Table of Contents
Issues in the Market
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- Definitions
- Major themes of the report
Insights and Opportunities
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- Food for thought
- Fair-trade offers potential for rum…
- …as do organic variants
- Targeting the cocktail set
- Smoking ban offers opportunity to extend on-trade dining
Market in Brief
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- Growth is flat
- Brandy and Cognac dominate the market
- Premiumisation provides hope…
- …as consumers want the real deal
- Ad spend is often minimal
- Future trends
Fast Forward Trends
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- Flux and blur
- What's it about?
- Elasticity is all
- Observations
- Implications
- “X for eXtreme”
- What's it about?
- Observations
- Market touchpoints/implications
Internal Market Environment
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- Key Points
- The number of drinkers is falling
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- Figure 1: Consumption of alcoholic drinks in the last 12 months, 2002-06
- Shift from the on- to the off-trade…
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- Figure 2: Agreement with selected lifestyle statements, 2002-06
- … is changing the way people socialise…
- …and putting pressure on market values
- But there are a few silver linings on the horizon
- People are eating out more
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- Figure 3: Visiting of pubs/bars in the last 12 months, 2002-06
- Cocktails and dreams
- Premiumisation meets ‘masstige’
- Desire for authenticity
- Rum to make its mark
- People are starting to see themselves as connoisseurs
- Importance of indulgence and hedonism
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- Figure 4: Agreement with selected lifestyle statements, 2002-06
- Christmas is key trading period
Broader Market Environment
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- Key Points
- Older population…
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- Figure 5: Age structure of the UK population, by gender, 2002-12
- …. is driving a shift to the off-trade
- The growing number of 25-34s augurs well for growth
- AB socio-economic status growing
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- Figure 6: Changes in UK socio-economic status, 2001-06
- Middle classification is having a major impact
Competitive Context
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- Key Points
- Wine has been the big winner
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- Figure 7: UK sales of alcoholic drinks by volume, and value, 2001-06
- Taking a close look at premium spirits
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- Figure 8: UK sales of whiskies, by type, by value and volume, 2001-06
- Mixing is driving growth
- Deluxe brands benefit from trading up
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- Figure 9: UK sales of white spirits, by type, by volume and value, 2002 -06
Strengths and Weaknesses in the Market
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- Strengths
- Weakness
Who’s Innovating?
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- Key Points
- Premiumisation sustains value growth
- Authenticity appeals to connoisseurs
- Contemporary image has urban appeal
- Gifting provides seasonal uplift
- Possible future trends
Market Value and Forecast
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- Key points
- Dark spirits reach plateau
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- Figure 10: UK retail sales of dark spirits, by volume and value, 2002-07
- Volume growth supersedes value…
- …due to the movement away from the on-trade
- Every cloud has a silver lining
- Brandy remains the far larger market
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- Figure 11: UK retail sales of dark spirits, by type, by volume and value, 2002-06
- Future trends
- Indulgence occasions will continue to rise
- Authenticity will provide a key marketing fulcrum
- Although shifting demographic may prove favourable
- A challenging market environment will constrain market growth
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- Figure 12: Forecast of UK retail sales of dark spirits, by value, 2007-11
- Figure 2: Forecast of UK retail sales of dark spirits, by volume, 2007-11
- Factors used in the forecast
Segment Performance
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- Key points
- Brandy and Cognac
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- Figure 13: UK retail sales of brandy, by volume and value, 2002-07
- Volume detracted as on-trade struggles
- And value comes under pressure from price competition
- Brandy segmentation
- Cognac
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- Figure 14: UK retail sales of Cognac, by style and volume share, 2002-06
- Armagnac
- Brandy de Jerez
- Other brandies
- Organic fails to take hold
- Dark rum
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- Figure 15: UK retail sales of dark rum, by volume and value, 2002-07
- Dark rum
- Golden rum
- Rhum agricole
- Fairtrade notable by its absence
Market Share
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- Key Points
- Brandy
- Courvoisier extends its lead
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- Figure 16: UK brandy brand shares, by volume, 2002-06
- Leading Cognac brands dominate value sales
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- Figure 17: UK brandy brand shares, by value, 2002-06
- Is own label poised for growth?
- Dark rum
- Captain Morgan at the helm
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- Figure 18: UK dark rum brand shares, by volume, 2002-06
- Morgan Spiced leaves others behind
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- Figure 19: UK dark rum brand shares, by value, 2002-06
Companies and Products
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- Key Points
- Company profiles
- Bacardi-Martini
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- Figure 20: Bacardi-Martini product portfolio, 2006
- Strategy and performance
- Promotional activity
- Beam Global Spirits & Wine
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- Figure 21: Beam Global Spirits & Wine UK product portfolio, 2006
- Strategy and performance
- Promotional activity
- Diageo
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- Figure 22: Diageo product portfolio, 2006
- Strategy and performance
- Promotional activity
- First Drinks Brands
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- Figure 23: First Drinks Brands product portfolio, 2006
- Strategy and performance
- Promotional activity
- Halewood International
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- Figure 24: Halewood product portfolio, 2006
- Strategy and performance
- Promotional activity
- LVMH
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- Figure 25: LVMH product portfolio, 2006
- Strategy and performance
- Promotional activity
- Maxxium
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- Figure 26: Maxxium product portfolio, 2006
- Strategy and performance
- Advertising and promotion
- Paragon Vintners
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- Figure 27: Paragon Vintners product portfolio, 2006
- Strategy and performance
- Promotional activity
- Pernod Ricard
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- Figure 28: Pernod Ricard product portfolio, 2006
- Strategy and performance
- Promotional activity
- J Wray & Nephew
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- Figure 29: J Wray & Nephew product portfolio, 2006
- Strategy and performance
- Promotional activity
- Others
Brand Elements
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- Figure 30: Attitudes to DARK SPIRITS, APRIL 2007
- Martell
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- Figure 31: Words associated with Martell
- Brand qualities
- Recommendations
- Courvoisier
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- Figure 32: Words associated with Courvoisier
- Brand Qualities
- Recommendations
- Remy Martin
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- Figure 33: Words associated with Remy Martin
- Fizz can spread the word
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- Figure 34: Words associated with Havana Club
- Brand Qualities
- Recommendations
- Usage of brands
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- Figure 35: Usage of brands
- Attitudes towards brands
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- Figure 36: Attitudes towards brands
- Brand Satisfaction and Performance
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- Figure 37: Brand satisfaction and performance
- Brand Commitment
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- Figure 38: Brand commitment
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Brand Communication and Promotion
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- Key Points
- Rum receives far less support
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- Figure 39: Main monitored media spend on dark rum and brandy, 2002-06
- New advertising rules curb above-the-line promotion
- Courvoisier earns it
- Multinationals dominate ad spend
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- Figure 40: Leading advertisers of dark spirits, 2002-06
- Direct Marketing beginning to play a greater role
- Packaging now even more important
- Advertising peaks at Christmas
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- Figure 41: Main monitored media spend on rum and brandy, 2004-06
- Luxury brands get in on the act
- Price promotion
Channels to Market
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- Distribution shifts towards the off-trade
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- Figure 42: UK distribution of dark spirits, by trade sector, 2002-06
- Grocers taking share within the off-trade
- Online retailers cater for connoisseurs
Consumer 1 – Dark and Golden Rum – Who – Usage and Frequency
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- Key Points
- Dark and Golden Rum
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- Figure 43: Consumption of dark and golden rum in the last 12 months, 2002-06
- Consumption patterns for rum are changing
- Who is most likely to drink dark/golden rum and where?
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- Figure 44: key demographics: On-trade vs off-trade, 2006
- Men more likely to drink
- Drinking at home vs. drinking out of home
- The Urban drink – London vs. Scotland?
Consumer 2 –Brandy – Who – Usage and Frequency
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- Key Points
- Brandy
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- Figure 45: Consumption of brandy in the last 12 months, 2002-06
- Brandy dominates over dark/golden rum…
- …but brandy experiences a steady decline
- It remains a niche consumer product
- Image turns off some consumers….
- …not seen as hip or funky
- On-trade brandy appeals to younger age group…
- … and those who have children under one-year-old
- Who is most likely to drink brandy and where?
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- Figure 46: Key target groups – in home vs out of home consumption habits, 2006
- Brandy and Cognac – On vs. off-trade
- Dark rum and brandy are synonymous with the on-trade….
- …. but not amongst those consumers who are eating
Consumer 3 – Attitudes to Dark/Golden Rum
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- Key Points
- Barriers to drinking dark/golden rum
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- Figure 49: Motivations for not drinking dark/golden rum, November 2006
- Perceptions of taste alienate potential drinkers
- Taste tends to preoccupy the young...
- …while maturity extends repertoire
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- Figure 50: Age of response rate indexed on average age of non-drinkers of dark/golden rum, November 2006
- Education, education, education
- Profile needs to be raised
Consumer 4 – Attitudes to Brandy
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- Key Points
- Brandy
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- Figure 51: Motivations for not drinking cognac/brandy, November 2006
- Taste puts off one in four
- Is taste reputation deterring the young?
- More mature drinkers deterred by competition
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- Figure 52: Age of response rate indexed on average age of non-drinkers of brandy/cognac, November 2006
- Out of sight, out of mind
- Preference for other drinks
Consumer 5 – Repertoire Analysis
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- Key Points
- Who tends to drink what?
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- Figure 53: Demographics of key spirit drinkers by type of drink, 2006
- How do the habits of dark spirit drinkers compare with white?
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- Figure 54: Drinking habits in context, 2006
- Golden opportunity
- Repertoire in the home
- Repertoire analysis
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- Figure 55: Dark and white spirits repertoire, by types drunk, 2006
Appendix
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- Introduction
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Internal market environment
- TGI consumption data
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- Figure 56: Consumption of alcoholic drinks in the last 12 months, by type, 2002-06
- Pub visiting for a meal/drink
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- Figure 57: Frequency of visiting pubs/bars for a drink only – day and evening, 2002-06
- Figure 58: Frequency of visiting pubs/bars for a meal – day and evening, 2002-06
- Broader market environment
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- Figure 59: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Figure 60: Agreement with selected lifestyle statements, by demographic sub-group, 2006
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- Figure 61: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Passenger survey
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- Figure 62: Passengers from the UK to selected destinations, 2001 and 2006
- Home production and foreign trade
- Brandy
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- Figure 63: UK imports and exports of brandy, by value, 2000-06
- Rum
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- Figure 64: UK imports and exports of rum, by value, 2001-06
- Competitive context
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- Figure 65: Consumption of alcoholic drinks in the last 12 months, by type, 2006
- Who’s innovating?
- Segment performance
- Brand communication and promotion
- Brandy
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- Figure 66: Main monitored media spend on brandy, by major advertiser, 2002-06
- Rum
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- Figure 67: Main monitored media spend on rum, by major advertiser, 2002-06
- Consumer 1 – Dark and golden rum – Detailed demographics
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- Figure 68: Consumption of dark and golden rum in the last 12 months, by demographic sub-group, 2006
- Figure 69: Consumption of dark and golden rum in home, in the last 12 months, by demographic sub-group, 2006
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- Figure 70: Consumption of dark and golden rum elsewhere, in the last 12 months, by demographic sub-group, 2006
- Consumer 2 – Brandy – Detailed demographics
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- Figure 71: Consumption of brandy in the last 12 months, by demographic sub-group, 2006
- Figure 72: Consumption of brandy in home, in the last 12 months, by demographic sub-group, 2006
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- Figure 73: Consumption of brandy elsewhere, in the last 12 months, by demographic sub-group, 2006
- Consumer 3 – Attitudes to dark and golden rum – Detailed demographics
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- Figure 74: Attitudes to dark/golden rum, November 2006
- Consumer 4 – Attitudes to Cognac and brandy – Detailed demographics
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- Figure 75: Attitudes to cognac/brandy, November 2006
- Consumer 5 – Drinking repertoires – White and dark spirits drinkers
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