Growth Strategies in Alcoholic Drinks: Emerging trends in beer, wine and spirits

SUMMARY

The global alcoholic drinks market is undergoing fundamental changes that are redefining the way manufacturers develop, produce and market their products. Consumers are choosing to trade up to better quality products, whilst moderating consumption. At the same time, changes in demographics are creating new opportunities for alcoholic drinks manufacturers. ‘Growth Strategies in Alcoholic Drinks: Emerging trends in beer, wine and spirits’ is a new management report published by Business Insights analyzing all product development and product introductions in the global alcoholic drinks market between 2004 and 2006. It examines the emerging trends and sets these against changing market conditions to identify those that will become mainstream in the future. Create more effective new product development strategies and increase returns on investment with this new report.

TABLE OF CONTENTS

Executive Summary

• Market drivers and issues
• Growth opportunities in alcoholic drinks
• Overview of NPD and innovation in alcoholic drinks
• Key trends in the alcoholic drinks market
• Conclusions

Chapter 1 Market drivers and issues

• Summary
• Introduction
• Social and cultural change
• Population shifts
  • The LDA-24 age segment
  • The 25-49 age segment
  • Seniors (50+)
• The threat of private label
• Tension between premiumization and cheaper private labels
  • Private label positioning
• Proliferation of product portfolios
• InBev
• Anheuser-Busch
• Advertising alcoholic drinks
• Binge drinking
• Legislation and self-regulation
  • New developments in advertising regulation and self-regulation
  • Self-regulation
• Advertising moving forward
• Linking up with sports
• Advertising to young adults
• ‘Health’ claims and advertising

Chapter 2 Growth opportunities in alcoholic drinks

• Summary
• Introduction
• Alcoholic drinks market value
• Alcoholic drinks market value by country
• Alcoholic drinks market value by category
  • Beer, cider and FABs
  • Spirits
  • Wine
• Alcoholic drinks market volume
• Alcoholic drinks market volume by country
• Alcoholic drinks market volume by category
  • Beer, cider and FABs
  • Spirits
  • Wine
• Future potential

Chapter 3 Innovation and NPD in alcoholic

• drinks
• Summary
• Introduction
• Growth of alcoholic drinks in terms of new product launches
• Share of alcoholic drinks launched by category
• Category analysis
• Alcohol beverage substitutes and low alcohol
• Beer and ale
  • Emerging markets
  • Premiumization
  • Health
• Liqueurs and other alcoholic drinks
• Wine and wine coolers
  • Health
  • Organic
  • Premiumization
• Regional analysis
• Europe
• North America
• Asia-Pacific
• Innovative alcoholic drinks
• Innovation in formulation
  • Functional formulation
  • Energy
  • Unusual and exotic flavor combinations
• Innovation in packaging
  • Aesthetic
  • Green
  • Functional
  • Technical
• Innovation by category
• Liqueurs and other alcoholic drinks
• Beer and ale
• Innovation by type of manufacturer
• Innovative manufacturers
• Product tags on alcoholic drinks
• Flavor trends

Chapter 4 Key trends in the alcoholic drinks

• market
• Summary
• Introduction
• Health
• Natural and organic
• Additive free
• Functional
• Low calorie and low carbohydrate
• Energy
• Premiumization
• Luxury and indulgence
• Purity of ingredients
• Gourmet, rarity and exclusivity
• Food trends
• Repertoire drinking
• Fashion and alcohol
• Packaging and convenience
• Rarity and exclusivity
• Environmentally friendly/recycling trend
• Protection of integrity of ingredients
• Easy to open/portable
• Recreating the on-trade experience at home
• Straight to fridge

Chapter 5 Conclusions

• Summary
• Introduction
• Market influences
• Population shifts
• Changes in regulations
• Health concerns
• Value growth outstripping volume growth in mature markets
• Market opportunities
• Premiumization
• Health
• Convenience
• Emerging markets
• Index

List of Figures

• Figure 1.1: Importance of consumer age groups for alcoholic drinks marketers over the next 5 years
• Figure 1.2: Female positioning, Yazi ginger flavored vodka
• Figure 1.3: ‘Going out’ occasions represent 93% of young adults’ alcohol drinking occasions
• Figure 1.4: Glenmorangie Limited Edition, Vintage 1987
• Figure 1.5: Growth potential of alcoholic drinks brands over the next 5 years
• Figure 1.6: InBev’s diversified product portfolio
• Figure 1.7: Anheuser-Busch’s diversified product portfolio
• Figure 1.8: The level of impact certain threats will have on alcoholic drinks NPD over the next 5 years
• Figure 2.9: Le Certeza Tequila
• Figure 2.10: Vodka 14, ‘pure’ positioning
• Figure 2.11: Regions that will provide the most sales growth potential for alcoholic drinks manufacturers over the next 5 years
• Figure 3.12: % growth of alcoholic drinks in terms of growth of share of new product launches, 2004-2006
• Figure 3.13: Share of alcoholic drink launches by category, 2004-2006
• Figure 3.14: Suntory’s Chu-Hi Calorie and Mercian’s Honshibori Chu-Hi
• Figure 3.15: Global brands introduced to the emerging Russian market
• Figure 3.16: Beer NPD, broadening appeal in mature markets
• Figure 3.17: SAB Miller’s Micky Stinger
• Figure 3.18: Healthier beer positioning
• Figure 3.19: Drinking less but of the best
• Figure 3.20: Premiumization, the importance of message and packaging
• Figure 3.21: % share of alcoholic drinks launched in each region, 2004-2006
• Figure 3.22: Organic wine introductions
• Figure 3.23: Supermarket private label brands in growing in Europe
• Figure 3.24: Sparks Plus drinks
• Figure 3.25: Healthier alcoholic drinks, launched in Japan 2006
• Figure 3.26: Healthy beer formulations launched in the US and Europe
• Figure 3.27: Energy formulations, launched in the US and Brazil
• Figure 3.28: Formulation; unusual and exotic flavour combinations
• Figure 3.29: Creating collectable packaging
• Figure 3.30: Environmentally friendly packaging
• Figure 3.31: Functional, convenient packaging
• Figure 3.32: Technical innovation in packaging - cooling systems
• Figure 3.33: Innovation in alcoholic drinks, 2003-2006
• Figure 3.34: Innovation in liqueurs and other alcoholic drinks; novelty packaging
• Figure 3.35: Types of companies that have the most influence on innovation in alcoholic drinks now and will have over the next 5 years
• Figure 3.36: Diageo - leading with product innovation
• Figure 4.37: Importance of health features in alcoholics drinks NPD over the next 5 years
• Figure 4.38: Organic product offers distributed in the UK by Vintage Roots
• Figure 4.39: Pure: Hawaii Sea Spirits, New Ocean Vodka
• Figure 4.40: Healthy formulations
• Figure 4.41: Low calorie and low carbohydrate alcoholic drinks
• Figure 4.42: Energy drinks targeted at young male consumers
• Figure 4.43: The importance of premium positionings in alcoholic drinks NPD over the next 5 years
• Figure 4.44: EZE ready-to-drink cocktails
• Figure 4.45: Pure positioning
• Figure 4.46: Premiumization; food and alcohol
• Figure 4.47: Premium sample sets
• Figure 4.48: Premiumization; fashion and alcohol
• Figure 4.49: Premium offers driven by popular culture
• Figure 4.50: First ‘Urban Wine’ Brand
• Figure 4.51: Importance of packaging features in alcoholics drinks NPD over the next 5 years
• Figure 4.52: Rarity and exclusivity, conveyed through packaging
• Figure 4.53: Beer cooling system
• Figure 4.54: Portable packaging
• Figure 4.55: Premiumization; home centered quality
• Figure 4.56: Fridge packs

List of Tables

• Table 1.1: Adult population by age group, m, Europe & the US, 2000-2010 18
• Table 1.2: Seniors' alcoholic drinks market value and volume, liters of pure alcohol, m, Europe & US, 2000-2010 23
• Table 1.3: Private label penetration and sales, by country, $m, Europe & US, 2001-2011 25
• Table 1.4: European and US private label drinks market, $m, 2001-2011 27
• Table 2.5: Alcoholic drinks market value, $m, Europe & US, 2006-2010 49
• Table 2.6: Alcoholic drinks market value, $m, by category, Europe & US, 2006-2010 51
• Table 2.7: Alcoholic drinks market value by type, $m, Europe and US, 2006-2010 55
• Table 2.8: Alcoholic drinks market volume, liters, m, Europe & US, 2006-2010 61
• Table 2.9: Alcoholic drinks market volume, liters, m by category, Europe & US, 2006-2010 63
• Table 2.10: Alcoholic drinks market volume by category, litres m, Europe & US, 2006-2010 66
• Table 3.11: % of types of innovation within innovative alcoholic drinks products, 2003-2006
• Table 3.12: Top 10 innovative alcoholic drinks manufacturers
• Table 3.13: Top 20 product tags on new product packaging - % of all alcoholic drinks launched, 2004-2006
• Table 3.14: Top 20 flavors of new product introductions - % of all alcoholic drinks launched, 2004-2006