Worldwide Business Information and Market Reports
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Editor: Emily Pattullo
ISBN:
1-84168-218-7
This report covers: dark spirits, scotch whisky, whiskey, cognac, brandy, bourbon, dark rum, liqueurs
Companies and brands covered include: Brewers & Licensed Retailers Association, BLRA, European Confederation of Spirits Producers, CEPS, Scotch Whisky Association, SWA, Wine and Spirit Association, WSA, Scotch Malt Whisky Association, Malt Distillers Association, Gin and Vodka Association, Irish Cream Liqueu Producers Association, Portman group.Allied Domecq, Ballantine's Scotch, Beefeater Gin, Kahlua, Sauza tequila, Courvoisier cognac, Maker's Mark, Tia Maria, Diageo, Guinness, Grand Metropolitan, IDV, JBB (Greater Europe), Jim Beam Brands, Whyte & Mackay, The Claymore, MacKinlay's, Scots Club, Invergordon, Seagram Distillers, Captain Morgan, Martell, Godiva, Chivas Regal, Glenlivet, Four Roses, VO Canadian, United Distillers & Vintners (ER), UDV, Baileys, Johnnie Walker, Bell's, Jack Daniel's, Gordon's, Cuervo, Malibu, Tanqueray, Smirnoff, William Grant & Sons, Glenfiddich, The Balvenie, Clan Macgregor, Grant's, Bacardi-Martini, First Drinks Brand, Maxxium UK, Pernod-Ricard, Remy UK
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|
Executive Summary |
|
|
| Report coverage |
| Market Sectors |
| Dark Spirits |
| Scotch Whisky |
| Cognac and Brandy |
| Non-Scotch Whiskey |
| Dark Rum |
| Liqueurs |
| MARKET TRENDS |
| Drinking Patterns |
| Table 1: Average Weekly Household Expenditure on Alcoholic Beverages by Type of Beverage (£), 1998/1999 and 1999/2000 |
| Growth of the Off-Trade |
| Cross-Channel Smuggling |
| Abolition of Duty Free |
| MARKET POSITION |
| The UK |
| Table 2: Consumer Expenditure on Spirits as a Proportion of Total Expenditure on Alcoholic Drinks ( percent), 1995-2000 |
| Liqueurs Market |
| Table 3: Market Shares in the UK Spirits and Liqueurs Market by Product Type ( percent), 1998-2000 |
| Overseas |
| KEY TRADE ASSOCIATIONS |
| Brewers & Licensed Retailers Association |
| European Confederation of Spirits Producers |
| Association |
| Wine and Spirit Association |
| Other Associations |
|
|
| THE TOTAL MARKET |
| By Value |
| (£m at rsp), 1996-2000 |
| By Volume |
| Table 5: The Production of Spirits by Volume (million litres), 1996-2000 |
| MARKET SECTORS |
| 1996-2000 |
| Dark Spirits |
| Scotch Whisky |
| Table 7: The UK Scotch Whisky Market by Value at Current Prices (£m at rsp and percent), 1996-2000 |
| Cognac and Brandy |
| Table 8: The UK Cognac and Brandy Market by Value at Current Prices (£m at rsp and percent), 1996-2000 |
| Non-Scotch Whiskey |
| Table 9: The UK Non-Scotch Whiskey Market by Value at Current Prices (£m at rsp and percent), 1996-2000 |
| Dark Rum |
| Table 10: The UK Dark Rum Market by Value at Current Prices (£m at rsp and percent), 1996-2000 |
| Liqueurs |
| Table 11: The UK Liqueurs Market by Value at Current Prices (£m at rsp and percent), 1996-2000 |
| OVERSEAS TRADE |
| Exports and Imports |
| Table 12: Imports and Exports of Spirits and Liqueurs (£m), 2000 |
| Exports of Scotch Whisky |
| Table 13: Major Export Markets for Scotch Whisky by Value (£m), 1999-2000 |
|
|
| RECENT HISTORY |
| Number of Companies |
| Table 14: Number of VAT-Based Enterprises Engaged in the Manufacture of Distilled Potable Alcoholic Beverages by Turnover Sizeband (£000), 2000 |
| EMPLOYMENT |
| REGIONAL VARIATIONS IN THE MARKETPLACE |
| DISTRIBUTION |
| Retail Distribution |
| Table 16: Retail Distribution of Dark Spirits and Liqueurs by Value and Volume ( percent), 2000 |
| Pubs and Licensed Clubs |
| Table 17: Sales of Alcoholic Drinks through Pubs by Type of Drink by Value (£m and percent), 2000 |
| The Take-Home Trade |
| Table 18: Take-Home Sales of Alcoholic Drinks by Type of Drink by Value (£m), 1999 and 2000 |
| MARKET? |
| LEGISLATION |
|
|
| THE MARKETPLACE |
| MARKET LEADERS |
| Allied Domecq PLC |
| Diageo PLC |
| JBB (Greater Europe) PLC |
| Seagram Distillers PLC |
| Vintners (ER) Ltd |
| Table 19: Sales and Volume Growth of Guinness UDV Global Priority Brands (million cases and percent), 1999/2000 |
| William Grant & Sons Ltd |
| Other Companies |
| Bacardi-Martini Ltd |
| First Drinks Brands Ltd |
| Maxxium UK Ltd |
| Pernod-Ricard SA |
| Remy UK Ltd |
| OUTSIDE SUPPLIERS |
| Ingredients |
| Packaging and Labelling |
| Wholesalers |
| PROMOTION |
| Advertising Expenditure |
| Table 20: Main Media Advertising Expenditure on Dark Spirits and Liqueurs (£000), Years to March 2000 and 2001 |
| Exhibitions |
| Exhibition and Congress |
| The International Food and Drink Exhibition |
| London International Wine and Spirits Fair |
| Vinexpo |
| Worldwide Food Expo |
| Other Trade Fairs |
|
|
| INTRODUCTION |
| RESEARCH FINDINGS |
| Table 21: Penetration of Leading Dark Spirits and Liqueurs Brands by Sex ( percent of adults), 2001 |
| Table 22: Penetration of Leading Brands of Scotch Whisky by Age and Social Grade ( percent of adults), 2001 |
| Whiskies and Liqueurs |
| Table 23: Penetration of Leading Whiskey and Liqueurs Brands by Age and Social Grade ( percent of adults), 2001 |
| Other Dark Spirits |
| COMPANIES BRANDS |
| Allied Domecq PLC |
| The Drambuie Company |
| and Vintners Ltd |
| Maxiuum |
| Pernod-Ricard SA |
| Seagram Distillers PLC |
| William Grand & Sons Ltd |
| BRAND ACTIVITY |
| Allied Domecq PLC |
| Guinness United Distillers & Vintners Ltd |
| Maxxium UK Ltd |
| William Grant & Sons Ltd |
| BRAND ADVERTISING |
| Table 24: Main Media Advertising Expenditure for Major Dark Spirits and Liqueurs Brands (£000), Years to March 2000 and 2001 |
| Threats |
| Strengths |
| Weaknesses |
| Opportunities |
| Threats |
|
|
| ALCOHOL CONSUMPTION |
| CONSUMER PENETRATION |
| Table 25: Penetration of Spirits by Product Type ( percent of adults), 1998-2000 |
| Scotch Whisky |
| Table 26: Penetration of Scotch, Malt and Non-Scotch Whiskies by Sex, Age and Social Grade ( percent of adults), 2000 |
| Brandy and Rum |
| Table 27: Penetration of Brandy and Dark and Golden Rum by Sex, Age and Social Grade ( percent of adults), 2000 |
| Other Spirits and Liqueurs |
| Table 28: Penetration of Other Spirits and Liqueurs by Sex, Age and Social Grade ( percent of adults), 2000 |
| REGIONAL VARIATIONS |
| Table 29: Penetration of Scotch Whisky, Brandy, Rum and Liqueurs by Region ( percent of adults), 2000 |
|
|
| DEVELOPMENTS |
| OVER RUM |
| OWN-LABEL SALES |
| REFORM OF THE LICENSING LAWS |
| THE PORTMAN GROUP CAMPAIGN |
| THE ROLE OF THE INTERNET |
|
|
| MARKET SIZE |
| MAJOR TRENDS |
| Declining Spirit Sales in the US |
| Japanese Imports of Scotch Whisky |
| Exports of Scotch Whisky to India |
| The Move Towards Premium Drinks |
| Growth in Irish Whiskey |
| Flavoured Rums |
| Corporate Developments |
| CONSUMER BEHAVIOUR |
| Eastern Europe |
| Western Europe |
| The Far East |
| The US |
| THE FUTURE |
|
|
| INTRODUCTION |
| FORECASTS 2001 TO 2005 |
| Table 30: The Forecast UK Spirits and Liqueurs Market at Current Prices by Value (£m), 2001-2005 |
| White Spirits |
| Liqueurs |
| Dark Spirits |
| MARKET GROWTH |
| Figure 1: The UK Dark Spirits and Liqueurs Market by Value at Current Prices (£m at rsp), 1996-2005 |
| FUTURE TRENDS |
| Trends |
| Table 31: Age Profile of the UK Population (000), 1998, 2001 and 2006 |
| Share of Mouth |
| The Take-Home Trade |
| Further Consolidation |
|
|
| Allied Domecq PLC |
| Diageo PLC |
| JBB (Greater Europe) PLC |
| Seagram Distillers PLC |
| Vintners (ER) Ltd |
| William Grant & Sons Ltd |
|
|
|
|
| Associations |
| Publications |
| Directories |
| General Sources |
| Sources |
| Government Publications |
| Other Sources |
|
Understanding TGI Data |
| Penetration |
| Social Grade |
| Standard Region |
|
Key Note Research |
|
The Key Note Range of Reports |
Key Note estimates that the UK market for dark spirits and liqueurs reached £3.69bn in 2000, having risen by 3.9 percent from the previous year. Between 1996 and 2000, the dark spirits market grew by 10.2 percent. This has coincided with an increase in the white spirits and liqueurs share of the market. The market for dark spirits and liqueurs received a boost with the advent of the Millennium, with a corresponding rise in sales during the latter part of 1999, although growth has been more modest since.
The dark spirits and liqueurs market, as described in this report, consists of several sectors. In the dark spirits sector, subsectors include Scotch whisky, Cognac and brandy, non-Scotch whiskey and dark rum. Whisky matured and distilled in Scotland is known as Scotch whisky while whiskies from any other part of the world come under the classification of non-Scotch whiskey.
Like the white spirits market, the dark spirits market is facing increasing pressure from other sectors of the alcoholic drinks market. Wine, in particular, has performed exceptionally well in recent years, and the popularity of premium-packaged spirits (PPS) has also increased their share of the overall market, often at the expense of more traditional drinks such as Scotch whisky and brandy. Scotch whisky, however, remains the largest market sector.
Sales of spirits and liqueurs have traditionally been biased towards the on-trade, although the take-home trade has increased in importance during recent years. However, owing to higher prices, the take-home trade has made most of its recent gains in volume, rather than by value. The growing power of the major supermarket groups has led to price discounting in the sector and this has further hampered market growth.
Two large companies, Diageo PLC and Allied Domecq PLC, dominate the dark spirits and liqueurs market. Both companies have recently disposed of other business interests, and are now positioning themselves as international drinks companies, focusing upon a number of key brands. Elsewhere, a number of small, independent distillers exist, especially within the Scotch whisky sector, although their number is in decline.
Scotch whisky remains one of the UK's largest exports. Exports are now starting to recover again, having been hit particularly hard by the recent currency crisis that swept the Far East economies.
The market for dark spirits and liqueurs is likely to experience marginal growth between 2001 and 2005, although most of this growth will come from the liqueurs sector. The market for dark spirits has a mature consumer profile and many sectors have been slow to innovate, thereby failing to attract younger drinkers. There will also be increasing competition from other alcoholic drinks, eroding the sector's share of the market even further.
Text © 2001 Key Note
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© 2001 www.the-list.co.uk Ariadne
Last updated by Duncan Nottage 5th August 2001