Liqueurs - UK

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2008 - 65 Pages

Table of Contents

Issues in the Market

Key themes

Definitions

Market in Brief

Market reaches a plateau

Balance needed between promotion and responsible drinking

Older, female, AB consumers are the drinkers

The future

Internal Market Environment

Key points

Drinking at home

Versatility

Seasonality

Responsible drinking

Premiumisation - or not?

Broader Market Environment

Key points

Government legislation

Licensing hours and the smoking ban

Healthy drinking

Role of women: key consumers of liqueurs

Figure 1: Women in employment, 2003, 2008 and 2013

High levels of PDI support growth

Figure 2: PDI and consumer expenditure, at constant prices, 2003-13

Competitive Context

Health concerns leading to declining alcohol intake

Cider only alcohol sector showing healthy growth

Figure 3: UK volume sales of alcoholic drinks, by type, 2005-07

Figure 4: UK value sales of alcoholic drinks, by type, 2005-07

Premium soft drinks challenge liqueurs in on-trade

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Declining prices hitting market growth

Figure 5: UK sales of liqueurs, by volume and by value, 2003-08

Figure 6: UK sales of liqueurs, by value and volume, 2003-08

Forecast

Liqueurs unable to arrest decline

Cream going sour

An eroding margin

Figure 7: Sales of total liqueurs, by value and volume, 2008-13

Traditional

Figure 8: Sales of traditional liqueurs, by value and volume, 2008-13

Figure 9: Sales of cream liqueurs, by value and volume, 2008-13

Figure 10: sales of shooters, by value and volume, 2008-13

Factors used in the forecast

Market Segmentation

Traditional liqueurs most profitable but more cream liqueurs drunk

Figure 11: UK volume and value sales of liqueurs, by type, 2003-07

Traditional liqueurs

Figure 12: UK sales of traditional liqueurs, by volume and value, 2003-08

Cream liqueurs

A large but mature sector

Figure 13: UK sales of cream liqueurs, by volume and value, 2003-08

Shooters

Figure 14: UK sales of shooters, by volume and value, 2003-08

Where now for shooters?

Companies and Products

Key points

Summary

Wide diversity in traditional liqueurs

Figure 15: Liqueurs brand map, June 2008

Company profiles

Diageo

Pernod Ricard

Maxxium UK

First Drinks Brands

Halewood International

Malcolm Cowen

Cellar Trends

The Drambuie Liqueur Company

United Brands/Blackwood Distillers

Wray & Nephew

Other brands and NPD

Corky’s

Cream Cutie

Hpnotiq

Brand Communication and Promotion

Key points

Category spend on above the line advertising

Figure 16: Main monitored media advertising expenditure on liqueurs, 2003-07

Above-the-line promotion affected by new alcohol advertising rules

Figure 17: Top liqueurs advertisers, 2007

Below the line

Channels to Market

Key points

Off-trade increases its dominance

Room for further expansion in off-trade

On-trade suffering from increased costs

Figure 18: UK distribution of liqueurs by volume, by trade sector, 2003-07

Figure 19: UK distribution of liqueurs, by value and type, 2007

Figure 20: Value distribution of liqueurs by value and type

Figure 21: UK distribution of liqueurs, by volume and type, 2007

Figure 22: UK distribution of liqueurs, by volume and type, 2007

The Consumer - Usage and Frequency of Use

Key points

Penetration trends - fewer are drinking

Figure 23: Trends for liqueur consumption overall, at home and elsewhere, 2003-07

The civilised way to drink?

Frequency of consumption

Key points

Figure 24: Frequency of liqueur consumption, 2008

Users

Figure 25: Consumer profile of users of liqueurs in the last 12 months, 2007

Appendix - Usage and Frequency of Use

TGI analysis for liqueurs

Figure 29: Consumption of total, in-home and out-of-home liqueurs by demographics, 2007

Figure 30: Trends for demographic profile of liqueurs in total, 2003-07

Figure 31: Trends for demographic profile of in-home liqueur drinkers in total, 2003-07

Figure 32: Trends for demographic profile of out-of-home liqueurs drinkers, 2003-07

Abstract

Since the last Mintel report on liqueurs in June 2006, in common with some other alcohol sectors, there has been a slowdown with a shift away from on-trade to off-trade consumption. Sales of cream liqueurs, in particular, have fallen in value over the last two years presenting a challenge for suppliers, with cream liqueurs tending to be most popular with core female consumers. In particular, repertoire drinking among younger people is on the increase and there is strong competition, especially in the on-trade, from wine, cider and beer, as well as lighter, mixable spirits.

Key themes of the report:

• Preventing the continuing decline in consumption.
• The potential in ‘mixology’ ie the use of liqueurs in cocktails that could boost both penetration and drinking occasions beyond the traditional festive peak.
• How liqueurs can counter the issue of the drinks industry being portrayed in a negative light.
• Exploiting the production and provenance values of liqueurs.

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