866-997-4948(US-Canada Toll Free)

Attitudes towards Private Label Alcoholic Drinks - UK - August 2017

Published By :

Mintel

Published Date : Sep 2017

Category :

Alcoholic Beverages

No. of Pages : N/A

Highlighting the heritage of the producers behind private label alcohol and giving more information about how and where the drinks are made will elicit more trust from consumers. Similarly, flagging up the skills and expertise of their in-house experts will help to build confidence in private label ranges
Table of contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Brands and private labels share of sales in the UK alcoholic drinks retail market, by volume and value, 2014/15-2016/17
Market factors
The return of the squeeze on real incomes
Figure 2: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-May 2017
Private labels ability to react and adjust stands it in good stead
The self-moderation trend is driving premiumisation
Companies and brands
Own-label accounts for 14% of alcoholic drink launches
Figure 3: Private labels share of total launches per category in the UK alcoholic drinks market, 2013-17
A big premiumisation drive for private label wine
Brands dominate adspend
Discounters steadily grow their share of adspend
The consumer
Brands retain a big lead over own-label
Figure 4: Purchasing of branded and own-label alcoholic drinks, by category, May 2017
Consumers are more open to own-label for more casual occasions
Figure 5: Preference for branded and own-label alcoholic drinks, by different occasions, May 2017
The heritage of brands bolsters trust
Figure 6: Perceptions of branded and own-label alcoholic drinks, May 2017
Sampling can help to disrupt taste perceptions
Figure 7: Enticements for buying more own-label alcoholic drinks over branded ones, May 2017
Consumers want it to be clear when a product is own-label
Being made locally can boost the appeal of own-label
Supermarkets should be vocal about their in-house expertise
Figure 8: Attitudes towards branded and own-label alcoholic drinks, May 2017
What we think
ISSUES AND INSIGHTS
Being more vocal about the heritage of private label producers is needed to build trust
The facts
The implications
Sampling campaign creating in-store theatre can drum up interest
The facts
The implications
Supermarkets can leverage consumers openness to own-label alcohol for casual drinking occasions
The facts
The implications
THE MARKET WHAT YOU NEED TO KNOW
Brands hold a commanding position in the alcoholic drinks market
Private labels share of sales edges upwards
Private label poses strong competition for brands in wine
The return of the income squeeze and consumer confidence is hit
Private labels ability to react and adjust stands it in good stead
The self-moderation trend is driving premiumisation
SEGMENT PERFORMANCE
Brands hold a commanding position in the alcoholic drinks market
Figure 9: Brands and private labels share of sales in the UK alcoholic drinks retail market, by volume and value, 2014/15-2016/17
Figure 10: Share of different drink types in private label and branded alcoholic drinks retail volume sales, 2016/17*
Private labels share of sales edges upwards
The future for private label looks hopeful
Private label poses strong competition for brands in wine
Figure 11: Private labels share of value and volume sales in the UK alcoholic drinks retail market, by segment (top 9 in terms of value share), 2016/17*
Private label struggles to compete in beer and cider
Figure 12: Private labels share of value and volume sales in the UK alcoholic drinks retail market, by segment (the rest in terms of value share), 2016/17*
Figure 13: Percentage point growth in private labels share of value and volume sales in the UK alcoholic drinks retail market, by segments where private label is gaining share, 2014/15*-2016/17**
Brands extend their lead in spirits
Figure 14: Percentage point change in private labels share of value and volume sales in the UK alcoholic drinks retail market, by segments in which private label is losing volume share, 2014/15-2016/17*
Private label fares a lot better in RTDs
MARKET DRIVERS
The Brexit effect: pushing up prices of imported alcohol
Figure 15: Annual change in RPI of alcoholic drinks, January 2015-June 2017
Domestic alcohol can benefit
Private labels ability to react and adjust stands it in good stead
The return of the income squeeze
Figure 16: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-May 2017
A rise in price-consciousness can benefit private label
but many simply cut back
The self-moderation trend is driving premiumisation
The rise and rise of the discounters
COMPANIES AND BRANDS WHAT YOU NEED TO KNOW
Private label accounts for 14% of alcoholic drink launches
A big premiumisation drive for own-label wine
Aldi and Lidl look to more unusual wines
Tesco and Aldi tap into the low-ABV trend
Brands dominate adspend
Discounters steadily grow their share of adspend
LAUNCH ACTIVITY AND INNOVATION
Private label accounts for 14% of alcoholic drink launches
with a quality over quantity approach helping to grow sales
Figure 17: Private labels share of total launches per category in the UK alcoholic drinks market, 2013-17
One in four private label launches in 2016 were from M&S
Figure 18: New private label alcoholic drink launches, by company, 2013-17
A big premiumisation drive for private label wine
Tesco
Morrisons
Sainsburys
Aldi
Supermarkets champion English wines
Tesco streamlines and expands its own-label wine offering
Aldis wine range takes cues from craft beer
Lidl expands its offering of wine and spirits
Lidl introduces seasonal Hortus Summer Gin
Tesco and Aldi tap into the low-ABV trend
Tesco grabs a slice of the frozen cocktail market
Majestic puts a greater emphasis on its own-label wine range
Supermarkets put more focus on sparkling wines in 2017
ADVERTISING AND MARKETING ACTIVITY
Brands dominate adspend
Figure 19: Share of total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, by type of advertiser, 2013-17
Minimal advertising for own-label ranges
Discounters steadily grow their share of alcohol adspend
Huge growth in adspend from Lidl
Aldi encourages consumers to review its wine on Twitter
Tesco and Aldi open pop-ups to showcase their private label lines
Nielsen Ad Intel coverage
THE CONSUMER WHAT YOU NEED TO KNOW
Brands retain a big lead over own-label
Consumers are more open to own-label for more casual occasions
The heritage of brands bolsters trust
Sampling can help to disrupt taste perceptions
Consumers want it to be clear when a product is own-label
Being made locally can boost the appeal of own-label
Supermarkets should be vocal about their in-house expertise
PURCHASING OF BRANDED AND OWN-LABEL ALCOHOLIC DRINKS
Brands retain a big lead over own-label
Figure 20: Purchasing of branded and own-label alcoholic drinks, by category, May 2017
Figure 21: Purchasing of own-label alcoholic drinks as a share of total purchasing, by category, May 2017
Figure 22: Purchasing of branded and own-label alcoholic drinks, May 2017
Own-label is most popular among 25-34s
Figure 23: Purchasing of own-label alcoholic drinks as a proportion of total purchasing of alcoholic drinks, by gender and age, May 2017
Financially confident consumers are most open to own-label
Figure 24: Purchasing of own-label alcoholic drinks as a proportion of total purchasing of alcoholic drinks, by socio-economic group and financial situation, May 2017
Own-label is gaining ground
More people are cutting back on brands
Figure 25: Changes in purchasing of own-label and branded alcoholic drinks, May 2017
PREFERENCE FOR BRANDS VERSUS OWN-LABEL BY OCCASION
Gifting is the biggest problem area for own-label
Figure 26: Preference for branded and own-label alcoholic drinks, by different occasions, May 2017
but this is not a dead-end for own-label
Own-label can do more to capitalise on seasonal celebrations
Consumers are more open to own-label for more casual occasions
On-the-go
Drinking with meals at home
PERCEPTIONS OF BRANDED AND OWN-LABEL ALCOHOLIC DRINKS
Brands win in terms of taste and quality perceptions
Figure 27: Perceptions of branded and own-label alcoholic drinks, May 2017
Own-label can be more vocal about heritage
Heritage is a key driver of trust in brands
Own-brand pushes heritage in food, Co-ops Chablis is a rare high-profile example in drinks
Brands are seen to lead innovation
Exciting innovation can help set out own-label as unique
ENTICEMENTS FOR BUYING MORE OWN-LABEL ALCOHOLIC DRINKS
Special offers hold the most sway
Figure 28: Enticements for buying more own-label alcoholic drinks over branded ones, May 2017
Sampling can help to disrupt taste perceptions
Sampling can be combined with information sharing
Quality awards hold sway among a quarter
Swap suggestions appeal most to young women
ATTITUDES TOWARDS BRANDED AND OWN-LABEL ALCOHOLIC DRINKS
Consumers want it to be clear when a product is own-label
Figure 29: Attitudes towards branded and own-label alcoholic drinks, May 2017
Being made locally can boost the appeal of own-label
as can collaborations between supermarkets and distillers/brewers
Supermarkets should be vocal about their in-house expertise
APPENDIX DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *