 2018
- Mostly flat volume sales expected for 2018-23
-
- Figure 16: Total value and volume sales of brandy/Cognac/Armagnac, 2013-23
- Figure 17: Total Value sales of brandy/Cognac/Armagnac, 2013-23
- Liqueurs’ volatile performance continues in 2018
- Further volatility predicted for 2018-23
-
- Figure 18: Total Value and volume sales of liqueurs, 2013-23
- Figure 19: Total Value and volume sales of liqueurs, 2013-23
Channels to Market
-
- Off-trade gains at the expense of on-trade in 2018
-
- Figure 20: Value and volume sales of dark spirits and liqueurs, by channel, 2016-18
- Mixed retail sales results for dark spirits in 2018
- Blended whisky sales slip
- Single malt bounces back
- Imported whisky continues to benefit from the Americana trend
- Dark rum sees further, though slowing, sales growth
-
- Figure 21: Value and volume sales of dark spirits and liqueurs in the off-trade, by segment, 2016-18
- On-trade sales of dark spirits mirror those of off-trade….
- ….while liqueurs perform differently
-
- Figure 22: Value and volume sales of dark spirits and liqueurs in the on-trade, by segment, 2016-18
Market Drivers
-
- Multiple factors affect the price of spirits
- Freeze on alcohol duties eases pressure on manufacturers
- Scotland introduces minimum unit pricing for alcohol
- Exchange rates remain pivotal for dark spirits
- Barley shortage has implications for whisky
- Income squeeze in 2017 hinders dark spirits
- Public health concerns affect spirits and liqueurs
- A third have cut back on alcohol for health reasons
- Sugar concerns serve as a barrier to liqueurs
- Ageing population of the UK offers little support for spirits or liqueurs
-
- Figure 23: Usage of dark spirits and liqueurs, by age group, July 2018
Companies and Brands – What You Need to Know
-
- The Famous Grouse loses ground in the whisky segment
- Mixed results for Diageo brands
- Premium and limited edition launches continue in 2018
- Liqueurs continue to explore on-trend flavours
- Marginal dip in advertising spend in 2017
- Baileys is the most trusted brand, while Jameson has a traditional image
Market Share
-
- Famous Grouse loses ground as blended whisky brands struggle
-
- Figure 24: Leading brands’ sales and shares in the UK retail whisky market, 2015/16-2017/18
- Figure 25: Leading distributors’ sales and shares in the UK retail whisky market, 2015/16-2017/18
- Strong advertising support boosts Jameson
- Jack Daniel’s and Jim Beam continue to benefit from the Americana trend
- Captain Morgan sees further growth as dark rum’s success continues
-
- Figure 26: Leading brands’ sales and shares in the UK retail dark/golden/spiced rum market, 2015/16-2016/17
-
- Figure 27: Leading distributors’ sales and shares in the UK retail dark/golden/spiced rum market, 2015/16-2016/17
- Authenticity focus boosts Havana Club
- Halewood acquires Dead Man’s Fingers
- Own-label loses ground in brandy/Cognac/Armagnac
- Courvoisier capitalises on the premiumisation trend
-
- Figure 28: Leading brands’ sales and shares in the UK retail brandy/Cognac/Armagnac market, 2015/16-2016/17
-
- Figure 29: Leading distributors’ sales and shares in the UK retail brandy/Cognac/Armagnac market, 2015/16-2016/17
- Baileys extends its lead in liqueurs
- Summer weather fails to boost Pimm’s as competition heats up in gin liqueurs
-
- Figure 30: Leading brands’ sales and shares in the UK retail liqueurs market, 2015/16-2017/18
- Figure 31: Leading distributors’ sales and shares in the UK retail liqueurs market, 2015/16-2017/18
Launch Activity and Innovation
-
- Premium spirits launches continue
- Leading rum brands launch premium variants
- Jura focuses on ageing and barrel types
- Courvoisier launches Amazon-exclusive variant
- Fettercairn relaunches with a 50-year-old whisky
-
- Figure 32: Examples of premium dark spirits, 2018
- Leading spirits companies pick up craft cues in packaging redesigns
- Companies continue to release limited editions
- High Commissioner focuses on its history with Heritage edition
- Scotch whisky brand encourages people to decorate their own bottles
- Rum brand puts the focus on its backstory
- Other selected limited edition launches
-
- Figure 33: Examples of limited edition dark spirits, 2018
- Leading brands unveil limited edition packaging
-
- Figure 34: Example of a dark spirit with limited-edition packaging design
- Targeting the spring and summer months with seasonal editions
-
- Figure 35: Examples of spring/summer-themed dark spirits and liqueurs, 2018
- Whisky brands emphasize affordability
- Whyte & Mackay describes 50cl version as response to Minimum Unit Pricing
-
- Figure 36: Example of dark spirit with focus on affordability, 2018
- New whiskies highlight sweet taste to attract younger consumers
-
- Figure 37: Example of whisky positioned as an entry-level product, 2018
- References to sweet taste could help to overcome taste objections
- Liqueurs continue to explore on-trend flavours
- Greenall’s gin extends into liqueurs
-
- Figure 38: Examples of liqueurs in on-trend flavours, 2017-18
- Baileys Almande goes on general release
-
- Figure 39: Baileys’ dairy-free variant, 2018
- Companies explore unconventional barrel types
- Jameson adds whisky finished in craft IPA barrels to Caskmates range
- Glenfiddich expands its Experimental range
- Craft distillery collaborates with Royal Navy Museum on navy strength rum
- Martell celebrates its historical ties with the US with bourbon cask expression
-
- Figure 40: Example of dark spirit matured in unusual barrel type, 2018
- Historical references used to project image of authenticity
- Niche brands draw inspiration from various historical eras
- The dark spirits return
- Johnnie Walker extends its Ghost & Rare series
-
- Figure 41: Examples of dark spirits with historical references, 2017-18
- Major and smaller brands link with music
- Own-label cream liqueurs offer competition for Bailey’s
-
- Figure 42: Examples of own-label cream-based liqueurs, 2017
Advertising and Marketing Activity
-
- Marginal dip in advertising spend in 2017
-
- Figure 43: Total above-the line, online display and direct mail advertising expenditure on dark spirits^ and liqueurs (sorted by 2017), 2014-18
- Diageo remains the leading advertiser in 2017
- Captain Morgan continues its focus on enjoyment
- Personalised bottles promoted as a way for people to celebrate friendship
- Haig Club encourages responsible drinking
- Baileys looks to build associations with glamourous lifestyles
- Baileys Almande adverts bring the indulgence theme to dairy-free
- Pernod Ricard rises to second largest advertiser
- Jameson promotes mixed serve for St Patrick’s Day…
- …and introduces new Caskmates IPA
- The Glenlivet presented as the definitive whisky
- Leading whisky brands focus on their heritage and craftsmanship
- Johnnie Walker lays open its production methods
- Jack Daniels highlights its willingness to make the extra effort
- Jim Beam emphasizes longer ageing
- Maker’s Mark unveils its first UK campaign for 10 years
- Various dark spirits brands promote meal pairings
- Disaronno looks to build associations with glamorous lifestyles
- Johnnie Walker and Glenfiddich bring a personalised aspect to whisky
- Other selected campaigns
- Tullamore Dew links blending whiskies with cultural diversity
- Jägermeister draws on German mythology for Halloween campaign
- …and continues its live music events
- The Kraken releases spoof news report for April Fool’s Day
- Bunnahabhain puts the focus on its local area
- Nielsen Ad Intel coverage
Brand Research
-
- Brand map
-
- Figure 44: Attitudes towards and usage of selected brands, June 2018
- Key brand metrics
-
- Figure 45: Key metrics for selected brands, June 2018
- Brand attitudes: Baileys and Captain Morgan are the most trusted brands
-
- Figure 46: Attitudes, by brand, June 2018
- Brand personality: Baileys and Jägermeister score well on the fun factor
-
- Figure 47: Brand personality – macro image, June 2018
- Baileys is the most widely seen as delicious
-
- Figure 48: Brand personality – micro image, June 2018
- Brand analysis
- Baileys is the most trusted brand
-
- Figure 49: User profile of Baileys, June 2018
- Chambord has something of a premium image
-
- Figure 50: User profile of Chambord, June 2018
- Jameson is associated with tradition and authenticity
-
- Figure 51: User profile of Jameson, June 2018
- Captain Morgan scores well on the fun factor
-
- Figure 52: User profile of Captain Morgan, June 2018
- Jim Beam has some associations with authenticity
-
- Figure 53: User profile of Jim Beam, June 2018
- Jägermeister is seen as fun and (somewhat) cool
-
- Figure 54: User profile of Jägermeister, June 2018
- Whyte & Mackay has a traditional image
-
- Figure 55: User profile of Whyte & Mackay, June 2018
The Consumer – What You Need to Know
-
- Half of UK adults drink dark spirits
- Four in ten adults drink liqueurs/flavoured dark spirits
- Scotch whisky tends to be chosen for relaxing at home, while dark rum and bourbon win for parties
- Tasting sessions and recommendations are key means to drive trial
- Ingredients and ageing are seen as key for premium dark spirits/liqueurs
- Opportunities for premium dark spirits/liqueurs
- Less sweet-tasting liqueurs have wide appeal
- Winter bias in dark spirits drinking restricts usage occasions
Usage of Dark Spirits and Liqueurs
-
- Half of adults drink dark spirits
-
- Figure 56: Usage of dark spirits, by type, July 2018
- Ageing population to hinder dark spirits
- Men and the financially secure are higher users of dark spirits
- A quarter drink three or more dark spirits types
-
- Figure 57: Repertoire of dark spirit types drunk, July 2018
- Single malt is as likely to be drunk with a mixer as other whisky types
- People who feel knowledgeable about whisky are more likely to drink it neat
-
- Figure 58: Ways of drinking dark spirits, by type, July 2018
- Few drink dark spirits as part of a cocktail
- Under-35s are particularly likely to drink cocktails and mixed drinks
- On-pack recipes have prompted a third of drinkers to make mixed drinks/cocktails
- Four in ten adults drink liqueurs/flavoured dark spirits
-
- Figure 59: Usage of liqueurs and flavoured dark spirits, by type, July 2018
- More women than men drink liqueurs…
- …but flavoured dark spirits are more likely to be drunk by men
- Ageing population will also hinder liqueurs
- Cream-based liqueurs are the most likely to be drunk neat
-
- Figure 60: Ways of drinking liqueurs/flavoured dark spirits, by type, July 2018
Usage Occasions for Selected Types of Dark Spirits
-
- Scotch whisky is the most likely to be chosen for relaxing at home
- One in five under-35s drink Scotch whisky in nightclubs
- Suggestions on menus would encourage out-of-home usage of Scotch whisky
-
- Figure 61: Usage occasions for selected types of dark spirits, July 2018
- Scope to encourage more dark spirits meal pairings
- Dark rum and bourbon are the most likely to be chosen for parties
Prompts to Try a New Dark Spirit
-
- Tasting sessions and recommendations are key means to drive trial
-
- Figure 62: Prompts to try a new dark spirit, July 2018
- Tasting opportunities should help to overcome many consumers’ risk-averse approach
- Various options for tasting sessions in both the off- and on-trade
- Friend/family recommendations trump those from drinks professionals
- Various options to incentivise recommendations
- Few people report being swayed by advertising
Factors Seen as Defining a Premium Dark Spirit/Liqueur
-
- Ingredients and ageing seen as key to a premium dark spirit/liqueur
- Focus on ingredient varieties would help to build a quality image
-
- Figure 63: Factors seen as defining a premium dark spirit, July 2018
- Marketing underpins premium associations around longer ageing
- People knowledgeable about whisky especially likely to prioritise ageing
- Need for companies to explain the importance of barrel types
Behaviours relating to Dark Spirits and Liqueurs
-
- Opportunities for premium spirits to benefit from moderation trends
- Own-label should be as well-placed to benefit as brands
-
- Figure 64: Behaviours relating to dark spirits and liqueurs, July 2018
- Further information on dark spirits is wanted by many
- Subscription services would speak to consumer desire for information
- Four in ten users are influenced by provenance information
- Further details on sourcing would give differentiation and build trust
-
- Figure 65: Example of dark spirit highlighting provenance, 2018
- Liqueurs in on-trend flavours have wide appeal
- Strong interest in less sweet-tasting liqueurs
- Vegetable flavours would appeal to the interest both in on-trend flavours and in less sweet-tasting products
-
- Figure 66: International examples of liqueurs with vegetable flavours, 2016-18
Dark Spirit Drinkers’ Behaviours
-
- Majority of drinkers say that they know the difference between whiskies
- Concerns about blended whisky are highest among people who know the difference between whisky types
-
- Figure 67: Dark spirit drinkers’ behaviours, July 2018
- Winter bias in dark spirits drinking restricts usage occasions
- Promoting use in seasonal cocktails could help to encourage year-round drinking
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 68: Forecast of UK sales of dark spirits and liqueurs, by value, best- and worst-case, 2018-23
- Figure 69: Forecast of UK sales of dark spirits and liqueurs, by volume, best- and worst-case, 2018-23
- Figure 70: Forecast of UK sales of whisky, by value, best- and worst-case, 2018-23
- Figure 71: Forecast of UK sales of whisky, by volume, best- and worst-case, 2018-23
-
- Figure 72: Forecast of UK sales of dark rum, by value, best- and worst-case, 2018-23
- Figure 73: Forecast of UK sales of dark rum, by volume, best- and worst-case, 2018-23
- Figure 74: Forecast of UK sales of brandy/Cognac/Armagnac, by value, Best- and worst-case, 2018-23
- Figure 75: Forecast of UK sales of brandy/Cognac/Armagnac, by volume, Best- and worst-case, 2018-23
-
- Figure 76: Forecast of UK sales of liqueurs, by value, best- and worst-case, 2018-23
- Figure 77: Forecast of UK sales of liqueurs, by volume, best- and worst-case, 2018-23
- Figure 78: Total volume sales of dark spirits and liqueurs, 2013-23
- Figure 79: Total volume sales of whisky, 2013-23
-
- Figure 80: Total volume sales of dark rum, 2013-23
- Figure 81: Total volume sales of brandy/Cognac/Armagnac, 2013-23
- Figure 82: Total volume sales of liqueurs, 2013-23
Appendix –Advertising and Marketing Activity
-
-
- Figure 83: Total above-the line, online display and direct mail advertising expenditure on dark spirits^ and liqueurs (sorted by top three advertisers in 2017), 2014-18
-
Appendix – Usage of Dark Spirits and Liqueurs
-
-
- Figure 84: Ways of drinking dark spirits (nets), July 2018
-
Back to top