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Own Label Alcoholic Drinks - UK - April 2014

Published By :

Mintel

Published Date : Apr 2014

Category :

Alcoholic Beverages

No. of Pages : 170 Pages

Retailers should proactively promote their quality and awards won to level the playing field against brands, particularly as the economy improves and brands are poised to benefit from an easing of the budgeting mentality.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Forecast of UK value sales of own-label alcoholic drinks, 2008-18
Market factors
Alcohol consumption is in decline
Consumer confidence bounces back
Population changes could affect the own-label market
Innovation and advertising
Own-label NPD loses share
Retailers’ adspend plateaus
The consumer
Brands continue to dominate alcoholic drinks
Figure 2: Usage of branded and own-label alcoholic drinks, by gender, age and socio-economic group, December 2013
28% say that they have cut back on own-label drinks
Figure 3: Buying habits of branded and own-label alcoholic drinks, December 2013
Taste is the main driver for buying branded drinks…
while value for money is key for own-label drinks
Value for money evokes the strongest response for own-label drinks
Figure 4: Own-label drinkers’ associations with different own-label alcoholic drinks, December 2013
Trust and quality continue to be issues for own-label drinks
Figure 5: Attitudes towards own-label alcoholic drinks, December 2013
What we think

Issues in the Market

Retailers need to up their game in the beer and cider markets
The facts
The implications
Is greater transparency the way forward for own-label drinks?
The facts
The implications
Can own-label drinks move beyond just offering value for money?
The facts
The implications
Why has own-label wine been such a success story?
The facts
The implications

Trend Application

Trend: Prove It
Trend: Collective Intelligence
Mintel Futures: Old Gold

Market Drivers

Key points
Consumer confidence bounces back
Figure 6: Consumer Confidence Index, monthly, January 2007-February 2014
Own-label food and drink has flourished in the slowdown
Special offers are still important to shoppers
Figure 7: Grocery shopping habits, December 2013
Health considerations play a part in drinking habits
An ageing population needs consideration
Figure 8: Projected trends in the age structure of the UK population, 2013-18
C2DEs could hold the key to growth
Figure 9: Projected changes in the socio-economic structure of the UK adult population, 2013-18
Alcohol minimum pricing plans shelved in England and Wales

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
Branded launches come even further to the fore
Figure 10: NPD of alcoholic drinks in the UK, branded vs private label, 2009-13
Own-label NPD ramped up in cider and mix drinks
Figure 11: Share of branded vs private label alcoholic drink launches, by category, 2012 and 2013
Tesco and M&S continue to dominate own-label launches
Figure 12: Private label launches within alcoholic drinks, by company, 2009-13
NPD at the premium end of the market
M&S and Tesco capitalise on seasonal trends
Sainsbury’s responds to consumer demand for clearer labelling
Is copying the sincerest form of flattery?
Retailers need to fight against downmarket associations with own-brand drinks

Market Size and Forecast

Key points
The own-label drinks market continues to rise…
Figure 13: UK value and volume sales of own-label alcoholic drinks, at current and constant prices, 2008-18
Figure 14: Forecast of UK value sales of own-label alcoholic drinks, 2008-18
buoyed by still wine and spirits
Forecast methodology

Market Segmentation and Share

Key points
Still wine dominates the own-label market
Figure 15: Value of own-label sales per alcoholic drinks category, 2012/13
Figure 16: Value and volume performance of alcoholic drinks markets, 2011/12 vs 2012/13
Figure 17: Share of own-label sales per alcoholic drinks category, 2012/13
Other own-label wine categories also leave the brands in their wake
Own-label also influential in the spirits market…
particularly in the dark spirits market
Other drinks categories are brand-dominant

Companies and Products

Figure 18: Sales of food, drink and tobacco, by type of retailer, 2013 (est)
Asda
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
The Co-operative Group
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
Marks & Spencer
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
Morrisons
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
Sainsbury’s
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
Tesco
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion
Waitrose
Overview and market positioning
Recent activity and innovation
Retailer communication and promotion

Brand Communication and Promotion

Key points
Retailers’ alcohol adspend stays flat year on year
Figure 19: Topline advertising expenditure on own-label alcoholic drinks, by category, 2009-13
Figure 20: Advertising expenditure in own-label alcoholic drinks as a share of adspend in the total alcoholic drink market, by category, 2009-13
Tesco is the biggest advertiser, but coming under pressure
Figure 21: Highest-spending retailers for own-label alcoholic drinks in the UK, 2009-13
Christmas is key for advertising own-label drinks
Figure 22: Topline advertising expenditure in own-label alcoholic drinks, by quarter, 2011-13
Press leads the way for own-label advertising
Figure 23: Advertising expenditure on own-label alcoholic drinks, by media type, 2009-13

The Consumer – Purchase of Alcoholic Drinks

Key points
Branded drinks lead the way
Figure 24: Purchase of branded and own-label alcoholic drinks, by gender, age and socio-economic group, December 2013
Beer and still wine are the most popular drinks
Figure 25: Purchase of branded alcoholic drinks, December 2013
Figure 26: Purchase of own-label alcoholic drinks, December 2013
Cider also shows a notable skew towards branded operators
All other own-label drinks are drunk by less than one in five adults
A higher share of drinkers are cutting back on both branded and own-label alcohol
Figure 27: Buying habits of branded alcoholic drinks, December 2013
Figure 28: Buying habits of own-label alcoholic drinks, December 2013
The economic squeeze is still prompting some to cut back

The Consumer – Reasons for Buying Branded Alcoholic Drinks

Key points
Taste is the main driver for buying branded drinks
Figure 29: Reasons for buying branded alcoholic drinks, December 2013
Trust and credibility also help the brands

The Consumer – Reasons for Buying Own-label Alcoholic Drinks

Key points
Value for money key for own-label drinks
Figure 30: Reasons for buying own-label alcoholic drinks, December 2013
The improving taste of own-label drinks
Own-label drinks can also appeal as ‘something different’

The Consumer – Perceptions of Own-label Alcoholic Drinks

Key points
Value for money evokes the strongest response
Figure 31: Associations with different own-label alcoholic drinks, December 2013
Figure 32: Own-label drinkers’ associations with different own-label alcoholic drinks, December 2013
Reducing the negatives

The Consumer – Attitudes Towards Own-label Alcoholic Drinks

Key points
Summary of attitudes towards own-label alcoholic drinks
Figure 33: Attitudes towards own-label alcoholic drinks, December 2013
Issues with quality and trust still evident for own-label drinks
Figure 34: Attitudes towards the quality of own-label alcoholic drinks, December 2013
Trust in own-label drinks can be eroded as a result
Almost half of drinkers want more information about own-label drinks
Figure 35: Attitudes towards the production and image of own-label alcoholic drinks, December 2013
Traceability and labelling can improve perceptions
Advances in packaging boosting the appeal of own-label drinks
An economic recovery could pose a threat to the sector
Figure 36: Attitudes towards the price and range of own-label alcoholic drinks, December 2013
Only a quarter of drinkers think that there should be more own-label drinks

The Consumer – Target Groups

Key points
Four target groups
Figure 37: Target groups, December 2013
Disengaged (33%)
Own-label Lovers (25%)
Own-label Sceptics (22%)
Drink Lovers (20%)

Appendix – Market Size and Forecast

Figure 38: Best- and worst-case forecasts for the own-label alcoholic drinks market, by value, 2013-18

Appendix – The Consumer – Purchase of Alcoholic Drinks

Figure 39: Purchase of branded alcoholic drinks, December 2013
Figure 40: Most popular types of branded alcoholic drinks purchased, by demographics, December 2013
Figure 41: Next most popular types of branded alcoholic drinks purchased, by demographics, December 2013
Figure 42: Other types of branded alcoholic drinks purchased, by demographics, December 2013
Figure 43: Purchase of own-label alcoholic drinks, December 2013
Figure 44: Most popular types of own-label alcoholic drinks purchased, by demographics, December 2013
Figure 45: Next most popular types of own-label alcoholic drinks purchased, by demographics, December 2013
Figure 46: Other types of own-label alcoholic drinks purchased, by demographics, December 2013
Figure 47: Variance in usage between branded and own-label alcoholic drinks, December 2013
Figure 48: Repertoire of purchase of own-label alcoholic drinks, December 2013
Figure 49: Repertoire of purchase of own-label alcoholic drinks, by demographics, December 2013
Figure 50: Buying habits of branded alcoholic drinks, December 2013
Figure 51: Buying habits of branded alcoholic drinks, by demographics, December 2013
Figure 52: Buying habits of own-label alcoholic drinks, December 2013
Figure 53: Buying habits of own-label alcoholic drinks, by demographics, December 2013

Appendix – The Consumer – Reasons for Buying Branded Alcoholic Drinks

Figure 54: Reasons for buying branded alcoholic drinks, December 2013
Figure 55: Most popular reasons for buying branded alcoholic drinks, by demographics, December 2013
Figure 56: Next most popular reasons for buying branded alcoholic drinks, by demographics, December 2013
Figure 57: Reasons for buying branded alcoholic drinks, by purchase of branded alcoholic drinks, December 2013
Figure 58: Reasons for buying branded alcoholic drinks, by purchase of branded alcoholic drinks, December 2013 (continued)

Appendix – The Consumer – Reasons for Buying Own-label Alcoholic Drinks

Figure 59: Reasons for buying own-label alcoholic drinks, December 2013
Figure 60: Most popular reasons for buying own-label alcoholic drinks, by demographics, December 2013
Figure 61: Next most popular reasons for buying own-label alcoholic drinks, by demographics, December 2013
Figure 62: Reasons for buying own-label alcoholic drinks, by purchase of own-label alcoholic drinks, December 2013
Figure 63: Reasons for buying own-label alcoholic drinks, by purchase of own-label alcoholic drinks, December 2013 (continued)

Appendix – The Consumer – Perceptions of Own-label Alcoholic Drinks

Figure 64: Associations with different own-label alcoholic drinks, December 2013
Figure 65: Most popular associations with own-label beer/cider, by demographics, December 2013
Figure 66: Other associations with own-label beer/cider, by demographics, December 2013
Figure 67: Most popular associations with own-label still wine, by demographics, December 2013
Figure 68: Other associations with own-label still wine, by demographics, December 2013
Figure 69: Most popular associations with own-label white spirits, by demographics, December 2013
Figure 70: Other associations with own-label white spirits, by demographics, December 2013
Figure 71: Most popular associations with own-label dark spirits, by demographics, December 2013
Figure 72: Other associations with own-label dark spirits, by demographics, December 2013

Appendix – Consumer – Attitudes towards Own-label Alcoholic Drinks

Figure 73: Attitudes towards own-label alcoholic drinks, December 2013
Figure 74: Agreement with the statements ‘Branded alcoholic drinks provide a reassurance of quality which own-label doesn’t’ and ‘There is not enough information about the maker of the own-label drink on the packaging’, by demographics, December 2013
Figure 75: Agreement with the statements ‘I am hesitant to trust own-labels for more expensive alcoholic drinks’ and ‘The packaging of own-label alcoholic drinks has become more attractive in recent years’, by demographics, December 2013
Figure 76: Agreement with the statements ‘Own-label alcoholic drinks sacrifice quality for a lower price’ and ‘I would consider buying more branded alcoholic drinks when my financial situation has improved’, by demographics, December 2013
Figure 77: Agreement with the statements ‘Low price is the most important factor when buying alcoholic drinks regardless of branded or own-label’ and ‘Own-label and branded alcoholic drinks are made by the same manufacturers’, by demographics, December 2013
Figure 78: Agreement with the statements ‘It is sometimes hard to tell which alcoholic drinks are branded and which are own-label’ and ‘The quality is unimportant when using own-label alcohol for mix drinks’, by demographics, December 2013
Figure 79: Agreement with the statements ‘There are not enough own-label alcoholic drinks in supermarkets’ and ‘I feel embarrassed to buy own-label alcoholic drinks’, by demographics, December 2013
Figure 80: Own-label drink buyers’ attitudes towards own-label alcoholic drinks, December 2013

Appendix – Consumer – Target Groups

Figure 81: Target groups, December 2013
Figure 82: Target groups, by demographics, December 2013
Figure 83: Purchase of own-label alcoholic drinks, by target groups, December 2013
Figure 84: Buying habits of own-label alcoholic drinks, by target groups, December 2013
Figure 85: Reasons for buying own-label alcoholic drinks, by target groups, December 2013
Figure 86: Attitudes towards own-label alcoholic drinks, by target groups, December 2013

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