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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Good growth due to rising income levels
The Austrian economy saw good growth during the review period, boosting
consumers' income levels. Growth was strongest in less-developed areas,
particularly with a premium positioning. Within wine, for example, still rosé
wine and champagne saw the strongest growth. Beer is fairly mature but
benefited from a growing interest in niches such as dark beer and stout, along
with the widening range of microbrewery beer and limited edition products on
offer. Generally, consumers became more discerning but also more adventurous
in their choices. In spirits, interest in premium products for example fuelled
growth in blended Scotch whisky, while the growing popularity of cocktails at
home and in bars drove growth in tequila, white rum, cream-based liqueurs and
particularly vodka.
Domestic brands showed a good performance
Domestic products performed strongly across alcoholic drinks in 2008. Austrian
consumers are typically enthusiastic about Austrian products and have faith in
their quality, particularly where there is a long tradition of production.
This trend was especially noticeable in wine and RTDs/high-strength premixes.
Austria is a country with a long tradition in viniculture and its wine is
popular in Austria as well as abroad. Growth in RTDs/high-strength premixes
was meanwhile driven almost entirely by malt-based RTDs towards the end of the
review period, with this comprising only radler. Radler is a blend of lemonade
with beer, typically using strong local beer brands such as Brau-Union' s
Puntigamer. Beer also benefited from this trend, with the growing number of
microbreweries boosting interest in dark beer and stout. Cider/perry is
meanwhile almost exclusively domestic with artisanal production, while
domestic brands also performed well in liqueurs.
Strong brewers in lead
Beer is the least fragmented area of alcoholic drinks, with the bulk of sales
controlled by Brau-Union and Stieglbrauerei. With beer also dominating overall
sales of alcoholic drinks, these players thus enjoy a strong lead. The leading
beer players also benefited from their presence in dynamic malt-based RTDs,
which supported their shares towards the end of the review period. Wine and
spirits meanwhile remains fairly fragmented, with a large number of small
players. Cider/perry is meanwhile dominated by artisanal production, with no
clear leaders.
Price-sensitive consumers seek out off-trade bargains
Supermarkets/hypermarkets continued to be the most significant off-trade
channel for alcoholic drinks, accounting for a dominant share. After losing
some share to discounters at the start of the review period,
supermarkets/hypermarkets also regained share in 2008 thanks to the increasing
use of price promotions. Discounters continued to be the most dynamic channel,
however, appealing to increasingly price-sensitive consumers by offering a
wide range at low prices.
Stronger growth ahead thanks to domestic innovation
Alcoholic drinks is expected to see stronger growth during the forecast period
than that seen during the review period, with this due to strong investment in
new product development and marketing by leading domestic players. The leading
breweries are expected to be particularly effective in driving sales growth,
with new product development and promotion set to rejuvenate sales in domestic
premium lager and domestic standard lager, along with supporting strong growth
in malt-based RTDs. However, microbreweries are also expected to be
significant in driving growth. Domestic wine producers are also expected to
focus on new product development and to explore less-developed niches such as
still rosé wine.
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