Blog: Spirits in the UK - trade up while prices go down?
Olly Wehring | 19 February 2007
At Diageo’s interim results last week, we managed to grab hold of the head of the company’s European operations, Andrew Morgan, for a quick one-to-one (the results of that chat will be ready exclusively for you, dear reader, tomorrow).
The UK off-trade spirits market seems to be high on the agenda, not only for Morgan, but also for Adrian McKeon, Beam UK’s MD (with whom we also have an exclusive interview coming up later this month), and Pernod Ricard UK. The latter has trumpeted its strong showing in the sector today (19 February), while highlighting how tough the market has become.
In the last eight weeks of 2006, Pernod said, the overall spirits category in the UK was down by 1% in value and by 4% in volume. While Pernod may have outperformed the market as a whole, the battle of Christmas 2007 will may drag the French group into the fray.
Morgan, meanwhile, conceded that the battlefield is getting bloodier. “We did draw something of a line in the sand in terms of what we were prepared to support with the retailers this Christmas and it cost us volume,” he told us. “We knew we’d lose some significant volumes, but as far as I’m concerned this is the right thing to do for the brands. It was negative for us but this is about the health of our brands for the long-term.”
So, is this some sort of tipping point? How do these drinks companies, so keen on ‘premiumisation’ and trading up, maintain this ethos while spirits sales - and volumes - slide in a market dictated by price? Does this not do the brands some damage? And where will this all end?
A couple of months ago, US-based Saltwater Brewery developed 'edible six-pack rings' in an effort to curb threats to wildlife....
Last month, SPI Group unveiled its latest advert for Stolichnaya in the US. Its an amusing little number that caries the instruction: Drink what you want. The “I am man” ad looks to distance Millennia...
Who do you work for? I ask, merely to draw your attention to just-drinks’ company pages....
This weekend sees yet another “International Day” for a drinks category. Lucky us. Anyway, ahead of Sunday’s International Cachaça Day, here’s a wealth of information on Brazil’s national spirit, cour...
- Diageo's Q4/FY 2016 results - Preview
- Diageo's FY performance by region - Focus
- Wine consumption and its health effects
- Time to take stock of Constellation's Corona
- The future for drinks industry's waste products
- Diageo sets sights on alcohol-alternative trends
- SABMiller puts brakes on A-B InBev integration
- "We tried to make Bushmills hot" - Diageo CEO
- Diageo names new TR head as Doug Bagley exits
- Brexit "not a big deal" for Scotch - Diageo CEO
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends