Take-Home Trade Market Report

Executive Summary

Key Note estimates that the UK take-home trade was worth £15.48bn in 2010, after rising by 4% on 2009. Since 2006, market value has increased by 13.5%, indicating that the industry has enjoyed relatively steady growth during the 5-year review period despite the economic downturn.

Many people are now actively choosing to spend time at home instead of going out in order to save money. This has benefitted the take-home trade, which has seen sales increase throughout the recession — something that has proved rare in UK industry over the past few years.

The last 5 years has seen multiple retailers become increasingly dominant in a number of areas, including the sale of take-home alcohol. The ‘big four’ supermarkets — Tesco, ASDA, Sainsbury’s and Morrisons — have gained a large portion of market share and are likely to continue to capitalise on their dominance. Other multiple retails, such as Marks & Spencer (M&S) and the Co-operative (Co-op), have also seen their share of the market increase in recent years. However, the supermarkets’ dominance has negatively impacted trade in off-licences, particularly those that are devoted solely to the sale of alcohol. Many national off-licence chains have also encountered financial difficulties or gone out of business, e.g. Threshers and Unwins. Another popular off-licence chain, Oddbins, has also suffered poor sales in recent years and now only has a handful of outlets in operation in the UK.

The next 4 years should see sales of alcohol buoyed by a number of major UK events. For example, in April 2011, the Royal wedding will be held and is likely to provide the take-home trade with a small but noticeable increase in sales, particularly in the champagne sector. In the following year, the take-home trade is expected to receive an even larger boost when London hosts the 2012 Olympic Games. Finally, in 2014, the FIFA World Cup, which is due to be held in Brazil, will also drive sales, as football events are historically beneficial to sales of take-home alcohol, especially if one of the home nations performs well in the competition.

In the future, the off-trade is expected to take a larger portion of market share from the on-trade. This is principally because prices in the on-trade are likely to increase faster, particularly if inflation continues to stay high and alcohol duty rises, thus causing many consumers to buy take-home alcohol instead. Currently, take-home sales of wine exceed sales in the on-trade wine market. It is possible that a similar trend may also occur in the beer market, particularly if prices increase dramatically in the future.

All in all, the take-home market is expected to continue to grow over the next 5 years, despite the number of companies in the industry reducing, and, by 2015, the take-home trade is forecast to be worth approximately £17.48bn.

Table of contents

Executive Summary
Market Definition
REPORT COVERAGE
MARKET SECTORS
By Type of Drink
By Type of Retail Outlet
MARKET TRENDS
The Dominance of the Supermarkets
More Choice for the Consumer
Binge-Drinking and its Health Implications
Fashionable Drinks and Taste Trends
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
Household Disposable Income
MARKET POSITION
The UK
Overseas
Market Size
THE TOTAL MARKET
BY MARKET SECTOR
Wine
Beer
Spirits and Liqueurs
Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
Competitor Analysis
THE MARKETPLACE
Multiple Grocers
Drinks Specialists
MARKET LEADERS
LEADING MULTIPLE GROCERS
ASDA Group Ltd
Wm Morrisons
J Sainsbury PLC
Tesco PLC
Other Leading Companies
THE LEADING DRINKS SPECIALISTS
Bargain Booze Ltd
Majestic Wine PLC
Oddbins Ltd
Other Companies
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising
Other Marketing Activity
Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Buying Behaviour
ALCOHOL PURCHASED IN THE TAKE-HOME TRADE
ALCOHOL CONSUMED IN THE HOME
CONSUMPTION FREQUENCY
Current Issues
FIGHT AGAINST CHEAP ALCOHOL
THE SUPERMARKET'S DOMINANCE
INCREASING TAXES
CLOSING OFF-LICENCE CHAINS
BOUTIQUE OFF-LICENCES
The Global Market
REGULATION AND LEGISLATION
REATILING METHODS
[(c)TAXATION METHODS
Forecasts
INTRODUCTION
The Economy
FORECASTS TO
MARKET GROWTH
FUTURE TRENDS
Rising Health Fears, Taxes and Prices
Premium Alcohol Sector Set to Grow
Rising Popularity of Beer in the Take-Home Trade
Company Profiles
INTRODUCTION
DEFINITIONS
Turnover (Sales)
Pre-Tax Profit
Profit Margin
Average Remuneration
Sales per Employee
FURTHER INFORMATION
BARGAIN BOOZE LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Brand Information
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MAJESTIC WINE PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Brand Information
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
ODDBINS LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Brand Information
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
Further Sources
Associations
Publications
General Sources
Government Sources
Other Sources

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