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White Spirits and RTDs - UK - December 2015

Published By :

Mintel

Published Date : Dec 2015

Category :

Alcoholic Beverages

No. of Pages : N/A

Brands innovating with flavour should focus on the premium tier and try to resist gimmicky variants such as those which have harmed the flavoured vodka category in the US.

Table of Content

Overview

What you need to know
Covered in this report

Executive Summary

The market
Steady value growth masks stagnating volumes
Figure 1: Forecast of UK value sales of white spirits and RTDs, 2010-20
Figure 2: Forecast of UK volume sales of white spirits and RTDs, 2010-20
Vodka remains vital to the white spirits market
The off-trade outperforms the on-trade
Companies, brands and innovation
Diageo leads the way in both value and volume sales
Smirnoff stretches further clear in the vodka segment
Figure 3: Retail value sales of the leading white spirits and RTD brands in the UK, 2014/15*
Gin continues to thrive
White rum hits stormy waters
Tequila/Mezcal remains small
RTDs’ mixed fortunes continue
Total category adspend flatlines in 2014
The consumer
63% of adults drink white spirits/RTDs
Figure 4: Usage of types of white spirits, September 2015
Large supermarkets dominate off-trade sales
Figure 5: Willingness to spend on white spirits, per bottle, September 2015
Vodka enjoys a number of positive associations
Price hinders consumers’ willingness to experiment
Figure 6: Attitudes towards white spirits and RTDs, September 2015
Flavoured variants enjoyed across the white spirits categories
What we think

Issues and Insights

How can white rum reverse its fortunes?
The facts
The implications
To flavour or not to flavour?
The facts
The implications
Bridging the gap between brands and own-labels
The facts
The implications
Smaller bottles could have large potential
The facts
The implications

The Market – What You Need to Know

Steady value growth masks stagnating volumes
Vodka remains vital to the white spirits market
The off-trade outperforms the on-trade

Market Size and Segmentation

Steady value growth masks stagnating volumes
Figure 7: Total value and volume sales of white spirits and RTDs, at current and constant prices, 2010-20
Figure 8: Forecast of UK value sales of white spirits and RTDs, 2010-20
Figure 9: Forecast of UK volume sales of white spirits and RTDs, 2010-20
Figure 10: Ratio of value and volume sales in the white spirits and RTDs market, by segment, 2015 (est)
Vodka remains vital to the white spirits market
Figure 11: Total value and volume sales of vodka, at current and constant prices, 2010-20
Figure 12: Forecast of UK value sales of vodka, 2010-20
The gin-naissance continues
Figure 13: Total value and volume sales of gin, at current and constant prices, 2010-20
Figure 14: Forecast of UK value sales of gin, 2010-20
White rums continue to struggle
Figure 15: Total value and volume sales of white rum, at current and constant prices, 2010-20
Figure 16: Forecast of UK value sales of white rum, 2010-20
Tequila/Mezcal in growth from a smaller base
Figure 17: Total value and volume sales of tequila/Mezcal, at current and constant prices, 2010-20
Figure 18: Forecast of UK value sales of tequila/Mezcal, 2010-20
RTDs’ woes expected to continue
Figure 19: Total value and volume sales of RTDs, at current and constant prices, 2010-20
Figure 20: Forecast of UK value sales of RTDs, 2010-20

Channels to Market

The off-trade outperforms the on-trade
Figure 21: Value and volume sales of white spirits and RTDs, by channel, 2013-15

Market Drivers

Alcoholic drink prices continue to rise
Figure 22: UK excise duty rates for selected alcoholic drinks, 2003-15
Figure 23: RPI indexed annual change for alcoholic drink prices versus all items except housing, 2000-14
An embattled on-trade industry
UK consumers continue to cut back on alcohol
Bridging the gender divide
Figure 24: Usage of types of dark spirits and liqueurs, by gender, July 2015
Population changes could also impact the market

Key Players – What You Need to Know

Diageo leads the way in both value and volume sales
Smirnoff stretches further clear in the vodka segment
Gin continues to thrive
White rum hits stormy waters
Tequila/Mezcal remains small
RTDs’ mixed fortunes continue
Total category adspend flatlines in 2014

Market Share

Diageo leads the way in both value and volume sales
Figure 25: Leading manufacturers’ shares of white spirit and RTD sales in the UK off-trade, 2014/15*
Figure 26: Retail prices of selected white spirit brands (70cl bottles), October 2015
Smirnoff stretches further clear in the vodka segment
Many other vodka brands are thriving, while own-label takes a hit
Figure 27: Retail value sales of the leading vodka brands in the UK, 2012/13-2014/15
Gin continues to thrive
Strong performers elsewhere in the gin segment
Figure 28: Retail value sales of the leading gin brands in the UK, 2012/13-2014/15
White rum hits stormy waters
Figure 29: Retail value sales of the leading white rum brands in the UK, 2012/13-2014/15
Tequila/Mezcal remains small
Figure 30: Retail value sales of the leading tequila/Mezcal brands in the UK, 2012/13-2014/15
RTDs’ mixed fortunes continue
Figure 31: Retail value sales of the leading RTD brands in the UK, 2012/13-2014/15

Brand Communication and Promotion

Total category adspend flatlines in 2014
Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure on white spirits and RTDs, by category, 2012-15
BBFB and Diageo dominate leading brands’ adspend
Figure 33: Top 10 highest-spending brands in the white spirits and RTDs category, 2012-15
Other selected campaigns
TV remains the most popular channel for advertisers
Figure 34: Channels for advertising in the white spirits and RTDs category, 2012-15

Launch Activity and Innovation

NPD in vodka
Absolut continues to lead the way in NPD activity
Other selected vodka launches
NPD in white rum
NPD in gin
NPD in RTDs

Brand Research

What you need to know
Brand map
Figure 35: Attitudes towards and usage of selected white spirits brands, August 2015
Key brand metrics
Figure 36: Key metrics for selected white spirits brands, August 2015
Glen’s Vodka thrives in value associations
Figure 37: Attitudes, by white spirits brand, August 2015
Tanqueray and Grey Goose seen as exclusive
Figure 38: Brand personality – macro image, August 2015
Gordon’s enjoys traditional associations
Figure 39: Brand personality – micro image, August 2015
Brand analysis
Absolut promotes style and cool, but offers more accessibility than Grey Goose
Figure 40: User profile of Absolut, August 2015
Smirnoff’s all-round image ensures that it continues to perform strongly
Figure 41: User profile of Smirnoff, August 2015
Grey Goose has a particularly premium brand image
Figure 42: User profile of Grey Goose, August 2015
Tanqueray is seen as a sophisticated brand but lacks the tradition of Gordon’s
Figure 43: User profile of Tanqueray, August 2015
Gordon’s traditional perception drives strong usage among older groups
Figure 44: User profile of Gordon’s, August 2015
Bacardi has an all-round image, but may be losing ground on Gordon’s
Figure 45: User profile of Bacardi, August 2015
Glen’s is noted for value but lacks same strength of personality as others
Figure 46: User profile of Glen’s, August 2015

The Consumer – What You Need to Know

63% of adults drink white spirits/RTDs
Large supermarkets dominate off-trade sales
White spirits could do more to leverage gifting opportunities
Vodka enjoys a number of positive associations
Price hinders consumers’ willingness to experiment
Flavoured variants enjoyed across the white spirits categories

Usage of White Spirits and RTDs

63% of adults drink white spirits and/or RTDs
Figure 47: Usage of types of white spirits, September 2015
White rum and gin follow similar usage trends
Tequila needs to move beyond its shot associations
Pre-mixed drinks used by a quarter
Figure 48: Usage of types of RTDs, September 2015
17% of adults drink four or five types of white spirits
Figure 49: Repertoire of usage of white spirits, September 2015
Vodka also garners the highest degree of favouritism
Figure 50: Favourite types of white spirits/RTDs, September 2015

Purchasing Locations and Spending on White Spirits and RTDs

Large supermarkets dominate off-trade sales
Figure 51: Off-trade locations for buying white spirits and RTDs, September 2015
Specialists and online channel remain niche
Gifting can be an effective means of encouraging trading up
White spirits could do more to leverage gifting opportunities
Figure 52: Willingness to spend on white spirits, per bottle, September 2015
Figure 53: Buying white spirits as a gift, September 2015

Perceptions of White Spirits

Vodka enjoys a number of positive associations
Figure 54: Perceptions of white spirits, September 2015
Gin is thriving but modernising could spark further growth
Tequila’s image appears to revolve around shots
White rum fails to stand out
White spirits and premiumisation

Attitudes towards White Spirits and RTDs

Price hinders consumers’ willingness to experiment
Figure 55: Attitudes towards white spirits and RTDs, September 2015
Figure 56: Comparison of attitudinal responses of any agree for white spirits and RTDs vs the same statements asked for dark spirits and liqueurs, September 2015 and July 2015
White spirits with mixers provide opportunities
Price is more important than brand for many drinkers
Interest in NPD and alcohol units driven by younger drinkers

Interest in Flavoured White Spirits

Flavoured variants enjoyed across the white spirits categories
Figure 57: Usage of flavoured types of white spirits, September 2015
Fruit flavours lead the way in terms of flavours of interest
Figure 58: Interest in flavours of white spirits, July 2015

Appendix – Data Sources and Abbreviations

Data sources
Fan chart forecast
Abbreviations

Appendix – Market Size and Segmentation

Figure 59: Best- and worst-case forecasts for the total white spirits and RTDs market, by value, 2015-20
Figure 60: Best- and worst-case forecasts for the total white spirits and RTDs market, by volume, 2015-20
Figure 61: Best- and worst-case forecasts for the vodka market, by value, 2015-20
Figure 62: Best- and worst-case forecasts for the vodka market, by volume, 2015-20
Figure 63: Forecast of UK volume sales of vodka, 2010-20
Figure 64: Best- and worst-case forecasts for the gin market, by value, 2015-20
Figure 65: Best- and worst-case forecasts for the gin market, by volume, 2015-20
Figure 66: Forecast of UK volume sales of gin, 2010-20
Figure 67: Best- and worst-case forecasts for the white rum market, by value, 2015-20
Figure 68: Best- and worst-case forecasts for the white rum market, by volume, 2015-20
Figure 69: Forecast of UK volume sales of white rum, 2010-20
Figure 70: Best- and worst-case forecasts for the tequila/Mezcal market, by value, 2015-20
Figure 71: Best- and worst-case forecasts for the tequila/Mezcal market, by volume, 2015-20
Figure 72: Forecast of UK volume sales of tequila/Mezcal, 2010-20
Figure 73: Best- and worst-case forecasts for the RTDs market, by value, 2015-20
Figure 74: Best- and worst-case forecasts for the RTDs market, by volume, 2015-20
Figure 75: Forecast of UK volume sales of RTDs, 2010-20

Appendix – Market Share

Figure 76: Leading manufacturers’ shares of white spirits and RTDs in the UK off-trade, 2014/15*
Figure 77: Retail volume sales of the leading vodka brands in the UK, 2012/13-2014/15
Figure 78: Retail volume sales of the leading gin brands in the UK, 2012/13-2014/15
Figure 79: Retail volume sales of the leading white rum brands in the UK, 2012/13-2014/15
Figure 80: Retail volume sales of the leading tequila/Mezcal brands in the UK, 2012/13-2014/15
Figure 81: Retail volume sales of the leading RTD brands in the UK, 2012/13-2014/15

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