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A FIRST FOR
LEADING DRINKS COMPANY
First Drinks Launches Market Report 2011
First Drinks, leading supplier of
premium spirits in the UK, has launched
the inaugural First Drinks Market Report
2011 which takes an in-depth look at the
UK spirits and Champagne categories.
Demonstrating the company’s authority,
expertise and insight, the report
provides statistics, reviews performance
and identifies trends in the off and
on-trades.
The first of its kind, the First Drinks
Market Report covers the key categories
of Whisky, Brandy & Cognac, Rum, Vodka,
Gin, Liqueurs and Champagne using data
from a range of credible sources. In
light of the current challenging times,
the report highlights the continued role
of premium brands, the importance of
innovation, insight and working closely
with customers.
Key findings of the report include:
- Premiumisation has been a real
driver of value and volume growth
for the UK spirits industry -
premium spirits outperform the
market, across both the on and
off-trade
- Over the past five years there
has been a switch in consumption
from the on-premise to the take home
experience – the off-trade now
accounts for 80% of spirit volume
sales
- Whilst consumers are going out
less, they are spending more when
they do go out – hence the arrival
of the Weekend Millionaire
- Spend on cocktails remains key
with a 36% increase in outlets
selling cocktails
- Spirits have had a higher share
of weekend sales than any other
category in the past year
- The impact of special occasions
will continue to be crucial for the
on-trade as evidenced by the Royal
Wedding where sales increased by 13%
- Innovation of the spirits
category will play a key role in the
future, particularly the development
of Ready to Drink (RTDs) and smaller
size formats
- Smaller bottle formats have made
premium spirits more accessible to
consumers
- Beer Wine and Spirits (BWS)
gifting, valued at £572m, is an area
which needs to be exploited more by
the off-trade – Malt Whisky, Cognac
and Vodka are the main gifting
categories
- Online shopping for spirits is a
real growth opportunity for
retailers. Just 36% of online
shoppers buy BWS compared to 89% in
the general population
Chris Mason, Managing Director of
First Drinks comments: “The First Drinks
Market Report represents a significant
step change for the First Drinks
business. The report is a demonstration
of our authority in the market and
extensive understanding of the sectors
we operate in. As one of the major
spirit brand building companies in the
UK and a significant player within
premium spirits, we believe that we are
well qualified to give our take on the
key trends and dynamics within the
market and how we believe the categories
will develop and evolve over the next
year or so.
"Despite this report being published
during a very challenging time for the
economy, it clearly demonstrates the
continued importance of premiumisation,
best practice and working closely with
customers. If these key trends are
pursued, we can ensure the exciting
evolution of the drinks industry."
The launch of the First Drinks Market
Report comes in a year that the company
announced a £55m investment package for
its portfolio. First Drinks is a
significant player within premium
spirits (number one in the segment of
£20 and above in the off-trade),
particularly prominent for Malt, Cognac
and Premium White Spirits. The company
has also moved up to the number two
spirits supplier to the grocery channel,
with a 9.5% share of the market.
Overall, the company is outperforming
the UK market and growing in all trade
channels including the on-trade and
impulse sectors.
Continued heavyweight investment has
been confirmed for the company’s core
brands which include Glenfiddich,
Grant’s, Hendrick’s, The Balvenie,
Sailor Jerry, Tullamore Dew, Russian
Standard, Disaronno, Tia Maria and
Cointreau.
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