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July 24, 2015

Trends in the Global Spirits Markets

Global spirits grew at its slowest rate in 2014 since the global economic crisis of 2008. We have seen parallel growth in both emerging and developed markets, which is unusual given past economic patterns. This video discusses this and more insights gained from the Drinks International Millionaires' Club 2015 list. Watch for complete insights.

Jeremy_Cunnington0Video features Jeremy Cunnington - Head of Alcoholic Drinks Research

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July 18, 2015

Alcohol Brands Cater the Metrosexual Urbanite with New Launches

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

Big alcohol looks in the mirror and decides it’s time for a makeover. But is it merely a matter of appearances or a question of substance? In the same month that Carlsberg stunned the industry with the launch of its own, eponymous – beer based- series of beauty products, Diageo released a range of moustache waxes apparently designed to "complement the flavour of its Johnnie and Ginger" serve.

The launches themselves did not happen in a vacuum. The radical departure from beer’s historical focus on machismo references or Johnnie Walker’s belated embrace of the ultimate symbol of  universal hipsterdom are a last ditch attempt to stem the tide of declines hitting mainstream brands across western markets. But will it be enough?

 

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Euromonitor to Speak at Australian Liquor Stores Association (ALSA) Conference 2015

2015-ALSA-Conference-logo-1

Location: DoubleTree by Hilton, Darwin, Australia

Date: 23rd-26th August 2015

Event Description:  The ALSA National Conference is considered a must attend event for every facet of the Australian Retail Liquor Industry – liquor retailers, banner groups, wholesalers, suppliers, manufacturers and key liquor industry stakeholders. Guest speakers, including key business and liquor industry experts, will come together to share their knowledge and reveal strategies to help grow business and profits. The event also features forums to discuss current and future challenges facing the liquor industry in Australia.

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July 15, 2015

Global Spirits Markets Category Overview: It’s All About the Brands

Jeremy_Cunnington0By Jeremy Cunnington – Senior Analyst, Alcoholic Drinks

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Spirits more than any other alcoholic drinks category is about brand performance. The health of many spirits categories are reliant on at most a handful and at worst a single brand. This means that Millionaires can be a good guide to category performance in the preceding year. Global spirits volumes grew by 1.7% in 2014, driven by baijiu and whiskies. This is slower than the historic average and reflects the weak economic conditions globally during 2014.

Whiskies – broad growth

Whiskies continued to see healthy growth in 2014 of 3% in volume terms, led by Indian bourbon/other US whiskies, Japanese and Irish whiskies. Indian whiskies growth was driven by a mixture of the higher priced brands in Pernod Ricard’s portfolio as well as the cheaper brands such Officer’s Choice. The most dynamic growth in whiskies came from the Irish, or, should one now say Jameson whiskey category. The brand and the category’s key growth driver continues to be the US, although it is helped by secondary markets such as South Africa, Russia and Canada.

Irish whiskey is closely followed by Japanese whisky in volume growth terms, as witnessed by the Suntory’s Kakubin brand performance. Despite the growing publicity around its higher end single malts in export markets, is still being driven by domestic consumption.

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July 4, 2015

Cider/Perry: Adapting, Evolving and Growing

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

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Cider/Perry has witnessed phenomenal developments in the last 10 years, making it now the fastest-growing alcoholic drinks category, in volume terms. In Cider/Perry: Outlook and Opportunities, Euromonitor International looks at some of the dynamics that are currently supporting its strong growth, and will continue to do so in the next five years.

One of the defining features of the category has been the internationalisation of cider/perry brands that have driven expansion beyond the UK and other markets that have historically consumed the tipple. The market has been segmenting and opening up to a wider consumer spectrum, from value-seeking to quality-pursuing drinkers. In addition, demand for “craft” in beer has spilled over into the cider/perry category, expanding the premium offerings. Cider/perry makers are also taking to the approach of product sophistication by positioning the tipple as a suitable alternative to wine, as observed in the US. The category is also witnessing the next stage of its evolution as it shifts towards niche areas covering white spaces such as “light cider” and “spirit-cider”, otherwise promoted as “spider”.

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June 25, 2015

Top Trends Seen at FMI Connect and United Fresh 2015

The FMI (Food Marketing Institute) Connect, InterBev, and United Fresh co-located trade shows took place in Chicago from June 8 to 11. The three trade shows hosted attendees who saw the latest in alcoholic drinks, fresh produce, hot and soft drinks, and packaged foods for the supermarket industry. Below are the top trends that the Euromonitor research team of Beatriz de Llano, Emily Balsamo, Eric Penicka, Mark Strobel, and Virginia Lee observed.

Authentic Italian

Italia

Italian companies had a big presence at this year’s FMI Connect through the Italy pavilion. Organized by the Italian Trade Agency (ITA), the pavilion featured about 50 Italian food and beverage companies featuring products from gorgonzola cheese to Prosecco to packaged cornetti (an Italian pastry). While the presence of Italian products at FMI Connect was undoubtedly to increase exports of Italian products into US retail outlets, the underlying goal of the ITA was to educate Americans about what separates products from Italy and those made in the Italian style. Further, the ITA’s final objective is to obtain geographic labelling protections much like those which currently exist within the European Union, which are currently being negotiated under the Transatlantic Trade and Investment Partnership. If passed, geographical indications on European products would give consumers an additional informative label to trust, much like “Certified GF Gluten Free” and “USDA Organic” certifications, assisting consumers in identifying true Italian products from their imitators.

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June 19, 2015

Tequila: A New Force in Luxury Spirits

Rob WalkerAnalyst Insight by Rob Walker - Contributing Analyst

Most people associate luxury spirits with prestige brands of whisky or cognac, and they would be right. Last year, those two subcategories accounted for 45% of the global retail sales value of luxury spirits, according to the latest data from Euromonitor International. However, some of the most disruptive market momentum in luxury spirits is coming not from whisky or cognac, but from Mexico’s agave-based spirit, tequila.

In the eyes of many, tequila is an unlikely luxury product. As a category, it has often struggled in Western markets because of a rather boozy, head-banging image. Yet, tequila has been reinventing itself of late, driven by a growing number of super-premium boutique brands that are more about sipping and savouring than slamming. It helps too that a cluster of these brands are owned, or part-owned, by big-name celebrities, including George Clooney, P Diddy (Sean Combs) and Justin Timberlake. In the US especially, high-end tequilas are now among the fastest-growing brands in luxury alcoholic drinks.

Luxury Spirits: Share of Global Retail Value by Subcategory 2014

Spirits-Share

Source: Euromonitor International

Note:  Shares based on global retail sales in US dollars at fixed 2014 exchange rates

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June 14, 2015

Which Wine Producing Region Grows the Fastest in the Changing World of Wine?

Emi_globalWineProd-v1.0

Although Italy, France and Spain continue to be among the world’s top five largest wine producers, Europe’s wine production has fallen steadily over the 2009-2014 period as a result of declining wine consumption and the European Union’s regulations to combat over-production (often referred to as the Wine Lake). Meanwhile, Latin America is the fastest-growing wine producing region thanks to favourable farming conditions that enable the region to produce superlative wines at reasonable prices.

 

Have a question or a thought to add? Leave us a comment below.

June 3, 2015

Brown Forman Belatedly Joins the Irish Whiskey Rush with Slane Castle Acquisition

Jeremy_Cunnington0Analyst Insight by Jeremy Cunnington - Senior Alcoholic Drinks Analyst

View Jeremy Cunnington's profile on LinkedIn

Like many of its international rivals Brown-Forman has moved into Irish whiskey with its US$50 million acquisition of the Slane Castle brand. Despite the historic dynamic growth of the category, something that is expected to continue in the future, the company is by no means guaranteed success and faces a number of major challenges to do so.

The major challenge will be to develop a brand almost from scratch in a highly competitive category. Due to Brown-Forman’s lateness to the category it missed out on the few relatively sizeable independent brands. It will thus have to compete against not only established brands, most notably Jameson which dominates the category it will have to compete against numerous start ups with over another 20 mainly small scale distilleries, excluding the Slane Castle one, either being built or having planning permission at the end of 2014.

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May 31, 2015

The Growth in Popularity of Craft Beer in New Zealand

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New Zealand consumers are turning away from regional and national mainstream beer brands in favor of craft and craft-positioned alternatives. Despite a flat beer market overall, craft brands both owned by major brewers and by microbreweries continue to see growth in the market. Listen to the podcast for complete insights.

Continue reading "The Growth in Popularity of Craft Beer in New Zealand" »

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Recent Posts

Trends in the Global Spirits Markets

Alcohol Brands Cater the Metrosexual Urbanite with New Launches

Euromonitor to Speak at Australian Liquor Stores Association (ALSA) Conference 2015

Global Spirits Markets Category Overview: It’s All About the Brands

Cider/Perry: Adapting, Evolving and Growing

Top Trends Seen at FMI Connect and United Fresh 2015

Tequila: A New Force in Luxury Spirits

Which Wine Producing Region Grows the Fastest in the Changing World of Wine?

Brown Forman Belatedly Joins the Irish Whiskey Rush with Slane Castle Acquisition

The Growth in Popularity of Craft Beer in New Zealand