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May 23, 2015

April 2015 Overview of New Product Launches in Alcoholic Drinks

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

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This monthly summary highlights the most interesting product launches in April, with a focus on the direction the alcoholic drinks industry is taking in terms of innovative developments.

Scent of a Wine

The battle to win wallets, minds and palates in wine is increasingly fought in the realm of communication rather than through intellectual battles over grape varietals or the relative minerality of eponymous vineyards. Robert Parker’s once sanctified scores and reviews are taking a back seat to the collective voice of social media at the same time that the boomer generation passes the baton to gen X and millennial drinkers irreverently reassessing rituals, positioning, occasions and oenological semantics.

Continue reading "April 2015 Overview of New Product Launches in Alcoholic Drinks" »

May 21, 2015

The Lighter Side of Wine and Beer

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

Euromonitor International figures show that volume sales of wine declined marginally in developed markets in 2014, while beer sales were up marginally. Brewers have been trying to boost volume sales in these regions, for example by including female drinkers or millennials in their target consumer group. Wine makers, unlike brewers, have to deal with a relatively less consolidated market category-wise, but, like the brewers, aim to expand their sales to a wider demography. However, there are some niches that both industries can look at to attract attention towards their brands, one of which is low-calorie products.

Exploiting a niche trend – low-calorie wine and beer

Developed markets have been witnessing a shift in consumption away from high-calorie non-alcoholic drinks and food to low-calorie ones. This has been reflected in the decline in per capita daily calorie purchase in markets such as the US, Germany and Canada. Other developed markets have been witnessing a decline in one or the other.

Low-cal-wine

Source: Euromonitor International

Continue reading "The Lighter Side of Wine and Beer" »

May 15, 2015

SAB Miller Enters the UK Craft Beer Market with Meantime Brewing Company Acquisition

 

SAB Miller recently announced its acquisition of London-based Meantime Brewing Company, fitting perfectly with the company’s strategy in Western Europe and the UK of focusing on premium, high-end products. The deal mirrors the 2011 Molson Coors acquisition of Sharp’s brewery, and SAB Miller will be looking for a similar uplift in volumes but it will have to be aware of the image of a multinational player owning a craft brewery.

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May 13, 2015

Hispanic Population Growth Not the Sole Driver of Mexican Beer Imports in the US

Eric PenickaAnalyst Insight by Eric Penicka - Research Associate

Euromonitor International data show premium imported lager in the US experienced volume growth of 4% in 2013, reaching 3.3 billion litres sold, and a five year CAGR of 1%. This comes in contrast to beer’s struggling performance overall, which declined by 2% in 2013, and with a 2008-2013 CAGR of -1%.  Companies with beer portfolios primarily composed of imported lager, as is the case with Constellation Brands, have reaped the benefits of the category’s exceptional performance. In its 2014 annual report, Constellation Brands attributed its astonishing 74% growth in net sales to its beer portfolio, which is almost entirely comprised of Mexican imports. In fact, driving the growth of the entire imported premium lager category are beers coming from south of the US border.

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May 12, 2015

Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

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May 6, 2015

Alcoholic Drinks in 2015: A View From Above: Subdued, Uneven and Precarious

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

View Spiros Malandrakis' profile on LinkedIn

Global total volume growth remains subdued for a second year running and- at merely 0.8% for 2014- is set to be amongst the 3 lowest over the past decade. Beyond the usual Western European patient that ended the year flat lining, the Chinese slowdown – at just 1.2%, this is now the most sobering growth figure coming out of the country since the 90s- and Russia's on-going macro and geopolitical travails- culminating to a nigh apocalyptic decline of 6% for 2014- weight heavily on the global landscape. But as the seemingly unstoppable emerging market engine begins to sputter and stall, North America shifts back into focus with total volume growth for the year at 1%, up from a poor 0.3% in 2013 if still some distance from the exuberance of the past.

Winners and Losers

Geographic diversification- or lack thereof- remains one of the defining factors determining top line success or failure. It is within that context that categories like cognac and vodka suffered disproportionally due to their overreliance on a single market or region- with China and Russia respectively exerting their immense gravitational pull to drag their global growth rates lower.

Continue reading "Alcoholic Drinks in 2015: A View From Above: Subdued, Uneven and Precarious" »

May 5, 2015

New Alcoholic Drinks Research

Brandy-banner

In 2014, total volume growth remained subdued for a second consecutive year at 0.8 percent reaching 252 billion litres, but our newly released research indicates that the industry will grow to 276 billion litres by 2019.

This year, North America shifted back into focus with total volume growth at 1 percent, up from a meagre 0.3 percent in 2013 and China grew 1.2 percent, which is amongst the lowest growth since the 1990s, while Russia’s on-going macro and geopolitical stress has culminated in a decline of 6% in 2014.

Key findings from the research shows:

  • The tradition from white to brown spirits continues as Bourbon, Irish and Japanese whiskeys steal the limelight from scotch with spectacular volume rates of 5, 8 and 7 percent respectively.

  • In beer, craft offerings continue to rise across the globe while imported premium lager, ale and non-alcoholic variants were star performers.

  • Cider enjoyed solid total volume growth of nearly 9 percent globally as Western European core markets take a back seat to growing North American success.

  • Champagne remains challenged in its core Western European market as other sparkling wines capitalise on its demise.

Spiros Malandrakis, Senior Alcoholic Drinks Analyst, says “the seemingly unstoppable emerging market engine is beginning to stall. Geographic diversification—or lack thereof—remains one of the defining factors determining top line success or failure.”

 

May 2, 2015

Molson Coors Strides into India’s Beer Market

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

At first sight it might seem that Molson Coors Brewing Co’s acquisition of Mount Shivalik Industries Ltd is of little relevance to the global beer market. However, the Canadian/American brewer now has a foothold in a key beer market, and one of the world’s most dynamic ones.

Impact of acquisition on Indian market

Molson Coors’s decision to delve into the Indian market is not a bad move, considering its relative size and performance in Asia Pacific. India’s beer market totalled 2.2 billion litres in 2013, with a growth rate of 7% that year, according to Euromonitor International. It is the fourth biggest market in Asia Pacific and is expected to be one of the most dynamic beer markets in the region over the 2013-2018 period, with a forecast 8% volume CAGR.

India-Beer

Source: Euromonitor International

Continue reading "Molson Coors Strides into India’s Beer Market" »

April 21, 2015

Indonesia: Prohibition in Paradise?

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

View Spiros Malandrakis' profile on LinkedIn

The rising spectre of neo-prohibitionary rhetoric and legislation is claiming a fresh casualty. Following the introduction of restrictive policies in a widening number of markets ranging from Turkey to Russia and from advertising restrictions to distribution barriers, the paradisiacal archipelago is joining the ranks of emerging markets falling from -the alcoholic drinks industry’s- grace.

Whereas the latest legislation coming to effect in April 2015 will ban the sales of low abv alcoholic beverages from the throngs of convenience shops and small stores across the country, it is the proposals for a blanket ban on all alcohol sales currently put forward by Islamic parties that sound the most ominous.

Continue reading "Indonesia: Prohibition in Paradise?" »

April 19, 2015

Collaboration Between Fashion and Spirits at a Tipping Point?

Spiros_MalandrakisAnalyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst

View Spiros Malandrakis' profile on LinkedIn

Oscar Wilde had once famously, and most provocatively, quipped: “Fashion is a form of ugliness so intolerable that we have to alter it every six months.” And therein lies its beauty too, one might add. Intriguingly, this is also increasingly the case with alcoholic drinks.

While trend cycles tend to last longer than 6 months it is becoming an indisputable fact that drinking patterns evolve much faster and more frequently than they used to. These changes are not due to some inexplicable, rapid biological mutation of regional or global palates.

The on-going shift from vodka to whiskeys - or the proliferation of bourbon within that whiskey stable in terms of current market dynamics- should hence not be analysed only through the simplistic perspective of flavour profiles or even macroeconomic developments.

Continue reading "Collaboration Between Fashion and Spirits at a Tipping Point?" »

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Recent Posts

April 2015 Overview of New Product Launches in Alcoholic Drinks

The Lighter Side of Wine and Beer

SAB Miller Enters the UK Craft Beer Market with Meantime Brewing Company Acquisition

Hispanic Population Growth Not the Sole Driver of Mexican Beer Imports in the US

Brazil's Business Environment: Consumption in Economic Slowdown

Alcoholic Drinks in 2015: A View From Above: Subdued, Uneven and Precarious

New Alcoholic Drinks Research

Molson Coors Strides into India’s Beer Market

Indonesia: Prohibition in Paradise?

Collaboration Between Fashion and Spirits at a Tipping Point?