Survey time - We ask the questions
3rd February 2010 11:34

At the beginning of last year, the performance of the drinks sector in 2009 was pretty easy to forecast. After all, as 2008 came to a close, it was clear that the prognosis for the following 12 months was not good. One year on, however, and the future is a little tougher to forecast.

So, just-drinks is asking its readers what they think 2010 has in store for our industry.

We've put together a short questionnaire, which will only take a few minutes of your time. Once the responses have been compiled, I will send you the results.

The survey is live now, so please dive in and have your say.

Rest assured that all responses will be treated in the strictest confidence and summary/average results presented.

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Vodkat - Is this problem really an opportunity?
29th January 2010 16:10

Diageo’s legal victory against 22% abv 'vodka look-a-like' Vodkat last week has been hailed as “a major step in the legal protection of the vodka category” by the Gin & Vodka Association (GVA).

Vodkat brand owner Intercontinental Brands (ICB) is still mulling over a possible appeal against the High Court ruling that it was passing Vodkat off as a full-strength vodka, but what will the longer-term knock-on effects be of the Vodkat saga?

The brand sold nearly 9m litres, netting revenues of over GBP50m, in the period from its launch in May 2005 to late 2009 – making it the fastest growing spirits brand in the UK in that timescale.

Diageo and the GVA will argue that much of that growth was spurious, based on the mistaken consumer assumption that they were buying a regular vodka. But, it’s still hard to escape the conclusion that there is demand for low-strength, mixable 'light spirits' like Vodkat.

At a time of unprecedented social concerns over the effects of strong alcohol, and with wine and beer both exploring lower-strength alternatives, is the time ripe to develop a mid-strength mixable category – stronger than wine, but weaker than full-strength spirits?

Given the Vodkat decision, it’s hard at this stage to say what this category will look like, since it appears it can’t even allude to a full-strength product like vodka or, say, gin.

But could a Vodkat-like product – albeit one with a less controversial name – be a hit with consumers? And who might emerge to lead this pioneering new category? A rebranded Vodkat from ICB? Or a brand-new product from a company like Diageo?

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UK out of recession
26th January 2010 15:29

There may be grey skies overhead as winter continues in full swing, but it seems that the sun has finally begun to rise on the UK economy.

Yes, that's right, official figures show that the UK has emerged from more than a year of recession.

But, don't you get all get your hopes up too much. Figures show the economy rose by a mere 0.1% - less than expected - during the final three months of 2009.

Notionally, the country is on the mend.

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Corporate response to Haiti
20th January 2010 15:29

In the wake of the Haiti earthquake last week, estimated to have killed as many as 200,000, just-drinks has published a piece on corporate help for the disaster relief effort.

Drinks firms, alongside companies from many other industries, have flocked to donate time and money to the relief effort. I'm sure there are more of you than we had space to mention here.

While the contribution is largely auxilliary, often in tandem with NGOs, just-drinks applauds those who have made an effort.

It is now commonplace for corporate social responsibility strategies to incorporate disaster planning.

And this goes further than public relations stunts. Global companies have a need to reassure employees and customers in all their business regions that they will respond.

Often private enterprise has a better logistics setup than Government, particularly in poorer countries. The Coca-Cola Co's distribution system is one of the best examples of this.

The key for companies is to work out the best way for them to help, rather than helping to create chaos via isolated relief strategies.

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Industry hits the ground running in 2010
15th January 2010 17:40

Brewery blockades, Heineken's deal for FEMSA, alcohol strategy meetings and a trading update from Pernod Ricard - 2010 has started apace.

Just when we thought January's silent news agenda might require us to concoct some nefarious rumour within our good trade, this week has got 2010 off to a running start.

Heineken surprised us and many others by so swiftly securing a deal for FEMSA.

To be honest, we're a little disappointed with the efficiency and amicable nature of the whole thing. No bidding battle, rumours of family tussles or public war of words, just a reasonably straightforward deal at a price everyone agrees is reasonable. Where's the fun in that?

Still, we've seen a little more drama over at A-B InBev in the last week. After announcing job cuts across Western Europe, the brewer has seen workers in Belgium take managers hostage and is now facing blockades at its two breweries in the country.

We've also had an update from world's second largest wine and spirits producer , Pernod Ricard. Sales are picking up and the Chinese are lapping up Martell stocks, but the US spirits market remains a cause for concern. 

Next week could also be eventful. The World Health Organisation is set to meet to discuss its draft alcohol strategy. A current draft includes a lot of proposals on pricing and is likely to make some waves in the sector.

Wishing you a good weekend.

Chris Mercer, deputy editor.

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