Drinking Habits - Spain - January 2008

Table of Contents

• Issues in the Market
• Definition
• Beer
• Cider
• Wine
• Spirits & liqueurs
• Consumer research
• Abbreviations
• Market in Brief
• Times they are a-changin'
• A healthy drinking culture, but not problem-free
• En garde! -- Pernod Ricard strengthens its position
• Future challenges
• Internal Market Environment
• Key points
• Per capita consumption on the decline
  • Figure 1: Per capita volume consumption of alcoholic drinks among the Spanish adult population (15+), by type, 2002-07
• Despite Spain' s wine heritage, beer is the preferred beverage
  • Figure 2: Top three preferred alcoholic drinks, by age, 2007
• Growing consumption of soft drinks erodes demand for alcohol
• Government and city councils combat underage drinking
• Advertising restrictions put on hold
• EU decision reforms common market for wine
• Taxation favours wine
  • Figure 3: Excise duty rates on alcoholic drinks in Spain, by type of drink, 2007
• Broader Market Environment
• Key points
• Ageing population impacts demand
  • Figure 4: Trends in Spanish population, by age, 2002-12
• Slower economic growth shifts emphasis on value for money
  • Figure 5: Trends in Spanish PDI, consumer expenditure and GDP, at current prices, 2002-12
• Good employment situation supports sales
  • Figure 6: Trends in Spanish employment, by gender*, 2001-05
• Who' s Innovating?
• Key points
• Focus on spirits and beer
  • Figure 7: New product launches in alcoholic drinks, % by sector, by country, 2007
• Increasing premiumisation
  • Figure 8: Trends in new premium product launches in alcoholic drinks, by country, 2002-07
• Fewer launches in Spain in 2007
  • Figure 9: Trends in new product launches in alcoholic drinks in Spain, by sector, 2002-07
• Beer -- flavoured and alcohol-free
• Small cider sector receives little attention, but welcomes Magners and Strongbow Gold
• Several vermouth launches
• Spirits concentrate on key categories
• Market Size and Forecast
• Key points
• Stagnant volume sales and slower value growth
  • Figure 10: Spanish volume sales of alcoholic drinks, 2002-12
  • Figure 11: Spanish value sales of alcoholic drinks, at current and constant prices, 2002-12
• Beer beats the general trend of declining volumes
  • Figure 12: Spanish volume sales of alcoholic drinks, by type, 2002-12
  • Figure 13: Spanish value sales of alcoholic drinks, by type, 2002-12
• What the future holds
• Forecast
• Market forecast to maintain growth
  • Figure 14: Spanish volume sales of alcoholic drinks and per capita consumption, 2002-12
• Beer ' share of throat' on the increase
• Cider -- becoming even more niche
• Wine
• Spirits & liqueurs market remaining flat
• Factors used in the forecast
• Segment Performance
• Key points
• Beer
• Sinless sin drives sales
  • Figure 15: Spanish volume sales of beer, 2002-12
  • Figure 16: Spanish value sales of beer, at current and constant prices, 2002-12
• Cider
• After growth comes decline
  • Figure 17: Spanish volume sales of cider, 2002-12
  • Figure 18: Spanish value sales of cider, at current and constant prices, 2002-12
• Wine
• Grapes of wrath, but improving cava sales give a taste of something sweeter
  • Figure 19: Spanish volume sales of wine, 2002-12
  • Figure 20: Spanish value sales of wine, at current and constant prices, 2002-12
• Spirits & liqueurs
• Stagnant volumes
  • Figure 21: Spanish volume sales of spirits & liqueurs, 2002-12
  • Figure 22: Spanish value sales of spirits & liqueurs, at current and constant prices, 2002-12
• Market Share
• Key points
• Allied Domecq sale shapes the market
• Mahou-San Miguel strengthens its leading position
• Magners -- a new alternative for Spanish drinkers
• Fragmented wine sales
• Spirited performance lifts Pernod Ricard
• Companies and Products
• Diageo
• Freixenet
• Heineken
• Mahou-San Miguel
• Miguel Torres
• Pernod Ricard
• Brand Communication and Promotion
• Key points
• Declining adspend
  • Figure 23: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07
• Large brewers spend the most
  • Figure 24: Main monitored media advertising expenditure on alcoholic drinks in Spain, by company, Jan-Sept 2007
• Channels to Market
• Key points
• Off-trade sales gain ground on the on-trade
  • Figure 25: Spanish volume sales of alcoholic drinks, by sector and by distribution channel, 2002-07
  • Figure 26: Spanish volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• Trend towards premium products benefits both distribution channels
  • Figure 27: Spanish value sales of alcoholic drinks, by sector, by distribution channel, 2002-07
  • Figure 28: Spanish value sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• The Consumer -- Pan-European Overview
• Key points
• Spaniards drink in moderation...
  • Figure 29: Alcohol consumption, by country, 2005-07
• ...and away from home
  • Figure 30: Indexed attitudes towards eating and drinking, by all adults, by country, 2007
  • Figure 31: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007
• The Consumer -- Alcohol Consumption in Spain
• Key points
• Employment and high incomes increase likelihood to drink
  • Figure 32: Alcohol consumption in last 12 months, by demographic sub-group, 2007
• Appeal of the malt
  • Figure 33: Consumption of beer and wine, by type, by demographic sub-group, 2007
• Spirited men
  • Figure 34: Consumption of spirits and liqueurs, by type, by demographic sub-group, 2007
• Weekly drinkers in the minority
  • Figure 35: Frequency of drinking alcohol, by choice of drink, 2007
• More women drinking
  • Figure 36: Trends in alcohol consumption, by gender and age, 2004-07
• Spaniards continue to drink modestly
  • Figure 37: Trends in frequency of drinking, 2004-07
• Alcohol-free beer is gaining popularity
  • Figure 38: Trends in alcohol consumption, by type of drink, 2004-07
• Consumer Attitudes
• Key points
• Like father like son -- not when it comes to drinking
  • Figure 39: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007
• Least potential for own-labels in brandy
  • Figure 40: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007