DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/fx6dz9/spirits_and) has announced the addition of the "Spirits & Liqueurs Market Report 2012" report to their offering.
The UK's spirits and liqueurs industry is made up of hundreds of different brands and products. Roughly divisible into dark' and white' spirits, the market is dominated by vodka, whiskey, Scotch whisky, brandy, gin and rum. Each category tends to do well among certain specific target groups; vodka, for example, is popular with younger drinkers, while older consumers tend to opt for dark spirits such as rum or Scotch. The long-established spirits marketplace is dominated by a handful of leading companies, rendering it difficult for new players to compete successfully. Customer loyalty is an important feature of the industry, with some people always buying the same brand for decades.
This Key Note Market Report finds that the UK spirits and liqueurs market has grown in value by 28% at current prices between 2007 and 2011. The main spirits categories all increased in value, including the liqueurs category, with the exception of Scotch whisky. Global sales of Scotch are on the increase, however, to such an extent that some of the large beverage companies are investing millions in expanding their distillation facilities. Emerging markets are driving industry growth around the world and across many spirits categories. Demand from the growing middle classes of countries such as India and the People's Republic of China (PRC) is offsetting the impact of stagnating European sales.
Recent years have seen the industry affected by the UK Government's tax escalator, which ensures that tax on alcoholic beverages rises by at least 2% above inflation each year. This, coupled with high commodity prices, has seen prices rise over the review period, just at the time that the recession has caused consumers to cut back on their spending. Most see spirits and liqueurs as luxury products, rendering the fortunes of this sector inextricably linked with the state of the UK's economy.
Lack of consumer confidence, along with high rates of unemployment and reduced consumer spending power, has also contributed to a growing gap between off- and on-trade sales across the whole alcoholic beverages industry. Sales through the off-trade (supermarkets and liquor stores) have increased, while sales through the much more expensive on-trade channels (bars, restaurants and pubs) have suffered. This trend has lowered overall industry value.
Other factors posing challenges to the industry are general health concerns regarding alcohol consumption, notably binge drinking, and the minimum pricing strategy that is likely to be the Government's response to alcohol-related harm. As well as examining recent and current trends, this report looks at the factors likely to impact upon the spirits industry in the near future.
- Bacardi-Martini Ltd
- Beam Inc Uk Ltd
- Brown-Forman Beverages, Europe, Ltd
- Diageo Plc
- The Edrington Group Ltd
- First Drinks Brands Ltd
- Maxxium Uk Ltd
- Pernod Ricard Uk Ltd
- Whyte And Mackay Ltd
For more information visit http://www.researchandmarkets.com/research/fx6dz9/spirits_and
Source: Research and Markets