|
|
 |
|
Viewing report
|
|
|
|
Alcoholic Drinks in United Kingdom
Euromonitor International
Low but steady in 2003
Volume sales of alcoholic drinks are predicted to grow by just over 1% in 2003. Wine will continue to be the fastest growing sector, driven by increased consumption by existing consumers in the off-trade. Overall growth has also been aided by a hot summer, which boosted volume sales of beer and cider/perry. If it had not been for the good summer it is likely that both beer and cider/perry would have seen declines in sales, as many of the growth drivers for beer, such as premium lager, began to run out of steam. Spirits have also sees strong increases, driven by continued growth of white spirits, in particular gin and vodka.
FABs go into reverse
Growth has, however, been held back by the decline of FABs which are predicted to see volume and value declines of over 4%. These declines have been driven by the huge rise in duty levied on FABs in the April 2002 budget, which linked the duty charged on FABs to that of spirits. This put up the retail price of the products dramatically, and in turn hit sales. This was exacerbated by consumers stocking up on FABs before the duty rise in April 2002, which hit sales in 2003. Companies such as Diageo and Halewood International have tried to mitigate this by reducing the alcohol content in their Smirnoff Ice and Red Square brands.
Increasingly going off
Consumption of alcoholic drinks continues increasingly to take place away from on-trade establishments. This is particularly the case in the largest sector, beer. The move to off-trade consumption has been driven by a combination of consumers finding other ways to spend their leisure time, other than in on-trade establishments, and heavy retailer price discounting. Supermarkets continued in 2003 to make leading beer brands loss leaders, as a way of encouraging consumers into their stores and purchasing other products. The only sector to see faster on-trade growth was wine, albeit from a small base.
Scottish & Newcastle and Diageo remain leaders
Scottish & Newcastle and Diageo strengthened and expanded their grips on their respective sectors during 2002 and into 2003. Scottish & Newcastle increased its share in the beer sector with its continued focus on its five key beer brands. It also expanded into cider by taking over the UK’s leading cider producer HP Bulmer, for £278 million, which now makes it the leader in two sectors, beer and cider/perry. Diageo continued to strengthen its hold of the FABs sector due to the strong growth of its Smirnoff Ice brand, with the launch of the Smirnoff Black Ice variant. In spirits, it gained from the purchase of the Captain Morgan brand of rum, as well as promoting its leading brands, such as Smirnoff.
In 2003, wine also saw the emergence of a major player with the purchase by Constellation Inc (which owns Matthew Clark) of the Australian wine company BRL Hardy, in March of that year. This takeover has led to the establishment of the largest wine company in the UK, called Constellation Wines. It now has two of the leading brands in the UK, Stowells of Chelsea and the Hardys range.
Going down
Volume sales of alcoholic drinks are predicted to decline by nearly 2% over the forecast period. The decline in volume sales will be driven by the decline in the largest sector, beer, which is predicted to decline by 6% over the forecast period. Beer’s decline will be driven by the continuing fall in standard and premium ales, while the volume growth drivers of the review period, standard and premium lagers, will see sales stagnate as both reach their maximum penetration. FABs will see the fastest decline, as the innovation that has driven growth previously declines with the maturing of the sector. Spirits will see some growth, driven by drinks that appeal to young consumers, such as bourbon whisky and vodka. The only sector expected to see substantial growth is wine, as rising consumption is encouraged by increased confidence among consumers in selecting wine, and continued heavy retailer discounting.
Customers who bought this item also bought
Cider/perry in the United Kingdom
Alcoholic Drinks in United States
The 2009 Import and Export Market for Butadiene Rubber (BR) in the United Kingdom
Cider/perry in Israel
Cider/perry in Switzerland
Cider/perry in Singapore
Cider/perry in New Zealand
Cider/perry in Argentina
The 2009 Import and Export Market for Butadiene Rubber (BR) in the United States
Cider/perry in Norway
Cider/perry in Portugal
Cider/perry in Australia
|
|
|
|
