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March 26, 2015

The Link Between Alcoholic Drink Consumption and Analgesics and Slimming Products in Latin America

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The consumer view that a hangover is a chemical process that can be solved with chemicals helps explain the correlation between sales of alcoholic drinks and aspirin/ibuprofen in the three Latin American countries included in this study. When weight management products are added to the equation, these industry verticals form a chain that reaches far into the festive consumer culture in these markets.

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La relación entre bebidas alcohólicas, analgésicos y productos para adelgazar en Latinoamérica

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El punto de vista de los consumidores acerca de que la resaca es un resultado químico que se supera con químicos ayuda a explicar la correlación entre las ventas de bebidas alcohólicas y aspirina/ibuprofeno en los 3 países incluidos este estudio. Cuando se agregan los adelgazantes a esta ecuación, se produce una cadena que llega hasta la cultura festiva dela región.

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RTDs in Russia: Red Alert for Stimulants in Moscow

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

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Keeping up with the marathon of legislatives changes, political posturing, taxation hikes and advertising restrictions in the freefalling Russian alcoholic drinks market over the past 5 years would prompt one to reach out for a stiff drink- even before factoring the rubble’s plunge or the geopolitical Gordian knot and resulting sanctions into the equation.

Begrudgingly doing so would probably lead to lacing said stiff drink with generous quantities of caffeine in the hope that the temporary buzz would provide short term insulation from the market’s crashing realities. From the 1st of May, even that – admittedly desperate – option will be illegal, at least in Moscow.

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March 20, 2015

Premiumisation Takes Spirits to a New Level in Australia

Daniel GrimseyAnalyst Insight by Daniel  Grimsey - Senior Research Analyst

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Given all the hype around premiumisation, there’s nothing ground-breaking in assuming that premiumisation will prove a defining trend of 2015. But why are consumers trading-up?

Australian aspirations

People are always talking about premiumisation, but nobody really talks about why.

Firstly, we need to look at how we got here.  We need to understand that Australia is not like other countries.  For many observers, the fact that we can even talk about a trend like premiumisation in Australia doesn’t feel right – after all this is a nation in which spirit-based RTDs outsell full-strength bottled spirits by a mind-boggling margin.

Australians drank 269 million litres of spirit-based RTDs in 2013, compared to only 63 million litres of spirits.  This is quite unique.  In the United States, for example, 45 million litres of spirit-based RTDs and 1.8 billion litres of spirits were consumed in 2013.  And the rest of the world resembles the US far more than it does Australia.

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March 19, 2015

Global Brewers’ 2014 Results: Champions and Disappointments

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

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Global beer market volume sales in 2014 were forecast to grow by 2%, according to Euromonitor international, primarily driven by the top five global brewers, which account for 48% of global sales. However, the continued volume sales decline in Russia and Ukraine, the dreary performance in the US and Western Europe, and the faltering Chinese beer market are likely to lower actual sales in 2014. 

Yet it’s a better year for some global brewers

For A-B InBev 2014 has been a turnaround year as it reported 0.5% volume growth in 2014, compared to the previous year’s decline of 2%. It did so by fighting back in terms of inter-category competition in the US via product development in niche categories such as malt-based RTDs, extensively promoting its key brands in China, and “piggybacking” on the FIFA World Cup in AB-InBev
Brazil. The Belgian-Brazilian brewer’s halted decline in US volume sales in the fourth quarter is showing signs of potential growth in its North American operations for the coming year. In China it recorded positive growth via its three key brands Budweiser, Harbin and Sedrin in the face of a declining beer market in 2014. Budweiser globally had a positive year, sourcing further growth from the UK and Brazil on the back of its promotional World Cup activities. Furthermore, the Corona portfolio continued to witness volume growth in Mexico and to expand in the export market, as well as gains in margins due to its premium pricing.

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March 11, 2015

Beer in 2015: 4 Key Trends

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

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  • Peak Craft? This most irreverent of segments is switching its bohemian attire for a smart casual look as the corporate suits attempt to dress down for the occasion. And it’s getting crowded in there. As the explosive adolescent years are now behind and the craft proposition is coming of age, its inevitable convergence with big beer sets fresh aspirations and challenges. From a dearth of quirky brand names to hop shortages and from improvements in distribution networks, retail policies and lending availability to the widening pitfall of ‘’bandwagon microbrewing’’ (that led to the inexorable burst of the previous cyclical microbubble of the 90s), craft is now part of the mainstream as much as the charming outsider.

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March 10, 2015

Spirits in 2015: Five Key Trends

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

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  • Flavour polarisation, radicalisation and experimentation: From saccharine extensions to the rise of tart offerings and from syrupy indulgence to sour, salty and bitter concoctions, the two extremes of the flavour palette will steal the spotlight. Key millennial, gen X and female demographics will find themselves in the crosshairs of large and small producers hard pressed to highlight points of differentiation in increasingly mature and saturated markets. While vodka’s cloying waves begin to subside the baton has already been passed on to whiskey and liqueurs at the same time that the inevitable backlash will pave the way for diametrically opposite flavour profiles embracing bitterness- Campari and Fernet Branca will lead the way while drinking vinegar will enter the fray.

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March 4, 2015

The Rising Power of Female Consumers

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The global female population totalled an estimated 3.6 billion in 2014 and is expected to reach 4.2 billion by 2030. Average disposable income amongst women is the highest it's ever been, and women are living longer than men.

What are you doing to reach this growing market?

Recording
View now to learn:

  • The size and distribution of the female consumer market
  • Literacy and education rates
  • Labour participation
  • Purchasing power

 

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February 27, 2015

Alcoholic Drinks 2015 Preview for Wine: 3 Key Trends

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

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  • Lighter, transparent, casual and in the mix: Still Wine Moving On: Initiatives favouring moderation in terms of abv content and questioning the gospel of oak maturation, launches reassessing the decades long myopic scoffing of sweeter styles , a progressive inclusiveness of experimentation and mixers and a hesitant embrace of convenience and the category’s side-lined casual nature will be the key themes in the short to medium term. The catalyst will be the proliferation and expansion of the social media universe democratising the reviewing, comparing and buying processes. From flavoured wines to Wine Raves and from smartphone apps to radical packaging designs, a belated New Dawn for still light grape wine is now upon us. The epicentre for growth will shift back towards the US as the Chinese macro and legislative headwinds take their toll.

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February 20, 2015

Mike’s Hard Lemonade Could Be a Hard Sell

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

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Mark Anthony Group Inc hung up the “For Sale” sign for its 14-year-old RTD beverage subsidiary Mike’s Hard Lemonade Co earlier this month. In 2013, the Mike’s Hard Lemonade brand alone sold 140 million litres, contributing to sales revenue of US$500 million. Now it is being offered up at a price tag of US$1 billion, but will it find a buyer at that value?

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Over the 2008-2012 period the company recorded a volume sales CAGR of 8%, and it had managed that on the back of its classic positioning, innovative product development and unique marketing. The product played on the nostalgic image of 1950s Americana, evoking the image of street lemonade stands. The company’s marketing team managed to identify areas of drink product groups or “white space” that have the minimum market overlap with other products, such as with the cider-based RTD Mike’s Hard Smashed Apple. It built on its innovativeness via a series of idiosyncratic TV advertisements, as seen with its 2014 Mike Hack series that speaks to the YouTube/hash-tag generation.

Continue reading "Mike’s Hard Lemonade Could Be a Hard Sell" »

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Recent Posts

The Link Between Alcoholic Drink Consumption and Analgesics and Slimming Products in Latin America

La relación entre bebidas alcohólicas, analgésicos y productos para adelgazar en Latinoamérica

RTDs in Russia: Red Alert for Stimulants in Moscow

Premiumisation Takes Spirits to a New Level in Australia

Global Brewers’ 2014 Results: Champions and Disappointments

Beer in 2015: 4 Key Trends

Spirits in 2015: Five Key Trends

The Rising Power of Female Consumers

Alcoholic Drinks 2015 Preview for Wine: 3 Key Trends

Mike’s Hard Lemonade Could Be a Hard Sell