Category Focus: Beer, wine and spirits

While the overall alcohol category grew by 4.2% to £8.4b in the year to 15 June 2008, cider saw sales up by 27% and wine grew by 7.3%.

The increase in wine was due to higher spend per head among purchasers, while cider's growth was driven by an increase in shopper numbers, TNS said.

The BWS sector still enjoys great market penetration, with 92% of households in Great Britain purchasing alcohol during the year. Each household spends more than £350 a year on alcohol.

Beer

Alex Bandini, client manager at TNS Worldpanel, said: “In volume terms, beer is the dominant sector of the market. However, price positioning in the off trade means that its value share is somewhat smaller.

“The category has seen sales slow this year in value terms, and flat in volume. Volume per trip continues to increase as retailers offer ever larger deals on the category.

“The lack of Home Nations participation in Euro 2008 may also have had an impact, although this information will not all be covered by the data currently available.”

Wine

Nearly 18 million of Britain's 24.8 million households purchased wine to take home this year, meaning that more shoppers buy wine than any other alcohol type, says TNS.

These shoppers buy wine on average 22 times each per year, equivalent to once every two-and-a-half weeks.

Growth has been driven by shoppers buying more often, in greater quantities and at a higher price. But the average price paid is still equivalent to less than £4 per 75cl bottle.

Spirits

Spirits are in growth, showing a year-on-year increase of 2.8%. But this is behind the growth of the alcohol category as a whole.

Key increases have come from rum, vodka and blended whisky, but brandy, Cognac and gin all suffered sales declines this year.

Bandini said: “A budget increase of 55p duty per bottle on spirits may well affect the pricing of the category over the coming year. It remains to be seen how this will affect the shopper response at a time when shoppers are already feeling the pinch.”

Value of sales and percentage change
52 weeks to 15 June 2008

Total Alcohol £8.4b +4.2%
Wine £3.3b +7.3%
Spirits £2.2b +2.8%
Beer £1.8b -1.4%
Cider £0.4b +26.9%
Sparkling wine £0.4b +6.2%
Fortified wine £0.2b -2.2%
FABs* £0.1b -12.4%

Source: TNS Worldpanel

Market share by value

Total Alcohol 100%
Wine 39.8%
Spirits 25.8%
Beer 22%
Cider 4.4%
Sparkling Wine 4.2%
Fortified Wine 2.4%
FABs* 1.3%

Source: TNS Worldpanel
*Flavoured Alcoholic Beverages

Top 10 BWS brands by value
1. Stella
2. Carlsberg
3. Hardys
4. Carling
5. Gallo
6. Foster's
7. Blossom Hill
8. Smirnoff
9. Famous Grouse
10. Baileys

Source: TNS Worldpanel