Drinking Habits - France - February 2008

Table of Contents

Issues in the Market

• Definition
• Beer
• Cider
• Wine
• Spirits & liqueurs
• Consumer research
• Abbreviations

Market in Brief

• Very big, but little sign of growth
• Still a wine-loving nation
• But things are not what they used to be
• Beer is becoming specialised
• The French go Scotch
• Drink it anytime
• France remains an important producer, but globalisation proceeds apace
• The off-trade calls the shots
• High penetration
• But it is still a man thing and an older man thing at that
• Boire moindre mais mieux
• Catching them young

Internal Market Environment

• Key points
• Declining per capita consumption
  • Figure 1: Per capita volume consumption of alcoholic drinks among the French adult population (15+), by type, 2002-07
  • Figure 2: Consumption of alcohol in last 12 months, by gender and age, 2007
• Most countries opting for lower-alcohol drinks
  • Figure 3: Long-term trends in per capita alcohol consumption in Europe, 1970-2005
• Increasing expenditure on soft drinks
  • Figure 4: Household expenditure on soft drinks, 2002-06
• Changing attitudes

Broader Market Environment

• Key points
• Suppliers' focus remains on the young, despite an ageing population
  • Figure 5: Trends French population, by age, 2002-12
• Shrinking households shape product offer
  • Figure 6: Trends in number of households in France, by size, 2000-05
• The affluent drink more
  • Figure 7: Trends in French employment, 2000-05
• Economic uncertainty has an impact
  • Figure 8: Trends in French PDI, consumer expenditure and GDP, at current prices, 2002-12

Who' s Innovating?

• Key points
• Focus on spirits & liqueurs
  • Figure 9: New product launches in alcoholic drinks, % by sector, by country, 2007
  • Figure 10: Trends in new product launches in alcoholic drinks in France, by sector, 2002-07
• Increasing premiumisation
  • Figure 11: Trends in new premium product launches in alcoholic drinks, by country, 2002-07
• New product development - beer
• Cider
• Wine
• Spirits & liqueurs

Market Size and Forecast

• Key points
• Marginal volume growth overall
  • Figure 12: French volume sales of alcoholic drinks, 2002-12
  • Figure 13: French value sales of alcoholic drinks, at current and constant prices, 2002-12
• Wine still accounts for the bulk of sales
  • Figure 14: French volume sales of alcoholic drinks, by type, 2002-12
• Spirits & liqueurs post greatest value growth
  • Figure 15: French value sales of alcoholic drinks, by type, 2002-12
• What the future holds
• Forecast
  • Figure 16: French volume sales of alcoholic drinks and per capita consumption, 2002-12
• Beer
• Cider
• Wine
• Spirits and liqueurs
• Factors used in the forecast

Segment Performance

• Key points
• Beer
• Steady 2 billion litres
  • Figure 17: French volume sales of beer, 2002-12
• Value dropping faster than volume
  • Figure 18: French value sales of beer, at current and constant prices, 2002-12
  • Figure 19: Segmentation of the French beer market and value share of sales, 2007
• Spécialités driving growth
• Attracting new consumers by creating new drinking occasions
• Potential for low-alcohol beers
• Cider
• Seasonal and regional nature causes problems
  • Figure 20: French volume sales of cider, 2002-12
  • Figure 21: French value sales of cider, at current and constant prices, 2002-12
• Wine
• From an everyday drink to an occasional beverage
  • Figure 22: French volume sales of wine, 2002-12
• Rosé and white wines increase share at the expense of reds
• Growing demand for quality wines fails to compensate fully for falling volumes
  • Figure 23: French value sales of wine, at current and constant prices, 2002-12
• Targeting women for future growth
• Spirits & liqueurs
• Recovering lost ground
  • Figure 24: French volume sales of spirits & liqueurs, 2002-12
• Generating value growth through premium products…
  • Figure 25: French value sales of spirits & liqueurs, at current and constant prices, 2002-12
• …and new consumers
• Active new product development - especially at Christmas/New Year

Market Share

• Key points
• Large domestic alcoholic drinks industry
• Beer
  • Figure 26: Suppliers' shares of the volume beer market, 2007
• Wine
• Spirits

Companies and Products

• Brasseries Kronenbourg
• Castel
• Heineken
• InBev
• Pernod Ricard

Brand Communication and Promotion

• Key points
• Tough French advertising restrictions
  • Figure 27: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07
• Scottish Courage, Pernod Ricard and Heineken are biggest spenders
  • Figure 28: Main monitored media advertising expenditure on alcoholic drinks in France, 2007

Channels to Market

• Key points
• Off-trade dominates volume sales
  • Figure 29: French volume sales of alcoholic drinks, by sector, by distribution channel, 2002-07
• Grocery outlets more important than specialists
  • Figure 30: French off-trade volume sales of alcoholic drinks, by outlet type, 2002-07
• On-trade leads for value sales
  • Figure 31: French value sales of alcoholic drinks, by sector, by distribution channel, 2002-07
• Off-trade takes its biggest volume share in cider and beer
  • Figure 32: French volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• On-trade value share is biggest in beer
  • Figure 33: French value sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• The Consumer - Pan-European Overview
• Key points
• The French and the British are keenest drinkers
  • Figure 34: Alcohol consumption, by country, 2005-07
• French are less home-centred drinkers than Germans and Brits
  • Figure 35: Indexed attitudes towards eating and drinking, by all adults, by country, 2007
• French consumers most willing to pay a premium for quality beer and wine
  • Figure 36: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007
• The Consumer - Alcohol Consumption in France
• Key points
• Older, male profile creates a challenge
  • Figure 37: Alcohol consumption in last 12 months, by demographic sub-group, 2007
• Beer has the younger drinkers, and turns its attention to women
• Wines need to woo younger drinkers - and women
  • Figure 38: Consumption of beer and wine, by type, by demographic sub-group, 2007
• Male-oriented spirits, but whisky is attracting a female clientele
• Dark spirits for in-home drinking
  • Figure 39: Consumption of spirits & liqueurs, by type, by demographic sub-group, 2007
• The French are drinking less frequently
  • Figure 40: Trends in frequency of drinking, 2002-07
• Beer and spirits are drunk most frequently
  • Figure 41: Frequency of drinking alcohol, by choice of drink, 2007
• Low-alcohol sector not benefiting greatly from health trends
  • Figure 42: Trends in alcohol consumption, by type of drink, 2002-07
• Consumer Attitudes
• Key points
• Gin and vodka drinkers have more exposure to on-trade promotions
  • Figure 43: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007
• Sprits drinkers entertain at home
• Experimental vodka consumers
  • Figure 44: Attitudes towards alcohol and health, by choice of alcoholic drink, 2007
• Appreciation of quality
  • Figure 45: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007