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
Beer manages continued growth
After a slight volume sales decline in 2005, beer sales rebounded in 2006 and
managed to maintain slight gains in 2007, as the ever growing popularity of
premium lager and light beers made up for declines in other domestic lagers.
Old traditions of building strong brand loyalties over many decades no longer
work for a younger generation more interested in new, unique products and
brands that break with previous generations, and, as a result, brewers large
and small continue to launch new imports and craft brews, as well as limited
run seasonal beers. Often, newer brands target specific ethnic groups or are
launched in particular cities. As competition from wine and spirits increases,
beer companies are turning to offering more choices to retain consumer
interest.
Wine and spirits offer versatility
Just as beer companies have turned to new strategies for building brand
awareness, wine and spirits have benefited from showcasing their versatility
by breaking from traditional uses of the past. Both wine and spirits enjoyed
accelerated volume growth in 2007, spurred by innovations such as smaller
portable single-serve wine sizes that allow consumption on new occasions, new
and exotic flavours added even to new spirits types like tequila, and a
marketing emphasis on trendy mixed drinks of the moment, such as the mojito.
Appealing to a younger generation
Alcohol drinks manufacturers continue to find success by attracting the
attention of an emerging demographic of younger "Generation Y" consumers.
Imported "critter" wines and irreverent labels offer a different choice from
the more traditional wines, and have helped make wine accessible to young
consumers just forming their drinking preferences. Spirits infused with
ingredients for energy or promoted as mixers for energy drinks in on-trade
channels have gained favour among a younger crowd. Beer companies, too, have
turned to web-based marketing and the social networking sites popular with
Generation Y to promote their brands. Such efforts offer a more individualised
choice to young people than the mass-market brands and campaigns of the past.
Premium brands among fastest growers
Premium brands continue to show strong growth across beer, wine and spirits,
as consumers prove willing to trade up for higher quality. Manufacturers are
increasingly taking steps to educate consumers on the alcohol production
process and the differences in quality, in an effort to make premium priced
brands more appealing. Many categories, such as vodka, tequila and still
wines, have seen further segmentation into super-premium brands, carrying with
them greater status. The higher prices and often limited production runs of
super-premium brands add to their exclusivity. They are also connected to
on-trade events at popular clubs and bars in major cities, and are associated
with celebrities. On-trade establishments are using signature cocktails to
stand out, and there is growing demand among consumers to discover and be seen
with the latest premium brands.
Mergers change competitive landscape
As has been the case throughout the review period, mergers continued to
reshape the US alcoholic drinks market in 2007. The most notable was the
October 2007 announcement that Miller Brewing Co and Coors Brewing Co would
combine their US operations, creating a larger domestic rival to market leader
Anheuser-Busch. Other deals included Constellation Brands' purchase of Sveda
Vodka and the Beam Wine Estates portfolio of wines, and Campari' s purchase of
Cabo Wabo tequila. Looming on the horizon remains the proposed sale of the V&S
Vin and Sprit portfolio, including Absolut vodka, scheduled to occur in 2008,
with several major bidders.
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