Abstract
Why buy this report
- 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
Slow down in growth of the alcoholic drinks industry
The alcoholic drinks industry showed healthy signs of growth in 2007. However
volume growth was lower than in the previous year while value growth remained
at a similar level. This would indicate that alcoholic drinks consumption
increased less than unit price a trend which is not unexpected. Lithuanians
already consume large amounts of alcohol and the slow down is an indication of
increasing industry maturity and saturation, as the consumer is now becoming
more interested in quality than quantity.
Rise in consumer purchasing power boosts value sales
Rising consumer income as well as expenditure on alcoholic drinks had a very
positive effect on the development of the alcoholic drinks industry over the
review period. Consumers began buying more premium, imported, expensive
alcoholic drinks which boosted the industry' s value sales. The trend also
impacts the underdeveloped spirits' product group including whisk(e)y, cognac,
brandy, tequila and rum, bringing Lithuanian consumption patterns closer to
those of Western Europe.
Lithuanian producers continue to dominate the alcoholic drinks industry
The top 10 companies which sell alcoholic drinks are domestic and as beer
accounts or the majority of sales, the main brewers held the leading
positions. Spirits, cider and RTDs are also generally characterised by
Lithuanian companies. However, although domestic producers lead, imports of
alcoholic drinks are increasing significantly. The main importers are from
neighbouring countries such as Latvia, Estonia and Poland. Lithuanian
manufacturers have also increased their exports to neighbouring countries in
an attempt to make further inroads into Western countries.
New laws change distribution channels in Lithuania
New laws which came into effect in the summer of 2007 significantly altered
the distribution of alcoholic drinks. The law which prohibits the sale of
alcoholic drinks after 22.00hrs in stores located around housing estates led
to a decrease in the sales of discounters and convenient stores and boosted
those of supermarkets/hypermarkets. According to industry sources, this law is
also likely to increase the sale of illegal alcoholic products in the future,
as alcoholic drinks availability will be diminished in legal channels after
22.00hrs.
Higher value than volume growth expected over the forecast period
Based on trends from the review period, there are clear indications that the
alcoholic drinks industry will see higher value than volume sales over the
forecast period. As per capita consumption is already very high in Lithuania,
a further increase is not expected. Consumers will therefore be more
interested in original, better quality and more expensive diverse alcoholic
drinks. As a result, more imported premium products are expected to be
consumed, while the wine culture is also predicted to develop strongly. The
development of the beer industry will slow creating scope for cider and RTDs
which will move forward at a faster pace.
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