First Drinks, the leading supplier of premium spirits, has published its annual Market Report which looks at the spirits and champagne categories in the UK. This second report of its kind, takes a look at current trends and dynamics impacting the on and off-trade.
Focusing on category and brand performance and key growth drivers, the report highlights the continued role of premium brands, and its Specific Findings (see below) offer the UK hospitality sector useful pointers to which many businesses will respond.
The marketplace currently appears to be polarising between the high-end and lower-end of the market which, as Chris Mason, Managing Director of First Drinks suggests, makes it ‘essential that we fully understand current trends and adapt to the needs of shoppers and consumers in this ever-changing market’.
Specific findings
- impact of the economic climate: consumers are reacting either by trading up and buying less, or by trading down and buying more
- impact of events: uplifts in profit of around 20% have been witnessed by retailers during major events and special occasions. For all areas of the trade, this highlights the importance of getting the timing right on key activations throughout the year
- flavour and experimentation: enthusiasm amongst drinkers for taste and flavours and the rising trend in experimentation, particularly in the on-trade
- importance of authenticity: revival of an interest in craft, tradition, heritage and provenance and the importance of an authentic story in building premium brands
- cocktails: increased interest in cocktails – cocktail consumption is set to grow by over 10% in the next two years as 76% of on-trade outlets report equal or increased cocktail sales year on year
- online shopping in the UK has taken off faster than anywhere in Europe with 26% penetration – retailers need to embrace this opportunity
- convenience channel: growth in convenience shopping and the prediction that the channel will grow by more than £10bn in the next four years – rising fuel costs mean that consumers are shopping locally to save money
- gifting: with spirits accounting for one in three of all alcohol gift purchases, gifting remains crucial for the off-trade – accessibility is key with the need for solutions across all price points
- value: whilst price is definitely a key factor for consumers, quality is also important. Value across all price points is increasingly important to shoppers
- policy: the impact of policy and regulations on promotions continues to affect the trade. Maintaining accessibility will be central to continued growth. average unit price increases, growth in smaller spirit pack such as 35cl and 50cl has been witnessed
Chris Mason, Managing Director of First Drinks, comments:
“In a marketplace which appears to be polarising between the high-end and lower-end of the market, we remain totally committed to building premium brands – this is at the heart of our ethos.”
“It is essential that we fully understand current trends and adapt to the needs of shoppers and consumers in this ever-changing market. This is something the First Drinks Category Management team do exceptionally well, providing retailers with impartial advice on merchandising and innovative solutions to drive sustainable growth for all spirits categories.”
About First Drinks
First Drinks is the leading supplier of premium spirits in the UK and is recognised as having a portfolio of iconic and authentic brands. This year, the company has introduced four new brands to its vodka portfolio – Green Mark, Żubrόwka, Reyka and Kauffman – further boosting its profile as a major player in premium spirits.
The company has a number of new campaigns and initiatives under way this year. These include:
- The Glenfiddich Walking with the Wounded sponsorship
- New advertising campaigns for Green Mark and Żubrόwka
- Major on-pack activity for Grant’s with its ‘find my past’ campaign
- New packaging for Glenfiddich 21 Year Old, Tullamore Dew, Tia Maria and Mateus
- The successful launch of Rémy Martin’s VSOP Mature Cask Finish
For more information, visit First Drinks
William Grant & Sons is an independent family-owned distiller headquartered in the United Kingdom and founded by William Grant in 1887. Today, the global premium spirits company is run by the fifth generation of his family and distils some of the world’s leading brands of Scotch whisky, including the world’s most awarded single malt Glenfiddich®; The Balvenie® range of handcrafted single malts; and the world’s fourth largest blended Scotch Grant’s®; as well as other iconic spirits brands such as Hendrick’s® Gin, Sailor Jerry® Spiced Rum and Tullamore Dew® Irish Whiskey
For more information, visit the William Grant website