Table of Contents
Executive Summary
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- The market
- Sales see a boost in 2018
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- Figure 1: Forecast of UK value sales of alcoholic drinks, 2013-23
- Beer volumes jump in 2018
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- Figure 2: Total UK value sales of alcoholic drinks, by segment, 2013-23
- Wine sales growth slows in 2018
- Freeze on most alcohol duties eases pressure on manufacturers
- Half of adults are limiting or cutting back on alcohol
- Companies and brands
- Beer brands dominate the off-trade
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- Figure 3: UK retail value sales of the top 10 alcoholic drink brands, 2018*
- Leading off-trade brands see mixed fortunes
- Rise in low/no-alcohol versions as drinks makers hope to appeal to health-conscious consumers
- Premiumisation trend continues
- Advertising on alcoholic drinks sees ongoing decline
- Alcoholic brands solicit high levels of trust
- The consumer
- 80% of adults drink alcoholic drinks
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- Figure 4: Usage of alcoholic drinks (nets), November 2018
- Still wine and lager are the most popular types
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- Figure 5: Usage of alcoholic drinks, by type, November 2018
- Promotions and special offers encourage 43% to try a new drink
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- Figure 6: Factors encouraging trial of new alcoholic drinks, November 2018
- 91% enjoy the taste of alcoholic drinks
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- Figure 7: Behaviours related to alcoholic drinks, November 2018
- Drinking alone is acceptable, according to 68%
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- Figure 8: Attitudes towards alcoholic drinks, November 2018
- Beer most typically associated with social occasions; wine with a meal
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- Figure 9: Alcoholic drinks associated with selected occasions, November 2018
- What we think
Issues and Insights
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- The moderation trend signals a warning and an opportunity to the market
- The facts
- The implications
- Elevating enjoyment by calling on consumers to savour the drink
- The facts
- The implications
- Harnessing the power of recommendations to drive sales
- The facts
- The implications
The Market – What You Need to Know
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- Sales see a boost in 2018
- Beer volumes jump in 2018
- Wine sales growth slows in 2018
- On-trade leads by values, off-trade by volumes
- Freeze on most alcohol duties eases pressure on manufacturers
- Half of adults are limiting or cutting back on alcohol
Market Size and Forecast
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- Sales see a boost in 2018
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- Figure 10: Total UK value and volume sales of alcoholic drinks, 2013-23
- No uplift expected in 2019
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- Figure 11: Forecast of UK value sales of alcoholic drinks, 2013-23
- Figure 12: Forecast of UK volume sales of alcoholic drinks, 2013-23
- Forecast methodology
Market Segmentation
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- Beer volumes jump in 2018
- Lager leads beer market
- Craft trend is ongoing
- Wine sales growth slows in 2018
- Still wine sees growth; sparkling sales decline
- Gin continues to drive white spirits
- Vodka sees volumes dip
- Inflation continues to drive dark spirits
- Cider boosted by hot summer
- Values by segment
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- Figure 13: Total UK value sales of alcoholic drinks, by segment, 2013-23
- Volumes by segment
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- Figure 14: Total UK volume sales of alcoholic drinks, by segment, 2013-23
Channels to Market
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- On-trade leads by values, off-trade by volumes
- Online sees growth
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- Figure 15: UK value sales of alcoholic drinks, by channel, 2016-18
- Figure 16: UK volume sales of alcoholic drinks, by channel, 2016-18
Market Drivers
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- Multiple factors affect the price of alcohol
- Freeze on most alcohol duties eases pressure on manufacturers
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- Figure 17: UK excise duty rates for beer and other alcoholic drinks, 2008-18
- Scotland introduces minimum unit pricing for alcohol, with Wales set to follow
- Exchange rates and ‘Brexit’ deal will have a far-reaching impact on the drinks industry
- Rising costs in the on-trade
- Real incomes are rising, helping to fuel the premiumisation trend
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- Figure 18: Annual percentage change in CPI and AWE (regular pay), by month, January 2013-November 2018
- Half of adults are limiting or cutting back on alcohol
- 2018 weather provides a boost for many drinks
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- Figure 19: UK sunshine hours, by season, 2013-18
- Barley production falls for beer and whisky
- Weather impacts on wine harvests in Europe
- Environment becomes a key issue
- Budweiser to be brewed with 100% solar power
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- Figure 20: Budweiser bottle with symbol referencing how it is brewed using renewable electricity, 2018
- Carlsberg unveils sustainability-led rebrand
- White spirits brands highlight environmental credentials
- Demographic changes will put pressure on the market
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- Figure 21: Change in age structure of the UK population, 2013-18 and 2018-23
Companies and Brands – What You Need to Know
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- Beer brands dominate the off-trade
- Leading spirits brands see mixed fortunes in off-trade
- Leading cider brands benefit from warm weather, mixed performances from wine brands
- Rise in low/no-alcohol versions as drinks makers hope to appeal to health-conscious consumers
- Premiumisation trend continues
- Advertising on alcoholic drinks sees ongoing decline
- Diageo leads by advertiser spend
- Alcoholic brands solicit high levels of trust
Market Share
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- Beer brands dominate the off-trade
- Stella leads the market
- Budweiser sees strong growth
- Gordon’s sees fastest growth among top brands
- Smirnoff’s cider performs well
- Jack Daniel’s leads dark sprits
- Wine brands see mixed fortunes
- Strongbow and Kopparberg lead cider
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- Figure 22: UK retail value sales of the top alcoholic drink brands, 2015/16-2017/18 (sorted by 2017/18)
- Figure 23: UK retail volume sales of the top alcoholic drink brands, 2015/16-2017/18 (sorted by 2017/18)
Start-ups and Disruptors – Case Studies
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- World of Zing
- What is it?
- Founded
- Company mission statement
- Founder’s story
- Mintel analyst view
- Product information
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- Figure 24: World of Zing, product list
- Media profile
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- Figure 25: Social media metrics for World of Zing as of January 2019
- The brand’s view
- Target audience
- Product stockists
- Looking to the future
- Smith & Sinclair
- What is it?
- Founded
- Company mission statement
- Founder’s story
- Mintel analyst view
- Product information
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- Figure 26: Smith & Sinclair, product list, 2019
- Media profile
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- Figure 27: Social media metrics for Smith & Sinclair as of January 2019
- The brand’s view
- Target audience
- Product stockists
- Looking to the future
- Gïk Live!
- What is it?
- Company mission statement
- Mintel analyst view
- Product information
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- Figure 28: Gïk Live!, product list
- Figure 29: Examples of Gïk Live! products, January 2019
- Media profile
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- Figure 30: Social media metrics for Gïk Live as of January 2019
- The brand’s view
- Target audience
- Product stockists
- Looking to the future
Launch Activity and Innovation
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- Rise in low/no-alcohol versions as drinks makers hope to appeal to health-conscious consumers
- Beer brands look to low/no-alcohol options
- Wine brands add to low/no-alcohol offer
- Cider brands expand low/non-alcoholic versions
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- Figure 31: Old Mout’s non-alcoholic variant, 2018
- Spirits brands embrace craft cues with non-alcoholic launches
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- Figure 32: Non-alcoholic spirits alternatives, 2018
- Seedlip to launch aperitif range to target meal occasions
- Gordon’s adds low-alcohol premixes
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- Figure 33: Gordon’s Ultra Low Alcohol range, 2018
- Vegetarian and vegan claims rise in wine
- Stella Artois joins other beer brands in going gluten-free
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- Figure 34: Stella Artois’ gluten-free variant, 2018
- Looking to colour for added theatre
- Colourful gin trend continues with pink…
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- Figure 35: Pink gin launches, 2018
- …purple and orange…
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- Figure 36: Gins in other colours, 2018
- …as well as colour-changing gins
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- Figure 37: Aldi Colour Changing Gin, 2018
- Pink cider
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- Figure 38: Thatchers Cider Rosé variant, November 2018
- Sweet and sour flavours aim to pique interest
- BrewDog’s sour beer aims to appeal to sour haters
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- Figure 39: BrewDog launches sour beer, 2018
- Cider and wine continue to expand fruit flavours
- Spirits highlight sweet taste to attract younger consumers
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- Figure 40: The Woodsman whisky is positioned as an entry-level product, 2018
- Liqueurs continue to explore on-trend flavours…
- …and seek to drive year-round usage
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- Figure 41: Spring/summer-themed dark spirits and liqueurs, 2018
- Premiumisation trend continues
- Use of new types of barrels taps into trend for aged drinks
- Leading rum brands launch premium variants
- Limited editions create a sense of urgency
- Premium cider brand launches
- Some whisky brands emphasise everyday affordability
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- Figure 42: Example of dark spirit with focus on affordability, 2018
- Whyte & Mackay describes 50cl version as response to Minimum Unit Pricing
- Retailers update BWS ranges
- A focus on craft beer
- Morrisons focuses on colour, not region in wine buying overhaul
- Packaging can offer standout
- Tie-ups with artists are widespread
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- Figure 43: Beck’s launches limited edition bottles under Art Labels initiative, 2018
- 19 Crimes uses AR to bring labels to life
- Alcoholic drinks brands look to expand into new areas
- Kopparberg launches ‘alcohol-infused’ waters
- Prosecco attracts Echo Falls and Martini
- Wine brands move into spirits and beer
- Alcohol brands look to waste products
Advertising and Marketing Activity
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- Advertising on alcoholic drinks sees ongoing decline
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- Figure 44: Total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, 2014-18
- TV remains the preferred channel despite drop in spend
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- Figure 45: Total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, by media type, 2014-18
- Diageo leads by advertiser spend
- Investing in new brands/products
- Supporting existing brands
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- Figure 46: Total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, by top 10 advertisers, 2014-18 (sorted by 2018)
- Other notable advertisers
- Heineken launches That’s Heineken campaign and supports Amstel
- AB InBev switches focus to Bud Light
- Bacardi increases spend
- Pernod Ricard supports Campo Viejo and Jameson Whiskey
- Lidl and M&S increase spend
- Strongbow leads by brand, with a focus on music
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- Figure 47: Total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, by top 10 brands, 2014-18 (sorted by 2018)
- Other notable brands enjoying higher spend
- Thatchers cider ramps up investment
- Estrella Damm continues with long-form ad
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 48: Attitudes towards and usage of selected brands, December 2017-October 2018
- Key brand metrics
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- Figure 49: Key metrics for selected brands, December 2017-October 2018
- Brand attitudes: Strongbow seen to provide good value; Kopparberg to be innovative
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- Figure 50: Attitudes, by brand, December 2017-October 2018
- Brand personality: all brands are seen to be accessible by the majority
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- Figure 51: Brand personality – Macro image, December 2017-October 2018
- Gordon’s stands out as being deemed traditional; cider and lager brands as refreshing
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- Figure 52: Brand personality – Micro image, December 2017-October 2018
The Consumer – What You Need to Know
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- 80% of adults drink alcoholic drinks
- Still wine and lager are the most popular types
- Promotions and special offers encourage 43% to try a new drink
- 91% enjoy the taste of alcoholic drinks
- Drinking alone is acceptable, according to 68%
- Beer most likely to be associated with social occasions; wine with a meal
Usage
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- 80% of adults drink alcoholic drinks
- 20% have not drunk alcohol
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- Figure 53: Usage of alcoholic drinks (nets), November 2018
- Figure 54: Repertoire of types of alcoholic drinks drunk, November 2018
- Still wine and lager are the most popular types
- Sparkling wine usage drops
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- Figure 55: Usage of alcoholic drinks, by type, November 2018
- Cider also sees usage fall
- Spirits appeal most to 18-34s
Factors Encouraging Trial of New Alcoholic Drinks
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- Promotions and special offers encourage 43% to try a new drink
- The prevalence of discounting calls for new approaches
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- Figure 56: Factors encouraging trial of new alcoholic drinks, November 2018
- Recommendation has prompted 41% to try a new drink
- Harnessing the power of peer recommendation
- The enduring appeal of expert advice
- Awards help to make a decision and provide proof of quality
- The role for guiding choice
- The demand for proof of quality
- Attractive packaging and limited editions appeal to 18-34s
- Limited editions are an ingrained feature of the market
Behaviours Related to Alcoholic Drinks
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- 91% enjoy the taste of alcoholic drinks
- Elevating enjoyment by calling on consumers to savour the drink
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- Figure 57: Behaviours related to alcoholic drinks, November 2018
- The environment becomes a pertinent issue, important to 62%
- Almost half (47%) have reduced/limited alcohol intake, rising to 54% of 18-34s
- Portion control appeals widely, offering a means to pace yourself or reduce intake
- Smaller formats struggle on value image
Attitudes towards Alcoholic Drinks
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- Drinking alone is acceptable, according to 68%
- Brands can also look to tap into importance of social connections
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- Figure 58: Attitudes towards alcoholic drinks, November 2018
- 67% view discounters as a way to get quality alcohol for less
- Popularity of discounters challenges price perceptions
- 53% see local brands as important
Associations with Occasions
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- Beer most likely to be drunk on social occasions…
- …wine with a meal…
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- Figure 59: Aldi references food pairings on-pack, 2019
- …spirits at a nightclub
- Drinks associated with relaxing at home
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- Figure 60: Alcoholic drinks associated with selected occasions, November 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 61: UK value sales of alcoholic drinks, best- and worst-case forecast, 2018-23
- Figure 62: UK volume sales of alcoholic drinks, best- and worst-case forecast, 2018-23
- Forecast methodology
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