What you need to know
Estimated at £7.5 billion in 2018, the total UK white spirits and RTDs market grew by 35.8% over 2013-18, driven by inflation and by volume sales growth in some segments towards the latter end of the period. The gin boom continues to gather momentum, with RTDs also enjoying rapid growth in 2018 with volumes sales up 10% year on year. Further inflation is projected for white spirits and RTDs over 2018-23, while the ageing UK population and alcohol moderation trend will contribute towards a slowdown in volume sales growth.
Drinking in the on-trade is a major driver of retail purchase; trying a white spirit in a pub/bar/nightclub has encouraged 58% of users/buyers to buy it from a shop, rising to 72% among under-35s. Product details such as sourcing and production methods are key to creating standout in an increasingly crowded market and are deemed important when buying white spirits for half (49%) of drinkers/buyers. Meanwhile, the high level of interest in pre-mixed versions of trendy cocktails among the younger generation highlights this as a key area of opportunity for RTDs.
Products covered in this Report
For the purpose of this Report, the following definitions have been used throughout:
Vodka is a clear, colourless, almost odourless spirit made from the distillation of potatoes, and sometime from corn, rye, wheat, sugar beet molasses or other agricultural matter. The European Union requires that vodka must have a minimum ABV (Alcohol by Volume) of 37.5%. Flavoured vodkas such as Smirnoff Blueberry and Absolut Raspberri Vodka, which are simple flavoured versions of the base spirits, are included in this Report.
Gin predominantly derives its flavour from juniper berries and falls into two distinct categories: distilled gin is made from re-distilling the neutral spirit of agricultural origin with juniper berries and other botanicals, while compound gin is made by flavouring the neutral spirit with flavourings without re-distilling it and is hence typically considered inferior in quality.
White rum is produced from sugarcane juice and molasses. Unlike dark rum, it is aged in plain oak casks or stainless steel tanks. Bacardi and Malibu are the two best-known brands in this segment.
Tequila is a distilled beverage made from the blue agave plant, primarily in the area surrounding the city of the same name in Mexico. Tequila is most often made at 38-40% ABV but can also be produced at 31-55%. Mezcal is made from the Maguey plant, a type of agave plant, although it remains decidedly niche in the UK.
RTDs is a trade term used to describe any drink featuring an alcoholic drink and a mixer sold pre-mixed typically either in bottles or cans. They include fruit-, herb-, soda- or water-based, still or carbonated drinks combined with at least one base spirit, and usually have an ABV of 4-6%. Mintel uses the terms RTDs and pre-mixed drinks interchangeably in this Report.
Not all RTDs are made from white spirits (eg Jack Daniel’s & Coke in a can), although white spirits have traditionally been the base spirit for this category. This Report will analyse the whole RTD market, not just those products with white spirits as a base.
The market size includes both on-trade and off-trade sales.
