Whiskies - UK - August 2006

TABLE OF CONTENTS

• Introduction and Abbreviations
• Definitions
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Executive Summary
• A market in need of a pick-me-up
• Malts, deluxe and imported whiskies growing
• A consolidated market
• Relaunches and brand variants characterise NPD
• Imported whisky dominates advertising
• Off-trade sales take a larger share
• Scotch and imported whiskies appeal to a very different consumer base
• A challenging future
• Market Drivers
• Age and image
  • Figure 1: Trends and projections in UK population, by age group, 2001-11
• The economic climate favours higher expenditure
  • Figure 2: PDI and consumer expenditure, at constant 2001 prices, 2001-11
• No change in duty on whisky raises spirits
• Gift purchasing and seasonal demand
• The impact of health and safety issues
• Drinking habits and drinking repertoire
  • Figure 3: UK consumer expenditure on alcohol, 1995 and 2005
  • Figure 4: Drinks most likely to be taken at home and in the pub, 2003 and 2005
• The regional dimension
• Market Size and Trends
• A market in the doldrums
  • Figure 5: UK retail sales of whiskies, by volume and value, 2001-06
• Performance varies across market sectors
  • Figure 6: UK retail sales of whiskies, by type and volume, 2001-05
  • Figure 7: UK retail sales of whiskies, by type and value, 2001-05
• Traditional varieties losing out
• Market Segmentation
• Blended Scotch whisky knocked back
  • Figure 8: UK retail sales of blended whiskies, by volume and value, 2001-06
• Malt Scotch whisky surges forward
  • Figure 9: UK retail sales of malt whiskies, by volume and value, 2001-06
• Deluxe whiskies on a roll
  • Figure 10: UK retail sales of deluxe whiskies, by volume and value, 2001-06
• Imported whiskies flood in
  • Figure 11: UK retail sales of imported whiskies, by volume and value, 2001-06
• The Supply Structure
• Bell's and Grouse scrap it out
  • Figure 12: Selected UK whisky brands, by volume and value, 2005
• Jack Daniel's and Jameson enjoy on-trade success
• Companies and brands
• Bacardi Brown-Forman
• Burn Stewart
• Bruichladdich Distillery Company Limited
• Campari Group
• Diageo
• Edrington Group
• William Grant & Son
• Fortune Brands
• Glenmorangie
• Loch Lomond Distillers
• Maxxium
• Morrison Bowmore Distillers Limited
• Pernod Ricard
• Whyte and Mackay
• Independent bottlers
• Own-label producers
• New Product Development
• Packaging
• Premiumisation
• Brand extensions
• New product launches
• Advertising and Promotion
• Above the line
  • Figure 13: Main monitored media advertising expenditure on whiskies, 2001-06
  • Figure 14: UK main monitored media advertising expenditure on major whisky brands, 2001-05
• Major campaigns
• Jack Daniel's on a roll
• Jameson aims for youth appeal
• Pre-Christmas activity key for The Famous Grouse
• Diageo backs Bell's
• Fortune favours the new
• Glenfiddich gets sociable
• The Balvenie Man targets malt enthusiasts
• Below the line
• Links with sport continue to prove popular
• Music makes a mark
• Websites keep enthusiasts up to date
• Distribution
• Shift towards the off-trade as grocery multiples gain share
  • Figure 15: UK distribution of whiskies, by volume, trade sector and outlet type, 2003 and 2005
• On-trade popularity boosts imported value sales
  • Figure 16: UK distribution of whiskies, by type, by volume and value, 2005
• The Consumer
• Weight of consumption
  • Figure 17: Frequency of drinking whisky in the last 12 months, by type, 2001-05
• A dying breed
  • Figure 18: Consumption of whisky in the last 12 months, by age group, 2001-05
• The choice of the 'sophisticated gentleman'
• Indulgence in third age
• The Scotch heritage
• Consumption occasions
  • Figure 19: Statements describing whisky drinking habits, May 2006
• A drink for special occasions
• Ingrained perceptions
• Attitudes harden in the thirties
• Potential in the North
• The Consumer -- Detailed Demographics
  • Figure 20: Frequency of drinking Scotch whisky (other than malt) in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel's Special Groups, 2005
  • Figure 21: Frequency of drinking malt whisky in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel's Special Groups, 2005
  • Figure 22: Frequency of drinking other whisky and bourbon in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel's Special Groups, 2005
  • Figure 23: Statements describing whisky drinking habits, by gender, age, socio-economic group, marital status, lifestage, presence of children, working status, ITV region, ACORN group, technology usage, daily newspaper readership, commercial TV viewing, s
• Future and Forecast
• A challenge on two fronts
• Mixing it up
• New combinations represent growth potential
• Premium varieties to maintain growth
• Forecast
  • Figure 30: Forecast of the UK retail whisky market, by sector, 2006-11
  • Figure 31: Forecast of the whiskey market in UK, by sector and volume, 2006-11
• Factors used in the forecast
• Imported whiskies
• Blended, deluxe and malt whiskies