Drinks NPD - UK - August 2009

Table of Contents

• Issues in the Market
• Consumer research
• Abbreviations
• Market in Brief
• A massive market
• Thriving on novelty and innovation
• A youth market
• A context of social debate
• Looking to the future
• Future prospects
• Internal Market Environment
• Key points
• Attitudes
• The Brits just like drinking...
  • Figure 1: Attitudes towards eating and drinking, by country, 2008
• Conservative, but worried
  • Figure 2: Attitudes towards alcohol and health, by country, 2008
• Respect for quality -- and brands
  • Figure 3: Attitudes towards shopping, brands and pricing, by country, 2008
• Attitudes by demographics
  • Figure 4: Attitudes towards new products, GB, by demographic sub-groups, 2008
• The UK' s drinking problem
• Blame the man who sells the gun
• Too sweet?
• Better-for-you goes functional
• Environmentally-friendly, maybe - but is it ethical?
• Packaging matters
• Targeting women
• Broader Market Environment
• Key points
• Demographic trends may help
  • Figure 5: Structure of the UK population, by age and gender, 2003-13
• Loadsamoney - even if the outlook' s poor
  • Figure 6: UK population, by socio-economic group, 2003-13
• The changing tastes of single households
  • Figure 7: The changing structure of UK households, 1971-2006
• The economy groans on...
  • Figure 8: Trends in personal disposable income and consumer expenditure, at current prices 2004-14
• Leading Drinks Markets for New Product Development
• Key points
• NPD backs the biggest in alcoholic drinks
  • Figure 9: Top product categories for new product development in alcoholic drinks, percentage, 2006-09
• NPD a key strategy for soft drinks
  • Figure 10: Top product categories for new product development in non-alcoholic drinks, percentage, 2006-09
• £34 billion -- but falling slowly
  • Figure 11: Value sales of alcoholic drinks, 2004-14
  • Figure 12: Retail value sales of alcoholic drinks, 2004-14
  • Figure 13: Volume sales of alcoholic drinks, 2004-14
• Beer spearheads value decline
  • Figure 14: Value sales of alcoholic drinks, by type, 2004-09
• Spirits and wine drive retail onwards
  • Figure 15: Retail value sales of alcoholic drinks, by type, 2004-09
  • Figure 16: Volume sales of alcoholic drinks, by type, 2004-09
• Soft drinks buoyant as growth in alcoholic drinks stutters
  • Figure 17: Value sales of non-alcoholic drinks, 2004-14
  • Figure 18: Retail value sales of non-alcoholic drinks, 2004-14*
  • Figure 19: Volume sales of non-alcoholic drinks, 2004-14
• Carbonates dominate -- but water and juice the fastest growing
  • Figure 20: Value sales of non-alcoholic drinks, by type, 2004-09
  • Figure 21: Volume sales of non-alcoholic drinks, by type, 2004-09
• Factors used in the forecast
• Leading Product Claims for New Product Development
• Key points
• Premium rules -- OK?
  • Figure 22: Top 20 claims for new product development in alcoholic drinks, 2006-09
• But health concerns dominate in soft drinks
  • Figure 23: Top claims for new product development in non-alcoholic drinks, 2006-09
• Targeting the female audience
• Lower in alcohol
• Economy -- far from forgotten
• But Premium still rules
• Attracting consumers
• Environmentally-friendly packaging -- and convenient
• Limited editions
• Co-branding and tie-ins
• Fair trade
• Added benefits
• Leading Companies for New Product Development
• Key points
  • Figure 24: Top companies for new product development in alcoholic drinks, percentage, 2006-09
  • Figure 25: Top companies for new product development in non-alcoholic drinks, percentage, 2006-09
• The Consumer -- Pan-European Overview
• Key points
• More Brits drink -- but not by much
  • Figure 26: Alcohol consumption, by country, 2006-08
• An ocean of tea and Nescafé?
  • Figure 27: Consumption of non-alcoholic drinks in the last 12 months, by country, 2008
• Diffidence holds back soft drinks
  • Figure 28: Frequency of consumption of non-alcoholic drinks, by country, 2008
• The Consumer -- Trends in Consumption in the UK
• Key points
• It' s a middle-aged (and male) thing
  • Figure 29: Alcohol consumption in last 12 months, by gender and age, 2004-08
• Only Champagne and cider buck the downward trend
  • Figure 30: Trends in alcohol consumption, by type of drink, 2004-08
• Trends in frequency of drinking
  • Figure 31: Frequency of drinking, 2004-08
• 35-54-year-olds the biggest drinkers
  • Figure 32: Consumption of alchohol in last 12 months, by demographic sub-group, 2008
• An older, affluent demographic
  • Figure 33: Consumption of alcohol, by type of drink, by demographic sub-group, 2008
• Soft drinks -- a broader constituency
  • Figure 34: Penetration of non-alcoholic drinks, by type, by demographic sub-group, 2008
• The Consumer -- Attitudes
• Key points
• Some pointers to new product targeting
  • Figure 35: Attitudes, by choice of alcoholic drink, 2008
  • Figure 36: Attitudes, by choice of alcoholic drink, 2008
• Who' s got the attitude?
  • Figure 37: Attitudes towards drinking, by demographic sub-group, 2008