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Specialist Retailers: Through the Alcoholic Drinks’ Looking Glass
July 2010
© Euromonitor International
2
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
3
Alcoholic Drinks: Specialists
Learn More
To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit www.euromonitor.com or contact your local Euromonitor International office:
Disclaimer
Much of the information in this briefing is of a statistical
nature and, while every attempt has been made to ensure
accuracy and reliability, Euromonitor International cannot be
held responsible for omissions or errors
Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised
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Scope
Introduction
ALCOHOLIC DRINKS
235 billion litres
Wine27 bn litres
Beer184 bn litres
Spirits19 bn litres
RTDs/ High-strength
Premixes4 bn litres
Cider/Perry1.5 bn litres
© Euromonitor International
4
Alcoholic Drinks: SpecialistsIntroduction
Higher-end focus Accounting for a much higher share in value than in volume terms, specialists are
reaffirming their generic association with the higher end of the alcoholic drinks
market.
Supermarkets/hypermarkets
cannibalising sales
The increasingly diversified offerings of supermarkets/hypermarkets and the special
offer tactics they employ make them the greatest danger for specialists' penetration
rates, especially in mature markets where their networks are vast and expanding.
Spirits prove ideal for the
specialist format Specialists‟ eclectic product mix, personalised shopping experience and expert
advice provide them with a clear advantage in the spirits category.
Dark side of ‘religious
agenda’
Beyond the obviously constrictive nature of the religious agenda-based specialist alcoholic
drinks retailing environment and, as a result, enforced focus on a niche audience, this
operational model also leads to thriving contraband and black market sales.
Ringfenced specialists
walking a tightrope While ringfenced specialists have an obvious advantage and, hence, dominate sales
of higher abv varietals, they tend to increasingly lose the battle in lower abv products.
Religious agenda and
ringfenced specialists fail to
curb consumption levels
While the proliferation of restrictive operating models was supposed to be in place in
order to curb alcoholic drinks consumption levels, the effects of such policies are
questionable at best.
Free markets: maturity
breeds decline
The free markets that feature in the top slots in terms of specialist penetration rates
are increasingly facing competition from supermarkets/hypermarkets and discounters
which are challenging their operational model as costly and outdated.
Free markets: minimal
specialist share spells
massive growth potential
The free markets where specialists account for only a minor share of alcoholic drinks
distribution are also the ones that hold the greatest potential. Small grocery retailers tend to
dominate distribution although Westernisation trends and luxury offerings can and eventually
will change the game in specialists‟ favour.
Key Findings
© Euromonitor International
5
Alcoholic Drinks: SpecialistsIntroduction
• The core objective of this report is to examine the current, historic and projected state of the alcoholic drinks
specialists channel in the context of the global food/drink/tobacco specialist channel as well as the global alcoholic
drinks market.
• In addition to providing a global overview of market performance, the report also uses a series of case studies to
outline the different regulatory frameworks that specialists operate in the 80 markets covered by Euromonitor
International.
• For the purposes of this report all 80 Euromonitor markets are divided into three major groups depending on the
underlying legislative/regulatory environment in which alcoholic drinks specialists are operating:
• Religious agenda: Specialist retailers operating under a stringent, religiously-biased regulatory environment that
only allows sales of alcoholic drinks through specialist retailers while explicitly prohibiting sales via alternative
channels.
• Ringfenced specialists: Specialist retailers have a clear advantage as legislative limitations are in place in a
range of different formats:
• provincial or state-based restrictions;
• monopoly of higher % abv varietals/ alcoholic drinks categories and;
• store format limitations.
• Free market: The majority of alcoholic drinks markets around the globe operate under a liberal regulatory
environment. Nevertheless, cultural issues, evolving consumption habits and operational discrepancies determine
the penetration levels of specialist retailers. Within this context, specialist retailer shares range from securing them
a dominant positioning to merely a niche presence.
• Focusing on both retailing and alcoholic drinks the report does not claim to be comprehensive, but rather seeks to
offer high-level insight into key changes in the market at a time of manifest macroeconomic instability and rising
levels of competition among key off-trade distribution channels.
Objectives of Global Briefing
© Euromonitor International
6
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
7
Alcoholic Drinks: Specialists
• Specialists show massive discrepancies between their penetration rates in terms of volume and value. Due to their
primary and historic focus on the higher end of the market, value share is significantly higher than volume share.
• Supermarkets/hypermarkets is the clear winner within distribution channels both in volume and value terms. The
channel is enjoying the combined effects of the wide range of variants on offer, competitive pricing on the back of
implementation of economies of scale and strong equity in a number of mature, mostly Western markets.
• Independent small grocers, much like specialists, also faces major discrepancies in its global volume and value
share although in this case the parameters are reversed. Due to the segment‟s historical focus on the lower end of
the market it far surpasses specialists‟ volume share while being behind it in value share terms. At the same time the
segment holds a major role in emerging markets where supermarket/hypermarket networks are relatively
underdeveloped.
Specialists Focus on Higher End, Supermarkets Dominant
A Global Viewpoint
34.2%
3.9%
7.5%26.5%
19.3%
7.9% 0.9%
Global Volume Distribution 2009
Supermarkets/Hypermarkets
Discounters
Other Small Grocery Retailers
Independent Small Grocers
Alcoholic Drinks Specialists
Other Store based Retailers
Non-store Retailing
35.9%
3.5%
7.8%16.8%
26.5%
8.2%1.3%
Global Value Distribution 2009
© Euromonitor International
8
Alcoholic Drinks: Specialists
• Alcoholic drinks specialists retain a significant
foothold but their penetration rates are waning,
accounting for 19% volume share in 2009, down
from 22% in 1999.
• The focused and personalised shopping experience
provided by specialists remains their strong point.
• All major channel shares are relatively steady and
only witness slow and gradual movements over
time.
• On the other hand, the widening range available in
supermarkets/hypermarkets, and to a lesser extent
discounters, as well as the rising availability of
economy offerings helps them eat away at
specialists‟ share.
• While specialists‟ primarily upmarket portfolio
worked to their advantage over the past decade, the
onset of recession and the subsequent renaissance
of thriftiness and inconspicuous consumption is
bound to create additional hurdles moving forward.
• Independent small grocers retain control of a large
segment of sales, primarily focusing on emerging
markets due to the lack of sophisticated specialist
alternatives and underdeveloped
supermarket/hypermarket and discounter networks.
• Non-store retailing is among the big winners,
steadily increasing its share albeit from a very low
base.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
World: Historic Volume Performance of Distribution Channels in Alcoholic Drinks
Non-Store Retailing
Other Store-based Retailers
Alcoholic Drinks Specialists
Independent Small Grocers
Other Small Grocery Retailers
Discounters
Supermarkets/ Hypermarkets
Specialists’ Share Waning
A Global Viewpoint
© Euromonitor International
9
Alcoholic Drinks: Specialists
44.4%
9.9%3.8%
10.8
19.0%
8.1%4.1%
Wine
Supermarkets/Hypermarkets DiscountersOther Small Grocery Retailers Independent Small GrocersAlcoholic Drinks Specialists Other Store-based RetailersNon-store Retailing
• Sales of spirits are limited only to specialists in a number of markets such as the Netherlands, a fact providing a
boost to their global share. Conversely, the availability of wine in alternative channels even in markets with
ringfenced specialist policies, such as South Africa, lowers the specialists‟ share in the segment.
• An eclectic mix offering and personalised customer assistance have historically been the channel‟s strong points.
The relevance of these points to both the spirits and wine markets, especially at the higher end, make specialists the
most suitable channel by nature. On the other hand, the casual character of beer consumption not requiring any
special insight or knowledge of the product, and mostly focusing on pricing, inadvertently limits specialists‟ share in
beer. Could the recent surge in sales of craft/boutique variants change this?
Spirits Prove Ideal for Specialist Format
A Global Viewpoint
32.2%
3.1%
8.4%30.2%
17.6%
8.1% 0.4%
Beer
37.2%
2.3%
4.5%19.1%
29.9%
6.8% 0.4%
Spirits
Distribution by Channel in 2009
© Euromonitor International
10
Alcoholic Drinks: Specialists
Regulatory Frameworks
A Global Viewpoint
Yellow: Religious agenda
Purple: Ringfenced specialists
Orange: Free markets
For the purposes of this report all 80 Euromonitor International markets are divided into three major groups
depending on the underlying legislative/regulatory environment in which alcoholic drinks specialists are operating.
© Euromonitor International
11
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
12
Alcoholic Drinks: Specialists
• While religious and cultural constraints invariably impact alcoholic drinks sales and operating environments around
the globe, the UAE, Algeria, Iran, Saudi Arabia and Pakistan are the only markets internationally where sales are
strictly prohibited beyond appointed specialist retailers.
• Additionally, special permits are sometimes required for consumers to purchase alcoholic drinks while punitive
taxation and the semi-secretive nature of the establishments make them difficult to monitor.
• Advertising and marketing campaigns are completely absent.
• These policies lead to side effects, the most significant of which is often a booming black market.
• Marginalising alcohol consumption and restricting access historically tends to only exacerbate substance use and
abuse, while paving the way for illicit trade to flourish.
• Algeria provides a great illustration; approximately 30% of alcohol sales in Algeria were made on the black market in
2009. This high figure can partly be attributed to the forced closure of over 1,000 alcoholic drinks stores.
• It hence becomes clear that the government‟s effort to inhibit the sale of legally produced alcohol products is proving
counterintuitive, hindering its attempt to combat contraband trade.
Religious Agenda
Religious Agenda
UAE
IRAN
SAUDI ARABIA PAKISTAN
ALGERIA
© Euromonitor International
13
Alcoholic Drinks: Specialists
• UAE legislation allows only non-Muslims to buy and consume alcoholic drinks while a special liquor licence is also
needed. The annually renewed liquor licence is issued by the Police Departments in all Emirates except Sharjah.
• As for the on-trade, alcohol is available at four- and five-star hotels in their bars and restaurants, in addition to other
standalone horeca outlets.
• Changes in this stringent operating environment are highly unlikely to happen in the short to medium term. With
religion being so closely entwined with civic affairs in the country, any attempt to change the laws is bound to face
severe opposition. Dubai remains the most progressive Emirate and the largest number of specialists are
concentrated there.
• In 2008, the government started clamping down on illicit trade in the northern Emirates, where Muslims used to
purchase alcoholic drinks, although they are not officially allowed to. In 2009, the northern Emirate of Umm al-
Quwain ordered the closure of all clubs in the Emirate.
• Maritime & Mercantile International LLC and African & Eastern NE BVI Ltd are the only two alcoholic drinks
specialists operating in the country, both focusing primarily on the higher end. All off-trade sales must go through one
of their stores otherwise they are illicit. Special tax-free offers and the launch of wine and single malt societies form
part of their attempts to advance the domestic drinking culture.
Case Study: UAE
Religious Agenda
Alcoholic Drinks Specialists in UAE 2007-2009
Outlets Selling space
(‘000 sq m)
Retail value RSP
excl tax (US$ mn)
Sales per sq m
excl tax (US$)
2007 5,168 517 830 1,605
2008 5,812 581 933 1,605
2009 6,161 616 970 1,575
Key point: What the domestic market lacks in terms of volume scope it more than makes up in terms of
value potential. The demonstrated proliferation of higher-end variants paves the way for pushing the
boundaries of premiumisation and luxury products albeit for a limited audience by definition.
© Euromonitor International
14
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
15
Alcoholic Drinks: Specialists
• Sales of alcoholic drinks are operating under strict regulatory frameworks of different formats:
• Provincial or state-based restrictions;
• % abv/category barriers;
• Store layout limitations.
• This kind of regulatory framework provides an obvious advantage for specialists which are hence enjoying relatively
high penetration rates at a total alcoholic drinks level and virtually absolute dominance in the higher abv segments
that tend to be the most highly regulated.
• It is interesting to note that public health issues are primarily used as the most common argument for implementing
such policies. Strictly controlling sales of, mostly higher abv, alcoholic drinks is supposed to minimise alcohol-related
harm, underage drinking and antisocial behaviour. Securing sizable state revenues can also be added to the list.
• As the global debate regarding limiting alcohol abuse and excessive consumption heats up, this retail model will
increasingly come under the microscope.
• On the other hand, there is no conclusive evidence suggesting that such restrictive policies are a groundbreaking
game-changer for drinking habits, significantly limiting consumption levels or safeguarding vulnerable consumer
groups.
Ringfenced Specialists’ Formats
Ringfenced Specialists
Provincial/state-
based restrictions% abv/category barriers
Store layout
limitations
Canada
USA
India
Netherlands
Finland
UzbekistanNorway
IndonesiaSweden
New Zealand Australia
© Euromonitor International
16
Alcoholic Drinks: Specialists
• With the notable exception of Alberta which privatised sales of alcohol, most provinces operate through government-
controlled channels. Each province has a government-owned liquor board which purchases alcohol from
manufacturers and sells it through its own outlets and distribution network to the public and to licensed
establishments.
• Ontario and British Columbia allow Canadian wine manufacturers to have private retail stores, which then sell
directly to the public, and Quebec allows the sale of beer through the grocery and convenience store channels.
Within this context, The Liquor Control Board of Ontario (LCBO), with 21% of retail value sales, and Société des
alcools du Québec (SAQ), with 12%, dominate the specialists channel in the country.
• Such a structure represents a major hurdle for smaller producers, whose share nationwide suffers as a
consequence.
• Specialists‟ volume share of total alcoholic drinks fell slightly from 77% in 2004 to 75% in 2009 while the value share
moved in the opposite direction to reach 88% in 2009 up from 86% in 2004.
Provincial Limitations: Canada
Ringfenced Specialists
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
Canada Alcoholic Drinks Distribution
Non-store Retailing Alcoholic Drinks Specialists
Small Grocery Retailers Supermarkets/Hypermarkets
Key point: The growing popularity of wine and
increased focus on promoting Canadian VQA wine
might encourage the development of privatised retail
store networks managed by Canadian wineries in the
future.
Leading Specialists 2009 Performance
Outlets Selling
space
(‘000 sq m)
Retail value
RSP excl tax
(US$ mn)
Sales per sq
m excl tax
(US$)
LCBO 610 202 3,486 17,257
SAQ 413 157 1,973 12,566
© Euromonitor International
17
Alcoholic Drinks: Specialists
• Finland, Sweden and Norway share similar
regulatory frameworks, structured around a
rigid % abv barrier that is in place in order to
curb excess drinking and moderate
consumption.
• The barrier is 4.7% abv for Finland, 3.5% abv
for Sweden and 4.75% abv for Norway with
state-owned specialists controlling all sales of
alcoholic drinks above this limit:
• Finland: Alko Oy
• Sweden: Systembolaget
• Norway: Vinmonopolet
• Essentially, this translates into state monopolies
enjoying virtually absolute dominance in wine
and spirits while beer, cider and RTDs tend to
focus their sales in supermarkets/hypermarkets
and discounters.
• The Scandinavian specialist monopolies do not
face any competition from other retailers since
there are clear regulatory guidelines separating
the two. While EU legislation has challenged
the legality of such measures in the past, the
legislatory hurdles are now overcome and all
major political parties in these markets are
supportive of this operating environment. In this
context, no radical changes are expected in the
short to medium term.
The Scandinavian Monopolies
Ringfenced Specialists
Scandinavian Monopolies 2009 Performance
Ou
tlets
Selling
space
(‘000 sq
m)
Retail
value RSP
excl sales
tax (US$
mn)
Sales per
sq m
excl sales
tax (US$)
Systembolaget 412 136 2,748 20,205
Alko Oy 334 115 1,441 12,530
Vinmonopolet 250 39 1,586 40,666
36%
43%
11%
9% 1%
Scandinavian Volume Distribution Breakdown Total Alcoholic Drinks 2009
Supermarkets/Hypermarkets
Alcoholic Drinks Specialists
Discounters
Other Small Grocery Retailers
Other Store-based Retailers*
Non-store Retailing*
Independent Small Grocers
Note: * negligible
© Euromonitor International
18
Alcoholic Drinks: Specialists
• The state-owned company Alko Oy has the
sole right to retail beverages which contain
more than 4.7% abv. The only exceptions are
fermented beverages which contain less than
4.7% abv, and wines sold by Finnish farm
wineries containing up to 13% abv.
• Alko Oy‟s distribution network consisted of
334 off-trade outlets at the end of 2009,
marginally down from 339 at the end of 2007.
The company has focused on self-service
stores and having employees with expertise
in recent years.
• Alko Oy constantly adds new products to its
selection and at the beginning of 2009, the
number was around 2,200.
• The volume share of specialists in alcoholic
drinks fell slightly from 22% in 2004 to 21%
in 2009. Conversely specialists‟ value share
rose by almost one percentage point over the
same period to reach 31% in 2009
reaffirming the focus on premium variants. In
recent years, sales of spirits and wine in Alko
Oy stores showed healthy progress, while
sales of brewery products such as beer, cider
and RTDs declined sharply. Extended
opening hours and discounted prices in
supermarkets were the main reasons for this
development.
The % abv Barrier: Finland
Ringfenced Specialists
Alko Oy Historic Performance 2007-2009
OutletsSelling
space (‘000
sq m)
Retail
value RSP
excl tax
(US$ mn)
Sales per
sq m excl
tax
(US$)
2007 339 113 1,399 12,380
2008 334 114 1,486 13,035
2009 334 115 1,441 12,530
Key point: Alko Oy is expected to continue losing share to the
advancing supermarket/hypermarket and discounter channels in
beer, cider and RTDs while its primary focus on the higher end of
the market is a double-edged sword in the still challenging
economic environment.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
Finland Alcoholic Drinks Distribution
Supermarkets/Hypermarkets Discounters
Small Grocery Retailers Alcoholic Drinks Specialists
© Euromonitor International
19
Alcoholic Drinks: Specialists
• All premises selling alcohol in Australia require a liquor licence which is a state (or territory) government
responsibility. As a general rule, laws governing the retail sale of alcohol in Australia dictate that specialist retailers
remain dominant and will continue to be so. The sale of alcohol must be confined to dedicated premises isolated
from areas where the main business is other than the sale of alcohol.
• Alcoholic drinks specialists in Australia are dominated by Metcash Liquor controlling 26% of retail value sales within
the channel, Woolworths with 24% and Coles Group with 12%.
• Metcash Liquor has managed to successfully navigate the recent financial volatility to consistently post gains in its
share over 2004-2009, while even managing to escape contraction over 2009. (For more detail on Metcash please
refer to the global company profile)
• While some first attempts to introduce private label products in the Australian alcoholic drinks market did take place
in 2010, namely by Woolworths, leader Metcash Liquor is yet to enter the segment. The Australian wine glut and the
still challenging socioeconomic environment in the country are expected to favour growth in the underdeveloped
private label segment in the short to medium term.
• The store limitations issue does not apply in the case of non-store retailing which is also relatively non-existent.
Specialist retailers that enter this channel in time will reap the rewards of setting the pace for others to follow.
Store Limitations: Australia
Ringfenced Specialists
Leading Alcoholic Drinks Specialists 2009 Performance
Outlets Selling
space
(‘000 sq m)
Retail value
RSP excl tax
(US$ mn)
Sales per
sq m excl
tax (US$)
Metcash Liquor 1,578 347 3,579 10,314
Woolworths 1,136 311 3,392 10,906
Coles Group 889 202 1,622 8,030
Key point: Private label
offerings and non-store
retailing options provide
the greatest opportunities
taking into account the
country‟s future economic
challenges and geographic
profile.
© Euromonitor International
20
Alcoholic Drinks: Specialists
• What is the impact of stricter legislative environments
on alcoholic drinks consumption? Is it the answer to the
'binge drinking epidemic' faced by a number of mature
Western markets?
• A closer look at the per capita consumption figures of
the markets discussed relatively to the largely liberal
UK operating environment provides some interesting
insights.
• Markets that enforce strict limitations on the distribution
of alcoholic drinks face similar levels of consumption
with unregulated markets and much higher levels of
consumption than the global average.
• The extreme, punitive and marginalised case of
„religious agenda‟ markets is an obvious exception.
Nevertheless, even under these conditions, alcoholic
drinks consumption grew in all these markets.
• Looking at the direction consumption has moved over
the 2004-2009 period, all „ringfenced specialist‟
markets have witnessed either positive increases or flat
growth
• On the other hand, the UK that is considered to be
plagued by a ‟binge drinking epidemic‟ while enjoying a
„free market‟ operating environment saw a major drop
in consumption levels.
• This vividly illustrates the questionable effects of
restrictive operating environments in achieving their
proclaimed role of moderating consumption.
Per Capita Alcoholic Drinks Consumption
Litres per capita
2004
Litres per
capita 2009
World 31.4 34.6
UAE 23.1 30.2
Canada 87.1 92.9
Finland 116.3 118.6
UK 138.4 122.5
Australia 127.5 126.8
USA 96.6 96.9
India 1.6 2.8
Sweden 76.6 80.3
Norway 69.5 76.0
Netherlands 102.5 98.5
New Zealand 110.0 114.4
Uzbekistan 7.2 8.5
Algeria 4.2 4.9
Pakistan 0.1 0.1
Saudi Arabia 2.6 4.0
The ‘Prohibitionist’ Argument and its Failure
Ringfenced Specialists
© Euromonitor International
21
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
22
Alcoholic Drinks: Specialists
• Outside the markets that fall under the „religious agenda‟ and „ringfenced specialists‟ categories and with the global
average volume share of alcoholic drinks specialists at over 19% of alcoholic drinks sales, a number of countries are
identified as specialist-orientated free markets.
• Markets are identified as specialist-orientated on the back of the historic proliferation of the format in the country,
chained networks that enjoy high levels of brand loyalty and/or a huge number of independent specialists with
personalised ties to local consumers.
• Nevertheless, the increasingly competitive operating environment inadvertently puts pressure on smaller, local and
independent specialists who are becoming marginalised and are considered outdated.
• Furthermore, high specialist penetration rates tend to translate into relatively saturated positioning for the channel
and waning overall share.
• Supermarkets/hypermarkets and discounters tend to be the main channels cannibalising specialists‟ share on the
back of economies of scale as well as through steady expansion and diversification of their product offering.
Identifying the Top Performers
Free Markets
2009 Alcoholic Drinks Sales
Through Specialists, by Country
Cameroon 75.9%
Venezuela 63.8%
Turkey 49.9%
Bosnia-Herzegovina 36.1%
Bolivia 36.1%
Ecuador 34.1%
Ireland 33.9%
Chile 33.4%
Mexico 30.1%
Greece 26.6%
Japan 24.5%
Germany 20.7%
Macedonia 20.2%
-15%
-10%
-5%
0%
5%
10%
15%
2005 2006 2007 2008 2009
Alcoholic Drinks Specialists vs. All Other Channels % Y-o-Y Growth
Cameroon Specialists Cameroon All Other Channels
Chile Specialists Chile All Other Channels
© Euromonitor International
23
Alcoholic Drinks: Specialists
• In 2009, specialists represented the leading
distribution channel, followed by supermarkets/
hypermarkets, the share of which is increasing,
cannibalising small grocery retailers‟ penetration
rates. At the same time, the number of
supermarket/hypermarket outlets and shelf space
allocated to alcoholic drinks increased
considerably, a fact leading to an increase in the
penetration rate. Specialist retailers are expected
to experience a further loss in share over the short
to medium term.
• Selling alcoholic products requires a licence from
the government and the infamous red tape issues
in the country make the process slow and
troublesome.
• Specialist alcoholic drinks retailers in Turkey is a
very fragmented channel, mainly comprised of
small Tekel corner outlets. Prior to the privatisation
of Tekel in 2004, these served as licensed
franchisees selling alcoholic drinks and tobacco
products. After privatisation, the name was not
changed, but these outlets were franchised by Mey.
• Tekel specialists mainly focus on domestic
products rather than imported brands as a way of
differentiating from grocery retailers. Largely owned
by Mey, the biggest producer of raki (aniseed-
flavoured spirits) in Turkey, Tekel shops are ideal
for focusing on such products.
Case Study: Turkey
Free Markets
Alcoholic Drinks Specialists 2009 Performance
Outlets Selling
space
(‘000
sqm)
Retail value
RSP excl
tax
(US$ mn)
Sales per
sq m
excl tax
(US$)
2007 104,854 4,140 10,989 2,654
2008 106,636 4,231 11,088 2,620
2009 107,809 4,312 10,755 2,494
Key point: Consolidation is unavoidable for the fragmented
specialists channel in order to compete with the rising power
of supermarkets/ hypermarkets and discounters. Focusing on
domestically produced variants, such as raki and wine, will
provide additional affordability cachet.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
Turkey Alcoholic Drinks Distribution
Alcoholic Drinks Specialists
Small Grocery Retailers
Discounters
Supermarkets/ Hypermarkets
© Euromonitor International
24
Alcoholic Drinks: Specialists
• The abolition of the Groceries Order in
2006 allowing below-cost selling resulted in
supermarkets/hypermarkets using alcoholic
drinks as loss leaders, while the pricing
levels proved to be impossible for specialist
retailers to compete with, contributing to a
fall in their share. Specialists‟ volume share
declined steadily from 38% in 2004 to 34%
in 2009.
• The fees associated with procuring licences
to sell all alcoholic drinks are in the vicinity
of EUR180,000 while licences to sell wine
cost only EUR250 per year.
• Among the leading specialist alcoholic
drinks retailers, Next Door is a franchise
operation managed by the Vintners
Federation of Ireland (VFI), a national lobby
group composed of 5,500 publicans. The
concept of the Next Door brand is the
expansion of an off-trade specialist trading
“next door” to an on-trade public house.
Next Door‟s head office offers operators
market research prior to opening, shop fits,
advice on suitable stock for local demand
and information on pricing and margins.
• However, the specialists channel is still
very fragmented and dominated by huge
numbers of independents.
Case Study: Ireland
Free Markets
Leading Specialists 2009 Performance
Outlets Selling
space (‘000
sq m)
Retail
value RSP
excl tax
(US$ mn)
Sales per
sq m excl
tax (US$)
Carry Out 51 4 102 25,500
Next Door 49 2 81 40,500
Key point: The specialists channel‟s highly fragmented nature and
the country‟s precarious fiscal condition create an explosively
negative mix. The comparable affordability of wine licensing makes
wine an ideal focus area for specialists to compete with the
supermarket/hypermarket giants.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
Ireland Alcoholic Drinks Distribution
Non-store Retailing
Other Store-based RetailersAlcoholic Drinks SpecialistsSmall Grocery Retailers
Discounters
Supermarkets/Hypermarkets
© Euromonitor International
25
Alcoholic Drinks: Specialists
• In spite of large grocery chains such as Wal-Mart
de México and Organización Soriana being in a
position to negotiate better discounted prices than
small independent alcoholic drinks specialists,
Mexicans are returning to impulse purchases and
special promotions offered by the specialists
channel.
• Specialists is the leading distribution channel for
alcoholic drinks in Mexico. There are several large
chains around the country such as La Divina and
El Globo but there are also thousands of
independent ones called vinaterías where most
sales take place. These are small, usually family-
owned, businesses where the owners typically
know their customers personally, thus offering a
more tailored approach. However, small
independent specialists may yet be negatively
affected over the forecast period although at the
moment they hold a stronger presence in small
cities and rural areas.
• In beer, specialists are mostly represented by
depósitos de cerveza, stores only specializing in
the sale of beer.
• Independent small grocers rank second and are
very similar to vinaterías while also offering
packaged food. C-stores have increased their
participation driven mainly by advancing Oxxo
stores that successfully sell beer.
Case Study: Mexico
Free Markets
Leading Specialists 2009 Performance
Outlets Selling
space
(‘000 sq m)
Retail
value RSP
excl tax
(US$ mn)
Sales
per sq m
excl tax
(US$)
El Globo 285 26 126 4,846
La Divina 182 31 70 2,258
Key point: The impulsive nature of Mexican consumers and the
personalised shopping experience offered by specialists secure
the resilience of the channel. However, increasing competition in
urban areas might enforce consolidation initiatives.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of
vo
lum
e s
ale
s
Mexico Alcoholic Drinks Distribution
Non-store Retailing
Alcoholic Drinks Specialists
Small Grocery Retailers
Supermarkets/ Hypermarkets
© Euromonitor International
26
Alcoholic Drinks: Specialists
• At the other end of the spectrum, the markets that show the lowest penetration rates for food/drink/tobacco
specialists globally can also provide some, cautionary albeit optimistic, insights going forward.
• The proliferation of emerging nations in the list of countries that feature on the list is striking; relatively
underdeveloped infrastructure, very strong, if outdated, small grocery retailer networks and solid share growth for the
advancing supermarkets/hypermarkets channel put specialists on the sidelines.
• On the other hand, the embryonic nature of specialists in those markets provides massive scope for growth
especially if they succeed in appealing to the burgeoning, upwardly-mobile classes of young urbanites.
• Widening levels of product diversification and utilising the channel‟s generic focus on the higher end will be the key
drivers for specialists moving forward.
• Furthermore, underlining the personalised shopping experience to promote domestically-produced, inexpensive
alcoholic drinks varietals would provide a foothold in markets that still face economic hurdles, while assisting
domestic alcoholic drinks industries.
Specialists as a Niche
Free Markets
Alcoholic Drinks Sales
Through Specialists
Belgium 3.7%
Austria 3.3%
Guatemala 3.1%
Russia 2.9%
Romania 2.7%
China 2.5%
Uruguay 2.4%
Argentina 2.3%
Slovenia 2.3%
Lithuania 2.3%
Bulgaria 2.3%
Latvia 2.3%
Kazakhstan 2.2%
South Korea 2.1%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009
Super/Hypermarkets vs All Other Channels % Y-o-Y Growth China Supermarkets/
Hypermarkets
China All Other Channels
Kazakhstan Supermarkets/ HypermarketsKazakhstan All Other Channels
Bulgaria Supermarkets/ Hypermarkets
Bulgaria All Other Channels
© Euromonitor International
27
Alcoholic Drinks: Specialists
• Specialists, unlike in other countries, steadily
increased their share from 2% of off-trade value
sales in 2004 to almost 4% in 2009, regardless
of the recession. In off-trade volume terms, the
channel proved slightly less dynamic, growing
from 2% in 2004 to almost 3% in 2009, with its
focus being primarily on higher-priced products.
The channel‟s focus on the higher end has
assisted in navigating the financial volatility as its
consumers proved to be less affected by the
downturn. Since opportunities in the premium
segment are going to shape the Russian market
moving forward, specialists will continue
expanding their share.
• Alcoholic drinks specialist retailers are mainly
developed by major alcohol distributors and
importers. Russia Aroma TD and Norman-Vivat
are also large alcohol distributors. Huge
numbers of independents dominate the channel.
• Aromatniy Mir quickly earned a reputation as a
provider of quality alcoholic drinks to the
Russian market. Since 2004, the company has
focused on developing products under its own
trademark. Norman differs from its main rival
Aromatniy Mir due to its focus on the growing
number of middle-income consumers. In
addition, most of its shops are situated in the
suburbs of cities.
Case Study: Russia
Free Markets
Leading Specialists 2009 Performance
Ou
tlets
Selling
space (‘000
sq m)
Retail value
RSP excl
tax
(US$ mn)
Sales
per sq m
excl tax
(US$)
Aromatniy Mir 165 26 73 2,808
Norman 128 17 134 7,882
Key point: With the country‟s macroeconomic indicators
remaining buoyant and a steadily rising interest in Western
alcoholic drinks variants, specialists‟ upmarket targeting secures
a rise in the channel‟s share in the medium to long term and as
the currently challenging operating environment starts improving.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
Russia Alcoholic Drinks Distribution
Other Store-based Retailers
Alcoholic Drinks Specialists
Small Grocery Retailers
Discounters
Supermarkets/ Hypermarkets
© Euromonitor International
28
Alcoholic Drinks: Specialists
• Small groceries located near residential
areas account for the majority of alcoholic
drinks sales in China on the back of the
convenience factor. However, the
distribution volume share of
supermarkets/hypermarkets continues to
increase in line with the expansion of such
outlets throughout the country and rising
levels of car ownership.
• The number of specialist retailers operating
in China is small but will increase over the
forecast period, with the volume share of
leading chains expected to rise. Specialist
retailers in China mainly distribute mid- and
high-end spirits and wine brands.
• Wine importers typically choose to operate
their own specialist outlets due to the fact
that they have low brand awareness and are
consequently unable to distribute nationally
via supermarkets/hypermarkets which
charge high shelf display fees. However,
most wine specialist retailers are
independent players and operate only a
limited number of outlets.
• A growing number of leading wine and
spirits brands are likely to establish their
own specialist outlets over the coming years
in order to sell their premium brands.
Case Study: China
Free Markets
Leading Specialists 2009 Performance
Outlets Selling
space (‘000
sq m)
Retail
value RSP
excl tax
(US$ mn)
Sales per
sq m excl
tax (US$)
Holiland 950 60 168 2,800
Christine 650 27 152 5,630
Key point: The rapid ascent of the middle classes and the
formulation of a burgeoning segment of nouveau-riche are the
primary drivers of specialists‟ rising share. Premium and luxury wine
varietals will continue spearheading the trend.
0%
25%
50%
75%
100%
2004 2005 2006 2007 2008 2009
Sh
are
of vo
lum
e s
ale
s
China Alcoholic Drinks Distribution
Alcoholic Drinks Specialists
Small Grocery Retailers
Supermarkets/ Hypermarkets
© Euromonitor International
29
Alcoholic Drinks: Specialists
• Specialists are facing mounting competition from the advancing supermarket/hypermarket and discounter channels
in the vast majority of markets where they enjoy a dominant role.
• Competitive prices based on economies of scale, steadily expanding portfolios, revamped alcoholic drinks aisles
and, in some cases, below-cost sales to increase overall footfall, are the main points used by these alternative
channels to dethrone specialists from their dominating positions.
• Furthermore, specialists‟ high penetration rates are sometimes covertly assisted by legislation which might indirectly
support their share in free markets (e.g. difficult to acquire or very expensive licensing fees). That tends to create a
feeling of complacency that leads to lack of innovative activities, paving the way for supermarkets/hypermarkets and
discounters to focus their criticism on the outdated operational model of specialists.
• On the other hand, the markets where specialists have failed to yet capture a big share of distribution hold the
greatest potential since this operating model remains untarnished by maturity concerns and an outdated image.
• Within these markets, specialists tend to focus on niche, affluent audiences and are expanding their penetration
rates on the back of Westernisation (since in many cases they refer to emerging markets), and a more personalised
shopping experience.
Specialists ascend Specialists descend
• Minimum distribution share translates into a
fresh, progressive, modern positioning.
• Specialists are hence expected to continue
posting gains moving in parallel with the
advancing alcoholic drinks consumption
culture in their respective markets as well as
the increasingly more sophisticated
distribution environment.
• High distribution share translates into an
outdated, conservative positioning.
• Specialists are hence expected to continue
losing share as long as they fail to adapt to
the evolving operating environment, diversify
their offerings and expand their range of
products to include mid and lower-end
varietals.
Maturity Breeds Declines, Niche Share Spells Future Gains
Free Markets
© Euromonitor International
30
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
31
Alcoholic Drinks: Specialists
• Food/drink/tobacco specialists have been fighting an uphill battle against stagnation for some time and this will also
be the case moving forward as they are expected to post flat constant value CAGR over 2009-2014.
• Conversely, non-store retailing will continue posting the stronger gains on the back of the skyrocketing Internet
segment. Jumping on the Internet retailing bandwagon might hence prove to be the best opportunity for specialist
retailers to bridge the gap in performance, catapulting the channel in the forefront of developments.
• Hypermarkets/supermarkets and discounters will continue posting strong and steady gains leveraging on competitive
pricing and an ever-expanding and diversifying product mix.
The Retailing Perspective: Specialists Facing Stagnation
Future Scenarios
-1
0
1
2
3
4
5
6
2009-10 2010-11 2011-12 2012-13 2013-14
% y
-o-y
gro
wth
Retailing: Forecast Period Retail Value RSP (Excl Tax Projections in Fixed US$)
Hypermarkets
Supermarkets
Discounters
Small Grocery Retailers
Food/Drink/Tobacco Specialists
Other Grocery Retailers
Non-grocery Retailers
Non-store Retailing
© Euromonitor International
32
Alcoholic Drinks: Specialists
• Despite the expected lower volume CAGR compared to
2004-2009, pockets of stronger performance will assist in
lifting 2009‟s gloominess over 2009-2014.
• Cider/perry will be the flagship among all categories with
sales buoyed by advertising investment, new launches and
efforts to expand its audience beyond its small number of
core markets. Nevertheless, the category's relatively narrow
geographical scope will inevitably limit its full potential in the
short and medium term.
• Beer will witness solid growth, with economy and premium
offerings outperforming standard variants as polarisation
impacts all categories.
• Wine will primarily advance on the back of simplified, lower-
end, casual offerings with the New World rewriting the
rulebook and Old World countries eventually having to follow,
at the very least by replicating their successful marketing
approach.
• Conversely, the premium segment of the wine market,
specialists‟ generic focus, will continue seeing rising sales
while also being used as an investment vehicle
• Spirits will maintain a relatively solid growth trajectory on the
back of the meteoric 9% volume CAGR for other whisk(e)y, a
strong performance by rum as well as brandy and Cognac‟s
momentum on the back of its rising popularity in China.
• Polarisation will increasingly define the global spirits market
and underlining their focus on exclusive, premium offerings
will become specialists‟ key weapon of choice against
supermarkets and discounters.
Alcoholic Drinks: The Light at the End of the Tunnel
Future Scenarios
Alcoholic drinks
Beer
Wine
Spirits
-1
0
1
2
3
4
5
6
7
8
0 2 4 6
To
tal V
olu
me
% C
AG
R 2
00
9-2
01
4
Total Value % CAGR 2009-2014
Forecast Global Alcoholic Drinks Performance by Category
RTDs/high-strength
premixes
Bubble size:2009 total volume
Cider/perry
© Euromonitor International
33
Alcoholic Drinks: Specialists
Strengths
Opportunities
Weaknesses
Threats
• With polarisation
advancing in mature
markets and
premiumisation still
relevant in emerging ones,
specialists‟ focus on the
higher end still has
dividends to pay.
On the upside of
polarisation
• The relatively strong
performance expected for
spirits and, to a lesser
extent wine, can
potentially translate into
gains for specialists over
the forecast period.
High spirits
• Legislative as well as
operational factors have
sidelined specialists from
the lucrative beer and
cider categories which are
expected to spearhead
gains in alcoholic drinks
over 2009-2014.
Beer and cider: lost
opportunities
• Economies of scale and
the huge negotiating
power of the big
supermarket/hypermarket
chains and discounters
will put mounting pressure
on specialists‟ penetration
rates and margins.
Fierce competition
• While the channel‟s generic
focus on the higher end will
continue securing value
growth, diversifying
offerings to include
economy domestic
specialities can provide a
foothold in still volatile
markets.
Domestic specialities
• Criticisms of specialists‟
outdated business model
and maturity concerns
could potentially be
overcome through the use
of Internet retailing.
Internet retailing
• Although a highly unlikely
scenario, legislative
amendments liberalising
the „ringfenced specialist‟
model would be a huge
blow for the channel in the
respective market.
Legislative amendments
• While the Great
Recession is supposed to
be over, any potential
return to the previous
levels of financial volatility
will take a huge toll on
specialists‟ share due to
their generic association
with the higher end.
Economic volatility
Navigating Against the Currents
Future Scenarios
© Euromonitor International
34
Alcoholic Drinks: Specialists
• Governments and health bodies from Russia to the UK are streamlining their offensive against the alcoholic drinks
industry. Tax hikes, minimum pricing and more stringent drink-driving legislation will erect additional barriers for
manufacturers while creating further hurdles for specialists.
• At the World Health Assembly (WHA), the 193 nations of the World Health Organization (WHO) reached
consensus for the first time on a resolution to confront the harmful use of alcohol, and along with it adopted WHO‟s
first global alcohol harm strategy.
• The strategy covers 10 policy areas: leadership, awareness and commitment; health services‟ responses; community
action; drink-driving policies; availability of alcohol; marketing of alcoholic beverages; pricing policies; reducing the
negative consequences of drinking and alcohol intoxication; reducing the public health impact of illicit alcohol and
informally-produced alcohol; and monitoring and surveillance. Minimum pricing and illegal production featured on the
agenda.
• UK: The „tax escalator policy‟ already dilutes margins for the industry, calls for even more stringent measures to
combat “binge Britain” are already in place. Stricter drink-driving legislation.
• Scotland: From minimum pricing to below-cost selling. Following widespread criticism over the introduction of a
blanket minimum-pricing legislation for alcoholic drinks and questioning the legality and efficacy of such
measures, the Scottish government is now considering banning the sale of products cheaper than the cost of
duty plus VAT.
• New Zealand: A report commissioned by the New Zealand government has called for strong tax rises on
alcoholic drinks, as well as tougher advertising restrictions and a higher minimum drinking age in the country. As
well as higher taxes, the report calls for the legal drinking age to be raised from 18 to 20 years, shorter selling
hours for retailers and tougher regulation on advertising and sponsorship. It also calls on government to "fully
investigate a minimum pricing regime".
• Russia: The government has already tripled duty tax on beer and introduced a minimum price of RUB89
(US$3) per 0.5 litres on vodka.
• Greece: The Greek government has announced increases in taxes on alcohol as it seeks to counter the
country's debt crisis while at the same time claiming that the changes are “to the benefit of public health”.
2010: A Legislative Offensive
Future Scenarios
© Euromonitor International
35
Alcoholic Drinks: Specialists
Diversification:
While specialists’ demonstrated focus on the higher end of the market still holds potential, diversifying offerings to include mid-and lower-tier varietals will secure greater resilience.
Expanding portfolios to include alcoholic drinks beyond the scope of spirits and wine will also become a key issue moving forward.
Consolidation:
The only way for the scores of independent specialists to compete with the advancing supermarket/hypermarket and discounter channels is through forming strategic alliances or mergers and acquisitions, especially in markets where the channel is highly fragmented.
Revamping:
Specialists’ generic association with the higher end does not necessarily have to translate into an outdated positioning and relevance to middle-aged, highly sophisticated consumption. Appealing to millennials through responding to their demonstrated interest in expanding their knowledge and utilising highly relevant Internet retailing can potentially turn the tide for specialists’ waning penetration rates.
Recommendations: Against the Current
Future Scenarios
© Euromonitor International
36
Alcoholic Drinks: Specialists
Introduction
A Global Viewpoint
Religious Agenda
Ringfenced Specialists
Free Markets
Future Scenarios
Addendum
© Euromonitor International
37
Alcoholic Drinks: Specialists
• MEA
• Algeria
• Iran
• Saudi Arabia
• UAE
• Asia Pacific
• Pakistan
Religious agenda Free markets
• Asia Pacific
• India
• Indonesia
• Uzbekistan
• Western Europe
• Netherlands
• Norway
• Finland
• Sweden
• North America
• Canada
• USA
• Australasia
• Australia
• New Zealand
Ringfenced specialists
Regulatory Frameworks - Country Detail
Addendum
• MEA
Cameroon, Egypt, Israel, Kenya, Morocco,
Nigeria, South Africa, Tunisia
• Eastern Europe
Belarus, Bosnia, Bulgaria, Croatia, Czech
Republic, Estonia, Georgia, Hungary, Latvia,
Lithuania, Macedonia, Poland, Romania,
Russia, Serbia, Slovenia, Slovakia, Ukraine
• Western Europe
Austria, Belgium, Denmark, France, Germany,
Greece, Ireland, Italy, Portugal, Spain,
Switzerland, Turkey, UK
• Asia Pacific
Azerbaijan, China, Hong Kong, Japan,
Kazakhstan, South Korea, Malaysia,
Philippines, Singapore, Thailand, Taiwan,
Vietnam
• Latin America
Argentina, Bolivia, Brazil, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador,
Guatemala, Mexico, Peru, Uruguay, Venezuela
© Euromonitor International
38
Alcoholic Drinks: Specialists
• All values expressed in this report are in US dollar terms, using a fixed exchange rate (2009).
• 2009 figures are based on part-year estimates.
• All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data
are expressed in current terms; inflationary effects are taken into account.
Alcoholic Drinks coverage:
• Beer. An alcoholic drink usually brewed from malt, sugar, hops and water and fermented with yeast. Some beers are
made by fermenting a cereal, especially barley, and therefore not flavoured by hops. Alcohol content for beer varies
from anything up to and over 14% abv (alcohol by volume), although 3.5-5% is most common. Beer is often loosely
classified by the nature in which it is made: top fermented (i.e. ales, bitters, wheat beers, stouts, porters, etc.); and
bottom fermented (i.e. all lagers). Note: pre-mixed beers such as beer/lemonade, beer/whisky or beer/tequila
mixtures are excluded from the data. These are included in flavoured alcoholic beverages (FABs). This is the
aggregation of lager, dark beer, stout and LABs/NABs.
• Wine. This is the aggregation of still and sparkling light grape wines, fortified wine and vermouth and non-grape
wine. In terms of alcohol content, light wine usually falls into the 8-14% abv bracket while fortified wine ranges from
14-23% abv. For this study low and non-alcoholic wine is also included in the data (attributed to each sector as
appropriate).
• Spirits. This is the aggregation of whisk(e)y, brandy and Cognac, white spirits, rum, tequila, liqueurs and other
spirits.
• Cider/Perry. Cider is made from fermented apple juice, while perry is made from fermented pear juice. Both artisanal
and industrial cider/perry are included.
• RTDs/High-strength Premixes. This the combination of RTD and high-strength premixes. RTD stands for ready-to-
drink. Other terms which may used for these products are FABs, alcopops and premixes. The RTDs sector is the
aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content
of around 5% but this can reach as high as 10% abv. Premixes containing a high percentage of alcohol of around
15%+ combined with juice or any other soft drink are included here. These are usually marketed as a product to be
drunk neat with ice, to mix with an energy drink and/or to make cocktails.
Alcoholic Drinks Definitions
Defintions
© Euromonitor International
39
Alcoholic Drinks: Specialists
• Supermarkets/Hypermarkets – Supermarkets are retail outlets selling groceries with a selling space of between
400 and 2,500 square metres, selling at least 70% groceries. Includes chained and independent outlets.
Hypermarkets are retail outlets selling groceries and non-food merchandise with a selling space of over 2,500 square
metres. Frequently located on out-of-town sites or as the anchor store in a shopping centre.
• Discounters – Discounters comprises hard discounters and soft discounters. Hard discounter: first introduced by
Aldi in Germany, and also known as limited-line discounters. Stores are typically 300-900 square metres and stock
fewer than 1,000 product lines, largely in packaged groceries. Goods are mainly private label or budget brands.
• Small Grocery Retailers – Small grocery retailers are chained or independent retail outlets with a selling space of
under 400 square metres and with a primary focus on selling food/beverages/tobacco and other groceries. Small
grocery retailers is the aggregation of convenience stores, independent small grocers and forecourt retailers.
• Convenience Stores – Convenience stores are chained retail outlets with a selling space of under 400 square
metres and with a primary focus on selling food/beverages/tobacco and other groceries.
• Independent Small Grocers – Retail outlets selling a wide range of predominantly grocery products. Owned by an
entrepreneur owning and operating one or more (but fewer than 10) retail outlets. Mainly family concerns. Food
usually accounts for at least 50% of total retail sales value.
• Forecourt Retailers – Forecourt retailers is an aggregation of chained forecourt retailers and independent forecourt
retailers. Forecourt retailers are chained or independent retail outlets with a selling space of under 400 square
metres and with a primary focus on selling food/beverages/tobacco and other groceries and located on a
petrol/gas/service station forecourt. Forecourt retailers have some, or all, of the following characteristics: extended
opening hours; located in residential neighbourhoods; and range includes two or more of the following product
categories: audio-visual goods (for sale or rent), take-away food (ready-made sandwiches, rolls or hot food),
newspapers or magazines, cut flowers or pot plants, and greetings cards, etc.
.
Channel Definitions I
Definitions
© Euromonitor International
40
Alcoholic Drinks: Specialists
• Food/Drink/Tobacco Specialists – Food/drink/tobacco specialists includes food and non-alcoholic drinks
specialists, alcoholic drinks stores and tobacconists. Food and non-alcoholic drinks specialists are chained or
independent retail outlets typically with a selling space of under 400 square metres and with a primary focus on
selling mainly one category of food or non-alcoholic drinks. Alcoholic drinks stores are retail outlets with a primary
focus on selling beer/wine/spirits/other alcoholic beverages.
• For the purposes of this briefing the term „alcoholic drinks specialists‟ refers to food/drink/tobacco specialists due to
the nature of the analysis and the focus on leading alcoholic drinks players within the food/drink/tobacco specialists
segment.
• Other Grocery Retailers – Other grocery retailers are chained or independent retail outlets (typically with a selling
space of under 400 square metres), kiosks, market stalls or street vendors with a primary focus on selling food,
beverages and tobacco. Other grocery retailers also includes health food stores,
confectioners/newsagents/tobacconists (CTNs), food and drink souvenir stores and regional speciality stores. Wine
sales from vineyards are included here.
• Non-grocery Retailers – Non-grocery retailers are retailers whose primary focus is selling merchandise which is not
food/drink/tobacco from retail outlets, kiosks or market stalls.
• Non-store Retailing – Non-store retailing is the sale of new and used goods to the general public for personal or
household consumption from locations other than retail outlets, kiosks or market stalls. Non-store retailing is the
aggregation of vending, homeshopping, Internet retailing and direct selling.
Channel Definitions II
Definitions
© Euromonitor International
41
Alcoholic Drinks: Specialists
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