Will health considerations drive the premiumisation of the alcohol sector? - UK - October 2007

Table of Contents

• Introduction
• Key themes
• Definitions
• Premium data
• Insights and Opportunities
• Choice is the bane of our lives
• One for each hand
• Market in Brief
• Fewer drinkers and lower prices
• Premiumisation -- where next
• Threats to the alcohol market
• Readjusting the balance
• The future is an attitude change
• Conclusion
• Fast Forward Trends
• The Lego Way
• What' s it about?
• What we' ve seen
• Implications
• Embed With My Dinner -- The Smart Mirror
• What' s it about?
• What we' ve seen
• Implications
• Market Context
• Key points
• Appetite for alcohol
  • Figure 1: Attitudes towards alcohol consumption 2006
  • Figure 2: Total alcohol volumes by category, 2002-07
• The rise of the non-drinker
• Economic factors
• An ageing population
• Staying in is the new going out
• The cheap flight bug
• The Impact of Food on the Alcohol Market
• The premiumisation of food
• Fairtrade and organic food
  • Figure 3: Estimated UK sales of ethical foods, 2002-06
• Competitive Environment
• Growing demand for soft drinks
  • Figure 4: UK volume sales of soft drinks, 2001-06
• Infinitely affordable
  • Figure 5: The relative price of alcohol index vs. the affordability price index, 1980-2006
• Legislation and Government Strategy
• Legislative context
• 24-hour party people
• Alcohol Harm Reduction Strategy
• Strategy in detail
• Global strategy evaluation
• Tried and tested
• Raising tax on alcohol
• Raise drinking age or lower it?
• The advertising environment
• Advertising future
• Market Value
• Key points
• Mixed performance
  • Figure 6: Selected alcohol values at current prices, 2003-11
• A changing world
• Finding value
  • Figure 7: Index of price of selected alcoholic drinks, 2002-11
• The premium answer
  • Figure 8: Selected alcohol volume sales (litre) split by premium, standard and value, 2006
• A question of space
• Sector Performance?
• Key points
• Lager
  • Figure 9: UK retail sales of lager, by volume and value, 2002-07
• Wine
  • Figure 10: Consumer expenditure on wine*, at current prices and constant 2002 prices, 2002-07
• Opportunities for growth
• Convenience
• Spirits
  • Figure 11: White spirit market, by value and volume, 2001-07
• Cider
  • Figure 12: UK retail sales of cider, by volume and value, 2001-06
• What Does the Future Hold?
• Food shows the way to premiumisation
• A healthy approach
• A change in culture?
• On- vs. Off-Trade
• Is in the new out?
• The persuasive price differential
  • Figure 13: Average price of selected alcohols in the off- and on-trade, September 2007
• Will food continue to drive the on-trade
  • Figure 14: Location of alcohol purchase, 1998 and 2006
• Alcohol and a Healthy Positioning
• Can alcohol create a healthy positioning and as a result create another route to premiumisation?
• Key points
• Health aware
• Catch 22
• The right combination
• Perfect partners
• Water works
• The red wine effect
• Functional future
• All natural purity
• The worst case scenario
• Conclusion
• Threats and Opportunities
• Forthcoming issues for the industry to consider
• Opportunities
• New Product Development Trends
• Key points
• The power of provenance
• Premium +10
• Creditable connections
• Full of flavour
• Other innovative ideas
• Consumer Usage of Alcohol
• Key points
• Consumption begins to decline
  • Figure 15: Consumption of alcoholic drinks, 2003-07
• Beer driving overall decline in consumption
  • Figure 16: Consumption of specific alcoholic drinks, 2003-07
• The Consumer -- Premium Purchase
• Key points
• Popularity of premium is price based
  • Figure 17: Purchase category of selected alcohol types, July 2007
• Broadening appeal and accessory crucial to growth of wine
• Education, education, education
• Age is a driver, but is enough being done to remove the barriers?
• How about a gift?
• Rose by name, Rosy by nature
• Lessons to be learnt
• Long and fizzy
• Lager
• Cider is on the move
• Bitter
• Quality counts
• Spirits
• Whisky
• The Consumer -- Health Concerns
• Key points
  • Figure 18: Attitudes towards alcohol and health, July 2007
• Free spirits
• Age acts in mysterious ways
  • Figure 19: ' Drinking occasionally does you no harm at all'
• Men are trading up
• I' d rather go without
• ' A glass of wine a day is good for you'
• The Consumer -- The Trade Off
• Key points
  • Figure 20: Attitudes towards paying a premium for drinks, July 2007
• It' s all about quality
• Can' t taste the difference
• The Consumer -- A Question of Promotion
• They have made their bed....
  • Figure 21: Attitudes towards special offers
• Will we discount forever?
• The Consumer -- Out of Home
• Key points
  • Figure 22: Attitudes towards purchasing drinks in the on trade
• Something a little special
• Traditionally traditional
• Appendix
• Market in context
  • Figure 23: EU pure alcohol consumption per capita 5 to increase/decrease, 1993 and 2003
  • Figure 24: Per capita consumption of alcohol in Europe, 1970-2004
• Internal market environment
  • Figure 25: Consumption of alcoholic drinks in the last 12 months, by type, 2002-06
  • Figure 26: UK consumer expenditure on alcohol, 1995 and 2005
  • Figure 27: Drinks most likely to be taken at home and in the pub, May 2005
  • Figure 28: Factors which entice people in, February 2006
  • Figure 29: Trends in breath tests and breath test failures by drivers and riders involved in accidents, 1996-2005
• Broader market environment
  • Figure 30: PDI and consumer expenditure, at current and constant prices, 2001-11
• Market value and forecast
  • Figure 31: UK sales of white spirits, by volume and value, 2001-06
• Consumer 1 -- Detailed demographics
• TGI consumption data
  • Figure 32: Consumption of alcoholic drinks in the last 12 months, 2002-06
  • Figure 33: Consumption of specific alcoholic drinks, 2003-07
  • Figure 34: Category of expenditure most likely to spend in -- red wine, July 2007
  • Figure 35: Category of expenditure most likely to spend in -- white wine, July 2007
  • Figure 36: Category of expenditure most likely to spend in -- Rose wine, July 2007
  • Figure 37: Category of expenditure most likely to spend in -- Cider, July 2007
  • Figure 38: Category of expenditure most likely to spend in -- Lager, July 2007
  • Figure 39: Category of expenditure most likely to spend in -- Bitter, July 2007
  • Figure 40: Category of expenditure most likely to spend in -- white spirits, July 2007
  • Figure 41: Agreement with the statement, July 2007
  • Figure 42: Agreement with the statement, July 2007
  • Figure 43: Agreement with the statement, July 2007
  • Figure 44: Agreement with the statement, July 2007
  • Figure 45: Agreement with the statement, July 2007