IRI Pulse Report Alcohol · PDF filePULSE REPORT IRI Pulse Report Alcohol Welcome to the Pulse H1 2015 edition for alcohol. We hope you find it useful. Please do not hesitate to contact

PULSE REPORT

IRI Pulse Report Alcohol

Welcome to the Pulse H1 2015 edition for alcohol. We hope you find

it useful. Please do not hesitate to contact us if you have any

questions or comments at [email protected].

H1 2015

IRIworldwide.com

PULSE REPORT

About the Report

2

• This alcohol report is one of 10 super category reports designed to show a high-level

comparison and analysis for retail markets across major countries in Europe.

• This report contains data gathered from around Europe. This market was split into the

following categories: beer, cider, wine, spirits, fortified wines and alcoholic soft drinks.

• The report highlights key metrics, such as total sales, market trends, category share and

winners and losers for Europe as a whole and individual countries.

• The data has been sourced from IRI retail databases and Eurostat – the statistical branch

of administration for the European Commission.

• The countries included in the report are: France, Germany, Italy, the Netherlands, Spain

and the United Kingdom (UK).

• The market channels used for each country in this report are as follows:

Country Channels used

UK Hypermarkets, supermarkets, drugstores and impulse outlets

ES Hypermarkets, supermarkets, hard discounters and drugstores

DE Hypermarkets, supermarkets, hard discounters and drugstores

NL Hypermarkets, supermarkets, hard discounters and drugstores

IT Hypermarkets, supermarkets, small self service, hard discounters and drugstores

FR Hypermarkets and supermarkets

• For analytical purposes the data sourced from available retail databases has been

consolidated to provide consistent results. However, for some countries it has not been

possible to source data pertaining to certain categories. Where this is the case, it has been

documented in the ‘Notes’ section found at the end of the report.

PULSE REPORT

On the Radar

3

POPULATION

IN MILLIONS

UNEMPLOYMENT

(%)

AVERAGE 12

MONTHS

INFLATION

RATES GDP IN MILLIONS (€)

Jan.

2014

Jan.

2015

Avg.

2014

Jun.

2015

Avg.

2014

Jun.

2015 2013 2014

France 65.8 66.4 10.3 10.2 +0.6 +0.2 2 116 565 2 132 449

Germany 80.8 81.2 5.0 4.7 +0.8 +0.4 2 820 820 2 915 650

Italy 60.8 60.8 12.7 12.7 +0.2 +0.0 1 609 462 1 616 253

Netherlands 16.8 16.9 7.4 7.0 +0.3 +0.1 650 857 662 770

Spain 46.5 46.4 24.5 26.6 -0.2 -0.6 1 049 181 1 058 469

United

Kingdom 64.4 64.8 6.1 5.6 +1.5 +0.6 2 017 193 2 222 912

ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOUR

Source: Eurostat, June 2015

Warmer weather, innovative products and flavors, and an increase in promotional activity created high demand for alcoholic beverages across the market.

PULSE REPORT

1 327 1 629 1 651 1 510 1 324 1 559

834 921 1 058 1 003 860

934 480

571 552 518 491

567 1 036 1 165 1 239 1 280

1 070 1 173

4 372

4 975 4 512 4 928

4 354 3 373

2 619

3 054 3 275 3 315

2 689 3 095

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

30-mar-14 29-jun-14 28-sep-14 28-dic-14 29-mar-15 28-jun-15

Eu

ro

s, in

millio

ns

Period Ending

France

Germany

Italy

Netherlands

Spain

UK

GLOBAL TRENDS

4

+0.9%

+0.1%

-1.7%

TOTAL EUROPE +0.4%

VALUE SALES IN MILLIONS (€)

Total EU 46 330

DE 17 167

FR 12 375

UK 6 043*

IT 4 761

ES 3 855

NL 2 128

TOTAL ALCOHOL VALUE SALES AND % CHANGE VERSUS PRIOR YEAR

*based on an exchange rate of €1.27 to the pound

+0.7%

+1.6%

+0.9%

TOTAL ALCOHOL VALUE SALES FOR THE LAST SIX QUARTERS

Source: IRI retail databases; period ending 28 June 2015

PULSE REPORT

18 398

14 954

10 506

1 551 724 0.0

1.3 0.9 -3.6 -1.2

Beer Wine Spirits Cider FortifiedWines

Euro

s,

in m

illions

Euro Sales % € vs. YA

39.7%

32.3%

22.7%

3.3%

1.6%

0.4%

Beer Wine Spirits Cider Fortified Wines Alcoholic Soft Drinks

Europe

5

Eu

ros,

in m

illi

on

s

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom

TOP 5 CATEGORIES: EVOLUTION

Value sales (€) and % change versus a year ago


KEY TRENDS

• Beer, wine and spirits counted for almost

95% of the total turnover for alcoholic

beverages in Europe.

• Within Europe, only wine and spirits

showed value sales growth in the latest

moving annual total (MAT).

• Despite warmer weather conditions, the

beer market was flat for the last MAT due

to a negative evolution in the two largest

markets, Germany and the UK.

• Wine grew in all European countries except

for the Netherlands.

• Spirits continued to grow this quarter with

France leading the way, followed by

Germany. Spain was the only country that

showed decreases in the spirits sub-

category.

CATEGORY VALUE SALES IN THE LAST YEAR

CATEGORY SHARE OF VALUE IN THE LAST YEAR

18 398

14 954

10 506

1 551 724

196

PULSE REPORT

Europe

6

CATEGORY INSIGHTS

• Wine was the fastest growing category in Europe, with an increased demand across all

countries except for the Netherlands. France was the top contributor both in value sales and

percentage increase.

• Despite warm weather conditions across Europe, beer was flat last MAT. The strong

performance from the Netherlands, Spain and Italy could not make up for the loss in the

main markets, Germany and the UK. In-store promotions, innovation and new launches

drove category increases for the countries that saw positive growth.

• Spirits sales increased in Europe due to rising demand from the two largest markets in

Europe, Germany and France (up 1.0% and 0.9% respectively) with Italy also contributing a

1.3% increase. Those gains compensated for the decline in Spain (-0.4%), where only gin

showed a significant increase due to a demand for gin and tonic.

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom


TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

Euros, in millions Euros, in millions

187.2

89.5

0 50 100 150 200

Wine

Spirits -3.2

-5.2

-8.5

-58.1

-80 -40 0

Beer

Alcoholic SoftDrinks

Fortified Wines

Cider

PULSE REPORT

5 520

4 092

2 239

397 117

2.0 0.9 2.8 -2.1 2.4

Wine Spirits Beer FortifiedWines

Cider

Euro

s,

in m

illions


44.1%

33.1%

17.7%

4.0% 0.9%

0.1%

Wine Spirits Beer Fortified Wines Cider Alcoholic Soft Drinks

France

7

KEY TRENDS

• Continuing the trend from 2014, beverages

grew faster than total fast moving consumer

goods (FMCG) in hypermarkets and

supermarkets between January 2015 and

June 2015.

• Both alcoholic and non-alcoholic beverages

grew in volume (2.0% and 3.2%

respectively), but the price war impacted the

non-alcoholic category, allowing the alcoholic

category to grow faster in value.

• The warm weather conditions during the first

half of the year created a positive impact for

non-alcoholic beverages. The alcoholic

markets growth was due to an increase in

promotional activity and the development of

innovative flavors and offerings.

• Due to the price war for all segments,

national brands were well oriented while

private labels lost market shares; price

decrease has impacted only national brands,

sustained by an increased promotional

activity.

5 520

4 092

2 239

397 117 11

Eu

ros,

in m

illi

on

s






PULSE REPORT

France

8

CATEGORY INSIGHTS

• Like 2014, beer is the real winner of the first half of the year: the category is growing in value

and in volume. This is due to a lot of innovations (flavored beers and radler that were more

enticing to young consumers and women consumers). Beer reached the fastest sales growth

of all beverages. The number of SKU is also growing faster than all the other beverage

segments.

• Due to a price war, we noticed a deflation in beer purchases. At the same time, there is an

increase in premiumization which allowed the total value to be well oriented.

• No more volume sales increased for wines, or for still or sparkling segments.

− Both champagne and other sparkling wines improved their promotional activity,

but the non-promoted sales items saw decreases.

− Still wines can’t run promotion due to volume constrains (low harvest). So,

premiumization and price increase generated the positive value sales trends. Rosé

wine is well oriented, but it didn’t compensate for the loss in red wine sales.

• The gain for spirits is due to rum sales (positive trend in volume and value) and the fashion

for spirits cocktails, such as Spritz which has contributed to the success of the bitter segment.

Old segments, such as anisés are still declining.

• Fortified wines (vermouth and port) has continued to decline in value and volume.





107.9

61.2

35.1

2.8

0 50 100 150

Wine

Beer

Spirits

Cider-0.5

-8.3

-10 -6 -2

Alcoholic Soft Drinks

Fortified Wines

PULSE REPORT

7 323

5 039

4 537

118 101 -0.9

0.8 1.0 -4.7 5.0

Beer Wine Spirits AlcoholicSoft

Drinks

FortifiedWines

Euro

s,

in m

illions


42.7%

29.4%

26.4%

0.7% 0.6%

0.3%

Beer Wine Spirits Alcoholic Soft Drinks Fortified Wines Cider

Germany

9

KEY TRENDS

• The market shares of the different

categories showed that wine had stronger

sales than spirits. Beer is the leading

segment in Germany. The other sub-

categories share is very low.

• Beer’s decline in value sales was due to

several factors: no major sporting event in

H1 2015, less hours of sunlight and lower

temperatures compared to 2014.

• Wine and spirits value sales grew due to a

price increase.

• Value sales of the spirits sub-category

increased as the result of increased sales of

new high-end products such as gin and rum.

7 323

5 039

4 537

118 101 48

Eu

ros,

in m

illi

on

s






PULSE REPORT

Germany

10

CATEGORY INSIGHTS

• The FIFA World Cup drove beer promotions and demand during the second quarter of 2014.

The increase in sales during 2014 caused manufacturers to react with more promotions at

lower prices during H1 2015, this lead to low performances for this sub-category.

• Sparkling wine is still affected by a two-sided evolution. Classic German sparkling wine is

experiencing sharp volume sales declines, but losses are being offset by higher prices despite

promotion. Volume losses are also being offset by the growth of flavored sparkling wines.

There are an increasing number of new products such as Rotkäppchen Fruchtsecco or Jules

Mumm Plus.

• In H1 2015, spirits’ growth came from new flavored options. There was also a demand from

consumers for high-end products in many segments such as gin, rum and whisky. This

created positive value sales.

• 60% of the wine in Germany is sold at a price below €2.50. But the price category more than

€5 showed an increase in sales. These numbers show that German consumers are looking for

better quality wine and are willing to pay higher prices.




- 5.0

- 5.8

- 65.0

-80 -40 0

Cider


Beer

46.3

41.8

4.8

0 20 40

Spirits

Wine

Fortified Wines


PULSE REPORT

2 301

1 417

985

48 12 1.1 0.6 1.3 -0.7 -11.9

Wine Beer Spirits FortifiedWines

AlcoholicSoft

Drinks

Euro

s,

in m

illions


48.2%

29.8%

20.7%

1.0% 0.3%

Wine Beer Spirits Fortified Wines Alcoholic Soft Drinks

Italy

11

KEY TRENDS

• In the wine category, value sales increased,

but volume declined.

• Beer experienced a period of stable sales,

supported by the expectation of the summer

season.

• Spirits gradually improved in both value and

volume sales. This can be seen in the slight

growth of aperitifs and the recovery of

bitters. Whisky, cognacs and other high

alcohol content products sales were

impacted by the Italian government’s excise

tax, modified late in 2013.

2 301

1 417

985

48 12

Eu

ros,

in m

illi

on

s






PULSE REPORT

Italy

12

CATEGORY INSIGHTS

• Slow price increases supported volume growth in the wine category.

• In recent months, beer marketers have found success in driving growth through innovation

despite a weak market. One Italian company ended the year with a 9.0% increase in value

sales and 8.8% in volume sales, significantly higher than other firms in this segment. This

was as a result of innovation, communication and in-store activities.

• For spirits, volume sales have decreased by 0.6% during the first six months of 2015. The

increase in value is mainly due to the decision of the Italian government to increase excise

taxes (modified late in 2013). It is a tough climate for spirits, nothing is improving sales; the

aging population, busy lifestyles and high taxes are all feeding into sales declines. The right

promotional activities, consistency in commercial offers and products adaptable to socio-

demographic change can be put in place to overcome the sales drop. Overall, businesses

need to understand what consumers want and invest in research and development to meet

demand.

• The alcoholic soft drinks sector has been in decline since its launch two years ago.

TOP 5 LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

TOP 5 WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)


24.6

12.2

8.4

0 10 20 30

Wine

Spirits

Beer


-0.3

-1.6

-2 -1 0

Fortified Wines


PULSE REPORT

1 141

855

77 55 1 1.8 -0.2 -3.7 5.0 -23.7

Beer Wine FortifiedWines

AlcoholicSoft

Drinks

Cider

Euro

s,

in m

illions


53.0% 40.6%

3.8% 2.5%

0.1%

Beer Wine Fortified Wines Alcoholic Soft Drinks Cider

The Netherlands

13

KEY TRENDS

• The total of alcohol market grew in value

by 1.4% compared to last year.

• The overall promo pressure within retail

declined to 17.3%, whereas the beer and

wine category showed an increase in

promo share (49.3% and 33.4%).

• The private label share is at its lowest

point since the summer of 2013.

• Not only did radler and alcohol free beer

grow, but sales and volume within

specialty beers increased.

1,141

855

77 55 1

Eu

ros,

in m

illi

on

s






PULSE REPORT

The Netherlands

14

CATEGORY INSIGHTS

• Beer showed volume growth due to the successful introduction of the radler segment and

alcohol free beer, and specialty beers also grew. The growth of all the segments came with a

rising promo pressure.

• The wine category saw slight declines in value and volume. Major segments grew in value

(red and white wine), but not enough to compensate for the decline of other segments such

as rosé and cider, which lost both in value and volume.

• Fortified wines suffered from declining sales within Dutch supermarkets, largely due to

stagnant new product development efforts.





-0.3

-1.3

-3.0

-4 -2 0

Cider

Wine

Fortified Wines

20.4

2.6

0 10 20

Beer


PULSE REPORT

1 587

1 239

893

102 34 1.1 1.2 -0.4

-1.7 1.4

Beer Wine Spirits FortifiedWines

Cider

Euro

s,

in m

illions


41.2%

32.1%

23.2%

2.6%

0.9%

Beer Wine Spirits Fortified Wines Cider

Spain

15

KEY TRENDS

• Fast moving consumer goods (FMCG) sales

grew by 0.5% in Spain. Total beverages

category decreased by 0.2%, although

alcoholic beverages (+0.7%) moderated

the decline.

• Beers showed growth in value within

alcoholic beverage categories, driven by

higher temperatures and an increase of

foreign tourism (4.2% versus year ago, a

record high during the first half of 2015).

• Wine showed growth in value, driven by

Protected Denomination of Origin (PDO)

wines.

• Gin was the top performer among high

graduation beverages. It showed double

digit growth rate due to consumers’ affinity

for gin and tonic beverages. On the other

hand, whisky, rum and vodka continued to

lose value.

Eu

ros,

in m

illi

on

s






1 587

1 239

893

102 34

PULSE REPORT

Spain

16

CATEGORY INSIGHTS

• Alcoholic beverage sales moved forward since signs of recovery were seen in the beer

segment, particularly in FMCG retailers, bars and restaurants. After years of consecutive

contraction, for the first time the market bounced back. It was driven by warmer weather

conditions, economic recovery and record high levels of foreign tourism. Among segments,

shandy/radler outpaced the category growth and showed a double digit increase (12.3%).

• The wine segment also showed a positive evolution in mass market. Consumers increasingly

demanded higher quality products, switching demand from private label (-6.3%) to PDO

wines (5.3% increase in value sales versus a year ago). Among the different PDOs, Rueda

PDO was the top performer in the category (20.9%). Rioja also increased its sales and

strengthened its lead in the market up to 24.1% of total value sales in the wine category.

• Sales of spirits continued to decline, with contraction in all categories. The decline was due to

changing consumer habits including; economic recovery and lower unemployment rates led

consumers to switch consumption from FMCG retailers to bars. Whisky (-2.7%) with standard

Scottish segment leading the way; rum (-5.6%) driven by a decrease in sales of black rum

and vodka (-4.1%). The only exception is gin, which continues to expand at double digit

rates (10.6%).

• Cider showed the highest percentage growth (1.4%) among sub-categories, with both

segments (natural and champagne-flavoured) showing increases.

• For the fortified wines sub-category, both segments vermouth and liquored wines showed

decreases with vermouth leading the losses (-1.5%).




- 1.7

- 4.0

-5 -3 -1

Fortified Wines

Spirits

17.5

14.2

0.5

0 5 10 15 20

Beer

Wine

Cider


PULSE REPORT

77.6%

22.4%

Beer Cider

The United Kingdom

17

Eu

ros,

in m

illi

on

s






4 692

1 352

4,692

1,352

-1.0 -4.0

Beer Cider

Euro

s,

in m

illions


KEY TRENDS

• The beer and cider market saw declines

during 2015, with the beer sector down

1.0% year on year and cider down 4.0%.

• Beer declines are to be expected as the

sector lapped 2014’s FIFA World Cup and

below the line and above the line

promotional support was reduced year over

year.

• Cider performance however is more

surprising given the lower levels of

competition from beer in 2015. Declines

have been due to value and premium

ciders.

• Overall cider performance is masking

divergent trends by segments. Apple as a

flavour suffered and drove declines for

premium cider in the supermarkets.

However, fruit and more traditional ciders

are growing – suggesting consumers are

looking for something beyond the

mainstream.

PULSE REPORT

The United Kingdom

18




- 45.8

- 55.9

-60 -40 -20 0

Beer

Cider


CATEGORY INSIGHTS

• Shelf space was reduced across beer, wine and spirits in the UK supermarkets. The reduction

was driven by retailers desire to simplify consumer options in order to compete with

discounters. Categories are now competing for shelf space with rivals (other beverages such as

water, energy drinks, etc.) they had never previously considered.

• Cider decline is due partially to poor weather, with 2015 sales down in May versus last year.

Cider is suffering at the top and bottom of the market, with apple flavour in particular being an

issue. Performance of apple suggest the flavour may be overstocked with competitors after the

arrival of the major brewing houses in the last few years. Success of fruit variants suggests

shoppers want something new and different to drink in the sector.

PULSE REPORT

Final Notes

19

Notes on category definitions for countries

Due to the diverse products found in individual countries across this market, it was necessary

to consolidate the available data into the categories in this report. In some cases it wasn’t

possible to align products across all six countries. Those exceptions are listed below:

Cider

• The Italy data in this report includes cider within the fortified wines category.

• The Netherlands data in this report does not include pear cider.

Wine

• The UK data in this report does not include this category.

Spirits


• The Netherlands data in this report does not include this category.

• The France data in this report includes punch and cocktails, while the other countries do not.

Fortified wines


Alcoholic soft drinks


• The Spain data in this report does not include this category.

PULSE REPORT

Resources

20

About IRI. IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC

health care, retailers and media companies to grow. With the largest repository of purchase, media, social, causal and

loyalty data, all integrated on an on-demand cloud-based technology platform, IRI guides over 5,000 clients globally in

their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver growth.

www.IRIworldwide.com

Arlington Square, Downshire Way, Bracknell, Berkshire RG12 1WA, Tel +44 (0) 1344 746000

Copyright © 2015 Information Resources, Inc. (IRI). All rights reserved. IRI, the IRI logo and the names of IRI products and services

referenced herein are either trademarks or registered trademarks of IRI. All other trademarks are the property of their respective owners.

FOR MORE INFORMATION

Please contact Angel Martin, Consultant, IRI at

[email protected] or

+33 1 30 06 23 62 with questions or comments about this report.

To gain insight into opportunities across specific categories, segments, channels or retailers,

contact your IRI client service representative regarding custom analyses leveraging the

following resources:

• InfoScan Census® is a syndicated retail tracking service that enables manufacturers and

retailers to acquire industry insights used to make better business decisions. InfoScan

Census utilizes the data that IRI collects from grocery, drug, and mass merchandise retailers

to provide the most comprehensive and accurate syndicated data offering in the FMCG

sector. With access to accurate, granular detail by category, geography, measure, and time

period, clients have the tools needed to develop marketing and sales strategies based on

product performance, distribution, and promotion responsiveness. All data about alcohol

comes from InfoScan Census.

• IRI Consulting provides strategic insights and advice leveraging a variety of data sources,

predictive analytics, enabling technologies, and business analyses to help FMCG

manufacturers and retailers address significant sales and marketing issues effectively.

http://www.iriworldwide.com/

mailto:[email protected]

Documents

IRI Pulse Report Alcohol · PDF filePULSE REPORT IRI Pulse Report Alcohol Welcome to the Pulse H1 2015 edition for alcohol. We hope you find it useful. Please do not hesitate to contact