Drinking Habits - Germany - February 2008

Table of Contents

• Issues in the Market
• Definition
• Beer
• Wine
• Spirits & liqueurs
• Consumer research
• Abbreviations
• Market in Brief
• Overall value sales hold steady
• Rising penetration does not translate into growing volume sales
• Some segments soar with current trends
• Innovative NPD and the right message crucial to staying in the lead
• Internal Market Environment
• Key points
• Per capita consumption of alcohol falls as part of greater health awareness
  • Figure 1: Per capita volume consumption of alcoholic beverages among the German adult population aged 15+, by type, 2002-07
• Purity law encourages loyalty to German beers
• Initiatives to prevent alcohol abuse
• Regulation on opening hours favours the on-trade, smoking ban does not
• Broader Market Environment
• Key points
• Current age patterns are challenging
  • Figure 2: Trends in German population, by age, 2002-12
• Healthy employment setting is crucial for market growth
  • Figure 3: Trends in German employment, by gender, 2002-12
• Recovering economy is good news
  • Figure 4: Trends in German PDI, consumer expenditure and GDP, at current prices, 2002-12
• Who' s Innovating?
• Key points
• Focus on spirits and beer
  • Figure 5: New product launches in alcoholic drinks, by sector, by country, 2007
• Increasing premiumisation
  • Figure 6: Trends in new premium product launches in alcoholic drinks, by country, 2002-07
  • Figure 7: Trends in new product launches in alcoholic drinks in Germany, % by sector, 2002-07
• New product development - beer
• Wine
• Spirits & liqueurs
• Market Size and Forecast
• Key points
• Both volume and value sales decline in 2007
  • Figure 8: German volume sales of alcoholic drinks, 2002-12
  • Figure 9: German value sales of alcoholic drinks, at current and constant prices, 2002-12
• Beer continues to generate the bulk of sales
  • Figure 10: German volume sales of alcoholic drinks, by type, 2002-12
  • Figure 11: German value sales of alcoholic drinks, by type, 2002-12
• Forecast
  • Figure 12: German volume sales of alcoholic drinks and per capita consumption (adults aged 15+), 2002-12
• Beer
• Wine
• Spirits & liqueurs
• Factors used in the forecast
• Segment Performance
• Key points
• Beer
• 2006 was the only growth year within the last five years
  • Figure 13: German volume sales of beer, 2002-12
  • Figure 14: German value sales of beer, at current and constant prices, 2002-12
• Polarised market place
• Wine
• Best-performing sector
  • Figure 15: German volume sales of wine, 2002-12
  • Figure 16: German value sales of wine, at current and constant prices, 2002-12
  • Figure 17: German volume sales of wine, by type, 2005-07
• Discounters increase their share and hold back value growth
• Spirits & liqueurs
• Declining sales by volume and value
  • Figure 18: German volume sales of spirits & liqueurs, 2002-12
  • Figure 19: German value sales of spirits & liqueurs, at current and constant prices, 2002-12
• More spirits being drunk as long drinks, rather than neat
• Market Share
• Key points
• Familiar names stay in the lead in beer sales
• Fragmented still wine segment, concentrated sparkling sales
• Local brands and international names compete in spirits & liqueurs
• Companies and Products
• Bacardi
• Berentzen Gruppe
• InBev
• A. Racke
• Radeberger Gruppe
• Rotkäppchen-Mumm Sektkellereien
• Brand Communication and Promotion
• Key points
• Top brewers are also top advertisers
  • Figure 20: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07
  • Figure 21: Main monitored media advertising expenditure on alcoholic drinks in Germany, by company, Jan-Sept 2007
• Channels to Market
• Key points
• Off-trade responsible for over three-quarters of volume sales...
  • Figure 22: German volume sales of alcoholic drinks, by sector, by distribution channel, 2002-07
  • Figure 23: German volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• ...but the on-trade generates the bulk of value
  • Figure 24: German value sales of alcoholic drinks, by sector, by distribution channel, 2002-07
  • Figure 25: German value sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• The Consumer -- Pan-European Overview
• Key points
• Penetration sees the biggest increase among German consumers
  • Figure 26: Alcohol consumption, by country, 2005-07
• Good opportunities for new drinks in Germany
  • Figure 27: Indexed attitudes towards eating and drinking, by all adults, by country, 2007
• Penny-pinchers
  • Figure 28: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007
• The Consumer -- Alcohol Consumption in Germany
• Key points
• Full-time employment and affluence increase penetration
  • Figure 29: Alcohol consumption in last 12 months, by demographic sub-group, 2007
• Beer and spirits appeals to men, wine and liqueurs to women
  • Figure 30: Consumption of beer and wine, by demographic sub-group, 2007
  • Figure 31: Consumption of spirits and liqueurs, by demographic sub-group, 2007
• More women drinking alcohol
  • Figure 32: Trends in alcohol consumption, by gender and age, 2002-07
• Liqueurs and wines benefit from female drinkers
  • Figure 33: Trends in alcohol consumption, by type of drink, 2002-07
• More light drinkers
  • Figure 34: Trends in frequency of drinking, 2002-07
• Beer is enjoyed on the most regular basis
  • Figure 35: Frequency of drinking alcohol, by choice of drink, 2007
• Consumer Attitudes
• Key points
• Good prospects for new drinks
• Targeting women with in-home promotions
• Helping alcohol fit within a healthy lifestyle
  • Figure 36: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007
  • Figure 37: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007