Drinking Habits - Italy - February 2008

Table of Contents

• Issues in the Market
• Definition
• Beer
• Wine
• Spirits & liqueurs
• Abbreviations
• Market in Brief
• Persistent overall volume decline...
• ...hides sectoral differences
• Value growth is positive
• Big differences in supply
• Bulk of sales passes through the off-trade
• Internal Market Environment
• Key points
• Per capita consumption continues to decline
  • Figure 1: Per capita volume consumption of alcoholic drinks among the Italian adult population aged 15+, by type, 2002-07
• Competition from non-alcoholic drinks
• Healthier lifestyles
• Summer and festive seasons drive sales
• Legislation gets stricter
• EU decision reforms common market for wine
• Broader Market Environment
• Key points
• Falling number of young Italians challenges the drinks industry
  • Figure 2: Trends in Italian population, by age, 2002-12
• A loss of younger drinkers, but more older ones
• Uncertain economic situation creates caution
  • Figure 3: Trends in Italian PDI, consumer expenditure and GDP, at current prices, 2002-12
• Growing employment supports sales
  • Figure 4: Trends in Italian employment, 2000-05
• Proportionately less is spent on food and non-alcoholic drinks
  • Figure 5: Italian household final consumption on food and non-alcoholic drinks, at current prices, 2000-06
• Who' s Innovating?
• Key points
• Focus on spirits and beer
  • Figure 6: New product launches in alcoholic drinks, by sector and by country, 2007
• Increasing premiumisation
  • Figure 7: Trends in new premium product launches in alcoholic drinks, by country, 2002-07
• Spirits NPD to the fore in 2007
  • Figure 8: Trends in new product launches in alcoholic drinks in Italy, by sector, 2002-07
• New product development -- Beer
• Wine
• Spirits & liqueurs
• Market Size and Forecast
• Key points
• Declining volume trend continues...
  • Figure 9: Italian volume sales of alcoholic drinks, 2002-12
• ...in a context of positive value growth
  • Figure 10: Italian value sales of alcoholic drinks, at current and constant prices, 2002-12
• Wine still takes the largest share, but beer is closing the gap
  • Figure 11: Italian volume sales of alcoholic drinks, by type, 2002-12
• Reduced consumption occasions for wine
  • Figure 12: Italian value sales of alcoholic drinks, by type, 2002-12
• Premiumisation helps sales values
• What the future holds
• Forecast
  • Figure 13: Italian volume sales of alcoholic drinks and per capita consumption, 2002-12
• Beer
• Wine
• Spirits & liqueurs
• Factors used in the forecast
• Segment Performance
• Key points
• Beer
• Best performing sector
  • Figure 14: Italian volume sales of beer, 2002-12
  • Figure 15: Italian value sales of beer, at current and constant prices, 2002-12
• Speciality beers the most dynamic
  • Figure 16: Italian volume sales of beer, by type, 2005-07
• Wine
• Down, down, down it goes
  • Figure 17: Italian volume sales of wine, 2002-12
  • Figure 18: Italian value sales of wine, at current and constant prices, 2002-12
• Drinking less, but better quality
• Bubbly is buoyant, but marginal
  • Figure 19: Italian volume sales of wine, by type, 2005-07
• Spirits & liqueurs
• Declining volumes, but growing value sales
  • Figure 20: Italian volume sales of spirits & liqueurs, 2002-12
  • Figure 21: Italian value sales of spirits & liqueurs, at current and constant prices, 2002-12
• Vodka benefits from trendy image among younger drinkers
  • Figure 22: Italian volume sales of spirits & liqueurs, by type, 2005-07
• Market Share
• Key points
• Concentrated beer sales led by Heineken
• Fragmented wine supply
• International flavour to spirits & liqueurs
• Companies and Products
• Birra Peroni
• Caviro
• Davide Campari-Milano
• Diageo
• Gruppo Italiano Vini (GIV)
• Heineken
• Pernod Ricard
• Brand Communication and Promotion
• Key points
• High level of promotion in Italy
  • Figure 23: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07
  • Figure 24: Main monitored media advertising expenditure on alcoholic drinks in Italy, Jan-Sept 2007
• Channels to Market
• Key points
• Off-trade continues to generate bulk of volume
  • Figure 25: Italian volume sales of alcoholic drinks, by distribution channel, 2002-07
  • Figure 26: Italian volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007
• Premiumisation trend benefits both distribution channels
  • Figure 27: Italian value sales of alcoholic drinks, by distribution channel, 2002-07
  • Figure 28: Italian value sales of alcoholic drinks, % share by distribution channel, by sector, 2007