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Topics: Alcoholic beverage, Vodka, Drinking culture Pages: 24 (3664 words) Published: April 29, 2014
Drinking to the Future
Trends in the Spirits Industry
March 2013

WHAT’S IN
THIS REPORT?
Spirits Trends – the Global Context
Innovation
Advertising & Digital Marketing
Premiumisation & Craft
Changing drinking behaviours &
regulation

IF YOU ONLY HAVE A MINUTE…


Emerging markets are becoming increasingly important as
consumers of spirits and imported brands are growing
rapidly, being now key markets for the global spirits
industry



Despite the weak global economy, premium and superpremium brands are growing thanks to a focus on provenance and aspirational consumers



Social media provides an excellent opportunity for alcohol
retailers to connect with consumers. There are innovative
social media campaigns going on – but interaction doesn't
necessarily lead to engagement



Minimum pricing could be enacted in the UK, it’s already
law in Scotland. Britain still loves spirits but drinking
demographics are changing - young people now drink less
than their elders

3

THE SPIRITS INDUSTRY - 2013
Overall, the future looks positive for the
global spirits industry. According to latest full
year data, the global spirits market expanded
by 7% in volume between 2010 & 2011.
Thanks to premiumisation,
growth in market value is
outstripping volume. The industry
experienced 10% growth in sales
value over the same period.
However moving forward the
spirits industry faces a number of
challenges, such as regulation.
4

SPIRITS TRENDS: THE GLOBAL CONTEXT
In the US, New York & LA are setting
trends which resonate globally. Lowcalorie spirits, rye whiskey and food in cocktails are ones to watch.

SPIRITS TRENDS:
THE GLOBAL
CONTEXT

In the UK there is an increasing
interest in cocktails: with
consumption to grow by over
10% in the next 2 years.
Minimum pricing per unit likely
to be enacted soon.

Source: IWSR Volume Data, UK Government ONS

China, Russia and India all have one
thing in common – imported spirits
are an expanding category. Sales
have grown by 250% in China over
the last 10 years.

Brazil’s passion for whisky shows
no signs of abating. Exports of
scotch have increased by 50%
and whisky is now the UK’s sixth
largest export to the country
5

SPIRITS TRENDS IN CHINA
Per capita alcohol consumption in China is increasing rapidly, meaning that growth in the size of the Chinese spirits market is outstripping both the economy and natural population growth
Baijiu (white spirit) & rice wine are by far the most popular alcoholic drinks in China, whilst imported spirits are still only a fraction of the total market. Cognac & blended scotch are the biggest selling imported spirits, closely followed by vodka.

In 2012 total sales of imported spirits in China were 250% higher than 2001, and 16% higher than 2011 – this is faster growth than in any other market. The Chinese use premium spirits brands to flaunt wealth.

In China the top 3 imported brands dominate the
market – with a total share of 43% in 2011

Source: The Guardian, World Health Organisation 2011,
IWSR volume data, 2012

SPIRITS TRENDS IN INDIA
The regulatory environment for alcohol in India has changed a great deal in the last two years. Sale of alcohol has been banned in various places, including bus stops, open markets, railway stations, petrol stations and airports. •Alcohol advertising has been banned, along with drinking in public places. Hours of trading have been limited, prohibiting the sale of alcohol between 11pm and 8am. •However, Indian imported spirits are growing 25% yearly and it is estimated that Indian spirit imports will soar to five million cases by 2015, says •88% of alcohol consumption in India is spirits, while 10% comes from beer and only 2% from wine.

•Whisky remains the most widely consumed imported spirit in India. A minimum price has recently been placed on vodka, doubling the price of the cheapest brands. •Rum has potential to attract new drinkers,...
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