Table of Contents
- Overview
- Executive Summary
- Introduction
- The Future Decoded
- Consumers are increasingly opting to stay in
- Off-trade drinking continues to grow as consumers on-trade consumption
stagnates
- At-home drinking occasions are increasingly diverse
- The ' discount trap' presents a problem for building value from
off-trade sales
- Consumers seek on-trade quality experiences in the home
- Consumers are "front-loading" at home before going out
- Smoking bans are influencing consumers' off-trade drinking behavior
- Attempts to build value in the off-trade may be influenced by the
threatened housing/credit crunch
- Health considerations are changing consumers' at-home alcoholic
drinking behavior
- Action Points
- TABLE OF CONTENTS
- Table of figures
- Table of tables
- THE FUTURE DECODED
- INTRODUCTION: The strategic importance of the off-trade to theindustry
is growing
- TREND: Consumers are increasingly opting to stay in
- Improving and investing in the home encourages consumers to spend more
time there
- Consumers are focusing on the home as a comfortable retreat
- US consumers' favorite summer evenings center around home and
outdoor social activities
- Cocooning has evolved: consumers want to share their homes with
others
- Home entertainment options continue to grow in sophistication
- Take-outs and implications: consumers want products that complement
their home-based needs
- TREND: Off-trade drinking is growing while consumers' on-trade
consumption stagnates
- Off-trade sales in the US lead those in Europe as a share of total
sales
- At-home alcoholic beverage occasions outnumber going out
- Per capita at-home and going out occasions vary significantly from
country to country
- UK consumers drink the most alcohol per on-trade occasion
- Consumers are critical of on-trade value for money
- Price sensitivity plays a role in directing off-trade consumption, but
is far from the only factor
- It is also important to recognize that there are other factors
beyond price driving the trend
- Take-outs and implications: industry players should place increasing
emphasis on the need states of consumers drinking at home
- TREND: At-home drinking occasions are increasingly diverse
- Entertaining at home is a significant sub-trend in at-home alcohol
consumption
- Sports events fuel male at-home drinking behaviors
- Beer is inherently social, both on and off-trade
- Alcohol consumption at home is increasingly allied to meal occasions
- Aging populations will add to the growth in at-home alcoholic beverage
occasions
- Weekend alcoholic drinking occasions increasingly occur in the home
- Take-outs and implications: diverse drinking occasions at home have
untapped potential, particularly with regard to premiumization
- INSIGHT: The "discount trap" presents a problem for building value from
off-trade sales
- Price-based promotions in the off-trade can negatively impact overall
brand equity
- Beer continues to be particularly at risk from cut-price image problems
- Younger consumers are migrating between cheap sub-premium beer and
specialty brews
- Take-outs and implications: a major threat to off-trade value
generation is the continued emphasis on cut price promotion at the expense
of building long term brand equity
- INSIGHT: Consumers want to replicate on-trade quality and experiences in
the home
- Consumers' experiential expectations are high
- Premium-hungry shoppers are looking for the latest on-trade trends on
retail shelves
- Poor on-trade experiences and choices are putting consumers off
frequenting the channel
- The ' insperiences' trend means that alcoholic beverage consumers are
recreating aspects of the on-trade at home with greater regularity
- Insperiences are offering consumers high quality on-trade
experiences with home convenience
- Insperiences and entertaining at-home are tied to the rise of the
kitchen as a prominent social space
- The propensity for consumers to pair alcohol and food is a developing
trend with historical precedent
- Take-outs and implications: it is important to appeal to off-trade
consumers by emphasizing the premium experience that brands can offer in
the comfort of the home
- INSIGHT: Consumers are "front-loading" at home before going out
- Europeans show a higher propensity for front-loading than US consumers
- The growth in front loading among UK consumers is particularly
notable
- Sweden has the lowest per capita occasions of the countries covered
- Germany is experiencing the fastest decline in both quiet drinking
and front-loading occasions
- Take-outs and implications: front-loading is a growth occasion but
presents difficulties for encouraging up-trading
- INSIGHT: Smoking bans are influencing consumers' off-trade drinking
behavior
- Smoking has been linked to higher alcohol consumption among consumers
- Smokers constitute a sizeable share of the drinking demographic
- Smoking bans have impacted on on-trade sales and changed some
consumers' on-trade drinking behavior
- Smoking bans may influence the off-trade behaviors of both smokers and
non-smokers
- Take-outs and implications: smoking bans may not have a fundamental
impact on the balance between on and off-trade alcohol occasionsINSIGHT:
Trading-up in the off-trade may be restricted by the looming housing and
credit crunch
- Consumers may look for economies by staying-in
- Take-outs and implications: the industry must prepare for consumers
tightening their belts and look to the off-trade for opportunities
- INSIGHT: Health considerations are changing consumers' at-home alcoholic
drinking behavior
- Consumers are moderating their alcoholic beverage consumption
- Alcohol choices at home are being influenced by health considerations
- Health and premiumization foster "less but better" approaches to
alcohol consumption
- At-home drinking faces a threat from the so-called "assault on
pleasure"
- Take-outs and implications: health and premiumization are
complementary trends in the alcoholic beverage space in an era of
increasing alcohol disapproval
- INSIGHT: There is evidence that student drinking habits are shifting,
thereby affecting on and off-trade behavior
- Take-outs and implications: industry players must recognize students'
changing priorities
- ACTION POINTS
- ACTION: Ensure the off-trade and on-trade brand positioning is
complementary
- Avoid a disconnection between pricing and marketing messages that
confuses brand identity
- Ensure that your alcoholic beverage brand stands for something: take
ownership of important product trends
- Control the discounting impulse if it threatens brand cach・
- ACTION: Align products more directly with off-trade need states and
occasions
- Capitalize on the fact that relaxation at home connects with
individualism and reward
- Market products that "enable" traditional male events
- Covet the opportunities offered through the home ntertaining occasion
- Facilitate social drinking with products that enable sharing or shared
experiences
- Trusted brands can be allied to front-loading occasions
- ACTION: Adjust portfolios in recognition of the defining consumer trends
shaping preferences
- Recognize that light beers are well placed to capitalize on the
wellness trend
- Help fulfill consumers desire for experimentation and self-expression
- Allow consumers to act on the "less but better" impulse with widened
portfolios that support trading up
- Respond to the "Natural" trend
- Organic credentials will become increasingly important
- ACTION: Take the on-trade to the home through branded events
- Branded ' insperiences' are a rapidly developing opportunity
- Look for new opportunities to offer branded experiences in the
consumers' home
- Align brands with new, popular forms of at-home entertainment
- Co-branding possibilities exist in the home entertainment arena
- ACTION: Emphasize the specific links between alcohol and food
- APPENDIX
- Supplementary data
- Definitions
- Methodology
- Further reading and references
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Off-trade alcoholic beverage sales (% volume), US &
Europe, 2001-2006
- Table 2: Alcoholic beverage occasions (millions), going out and at
home, Europe & US, 2001-2011
- Table 3: Annual per capita alcoholic beverage occasions, going out and
at-home, Europe & US, 2001-2011
- Table 4: US & Europe alcoholic beverages consumption (liters) per
occasion, on and off-trade, 2001-2006
- Table 5: Annual at-home alcoholic beverage occasions (millions), US
& Europe, by type, 2001-2011
- Table 6: Per capita at-home alcoholic beverage occasions, US &
Europe, by type, 2001-2011
- Table 7: Share of alcoholic beverage occasions (%) by type and time of
week, US & Europe, 2001-2011
- Table 8: Staying in: alcoholic beverage occasions (millions), by
sub-type, 2001-2011
- Table 9: Staying in: per capita alcoholic beverage occasions, by
sub-type, 2001-2011
- Table 10: Number of smokers (millions) and as share of adult
population (%), US & Europe, 2001-2011
- Table 11: Overall alcoholic drinking occasions (millions), Europe
& US, 2001-2011
- Table 12: Alcoholic beverage occasions (millions) by type and time of
week, US & Europe, 2001-2011
- List of Figures
- Figure 1: Four key factors motivate consumers to increasingly stay at
home
- Figure 2: US consumers favorite summer evening activities are centered
around the outdoors and home
- Figure 3: Integrated home entertainment systems fuel consumers'
cocooning and hiving behaviors
- Figure 4: The off-trade market in the US is much stronger than in
Europe (2006)
- Figure 5: Consumers are more price-conscious when buying alcohol
on-trade than off-trade
- Figure 6: US alcohol preferences shift with age from beer and FABs
towards "mature" beverages such as wine and whiskey
- Figure 7: UK consumers switch to wine earlier than Americans, peaking
in their late-30s
- Figure 8: The "discount trap" threatens off-trade premium value
generation
- Figure 9: Consumers still experiment with new alcoholic beverages more
in the on-trade than in the home
- Figure 10: Alcoholic ' insperiences' marry on-trade quality, storage
and presentation with off-tradeconvenience and accessibility
- Figure 11: Beer Insperiences bring on-trade serving and presentation
home
- Figure 12: Non-smoking establishments are preferred by the majority of
European and US consumers
- Figure 13: Consumers in the US and Europe are showing a higher
propensity for alcohol moderation
- Figure 14: Health considerations have become an important factor in
alcoholic drink choices
- Figure 15: Stella Artois' s declining brand image in the UK is a result
of a disparity between its upscale positioning and heavy off-trade
discounting
- Figure 16: Coors Light has successfully delivered a unified brand
message on and off-trade
- Figure 17: Magners has changed the face of the UK cider market by
tapping into the individualism and indulgence trends
- Figure 18: Alcoholic drink concepts that emphasize sharing behaviors
- Figure 19: The early success of Heineken Premium Light Lager Beer
highlights consumer preference for ' better-for-me' beers that taste good
and have strong branding
- Figure 20: Case study: Bacardi Bespoke takes the on-trade experience
home
- Figure 21: Co-branding or complementary tie-ins between alcohol and
food evoke the premium experience
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