Premiumization Strategies in Alcoholic Drinks: Innovating to drive value through brand and product enhancement

The premium segment of the alcohol market was a major driver of growth in the past, as mass market consumers traded up, and affluent individuals sought super premium products. The recession has had an impact on both the segment and the overall market, challenging marketers to maintain and grow their brands. Behaviour has changed, with some consumers trading down, and many drinking more at home than in bars, restaurants and clubs. Yet consumers continue to desire and purchase premium alcohol drinks. And marketers continue to differentiate their premium brands through product, package and branding initiatives. This report provides an understanding of the growth and importance of premium alcohol, effective brand differentiating strategies that enabled growth, and what marketers need to do, in a challenging and competitive market, to drive consumers to their premium brands.