GLOBAL: 'Local' wine, spirit firms reap downturn dividends – research
Consumers are thinking local in the downturn, according to the IWSR
The economic downturn has proved beneficial for wine and spirits producers in their domestic markets, as consumers have moved towards safer, local choices, according to recent research.
In its Snapshot Trends Report 2010, released this week, the IWSR has noted that wine and spirits consumers in affected markets have returned to local products, based partly on price comparison and partly on emotion.
“One consequence has been an upgrading of local products in many markets,” the report notes. “Better quality, better packaging, higher prices. As economies recover, these companies will be well-placed for future growth.”
The IWSR highlighted local wines as performing well in their domestic markets at the expense of imported brands, due not only to lower prices but also to “improved quality and increased awareness of this quality”.
The report also notes that some of the most successful brands of the last two years have been "the ‘new standard’ brands with a premium twist", which have been sold at a marginally higher price than some of the biggest standard brands. “Some of these have enjoyed spectacular success and will have a global impact down the line,” the IWSR said.
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