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Attitudes towards Craft Alcoholic Drinks - UK - February 2016

Published By :

Mintel

Published Date : Feb 2016

Category :

Alcoholic Beverages

No. of Pages : N/A

Consumers are likely to become increasingly demanding of brands which claim to be

Table of Content

Overview

What you need to know
Covered in this report

Executive Summary

The market
Alcoholic drink prices continue to rise
UK consumers continue to cut back on alcohol
The ongoing rise of craft drinks
Population changes could also impact the market
Companies, brands and innovation
Packaging and design innovation
Flavour and ingredients
Partnerships and takeovers
Craft spirits set for a profile boost
The consumer
Consumers are most likely to associate craft drinks with a unique flavour
Figure 1: Consumer definitions of craft alcoholic drinks, any ranking 1-5, November 2015
Mainstream repertoires are wider than craft ones
Figure 2: Purchase of craft and mainstream alcoholic drinks, November 2015
Only 24% of beer buyers are willing to spend £4+ on pints of craft beer
Cost could be a barrier to the growth of craft
Figure 3: Attitudes towards craft alcoholic drinks, November 2015
59% of drink buyers think that ‘craft’ needs to be defined
Figure 4: Further attitudes towards craft alcoholic drinks, November 2015
What we think

Issues and Insights

The ongoing issue of defining ‘craft’
The facts
The implications
Does ‘craft’ growth risk putting family and medium-sized companies out of business?
The facts
The implications
Online is a good fit for craft drink sales
The facts
The implications
Craft needs to convey value for money
The facts
The implications

The Market – What You Need to Know

Alcoholic drink prices continue to rise
UK consumers continue to cut back on alcohol
The ongoing rise of craft drinks
Population changes could also impact the market

Market Drivers

Alcoholic drink prices continue to rise
Figure 5: UK excise duty rates for selected alcoholic drinks, 2005-15
UK consumers continue to cut back on alcohol
The ongoing rise of craft drinks
Population changes could also impact the market

Key Players – What You Need to Know

Packaging and design innovation
Flavour and ingredients
Partnerships and takeovers
Craft spirits set for a profile boost

Launch Activity and Innovation

Packaging and design innovation
Flavour and ingredients
Partnerships and takeovers
Craft spirits set for a profile boost

The Consumer – What You Need to Know

Consumers are most likely to associate craft drinks with a unique flavour
Mainstream repertoires are wider than craft ones
Only 24% of beer buyers are willing to spend £4+ on pints of craft beer
Cost could be a barrier to the growth of craft
59% of drink buyers think that ‘craft’ needs to be defined

Consumer Definitions of Craft Alcoholic Drinks

Unique flavour most widely seen as mark of craft drink
Figure 6: Factors consumers see as defining a craft alcoholic drink, any ranking 1-5, November 2015
Five other factors also stand out as key craft signifiers
Small volumes
Independently owned and produced
Only 23% define craft drinks on price grounds
Younger drinkers respond to NPD and a modern look
22% do not know what craft drinks are

Purchase of Craft and Mainstream Alcoholic Drinks

Mainstream drinks repertoires are wider than craft ones
Figure 7: Repertoire of types of craft and mainstream alcoholic drinks bought, November 2015
Beer performs best for craft purchases …
Figure 8: Purchase of craft and mainstream alcoholic drinks, by type, November 2015
with ale/bitter leading the way
Figure 9: Share of all buyers of a drink, who have bought craft variants of the drink, by drink type, November 2015
Cider follows a similar pattern to lager
Spirits starting to tap into the craft movement
Wine lags behind in the craft stakes

How Much Drinkers Are Prepared to Spend on Craft Beer

Only 24% of beer buyers are willing to spend £4+ on a pint of craft beer
Figure 10: How much drinkers are prepared to spend on a pint of craft beer, November 2015
£2-2.49 can be a lucrative price point in the off-trade for 500ml bottles
Figure 11: How much drinkers are prepared to spend on a 500ml bottle of craft beer for drinking at home, November 2015

Attitudes towards Craft Alcoholic Drinks

Cost could be a barrier to the growth of craft …
Figure 12: Attitudes towards craft alcoholic drinks, November 2015
as could the lack of a definition …
Dedicated ‘craft’ sections could aid choice
Figure 13: An example of Wetherspoon Craftwork display, October 2015
while taste does not appear to be a barrier
More information about taste welcomed

Further Attitudes towards Craft Alcoholic Drinks

59% of drink buyers think that ‘craft’ needs to be defined
Figure 14: Further attitudes towards craft alcoholic drinks, November 2015
Craft is only preferred by one in four
Importance of scale and maker
Large scale a put-off for some
Taste trumps maker for most
Producing drinks on site and in partnership
Craft drinks in the on-trade
Role of reviews
Potential for drinks flights to reduce risk
Figure 15: An example of a beer flight
Branded glasses in demand

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Consumer research methodology

List of Table

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