Spirits Market Report 2014: facts and figures
The findings of William Grant & Sons UK (previously known as First Drinks Brands) annual spirits and Champagne report make interesting reading, as you would expect. H&C News has already looked at some of the consumer trends and shopper habits that the Report uncovers (see link at bottom of page), but here we present some of the figures that underpin the findings of the Report.
Alcohol
- The total GB Beer, Wine & Spirits (BWS) market is worth £38.6bn, up 0.8%
- The on-trade accounts for 60.6% of sales value, having declined 1.0% in the last year
- The off-trade is driving growth, up 3.5%, and is now worth £15.4bn
- Spirits is the second largest BWS category in both the on and off-trade, and is experiencing value growth ahead of the category
Spirits
- Spirits are worth £9.1bn, up 4.5%
- The on-trade is driving spirits performance, up 5.1%, though the category is also performing well in the off-trade, up 3.6%
- Spirits growth is being driven by non-flavoured vodka, gin, non-cream liqueurs and malt whisky
Premium spirits
- Premium spirits continue to benefit from positive performance as people look for better quality products with a story and a more pleasurable, engaging experience
- Premium spirits are driving value growth in the on-trade, up 13.7%
- In the off-trade, value growth is up 6.4%
“As this report concludes, premium brands are extremely well placed to benefit from the trends the market is experiencing. This is why building premium brands that consumers desire is core to our business. It is these higher-end spirits which can offer more in terms of value, to appeal to the consumer. In the year ahead we aim to work even more closely with our customers to deliver premium experiences – be they online, in-store or in outlet.”
Chris Mason, Managing Director of William Grant & Sons UK
The on-trade
- The on-trade remains in a state of flux, with research showing that consumers continue to make less frequent visits. However, when they are out 79% of drinkers consider spirits and it’s the spirits category which is driving growth – the on-trade spirits market is worth £5.4bn, up 5.1%
- Spirits are the second largest drinks category in the on-trade, accounting for 18% of value sales
- 77% of consumers would welcome bartender recommendation – many bars need to take advantage of this through staff training
The off-trade
- Two thirds of off-trade purchases are made when in-store
- Almost 60% of branded spirits are sold at a promoted price in the off-trade – price promotions play a key role for shoppers
- 90% of shoppers will visit the main spirits aisle after seeing promotion shelves to validate their decision and ensure they are getting value for money
- Shoppers will pay above expectations for categories viewed as more premium such as malt whisky and Cognac
- A quarter of shoppers state that a free gift with purchase will encourage them to spend more in-store
William Grant & Sons UK
William Grant & Sons UK is a leader in the UK spirits industry with a portfolio of premium and iconic brands. Founded in 1887, it is a fifth generation family-owned business with a passion and commitment for creating and building acclaimed brands of unrivalled quality for the long-term.
The company’s wholly owned brands include Glenfiddich, the world’s most awarded single malt Scotch whisky, The Balvenie, Grant’s, Hendrick’s Gin, Sailor Jerry Spiced Rum, Tullamore D.E.W Irish Whiskey and Three Barrels brandy. It also successfully represents brands owned by other premium drinks businesses, including Illva Saronno’s Disaronno and Tia Maria, EPI’s Piper-Heidsieck and De Kuyper Cocktail Liqueurs.
First Drinks re-brands and unveils 2014 Market Report