Home » Alcoholic Drinks

240 posts categorized "Alcoholic Drinks"

July 29, 2014

Rum's Image Problem in Chile Leads to Dramatic Decrease in Sales

 

Rum, which has enjoyed a decade of uninterrupted growth in Chile, is no longer a favorite among Chilean consumers. Sales of the drink fell by about 40 percent in volume terms from 2011 to 2013. This dramatic drop was caused by rum's image problem in the country. Essentially, the drink became so popular that consumers are now tired of it. Major manufacturers are fleeing Chile, leaving the rum market to a few local brands and imports.

Watch on Youtube

Problema de imagen del ron en Chile causa dramática caída en ventas

El ron, que ha gozado de una década de crecimiento interrumpido en Chile, dejó de ser un favorito entre los consumidores. El volumen de ventas de esta bebida cayó aproximadamente 40 por ciento entre 2011 y 2013. Esta dramática caída fue causada por el problema de imagen que enfrenta el ron en el país. Fundamentalmente, el trago se volvió tan popular que los consumidores se cansaron de él. Los principales productores están yéndose de Chile, dejando el mercado en manos de algunas marcas locales e importadas.

Ver en Youtube

July 26, 2014

Shifting Power in the Beer Market

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

There is an on-going global economic shift in power from West to East, a phenomenon the beer market began to witness years ago. In 2002, according to Euromonitor International, China overtook the USA to become the leading beer market in terms of volume sales. However, in spite of this achievement, China still has some way to go before it can claim to be the world’s biggest beer market by value.

Following years of mid single-digit to low double-digit volume growth rates, the Chinese market boasted a volume size more than twice that of the USA in 2013. Yet, when it comes to value sales, China is yet to reach the dizzy heights of the USA. In 2013, the Chinese beer market was 79% the value size of the USA beer market in fixed USA dollar exchange rate terms, so is not too far off from overtaking it. In fact, Euromonitor International forecasts that by 2017 China’s beer market will grow by 45% and thus assume the leading position in value sales terms.

Continue reading "Shifting Power in the Beer Market" »

July 23, 2014

China Overtakes the US as the World's Largest Economy

China is set to overtake the US as the world's largest economy in 2014, with a significant impact on consumers and industries. Learn which industries will be the most affected and why by watching this video and downloading Euromonitor's latest whitepaper.

Watch on Youtube

Champagne and Problems Bubbling Beneath the Surface: Post-Recession Sales Decline and Growth in Sparkling Wine

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

View Spiros Malandrakis' profile on LinkedIn

According to Pierre-Emmanuel Taittinger, outspoken president of the eponymous champagne house, "Champagne's stiffest competition comes not from other sparkling wines but from Viagra". If there ever was a sentence encapsulating the category’s inherent contradictions, emotional gravitas and effervescent overconfidence, that would be it.

Reality is unfortunately less lyrical. According to Euromonitor International’s latest research, global champagne volumes declined by more than 1% in 2013 – a relative improvement compared to the moribund performance of 2012 but still nowhere near the heady heights of pre-recessionary exuberance. And while an inverse correlation between Viagra sales and champagne is yet to be established, other sparkling wine’s seemingly unstoppable advance is highlighting the dangers of competition coming from Cava and Prosecco rather than pharmaceutical companies.

Continue reading "Champagne and Problems Bubbling Beneath the Surface: Post-Recession Sales Decline and Growth in Sparkling Wine" »

July 18, 2014

Boom to Struggle: Changing Prospects of Cognac in China

Jeremy_Cunnington0Analyst Insight by Jeremy Cunnington - Senior Alcoholic Drinks Analyst

View Jeremy Cunnington's profile on LinkedIn

Up until 2013, selling cognac in China was considered to be one of the sure fire ways of generating great revenues and profits. Between 2007-2012 volume sales grew by 119% (14.8 million litres), with retail sales up by 186% (RMB31 billion, US$5 billion). Cognac benefitted from its highly prestigious image in China and the Chinese culture of gift-giving to nurture relationships, especially with government officials and other businesses. Both factors boosted the luxury end of the cognac category.  There seemed little doubt that growth would continue.

 

Problems Taking Time to Appear

Even when, in October 2012, the Chinese president, Xi Jinping, announced a clampdown on government extravagance and corruption, in early 2013, cognac producers and distributors were still optimistic that the category would return to healthy growth and last year’s Euromonitor International’s forecast growth of 15% volume CAGR (27 million litres) and 16% value CAGR (RMB53.5 billion) between 2012-2017 reflected those views. The consensus opinion was that cognac’s strong image and long presence in the country would shield the category from the brunt of any negative effect, unlike the less well-established blended Scotch.

However, the anti-extravagance push has had a more deleterious effect on cognac sales than expected and has substantially curbed “gifting” by business executives offering luxury gifts to officials, who increasingly dare not accept them. Nor has it been helped by a slowing economy and investigations into the links between some on-trade establishments and prostitution. 

Continue reading "Boom to Struggle: Changing Prospects of Cognac in China" »

July 17, 2014

Heineken NV: Reaching Out to Africa’s Growing Beer Market

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

Heineken NV is opening a third brewery in Ethiopia in 2014 in an effort to expand in African markets. This is expected to be the world's fastest-growing region in beer volume sales, in percentage terms, in the 2013-2018 period. The Middle East and Africa (MEA) is forecasted to grow, according to Euromonitor International, by a 5% CAGR in total volume sales. The significance of this logistical move derives from the company’s strategy to dominate the continent’s second-most populous market.

Africa’s population size, untapped low-income consumer expenditure, growing incomes and rate of urbanisation are all playing a part in its global significance. It is no surprise that global companies like Heineken are looking to get a stronger foothold in this continent, but they have to contend with incumbent brewers, especially SABMiller Plc.

Demography and Economy in Favour of Africa

As the urban population is expected to grow at 3% CAGR over 2013-2018 in the MEA, and the population is expected to grow by a CAGR of 2%, Heineken is looking towards a growing consumer base. But let’s not forget that growth of a beer consumer base will also depend on the degree of social mobility, and growing accessibility of low-income consumers to beer markets via affordability.    

Source: Euromonitor International from national statistics/UN

Continue reading "Heineken NV: Reaching Out to Africa’s Growing Beer Market" »

July 16, 2014

Hemp Ice Cream and Champagne Popsicles to Target the Mellow and Buzz Mood Demographic

Lianne van den BosAnalyst Insight by Lianne van den Bos - Food Analyst

View Karine Dussimon's profile on LinkedIn

Maturity, health-conscious consumers and a decline in product launches have all contributed to a slowdown in ice cream sales in saturated markets such as the US and the UK. However, whilst Unilever and Nestlé dominate overall sales of ice cream, with a combined global value share of 35%, a somewhat controversial revolution is brewing in the background, targeting the ultimate indulgent experience.  Will hemp-infused ice cream and alcoholic popsicles pioneer the wave of craft ice cream? Euromonitor International takes a closer look at the rise of craft ice cream and how Unilever and Nestlé should take pointers from two university graduate entrepreneurs.

hemp ice cream_small_small.jpgRetail ice cream sales in the US posted a 1% decline in 2013 compared to historic average growth of 2%, primarily due to a drop in product innovation, consumers switching to healthier products outside ice cream, such as Greek yoghurt or fruit, or opting for cheaper formats. The UK paints a somewhat different picture; growth has also slowed down, but still registered a 5% value increase in 2013, compared to 7% in 2012

New Product Launches in Craft Ice Cream

While major manufacturers have been busy trying to launch healthy ice cream formats or jumping on the Greek yoghurt bandwagon, a new wave of entrepreneurs are instead focusing on flavour, excitement and, above all, provocative product innovation. Hemp-infused ice cream by Relaxation Solutions, a subsidiary of Bebida Beverage Company (BeBevCo), is expected to be launched in the US by August this year. The company is partnering up with 80s comedy duo Cheech and Chong to be the face of this ‘’relaxation’’ ice cream, which claims to contain 5mg of hemp per half pint serving. With some states in the US having already legalised recreational marijuana use and more to follow this year, it’s quite the catchy product launch of 2014.

Continue reading "Hemp Ice Cream and Champagne Popsicles to Target the Mellow and Buzz Mood Demographic" »

July 12, 2014

How Affordable is Beer Around the World?

Emi_beerAffordability-v1.1

Download as pdf

Affordability of beer in emerging markets is the key to accessing low-income consumers in low-base markets. Attaining affordability will allow for further expansion in volume sales beyond the pool of middle-income consumers and help offset stagnant or declining volume markets in the developed world.

 

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

July 8, 2014

Strategies for Growth in the Japanese Beer Market

With Hiromi Yamaguchi, Research Analyst

 Beer in Japan has been on a steady decline in volume terms for the past ten years, and beer manufacturers in the country are working against this trend with several strategies. Focusing on the premium beer segment is one successful strategy as Japanese consumers are choosing quality over quantity. Beer manufacturers are also using convenience stores such as 7-Eleven and Lawson as test markets for different promotions and flavors. Finally, the craft beer market in Japan is small but growing, mirroring the expansion of the craft beer market in the US.

Download as an MP3

Subscribe

 RSS Feed

Receive New Posts via Email:

 

Join us on...


View our YouTube Channel Follow Euromonitor on Twitter Become a Fan on Facebook Connect with Euromonitor on LinkedIn




Filter by Category

Filter by Geography

Filter by Industry

Recent Posts

Rum's Image Problem in Chile Leads to Dramatic Decrease in Sales

Problema de imagen del ron en Chile causa dramática caída en ventas

Shifting Power in the Beer Market

China Overtakes the US as the World's Largest Economy

Champagne and Problems Bubbling Beneath the Surface: Post-Recession Sales Decline and Growth in Sparkling Wine

Boom to Struggle: Changing Prospects of Cognac in China

Heineken NV: Reaching Out to Africa’s Growing Beer Market

Hemp Ice Cream and Champagne Popsicles to Target the Mellow and Buzz Mood Demographic

How Affordable is Beer Around the World?

Strategies for Growth in the Japanese Beer Market