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Attitudes towards Craft Alcoholic Drinks - UK - February 2016

Attitudes towards Craft Alcoholic Drinks - UK - February 2016

“Consumers are likely to become increasingly demanding of brands which claim to be ‘craft’, and the onus is on the brands to ensure that they can provide clear evidence of their craft credentials.”

– Chris Wisson, Senior Drinks Analyst

This report looks at the following areas:

The ongoing issue of defining ‘craft’
Does ‘craft’ growth risk putting family and medium-sized companies out of business?
Online is a good fit for craft drink sales
Craft needs to convey value for money


OVERVIEW
What you need to know
Covered in this report
EXECUTIVE SUMMARY
The market
Companies, brands and innovation
The consumer
Figure 1: Consumer definitions of craft alcoholic drinks, any ranking 1-5, November 2015
Figure 2: Purchase of craft and mainstream alcoholic drinks, November 2015
Figure 3: Attitudes towards craft alcoholic drinks, November 2015
Figure 4: Further attitudes towards craft alcoholic drinks, November 2015
What we think
ISSUES & INSIGHTS
The ongoing issue of defining ‘craft’
Does ‘craft’ growth risk putting family and medium-sized companies out of business?
Online is a good fit for craft drink sales
Craft needs to convey value for money
THE MARKET
What you need to know
Alcoholic drink prices continue to rise
UK consumers continue to cut back on alcohol
The ongoing rise of craft drinks
Population changes could also impact the market
Market drivers
Alcoholic drink prices continue to rise
Figure 5: UK excise duty rates for selected alcoholic drinks, 2005-15
UK consumers continue to cut back on alcohol
The ongoing rise of craft drinks
Population changes could also impact the market
KEY PLAYERS
What you need to know
Packaging and design innovation
Flavour and ingredients
Partnerships and takeovers
Craft spirits set for a profile boost
Launch activity and innovation
Packaging and design innovation
Flavour and ingredients
Partnerships and takeovers
Craft spirits set for a profile boost
THE CONSUMER
What you need to know
Consumers are most likely to associate craft drinks with a unique flavour
Mainstream repertoires are wider than craft ones
Only 24% of beer buyers are willing to spend £4+ on pints of craft beer
Cost could be a barrier to the growth of craft
59% of drink buyers think that ‘craft’ needs to be defined
Consumer definitions of craft alcoholic drinks
Unique flavour most widely seen as mark of craft drink
Figure 6: Factors consumers see as defining a craft alcoholic drink, any ranking 1-5, November 2015
Five other factors also stand out as key craft signifiers
Only 23% define craft drinks on price grounds
Younger drinkers respond to NPD and a modern look
22% do not know what craft drinks are
Purchase of craft and mainstream alcoholic drinks
Mainstream drinks repertoires are wider than craft ones
Figure 7: Repertoire of types of craft and mainstream alcoholic drinks bought, November 2015
Beer performs best for craft purchases …
Figure 8: Purchase of craft and mainstream alcoholic drinks, by type, November 2015
… with ale/bitter leading the way
Figure 9: Share of all buyers of a drink, who have bought craft variants of the drink, by drink type, November 2015
Cider follows a similar pattern to lager
Spirits starting to tap into the craft movement
Wine lags behind in the craft stakes
How much drinkers are prepared to spend on craft beer
Only 24% of beer buyers are willing to spend £4+ on a pint of craft beer
Figure 10: How much drinkers are prepared to spend on a pint of craft beer, November 2015
£2-2.49 can be a lucrative price point in the off-trade for 500ml bottles
Figure 11: How much drinkers are prepared to spend on a 500ml bottle of craft beer for drinking at home, November 2015
Attitudes towards craft alcoholic drinks
Cost could be a barrier to the growth of craft …
Figure 12: Attitudes towards craft alcoholic drinks, November 2015
… as could the lack of a definition …
Figure 13: An example of Wetherspoon Craftwork display, October 2015
… while taste does not appear to be a barrier
Further attitudes towards craft alcoholic drinks
59% of drink buyers think that ‘craft’ needs to be defined
Figure 14: Further attitudes towards craft alcoholic drinks, November 2015
Craft is only preferred by one in four
Importance of scale and maker
Producing drinks on site and in partnership
Craft drinks in the on-trade
Figure 15: An example of a beer flight
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Consumer research methodology
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Definitions
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

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