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Drinking in the Home - UK - June 2014

Published By :

Mintel

Published Date : Jun 2014

Category :

Alcoholic Beverages

No. of Pages : 152 Pages

“Encouraging consumers to trade up to better quality is possible given that 62% of drinkers think that it is worth paying more for better quality. The key to this is conveying tangible reasons for the higher price, for example the use of high-quality ingredients or limited batches.
Table of Content

Introduction

Definition
Excluded
Abbreviations

Executive Summary

The market
Figure 1: Forecast for value sales of in-home alcoholic drinks, 2009-19
Still wine leads the way in the off-trade
Figure 2: Share of retail value sales of different alcoholic drinks, 2013
Market factors
Alcohol consumption is in decline
Consumer confidence bounces back
Government involvement looks set to continue
Population changes also have an influence
Companies, brands and innovation
NPD in decline…
…along with advertising
The consumer
58% of adults drink at home at least once a week
Figure 3: Frequency of drinking alcoholic drinks at home, May 2014
Still wine remains the most popular in-home drink
Figure 4: Types of alcoholic drinks drunk at home, May 2014
More than half of in-home drinkers spend less than £10 per week
Figure 5: Spend per week on alcoholic drinks for drinking in the home, May 2014
Large supermarket stores dominate alcoholic drink sales
Wine remains the most popular drink but lager is close behind
Sharing of drinks and stocking up are popular
Discounts/special offers the best route to encouraging consumers to try new drinks
The in-home channel can mine associations to relaxation
Figure 6: Attitudes towards drinking at home, May 2014
What we think

Issues and Insights

The decline in alcohol consumption prompts need to encourage trading up
The facts
The implications
Lessons to learn from cider
The facts
The implications
Projecting sophistication to progress in dining occasions
The facts
The implications
Scope for growth for specialist outlets
The facts
The implications

Trend Application

Guiding Choice
Many Mes
Mintel Futures: Old Gold

Market Drivers

Key points
Consumer confidence bounces back
Figure 7: UK GDP, by quarter, 2008-14
Figure 8: Consumer confidence index, monthly, January 2007-May 2014
Alcohol consumption is in decline
Figure 9: Trends in UK per capita consumption of 100% alcohol, 2000-13
Figure 10: Index of affordability of alcohol on a per capita basis, 1980-2012
Health considerations play a part in curbing drinking
Binge drinking remains an issue
Figure 11: Hospital admissions with a primary diagnosis attributable to alcohol consumption in England, 2002/03-2011/12
On-trade prices remain ahead of off-trade prices
Figure 12: Index of price of beer and wine in the on- and off-trade, 2007-13
Good news from the government
Figure 13: UK excise duty rates for selected alcoholic drinks, 2003-14
The weather and World Cup could prove to boost the industry
Figure 14: Hours of sunshine in the UK, by month, 2008-14
An ageing population is less problematic for the off-trade than the on-trade
Figure 15: Projected trends in the age structure of the UK population, 2014-19
C2s could hold the key to growth

Who’s Innovating?

Key points
New product launches drop off
Figure 16: Share of alcoholic drinks NPD, 2009-14
Figure 17: Alcoholic drinks NPD in the UK, by launch type, 2009-14
Figure 18: Alcoholic drinks NPD in the UK, by brand and own-label, 2009-14
Beer rises to the top of the NPD list
Figure 19: Share of alcoholic drinks NPD in the UK, by category, 2009-14
Limited editions become more prevalent

Market Size and Forecast

Key points
In-home sales continue to increase
Figure 20: Value and volume sales of in-home alcoholic drinks, 2009-19
Forecasts
Figure 21: Forecast for value sales of in-home alcoholic drinks, 2009-19
Figure 22: Forecast for volume sales of in-home alcoholic drinks, 2009-19
Forecast methodology

Segment Performance

Key points
Still wine is the leading off-trade category
Figure 23: Share of retail value sales of different alcoholic drinks, 2013
Figure 24: Share of retail volume sales of different alcoholic drinks, 2013
Figure 25: Retail value and volume performance of alcoholic drinks categories, 2012 and 2013
Has beer turned the corner?
Predictions for 2014
Beer
Cider
Still, sparkling and fortified wines
Spirits and liqueurs

Brand Performance

Key points
Beer brands dominate the off-trade leaders
Figure 26: Top 30 off-trade alcoholic drink brands in the UK, value sales, 2011-13
Figure 27: Value and volume change in the sales of the top 30 off-trade alcoholic drink brands in the UK, 2012-13
Cider picks up some of beer’s business
Spirits also play a significant role
Hardys outperforms a struggling wine category
The influence of own-label
Figure 28: Share of own-label sales per alcoholic drinks category, 2012/13*
Figure 29: Value and volume performance of alcoholic drinks markets, 2011/12 vs 2012/13

Brand Communication and Promotion

Key points
Adspend on alcoholic drinks is in decline
Figure 30: Total above-the-line adspend for beers, wines and spirits, 2010-14
Beer/Cider becomes more dominant in the advertising landscape
Figure 31: Above-the-line adspend in the UK beers, wines and spirits market, by category, 2010-14
Heineken continues to lead the way
Figure 32: Top 10 beers, wines and spirits advertisers in the UK, 2010-14
TV becomes even more dominant
Figure 33: Above-the-line adspend in the UK, by media type, 2010-14

The Consumer – Frequency of Drinking at Home

Key points
58% of adults drink at home at least once a week
Figure 34: Frequency of drinking alcoholic drinks at home, May 2014
Figure 35: Frequency of drinking alcoholic drinks at home, by age, May 2014
People drink more frequently at home than out
Figure 36: In-home vs out-of-home consumption of alcoholic drinks, by frequency, May 2014

The Consumer – Types of Alcoholic Drinks Drunk at Home

Key points
Still wine remains the most popular in-home drink
Figure 37: Types of alcoholic drinks drunk at home, May 2014
Figure 38: Types of alcoholic drinks drunk at home, May 2014 vs April 2013
Figure 39: Consumption of different types of alcoholic drinks among those who drink at home at least once a week, May 2014
Half of in-home drinkers drink lager
Cider is the star performer in the off-trade
Little change in spirit categories
Almost half of in-home drinkers stick to one or two types of drinks
Figure 40: Repertoire of types of alcoholic drinks drunk at home, May 2014

The Consumer – In-home Spend on Alcoholic Drinks

Key points
More than half of in-home drinkers spend less than £10 per week on alcohol
Figure 41: Spend per week on alcoholic drinks for drinking in the home, May 2014
36% of in-home drinkers spend between £10 and £30

The Consumer – Locations for Buying Alcoholic Drinks

Key points
Large supermarkets dominate alcoholic drink sales
Figure 42: Stores used for buying alcoholic drinks for drinking at home, May 2014
22% of in-home drinkers buy drinks online or from societies/clubs
Figure 43: Other channels used for buying alcoholic drinks for drinking at home, May 2014

The Consumer – Drinking on Meal Occasions

Key points
Wine remains the most popular drink but lager is close behind
Figure 44: Alcoholic drinks drunk on meal occasions, May 2014
Figure 45: Consumption of still wine on meal occasions, by gender, age and socio-economic group, May 2014
Cider is the third main drink for dining occasions…
…all other drinks only garner niche usage with meals

The Consumer – Drinking Habits

Key points
Summary of in-home drinking habits
Figure 46: Drinking habits, May 2014
A quarter of adults are cutting back on alcohol at home
Health plays a part in shaping drinking habits
Only a minority of drinkers read the labels

The Consumer – Enticements for Trying New Drinks

Key points
Discounts/special offers the best route to encourage trying new drinks
Figure 47: Enticements to trying new drinks at home, May 2014
Recommendations and tastings can also entice
Other factors only carry limited influence…
…while 10% of in-home drinkers cannot be persuaded to try something new

The Consumer – Attitudes Towards Drinking In Home

Key points
Summary of attitudes towards drinking in home
Figure 48: Attitudes towards drinking at home, May 2014
Drinking at home benefits from associations with relaxation
Quality is seen as worth paying more for
Limited editions appeal to more than two in five drinkers
38% of drinkers want more information about responsible drinking
Helping consumers to recreate out-of-home experiences should appeal

Appendix – Market Size and Segmentation

Figure 49: Best- and worst-case forecasts for the in-home alcoholic drinks market, by value, 2014-19
Figure 50: Best- and worst-case forecasts for the in-home alcoholic drinks market, by volume, 2014-19

Appendix – Brand Performance

Figure 51: Top 30 off-trade alcoholic drink brands in the UK, volume sales, 2013

Appendix – The Consumer – Frequency of Drinking at Home

Figure 52: Highest frequencies of drinking alcoholic drinks in home, by demographics, May 2014
Figure 53: Other frequencies of drinking alcoholic drinks in home, by demographics, May 2014
Figure 54: Purchase of alcoholic drinks drunk in home, May 2014
Figure 55: Purchase of alcoholic drinks drunk in home, by demographics, May 2014

Appendix – The Consumer – Types of Alcoholic Drinks Drunk at Home

Figure 56: Types of alcoholic drinks drunk in home, May 2014
Figure 57: Most popular types of alcoholic drinks drunk in home, by demographics, May 2014
Figure 58: Next most popular types of alcoholic drinks drunk in home, by demographics, May 2014
Figure 59: Other types of alcoholic drinks drunk in home, by demographics, May 2014
Figure 60: Types of alcoholic drinks drunk in home, by frequency of drinking alcoholic drinks in home, May 2014
Figure 61: Types of alcoholic drinks drunk in home, by outlets used to buy alcoholic drinks (in-store), May 2014
Figure 62: Types of alcoholic drinks drunk in home, by outlets used to buy alcoholic drinks (online/society/club), May 2014
Repertoire analysis
Figure 63: Repertoire of types of alcoholic drinks drunk in home, May 2014
Figure 64: Repertoire of types of alcoholic drinks drunk in home, by demographics, May 2014
Figure 65: Types of alcoholic drinks drunk in home, by repertoire of types of alcoholic drinks drunk in home, May 2014

Appendix – The Consumer – In-home Spend on Alcoholic Drinks

Figure 66: Spend per week on alcoholic drinks for drinking in the home, May 2014
Figure 67: Highest spend per week on alcoholic drinks for drinking in the home, by demographics, May 2014
Figure 68: Next highest spend per week on alcoholic drinks for drinking in the home, by demographics, May 2014

Appendix – The Consumer – Locations for Buying Alcoholic Drinks

Figure 69: Outlets used to buy alcoholic drinks, May 2014
Figure 70: Most popular outlets used to buy alcoholic drinks (in-store), by demographics, May 2014
Figure 71: Next most popular outlets used to buy alcoholic drinks (in-store), by demographics, May 2014
Figure 72: Outlets used to buy alcoholic drinks (online/society/club), by demographics, May 2014

Appendix – The Consumer – Drinking on Meal Occasions

Figure 73: Alcoholic drinks drunk with meals, May 2014
Figure 74: Most popular alcoholic drinks drunk with meals, by demographics, May 2014
Figure 75: Next most popular alcoholic drinks drunk with meals, by demographics, May 2014
Figure 76: Other alcoholic drinks drunk with meals, by demographics, May 2014

Appendix – The Consumer – In-home Drinking Habits

Figure 77: In-home drinking habits, May 2014
Figure 78: Most popular in-home drinking habits, by demographics, May 2014
Figure 79: Next most popular in-home drinking habits, by demographics, May 2014

Appendix – The Consumer – Enticements for Trying New Drinks

Figure 80: Reasons for trying new drinks, May 2014
Figure 81: Most popular reasons for trying new drinks, by demographics, May 2014
Figure 82: Other reasons for trying new drinks, by demographics, May 2014

Appendix – The Consumer – Attitudes Towards Drinking In Home

Figure 83: Attitudes towards drinking in home, May 2014
Figure 84: Agreement with the statements ‘Drinking at home is more relaxing than drinking out of home’ and ‘It is worth paying more for better quality alcoholic drinks’, by demographics, May 2014
Figure 85: Agreement with the statements ‘I am more likely to try a premium brand/drink at home than out of home’ and ‘Limited/special editions of alcoholic drinks appeal to me’, by demographics, May 2014
Figure 86: Agreement with the statements ‘I would like to see more information on packaging about responsible drinking’ and ‘I would be interested in buying cocktail mixes that just need alcohol added to them for drinking at home’, by demographics, May 2014

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