Premium Spirits + Craft Beer Markets

Part
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Part
01

Diageo: News Scan

In the past six months, notable news from/relating to Diageo included partnering with MTV and the National Rugby League to launch new responsible drinking campaigns, new product launches by Talisker and Johnnie Walker, becoming a sponsor of the Major League Soccer and #CreativeComeback, and others.

Diageo Partners with MTV to Launch New Responsible Drinking Campaign

  • Date: June 3, 2019
  • Source: Company press release
  • Summary: Diageo partnered with MTV to launch a responsible drinking campaign called Weekend Not Wasted that targeted youths aged 18 to 24 years old in the United Kingdom, Spain, Denmark, and Germany.

Talisker Launches the Second Release in the Talisker Bodega Series

Johnnie Walker Introduces Johnnie Walker Blue Label Ghost and Rare Glenury Royal

There's a New Captain Taking the Field: Captain Morgan Partners with Major League Soccer

  • Date: July 9, 2019
  • Source: Company press release
  • Summary: Captain Morgan became the official spiced rum and exclusive spirits partner of Major League Soccer and an official sponsor of Chicago Fire Soccer Club, D.C. United, New York City FC, Philadelphia Union, and Seattle Sounders FC.

Diageo Acquires Majority Shareholding in Seedlip, the World’s First Distilled Non-Alcoholic Spirit

  • Date: August 7, 2019
  • Source: Company press release
  • Summary: Diageo acquired a significant majority shareholding in distilled non-alcoholic spirits brand Seedlip through Distill Ventures for an undisclosed value.

Johnnie Walker Announces Two New Limited-Edition Whiskies Celebrating the Enduring Legacy of Game of Thrones

Bundaberg Rum Partners with the NRL to Launch New Responsible Drinking Campaign

2019 Special Releases Collection Unveiled

Diageo Sponsors International Roll Out of Creative Equals Returner Scheme

  • Date: November 12, 2019
  • Source: Company press release
  • Summary: Diageo became a sponsor of a Creative Equals Returner scheme called #CreativeComeback that focused on supporting 100 women in London, New York, and Mumbai to return to the creative industries after a career break.

Diageo Launches New AI Whisky Selector to Help People Discover Their Favorite Single Malt Scotch

Part
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Part
02

News Scan: Bacardi Group

In the past 6 months, Bacardi has partnered with renowned singers, donated $1 million to victims of Hurricane Dorian and partnered with several companies and organizations. The rest of the information has been provided below.

News headline #1: "BACARDÍ® Rum, Major Lazer and Anitta Announce the Global Debut of a Brand-New Summer Anthem, 'Make It Hot'"

  • This story was published on June 19th, 2019, by PR Newswire.
  • Two days before the start of summer 2019, Bacardi announced the debut of a summer single it created in collaboration with globally renowned Major Lazer and pop singer Anitta. The song came with a viral music video that was shot in Costa Rica.

News headline #2: "Bacardi Names Tony Latham Executive Vice President and Chief Financial Officer — Bacardi Limited"


News headline #3: "Bacardi and Brown-Forman to end UK distribution partnership"


News headline #4: "Bacardi rum partners with Ashley Roberts to create dance classes"


News headline #5: "Bacardi Pledges $1 Million to Hurricane Dorian Relief in The Bahamas"

  • This announcement was published on September 5th, 2019,. It was a company press release.
  • It was announced that the Bacardi family and company will donate $1 million to aid The Bahamas in recovering from the Hurricane Dorian in September 2019.

News headline #6: "Bacardi Announces European Launch of Shake Your Future, a Life-changing Experience Giving the Unemployed a New Start in Mixology"


News headline #7: "SideChef Collaborates with Bacardi to Bring Portfolio of Brands to Amazon's Cook with Alexa, Revolutionizing the Future of Home Mixology"


News headline #8: "BACARDÍ expands premium portfolio in the UK with launch of Gran Reserva Diez"


News headline #9: "BACARDÍ® Rum And Lonely Whale Announce Straw Vinyl Program, Upcycling Single-Use Plastics Into The First-Ever Straw Vinyl Record"


News headline #10: "Bacardi and Revolución de Cuba launch Aventura rum"

Part
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Part
03

News Scan: Pernod Ricard

In June, Pernod Ricard announced its partnership with Boiler Room, to host music festivals in three continents. In September, Pernod Ricard announced ground-breaking for the construction of a $150 million distillery in China. Details of other major news stories has been provided below.

Pernod Ricard Acquires Rabbit Hole

  • Headline: "Pernod Ricard adds Bourbon to its portfolio with super premium brand Rabbit Hole".
  • Date: June 12, 2019
  • Source: Company press release
  • News Summary: Pernod Ricard signed an agreement to acquire majority shares in the Louisville, Kentucky based company Rabbit Hole Whiskey. This partnership is aimed at helping Pernod Ricard expand its new portfolio of specialty brands.

Pernod Ricard Completes Acquisition of MALFY

Castle Brand to be Acquired by Pernod Ricard for $223 Million

Firestone & Robertson Distilling Co Acquired by Pernod Ricard

  • Headline: "Completion of the acquisition of Firestone & Robertson Distilling Co.".
  • Date: August 30, 2019
  • Source: Company press release
  • News Summary: Pernod Ricard announced the completion of the acquisition of Robertson Distilling Co., owners of TX premium whiskey's.

Pernod Ricard Partners with Boiler Room

Pernod Ricard Expands Indonesian Business Operations

  • Headline: "Pernod Ricard strengthens investment in Indonesia through the issuance of licenses for business operation distribution".
  • Date: June 26, 2019
  • Source: Company press release
  • News Summary: Pernod Ricard strengthens its business presence in Indonesia, with the acquisition of business operation distribution licenses, for its Indonesian based branch PT Pernod Ricard Indonesia.

China Gets First-Ever Malt Whiskey Distillery from Pernod Ricard

Pernod Ricard Appoints New Executives

  • Headline: "Pernod Ricard executive appointments — Fiscal Year 2019/20".
  • Date: July 11, 2019
  • Source: Company press release
  • News Summary: Following its usual executive appointments held at the beginning of every fiscal year, Pernod Ricard announced the appointment of several new executives including Guillaume Girard-Reydet who now serves as the Managing Director, Pernod Ricard Espana and Iberia.
Part
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Part
04

News Scan: William Grants

News regarding William Grant & Sons in the last six months includes several product launches, the announcement of an award won, a lawsuit being filed against the company, and a bottling change for a two popular whiskies.

Ailsa Bay and its first blockchain whisky

  • The article was published in Enterprise Times on December 2, 2019.
  • Ailsa Bay is premium whiskey brand of William Grant & Sons, and the company launched a blockchain whiskey, the first ever. The blockchain will allow consumers to trace the manufacturing process, as well as ensure the authenticity of the whiskey.

‘Soul, Substance and Storytelling’ William Grant & Sons unveils Glenfiddich Grand Cru

  • The article was published in the Moodie Davitt Report on September 3, 2019.
  • William Grant & Sons launched the Glenfiddich Grand Cru, designed to increase the company's market share of the luxury spirits market. The product will also help the company's push into the global retail travel industry as the new line will be offered through activations at airports around the world.

Balvenie unveils final chapter in Compendium series

  • The article was published in The Spirits Business on November 20, 2019.
  • The Balvenie, which is owned by William Grant, released the final bottle in the DCS Compendium, a set of five rare whiskeys chosen by David Stewart, "the industry’s longest-serving malt master." The set was launched in 2015 and concludes with the latest 56 year old whiskey.

William Grant moves into low-alcohol with Atopia

  • The article was published in The Spirits Business on June 5, 2019.
  • Atopia is William Grant's first offering in the low-alcohol sector, with an alcohol by volume (abv) of 0.5%. There are two versions available, Atopia Spiced Citrus and Atopia Wild Blossom.

Family of 'Sailor Jerry' suing manufacturer William Grant & Sons

  • The article was published by KITV4 on June 14, 2019.
  • William Grant & Sons is being sued by the family of Sailor Jerry, claiming the company is using Jerry's name and likeness on their spirits without the family's permission. The family is looking for William Grant to stop using his likeness and for compensation.

William Grant reveals 2019 recipient of Ian Murray Scholarship

  • The article was published in The Spirits Business on June 27, 2019.
  • Kat Keough-Jack was announced as the winner of the sixth Ian Murray Spirited Solutions Scholarship, which was launched in 2014 to honor Ian Murray, the deceased prestige retail manager for William Grant.

Flor de Caña Named Official Rum Partner of the New England Patriots

  • The article was published in PR Newswire (press release from Flor de Cana) on September 26, 2019.
  • Flor de Cana, which is distributed in the U.S. by William Grant, announced that they are now the official rum of the New England Patriots. The multi-year partnership will include unique experiences at the stadium, giveaways, and cocktails with the rum.

Grant's Lands Top Scotch Prize at International Wine & Spirits Competition

  • The article was published in PR Newswire (press release from William Grant) on July 30, 2019.
  • William Grant announced that it had won the Blended Scotch Whisky Trophy for Grant's Blended Scotch Whisky at the International Wine & Spirits Competition.

World's Bestselling Single Malt Whisky Undergoes Risky Change

  • The article was published in Forbes on June 20, 2019.
  • Starting in June 2019, Glenfiddich, owned by William Grant, changed the bottles, labels, and branding of two of its core whiskies. This change follows the release of an innovative series by The Balvenie, a more traditional brand also owned by William Grant.

William Grant unveils ‘experimental’ Kininvie whiskies

  • The article was published in The Spirits Business on October 7, 2019.
  • William Grant released a line of experimental whiskies which includes a triple-distilled single malt, a whisky with rye added to the mash, and a third whiskey with a higher than typical amount of malt. The release of the whiskies was accompanied by the release of a white paper by the company titled, "The Influence of the Continuous Rousing of Spirit on the Characteristics of New Make Whisky Spirit."
Part
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Part
05

New Scan: Edrington-Beam Suntory (Formerly Maxxium)

Notable news about Edrington-Beam Suntory within the last six months include product launches by some of its brands, partnerships with other reputable brands, accomplishments, and awards won.

Named Employer Brand of the Year

  • Source: Press release
  • Summary: Edrington-Beam Suntory announced that it was the 2019 Employer Brand of the Year. The recognition was awarded by Marketing Society Scotland and sponsored by Denholm Associates. The company was recognized for creating a positive and empowering work culture.

Edrington-Beam Suntory Owned Brand Partners with Aston Martin

  • Date: November 28, 2019
  • Headline: "Bowmore announced as exclusive spirits partner to Aston Martin"
  • Source: Press release
  • Summary: Bowmore Islay Single Malt Scotch Whisky, a brand owned by Edrington-beam Suntory, was announced as the "exclusive spirits partner to Aston Martin Lagonda."

Launch of New Whisky by Auchentoshan

  • Date: November 19, 2019
  • Headline: "Auchentoshan launches Sauvignon Blanc Cask Finish"
  • Source: Press release
  • Summary: Auchentoshan, a single malt scotch whisky brand owned by Edrington-beam Suntory, announced its release of a special edition whisky. The whisky is targeted at urban consumers who love the "smooth triple-distilled taste of Auchentoshan and the unique flavour of sauvignon blanc."

Launch of Amazon Exclusive Whisky

Opening of a New Office

  • Source: Press release
  • Summary: The company announced that it was opening a new office in London. Previously in Kings Cross, the office will now be in Soho. The move is a "key part of Edrington-Beam Suntory UK being a great place to work."

Laphroaig Releases New Product

  • Date: September 30, 2019
  • Headline: " Laphroaig unveils The Ian Hunter Series"
  • Source: Press release
  • Summary: Laphroaig, a whisky brand owned by Edrington-Beam Suntory released the "first of an exclusive series of whiskies honouring the legacy of Ian Hunter, the last of the founding Johnston family to run the Laphroaig Distillery."

Edrington-Beam Suntory's Brand Unveils New Product

Edrington-Beam Suntory Brands Win Awards

Partnership for a New Campaign

RESEARCH STRATEGY

To gather notable news about Edrington-Beam Suntory within the past six months, we focused on recent articles by related publications like The Drinks Business. These websites had less than five notable news about Edrington-Beam Suntory itself. As a result, we relied on press releases on the company's website. A lot of these press releases were about some of the brands Edrington-Beam Suntory owns. Although we attempted focusing on Edrington-Beam Suntory, we had to include notable news about its brands/arms for a more complete brief.
Part
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Part
06

News Scan: Campari Group

Notable news about Campari Group include its acquisitions, sales, new product launches, plans to shift production, and structural changes. Within the last six months, the company has either acquired or made plans to acquire four companies.

Campari Group Plans to Acquire French Distributor

  • Date: November 15, 2019
  • Headline: "Campari Group in talks to buy French distributor"
  • Source: The Spirits Business
  • Summary: Campari Group has reportedly started exclusive negotiations to buy out Baron Philippe de Rothschild France Distribution - its French distributor. If successful, the acquisition will be "subject to the completion of necessary social processes, as well as the customary antitrust approval."

Campari Group Repens Galleria

Campari Reports Half Year Sales

Campari Group Acquires Mexican Companies

  • Date: October 10, 2019
  • Headline: "Campari Group Acquires Controlling Interest in Ancho Reyes and Montelobos"
  • Source: Beverage Daily
  • Summary: The article reported that Campari Group acquired a 51% controlling interest in Ancho Reyes - a super premium spicy liqueur - and Montelobos - an artisanal mezcal. Ancho Reyes and Montelobos reached aggregate sales of $7 million in 2018. Campari Group will be acquiring both companies for $35.7 million.

Campari Prepares to Shift Production

Campari Group Acquires Rhumantilles

Campari Group-owned Wild Turkey Releases Product

Campari Group Sells its Mansion

Campari Executive Retires


Part
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of twenty-five
Part
07

News Scan: Halewood International

Twelve notable news articles relating to Halewood International have been presented below. All articles were published in the past six months.

Halewood partners with Liverpool International Music Festival

Tequila Firm in Good Spirits With New Distribution Deal

  • Storywood Tequila, which claims that it is Scotland’s only tequila maker, has signed a UK distribution deal with Halewood International.
  • The Scotsman, July 8, 2019.

Halewood Wines and Spirits to Introduce Crabbie Single Malt in GTR

  • Halewood Wines & Spirits has launched Crabbie single malt scotch whiskey in global travel retail.
  • TRBusiness, July 30, 2019.

New Flavoured Gins Boost Halewood Wines and Spirits’ Travel Retail Business

  • Halewood Wines & Spirits's Whitley Neill handcrafted dry gin continues to drive sales in the company's travel retail business. The company claims that recently launched Whitley Neill full-strength gin flavors have boosted sales figures, without diminishing revenue from existing brands.
  • TRBusiness, August 8, 2019.

Edinburgh Gin Wins Major Supermarket Deal

  • Halewood signed an exclusive partnership with supermarket chain Asda to produce Asda’s Extra Special Scottish Gin, which will be distributed in over 50 Asda stores in Scotland.
  • The Herald Scotland, August 17, 2019.

Halewood Takes on Major Partnership with Penderyn

  • Penderyn whiskey entered into a partnership with Halewood Wines & Spirits. According to the agreement, Halewood will be responsible for the on-trade distribution of Penderyn’s Gold and Dragon ranges of single malt Welsh whiskeys across England, Scotland and Northern Ireland.
  • Harpers, September 9, 2019.

Halewood’s London Gin Distillery Completes Refurb Following Visitor Surge

  • The Halewood-owned City of London Distillery & Bar was recently remodeled to help meet the rising demand from international visitors. Bookings for the distillery's tasting events have more than doubled in the past year, according to the company.
  • Harpers, October 4, 2019.

Halewood Unveils 4yo American Eagle Bourbon

Dead Man’s Fingers Hemp Rum £2m Campaign Under Fire

Halewood Partners With Dufry to Launch Whitley Neill Raspberry Gin in Edinburgh

Halewood Faces Opposition From Vera Lynn Over Gin Trademark

  • Dame Vera Lynn, the centenarian singer, has opposed an application by Halewood Wines & Spirits to trademark her name as the name of a new brand of gin. The company stated that it applied for the trademark because Vera Lynn is rhyming slang for gin.
  • The Drinks Business, November 18, 2019.

Halewood to Open Bristol Rum Distillery and Bar

  • Halewood Wines & Spirits announced that it will open the Bristol & Bath Rum Distillery in a former Jamie’s Italian restaurant in Park Street in Bristol, UK.
  • The Spirits Business, September 25, 2019.
Part
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of twenty-five
Part
08

News Scan: Distell Spirits

Notable news from Distell Spirits from the past six months include the naming of a new brand distributor, the launching of high-profile promotions in Hong Kong, and the launch of new products. The complete information regarding these and other news is provided below.

2019 FMCG, Food and Beverage Winner: Distell

  • Date: November 28, 2019
  • Source: SCF Briefing
  • Summary: Distell won the 2019 FMCG in the food and beverage category for their program made to free up cash for their international expansion, which also recognized the funding needs of its suppliers.

South Africa: Distell Loses Round One of its Fight Against AB InBev

Distell Global Travel Retail Appoints New US Distributor

  • Date: November 6, 2019
  • Source: Just Drinks
  • Summary: Distell named InnoTRI its global travel retail distributor for the US and parts of the Caribbean. This partnership will take effect in January 2020.

Proudly South African: Distell Launches Bain’s New 18-Year-Old Range for TR

  • Date: September 25, 2019
  • Source: TR Business
  • Summary: Distell launched three new sherry cask-finished whiskies from Bain’s Cape Mountain Whisky, which were available at Big Five Duty Free stores in Cape Town International Airport and Johannesburg’s O.R. Tambo International Airport.

Distell Launches High-profile Promotions at HKIA; Names GM for the Americas

  • Date: September 5, 2019
  • Source: TR Business
  • Summary: Distell launched two high-profile promotions for its brands Bunnahabhain, Nederburg, and Durbanville Hills, at Hong Kong International Airport Terminal 1. The aim was to share the history of its top-tier brands to Asian customers.

South African Beverages Company Pulls Out of Zimbabwean Market

  • Date: September 1, 2019
  • Source: Zim Eye
  • Summary: Because of signs of deep economic problems attacking Zimbabwe, Distell is will probably hold off on further investments in this country. The company wants to wait until there is an improvement in currency flows.

Strong African Momentum Drives Distell’s Growth

  • Date: August 29, 2019
  • Source: IOL
  • Summary: Distell plans to split its international operations into three business units (international spirits, exports, and premium wine) in order to double its revenue collection outside South Africa.

Distell Unveils 2019 Limited Edition Malts

  • Date: June 26, 2019
  • Source: Scotch Whisky
  • Summary: Distell revealed its 2019 collection of limited edition single malts from its Bunnahabhain, Deanston, and Tobermory brands. The collection consists of eight ex-Sherry, Port, and brandy casks whiskies.

Part
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of twenty-five
Part
09

Company Analysis: Diageo

Diageo’s leading brand Johnnie Walker has almost 15 million Facebook followers. Johnnie Walker’s products such as Blue Label, Black Label 12-Year-Old, and Red Label have received an average rating of 4 stars and above on The Whisky Exchange. Diageo has recently acquired a significant majority shareholding in a non-alcoholic spirits brand called Seedlip.

Social Media Followers

  • Johnnie Walker is one of Diageo’s main brands.
  • The brand has nearly 15 million followers on Facebook.
  • It has around 307,000 followers on Instagram.
  • Johnnie Walker’s YouTube channel has around 53,000 subscribers.
  • Johnnie Walker has almost 28,000 followers on Twitter.

E-commerce Presence

  • Diageo does not sell any products directly through its main website or the websites of Johnnie Walker and other brands.
  • The websites for the majority of the brands typically provide a directory of stores and bars that sell their products.
  • Amazon does not sell any alcoholic products offered by Johnnie Walker or other brands.
  • Alcoholic products offered by Johnnie Walker and other brands are available on The Whisky Exchange and other alcohol e-commerce sites.

Consumer Sentiment and Ratings

  • In July 2018, it was reported that Diageo’s champagne category, specifically the Moet Hennessy brand failed to meet sales forecast.
  • In December 2019, RBC Capital Markets noted that Diageo’s premium drinks categories, which include Ciroc and Don Julio were experiencing high revenue growth.
  • According to RBC Capital Markets’ data science team RBC Elements, consumer sentiment for Diageo’s largest brands were “amongst the most favorable in the alcoholic beverages sector” and is expected to remain robust.
  • Johnnie Walker’s products listed on The Whisky Exchange typically received an average rating of 4 stars and above.
  • Johnnie Walker Blue Label has received an average rating of 4.5 stars from 156 reviews.
  • Johnnie Walker Black Label 12-Year-Old has received an average rating of 4 stars from 156 reviews.
  • Johnnie Walker Red Label has received an average rating of 4 stars from 114 reviews.

Low- or Non-alcohol Spirit Offerings

  • During the Diageo’s The Future of Drinks trends session held in October 2018, the company’s global cocktailian Lauren Mote predicted that “low and no alcohol alternatives would continue to grow, with younger consumers driving the change.”
  • In August 2019, Diageo announced that it had acquired a significant majority shareholding in non-alcoholic spirits brand Seedlip through the company-backed accelerator program Distill Ventures.
  • Seedlip had previously received a minority investment from Distill Ventures in June 2016.
  • Diageo has not launched or announced plans to offer any low- or non-alcohol spirit products.
  • However, the company has launched the 0% ABV Guinness in Indonesia in 2014 and test-launched the 0.5% ABV Pure Brew in Ireland in 2018.
Part
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Part
10

Company Analysis: Bacardi Group

Bacardi Group’s leading brand BACARDÍ Rum has 9.3 million Facebook followers. Bacardi Group’s products such as Bombay Sapphire Gin, BACARDÍ Carta Blanca Rum, Grey Goose Vodka and PATRÓN Silver Tequila have received an average rating of 4 stars out of 5 and above on The Whisky Exchange. Martini, one of Bacardi Group's brands, recently started selling an alcohol-free sparkler in the UK.

Popularity

E-commerce presence

Consumer sentiment

Low- or Non-alcohol spirit offerings

  • In 2019, Martini, a wine brand by Bacardi Group, started selling an alcohol-free sparkler known as Martini 0.0% Dolce in the UK.


Part
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Part
11

Company Analysis: Pernod Ricard

One of Pernod Ricard's leading brands (Absolut Vodka) has 27,600 subscribers and has achieved a total of 43,375,371 views on YouTube. Several consumers feel Absolute Vodka has a smooth and refreshing nature, which deserves a 5-star rating on a scale of 5.

Pernod Ricard

  • Pernod Ricard makes drinks available to the public by maintaining a unique portfolio of "premium international brands." The company has one of the broadest collections in the wine and spirits industry. Pernod Ricard leverages its "House of Brands" as a dynamic tool to allow its affiliates to prioritize their marketing investments.
  • The website of Pernod Ricard is accessible via this link.
  • Pernod Ricard drinks are categorized into three, namely, strategic international brands that are at the top, followed by its strategic wine brands and, finally, its strategic local brands.
  • Pernod Ricard's YouTube corporate official channel has 2,110 subscribers and 4,726,261 views. One of Pernod Ricard's brands is J.P. Wiser's. Pernod Ricard has several premium brands, including Absolut Vodka, Chivas Regal Scotch Whisky, and other brands.
  • Pernod Ricard has 20,901 followers on Facebook and 18,400 followers on Twitter.

Brand Followers

E-commerce Presence

  • In its 2018/2019 full-year sales report, Pernod Ricard revealed that it recently acquired the "Bodeboca platform to accelerate" its e-commerce capability.
  • Pernod recently acquired stakes in an African e-commerce platform known as Jumia. It also purchased an e-commerce channel in Spain to boost the sales of its products.
  • E-commerce accounts for the "fastest­-growing" sales channel for Pernod Ricard and is a "key priority" for the French company. Today, the company is present in more than 60 markets by selling its products online (via e-commerce). E­-commerce accounts for about 10% of Pernod's sales in China and for 7% of its sales in the United Kingdom.
  • According to Ricardsiddle, Pernod Ricard has successfully implemented deals via e-commerce platforms like Amazon. These deals assist Pernod Ricard to sell directly to consumers.

Consumer Sentiments

  • Based on the average consumer sentiment and satisfaction, Pernod Ricard has a 4.5-star rating on a scale of 5 from 5 consumers.
  • Stephanie K believes that Pernod Ricard's wines taste fine. Both reviewers that mention taste have positive sentiments regarding the savor or taste of Pernod Ricard's wines.
  • Another consumer of Pernod Ricard (Rossie29) agrees that the brand uses a brilliant production process. The consumer revealed that touring the facility came with the opportunity to taste some products of Pernod Ricard and boosts tour experience. According to Rossie29, Pernod Ricard deserves a rating of 5-stars on a scale of 5.
  • Based on consumer sentiments from its user reviews, Absolut Vodka has a rating of 4.2-star rating on a scale of 5 based from 14,432 reviews.
  • Brittany P. Cliffside from NJ and about 401 reviewers think that Absolut Vodka is lovely due to its smooth and refreshing nature. They agree that its "flavor possibilities are endless," and it makes for great summer drinks. They feel that the brand deserves a rating of 4-stars on a scale of 5.
  • Mckenzie G. from Damascus and about 17 other reviewers feel that "Absolute is a great vodka." They agree that it is smooth, great-tasting, and deserves a 5-star rating on a scale of 5. This group feels that Absolute Vodka is excellent as a mixed drink and on its own.
  • Kristen E. from Saraland, AL, and about 24 other reviewers feel that Absolut Vodka "makes for a great cosmopolitan" (cocktail) and is suitable for occasions when mixed with red bull. They agree that it deserves a 5-star rating on a scale of 5.

Low- or Non-Alcohol "Spirit" Offerings

  • Pernod recently planed to launch a no-alcohol "dark spirit" within the United Kingdom. The launch of this alcohol-free increases Pernod Ricard's base in the "low- and no-abv" drink territory. This new brand, known as Celtic Soul, is a "non-alcoholic blend" made of "carefully distilled dark spirits" that have sweet vanilla flavor and oak spice.
  • According to Craig Hutchison, who is the founder as well as managing director of Ceder's "gin alternative," Pernod Ricard's category of drinks currently lacks compelling dark non-alcoholic spirits to offer. As such, the company was excited to partner with Celtic Soul to provide a non-alcoholic dark spirits brand to the public.
  • According to Hutchison, the mindset of some drinkers has changed. They feel that having a "sophisticated drink doesn't" mean having a drink that contains alcohol.
  • As a relatively new drink, Celtic Soul has limited reviews available to the public. A user reveals that Celtic Soul "tastes a whole lot better when mixed with coke." The user feels Celtic Soul is one of the first dark spirits in "the non-alcoholic world."
  • According to Soberito, drinkers can hardly wait (are anxious) to purchase a bottle of Celtic Soul but they may have to wait further before it becomes readily available.

Research Strategy

The study examines insights related to the liquor company Pernod Ricard and its key brands and reviews credible media publications like the Spirits Business media resources. The research examined Pernod Ricard's key brands to uncover what they look like in terms of popularity, e-commerce, sentiments, and offerings. Key brands were defined based on top brands (premium brands) presented across a plethora of resources. The study also considers the sales volume of Pernod Ricard brands to identify Pernod Ricard's key/significant brands. Several studies revealed that Pernod Ricard has a limited number of low- or non-alcohol "spirit" brands/offerings. Celtic Soul became accessible to the public "exclusively from Sainsbury" as of July 22 at a recommended retail price (RRP) of about £25.00 (US$31.30). Insights into the e-commerce strategy of the company were also uncovered.

The study has reviewed consumer ratings and sentiments from review resources like Influencster, Trust Pilot, among other resources. This strategy examined the summary of consumer opinions relate to Pernod Ricard's low- or non-alcohol "spirit" offerings but failed to reveal detailed views related to Celtic Soul or any of Pernod Ricard's brands. Insights were specific to the company's leading brands (premium brands) like Absolut Vodka, and Chivas Regal Scotch Whisky.

The study also reviewed Pernod Ricard's social media platforms such as Facebook, Twitter, etc., for the review of the company's low- or non-alcohol spirit offerings. Uncovered insights related to premium brands like Absolute Vodka and other brands. There were no insights specific to the company's low- or non-alcohol spirit offerings.

The study has also reviewed the website of Pernod Ricard for the summary of any low- or non-alcohol "spirit" offerings to uncover user reviews, comments, and sentiments. Pernod Ricard does not include user reviews for its low- or non-alcohol "spirit" offerings on its website.
Part
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Part
12

Company Analysis: William Grants

William Grant's leading brand Glenfiddich has 1.3 million Facebook followers and 114,000 Instagram followers. Glenfiddich's products, such as Glenfiddich 12 Years Old, Glenfiddich 15 Years Old, and Glenfiddich IPA Experiment have received an average consumer rating of 4.5 stars and above on The Whisky Exchange. William Grant has recently entered the low-alcohol spirits segment with Atopia.

Social Media Followers

E-commerce Presence

Consumer Ratings

Low- or Non-alcohol Spirit Offerings

Part
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Part
13

Company Analysis: Edrington-Beam Suntory

Jim Beam, one of the leading brands of Edrington-Beam Suntory, has 3.2 million followers on Facebook. The Macallan, which is another brand from the company, has received an average rating of 8.5 stars out of 10 from 3573 reviews.

Popularity

E-commerce presence

  • Edrington-Beam Suntory sells its products from brands such as The Macallan, The Famous Grouse, and Jim Beam directly to consumers through the respective brand websites.
  • The websites for the majority of the brands typically provide a directory of stores and bars that sell their products.
  • Alcoholic products offered by the brands are available on alcohol e-commerce sites such as the ReserveBar and Drizly.

Consumer sentiment

  • Edrington-Beam Suntory's products listed on The Whiskey Exchange have typically received an average rating of 4 stars out of 5 and above.
  • Jim Beam Bourbon has received an average rating of 4.1 stars out of 5 from 3649 reviews. It is praised for its flavor, high quality, and reasonable price.
  • The Macallan whiskey has received an average rating of 8.5 stars out of 10 from 3573 reviews. It is praised for its complex flavor and smooth finish.

Low or non-alcohol Spirit Offerings

  • Edrington-Beam Suntory offers a low alcohol product from the brand Jim Beam, which is called Jim Beam and Cola that has an alcohol content of 4.6%. It is the only product with the lowest alcohol content. The company has not launched or announced plans to offer non-alcohol spirit products.

Part
14
of twenty-five
Part
14

Company Analysis: Campari Group

Skyy, Aperol, and Campari are popular brands of Campari Group. Skyy collectively has 4,359,260 followers across Facebook, Instagram, and Twitter. Both Skyy and Aperol are popular among young drinkers.

Popularity

Skyy

  • Skyy contributes 8.5% of Campari's revenue.
  • Skyy vodka sold 3.8 million cases in 2017 and is the 8th-most popular vodka globally.
  • In 2016, it sold 2.8 million cases in the US alone and ranked as the 7th-most popular vodka in the country.
  • Social media following:

Aperol

  • Aperol contributes 16.3% of Campari's revenue.
  • Aperol Pritz is "a holy rite of summer" in the United States.
  • It is endorsed by Benedict Cumberbatch and is also popular in the United Kingdom.
  • Social media following:

E-commerce Presence

Consumer Perception & Sentiment: Skyy

  • Skyy Vodka crafts a "glamorous and sexy" image through its marketing campaigns.
  • Skky Vodka is an affordable premium vodka. It is a stylish and fashionable brand that is popular among the youth and is known to be a " brand high above others". Forty percent of the company's sales come from underage individuals.
  • Skyy Vodka has a rating of 4.1 (11,072) and 4.2 (8,632) on Influenster (for different variants).

Consumer Perception & Sentiment: Aperol

  • Aperol has become the summer cocktail of choice over the last few years in the United Kingdom and the United States.
  • Lately, owing to a New York Times article titled "The Aperol Spritz Is Not a Good Drink", Aperol has been a topic of debate on social media in the United States and Campari's share price has slipped by 15% since. There is also speculation on whether Aperol sales will dip or plateau from hereon.
  • The New York Times article opines that Aperol is not good as it is "too sweet and not bitter enough". The sweet aperitif and low-quality prosecco make it not-so-healthy. However, some dismiss the opinion as snobbery and don't see merit in the argument.
  • Consumers in America are shifting to low-alcohol drinks that can be consumed in the day and allow them to function normally. This is one factor that has led to the popularity of Aperol. The low-alcohol content also makes it popular among young drinkers.
  • Aperol has a 4.8 (54) rating on Influenster and a 4.6 (33) rating on Total Wine.

Consumer Perception & Sentiment: Campari

  • Campari Group uses its business name as a liquer brand. Drinks International rated is the best-selling liquer brand globally in 2018.
  • Campari is seen as an approach to life--it is seen as a way of "spending happy hours with friends" and not so much as a drink. It is seen as a creative brand.

Low-Alcohol Spirit Offering (Aperol)

  • According to the national portfolio brand ambassador at Campari America, Anne Louise Marquis, "Aperol is "not necessarily a type of alcohol but more of a category of drinks that are best enjoyed before a meal".
  • Aperol has low levels of alcohol (11%). The primary ingredients of Aperol include "bitter and sweet oranges, rhubarb, and many different herbs and roots". The recipe for the drink has existed since 1919 and is kept a secret.
  • Traditionally, Aperol was ingested before a meal as an appetizer. However, because of its low alcohol content consumers can have it at any time of the day. According to Anne Louise Marquis, it is a "perfect daytime drink" that is "best enjoyed when the sun is out". However, the company ran marketing initiatives in 2018 to deseasonalize the drink (so that it is also consumed in winter).
  • The Aperol Spritz can be made by mixing Aperol, Prosecco, soda, and ice with a slice of orange.
Part
15
of twenty-five
Part
15

Company Analysis: Halewood International

The popularity of Halewood International and its key brands are indicated through its sponsorship programs in sports and charitable events. The company offers online sales through e-commerce platforms like Amazon and can also boast of positive sentiments and high consumer ratings.

Halewood International — Company Analysis

Overview

  • Halewood International was founded in 1978 by John Halewood.
  • Since its inception, Halewood International has grown to become the third-largest gin producer in the United Kingdom. The company offers a large-scale portfolio including vodka brands, rum, whiskey, and artisan beers.
  • With the leadership of Stewart Hainsworth, the group chief executive officer, the company continues to experience remarkable growth with a "turnover of 350 million pounds".
  • Halewood International is the number one premium gin producer in the UK with 12 distilleries, 2 bars, and 2 craft beers.
  • Halewood International is focused on core objectives like building a solid distributional network, propelling vertical integration, recognizing trends and consumer activation. All these serve as the driving force for growth and expansion.
  • The headquarters of the company are located in the European Union and it has an estimated range of 501-1000 employees.
  • The company boasts a vast geographical footprint in over 100 countries around the world.
  • Halewood International is dedicated to being the "lead incubator of brands with each demonstrating strong provenance, heritage, and dedication to quality".
  • In countries like the United States, South Africa, China, and Australia, Halewood International runs and operates the distribution network.
  • Halewood International has a prevalent customer base ranging from luxurious hotels to local and international drink wholesalers.

Prevalence

  • Halewood Wine and Spirits has gained high popularity in the sports community. The company sponsors rugby teams, basketball, martial arts, and local football teams.
  • The Wine and Spirits company has also sponsored cycling events in the UK, like the "Tour Of Britain".
  • One of their numerous brands, Crabbie Alcohol Ginger Beer, is a prominent partner to "rugby clubs at all levels including Scottish rugby, Northampton Saints, Newcastle Falcons, Yorkshire Carnegie, Richmond, and Esher". Before this, the Crabbie's brand, sponsored one of the leading racing events in the world, the "grand national horse race".
  • The company's popularity goes beyond sports as it is a prominent supporter of "The Benevolent". This is a charity that aims to give to the community workers who have worked in the wine and drink industries.
  • Across social media platforms, brands like the Whitley Neill and Liverpool Gin have a strong social media presence.
  • Currently, the Neill Brand has about 8,839 followers on Twitter, 17,176 follows on Facebook and 18.1k followers on Instagram.
  • On the other hand, the Liverpool Gin brand has about 8,921 followers on Instagram, 18,885 follows on Facebook and 9,901 followers on Twitter.

E-Commerce, Consumer Ratings, and New Offerings

  • The company has an e-commerce presence for each of its unique brands. Brands like the Whitley Neill are sold across 19 e-commerce platforms. Some of these platforms include Amazon and 31Dover. The Liverpool Gin is also sold on Amazon.
  • Across the web and social media platforms, consumer sentiments and ratings towards the company are relatively positive.
  • With the aid of Social searcher, which is a social analytics platform, the ratio of positive sentiments to negative sentiments are 31% to 7%.
  • One of the consumers had this to say about Halewood International "Starting a new job could be stressful... that's what I heard. Halewood International day 1 & 2, the best induction ever".
  • On Amazon, the brand products of Whitley Neill had remarkable consumer ratings. Averaging 4.7 stars out of 5, the Neill brand is widely accepted by consumers.
  • Feedback from consumers about the brand are generally positive, a consumer said: "Really like this stuff, a good flavor and always nice to have a good Gin selection, give it a try you’ll like it".
  • Consumer sentiments towards the Liverpool Gin brand are positive as well. Products of the Gin brand averaged 4.5 stars with positive consumer feedback.
  • A consumer had this to say about the Gin brand "I love Liverpool gins. The price is cheaper than M&S and there are multiple choices for different flavors. The rose gin is my favorite one".
  • The Halewood company doesn't offer any "low- or non-alcoholic spirit". J. J Whitley's artisanal spirit brand is the only spirit brand offered and it includes the Rhubarb Vodka and London dry gin, all with an average alcohol percentage of 38.6%.
  • The wines and Spirits company also offers 2 types of fortified wines and spirit. The Crabbie Mulled Ginger wine and the Green Ginger Wine are both wines offered with alcohol.

Research strategy

To carry out this research, the research team started by going through the company website thoroughly to identify any indicator of the company's popularity, e-commerce presence, consumer ratings and sentiments, and new offerings by the company. This search method proved fruitful because most of the information needed was readily available on the company website. We then moved to search through the social media pages of key brands of the company to inform us of their social media presence.

Secondly, we searched through social analytic platforms and product review platforms for information about company reviews and consumer sentiments. This search method proved fruitful as well because the information needed was readily available.

There were no "low- or non- alcoholic spirit" offerings by the company and there was also no definition of "low" in terms of alcohol percentage. However, we were able to identify already existing spirit brands with an average alcohol percentage of 38.6%. After searching the company's website for "low- or non- alcoholic spirit" our second strategy was to search through press releases, articles and related industry magazines hoping to identify any non-alcoholic spirit offered by the company but this search method was futile.

Our third strategy was to search market reports and wine databases hoping to identify any non-alcoholic spirits offered by the company but this was abortive as well. Finally, we searched through the company's social media platform looking for posts or adverts of any non-alcoholic spirit offered by the company but the search method proved futile as well. However, we were able to identify other non-alcoholic wine and fortified wine and spirit offered by the company. Examples are the Crabbie Mulled Ginger wine and the Green Ginger Wine.
Part
16
of twenty-five
Part
16

Company Analysis: Distell Spirits

Distell Spirits is an innovation-focused, South African-based, global alcoholic beverage company with brands in three segments of the Beverage-Alcohol industry: ciders and ready-to-drink alcoholic beverages (36.5% of revenue), spirits (36.8% of revenue), and wines (26.8% of revenue). Top brands in their spirits segment include Amarula Cream liqueur, Klipdrift brandy, and Bain's Cape Mountain whiskey. While the company itself is not as well-known as spirit companies such as Diageo or Bacardi, its brands enjoy positive sentiment from consumers and the alcohol spirits community alike, and have a respectable following across social media platforms.

Popularity

  • The Distell spirits segment increased revenue by 11.2% for the year ending June 30, 2019.

E-Commerce Presence

Consumer Sentiment

Low or Non Alcohol Spirit Offerings

Research Strategy

We evaluated numerous resources related to Distell, focusing on their spirits segment. We began by reviewing their website and most recent annual report to understand brand performance and brand and corporate strategies. We then looked at various social media platforms for select spirits brands to understand consumer sentiment and following. We also evaluated expert reviews and considered external awards received by the Distill Spirits brands to understand category expert perceptions of Distill and their brands.

When evaluating Distill Spirit's e-commerce presence, we showcased several examples. However, this is not an all-inclusive list of all retailers that could possibly be selling Distill Spirit's brands online. The key takeaways are that Distill has a select online presence on their own website and certain external online retailer websites.

Finally, we could not find evidence of low and no alcohol spirit brands in Distill's portfolio. However, since Distill operates in two other segments, we noted an example of one recent non-alcohol launch in the cider segment that may indicate Distill's focus on reaching a health-focused consumer with their brands.

Part
17
of twenty-five
Part
17

Premium Spirits: Retail Innovations


Three trends in retailing premium spirits include increasing on-trade activities, partnerships with well-known people and businesses, and an increase in premiumization of retail products by distillers.

On-Trade Activities

  • On-trade promotions are those which take place in hotels, restaurants, and pop-up bars that sell the product. These types of activities are designed to boost name recognition and, subsequently, sales of premium spirits.
  • In the US, the Negroni is critical to the Campari brand's success, and in June 2018, 3,100 US bars participated in the annual Negroni Week. According to Jean-Jacques Dubau, Campari Group's North America managing director, a person can now find "a great Negroni perfectly made in Louisville or Kansas City."
  • At the 2018 Sundance Festival, premium French Vodka Grey Goose was the official vodka. At a pop-up bar, called the Grey Goose Blue Door, the company hosted after parties for celebrities like Forrest Whittaker, Nick Offerman, Maggie Gyllenhaal, and Jim Parson.
  • "Now even dive bars are doing things with premium bourbons. Having a well-made, handcrafted cocktail is definitely where things have been going for the past few years."

Partnerships

  • In the past year, some premium brands have had successful partnerships in their retail efforts. In a partnership, the premium brand provides funding for and advertises with the partner to boost awareness for both.
  • Ardgowan Distillery sent two flasks on a trek to the South Pole, when their equipment was powered only by renewable energy. It is thought to be the first whiskey to make it to the pole. The team drank one flask, and the other was returned to Scotland, where it made up part of a limited­-edition bottling of Ardgowan whiskey.
  • One Gin was the gin supplier of choice at the 2018 National Television Awards. During the event, the craft gin brand was used to make the One Sage Smash cocktail, as well as a classic gin and tonic. During the advertising campaign, each bottle of One Gin sold helped fund water projects in the world's most impoverished communities.
  • As of 2018, Glen Moray became the official whiskey partner of Edinburgh Rugby. The partnership between the Scottish rugby club and the Scotch distillery will mean Glen Moray's logo now appears on the team players' shorts. Its whiskey will be on sale in the stadium until 2021.

Premiumization

  • Distillers are increasingly creating premium brands. As millenials' financial situations improve, they have more discretionary income that they are willing to spend on affordable luxuries.
  • In the 12 months before June 2019, spirits priced $25 and up showed a 13.2% increase in sales. The spirits include whiskey, vodka, and tequila. "People want to treat themselves," says Scott Moore, SVP national accounts off-premise at Southern Glazer's Wine & Spirits. While they are not going to buy a new car every time they want to celebrate, they will treat themselves to a premium cocktail.
  • As one example, over the last 15 years, the belief that blended Scotch is good, but malts are better. Sales of malts grew by 200% between 2002 and 2018, while sales of blended Scotch dropped by 13%.
  • One different way premium spirits are retailing their product are bottling in miniature sizes, making premium spirits available to all markets at low prices. The CEO of Quintessential Brands states that "The miniatures market presents a significant opportunity for the spirits industry."
  • The second example of changing retail approaches for premium brands centers on the heritage of the brand. Robin Clough, the co-founder of the two-year-old UK luxury tequila company Tequila Enemigo, says that demand for luxury liquor is coming from a new kind of consumer who cares about products' origins. It's not enough to lean on celebrities to sell alcohol, he said. "People want to understand the brand story."
  • The trend is so ubiquitous that Brand Chorus recently published a Spirits StoryScore Index. The two top-ranked were premium spirits were Tito's Handmade Vodka and Patron Tequila.

Research strategy


We began by searching professional spirits magazines and websites for articles identifying new retailing activities in the industry in the last two years. These magazines/sites included BLIS.com, thespiritsbus.com and beveragedynamics.com.

Once we had a selection of retail activities we categorized them and ultimately defined the three trends as on-trade, partnering and premiumization.

With the categories identified, we researched standard definitions for each and the impact that trend is having on the industry. From there we identified two-three examples for each of the trends we identified. Examples came from thespiritbus.com. quintessentialbrands.com, bevindustry.com and CNN.









Part
18
of twenty-five
Part
18

Government Initiatives: Alcohol Intake

The Parliamentary Under-Secretary of State for Health and Social Care, England's Department of Health's Public Health England agency, National Health Service (NHS) England, NHS Health Scotland, and NHS Public Health Wales are government entities that have contributed to recent national strategies and initiatives, such as rolling out minimum unit pricing standards and drink free day campaigns, to reduce alcohol consumption in the U.K. A summary of the government entities involved in these initiatives, examples of current initiatives, and ideal outcomes for such efforts are detailed below.

Involved Government Agencies

  • The National Health Services (NHS) for England rolled out a Long Term Plan in 2019 to address reduction of alcohol consumption among U.K. residents through delivery of Alcohol Care Teams to a quarter of the country, in areas most affected by alcohol misuse, to provide personalized feedback on ways to reduce alcohol consumption in 20-40 minute advice sessions.
  • Public Health England (PHE), an executive agency within England's Department of Health, has been a critical government player in initiatives aimed to lower alcohol intake in the U.K.
  • PHE is known to partner with both government agencies and nonprofit or charity organizations on strategies and initiatives to ultimately reduce alcohol consumption in the U.K.
  • In May 2018, the Parliamentary Under-Secretary of State for Health and Social Care and PHE partnered together to establish a national strategy to address and reduce alcohol intake among U.K. residents.
  • Other government entities involved in reducing alcohol intake among U.K. adults include Public Health Wales, an agency of the National Health System of Wales, which supports training among health professionals to have conversations with patients to encourage reduction of alcohol consumption, and NHS Health Scotland, which oversees Scotland’s Alcohol Strategy (MESAS) to ensure that alcohol consumption is reduced within Scotland.

Current Initiatives

Initiative 1: Minimum Unit Pricing (MUP) Rollouts

  • Part of the national strategy established by the Parliamentary Under-Secretary of State for Health and Social Care and Public Health England aims to review the evidence surrounding minimum unit pricing (MUP), a concept that is primarily associated with reducing alcohol consumption by setting higher financial constraints on consumers.
  • MUP sets a threshold for the minimum price at which alcohol can be sold and is a moving target based on the alcohol content within a drink: the more alcohol a bottle contains, the more it will cost.
  • It is important to note that the application of MUP is not a tax; instead, it is a concept that ensures that alcohol is sold at a price that effectively reduces copious amounts of alcohol consumption by reducing affordability.
  • MUP became effective in Scotland as of May 1, 2018, was approved to be rolled out in Wales on August 9, 2018, and is currently under consideration for implementation in England.

Initiative 2: Drink Free Days

  • The campaign, a partnership between nonprofit organization Drinkaware and Public Health England (PHE), arose from recent findings that one in five U.K. adults consume alcohol in amounts higher than the recommended drinking guidelines from the U.K.'s Chief Medical Officers and that 10.8 million U.K. adults drink in quantities that could pose a significant risk to their health.
  • Drink Free Days encourages U.K. middle-aged adults to incorporate more days in which they abstain from alcohol to avoid health risks associated with significant, regular drinking through social media and radio messages.
  • Similarly, PHE has supported Alcohol Change U.K., another U.K.-based nonprofit organization aimed at lowering alcohol intake among U.K. adults, in its annual Dry January challenge, which encourages adults to abstain from alcohol for the entire month of January in hopes to reduce overall alcohol intake.

Ideal Outcomes

  • The British Medical Association estimates that alcohol consumption poses high economic and societal costs: alcohol is estimated to cost £21 billion a year in England, including £3.5 billion a year to the National Health System (NHS).
  • Government or other national professional entities in the U.K. centered on public health concerns hope that interventions and initiatives to reduce alcohol intake will reduce alcohol-related health harms, such as alcohol-related deaths and alcohol-related hospital admissions or even injuries attributed to violence spurring from alcohol consumption.
  • Through reducing alcohol consumption, U.K.-based government entities hope to prevent costs associated with caring for over 60 health problems attributed to alcohol, including cancers of the mouth, throat, stomach, liver, and breast and other conditions such as cirrhosis, heart disease, depression, stroke, pancreatitis, and liver disease.
  • NHS's Long Term Plan and Alcohol Care Teams are hoped to support a reduction of 50,000 alcohol-related hospital admissions and a reduction in bed days by nearly 250,000 by 2024.

Research Strategy

The research team began its search for government initiatives targeted towards lowering overall alcohol intake among U.K. residents by first searching official government websites (gov.UK). Later, searches among U.K.-based nonprofit organizations' sites that focus on healthier drinking habits (e.g., Alcohol Change UK, Drinkaware) were conducted by the research team to identify private-public partnerships and initiatives that the U.K. government is involved in within this area. Any gaps in information from these sites were supplemented with findings from U.K.-based news sources (e.g., The Guardian, Alcohol Policy UK). Results of current initiatives, ideal outcomes, and a list of organizations involved are summarized above.

Part
19
of twenty-five
Part
19

Craft Beer Consumption: U.K.

Craft Beer Consumption in UK

The popularity of craft beer is increasing steadily in the UK as consumers are more educated in the choices available. Currently, there are more than 1400 craft beer breweries in the UK, and that number is rising.

Consumption

  • Annual beer production by SIBA members in 2018 reached an estimated total of 2.86 million hl. This was an increase from the 2.839 million hl produced in 2017. Despite this increase, SIBA's membership numbers have significantly fallen from 831 breweries in 2018 to 753 at the start of 2019.
  • In 2019, 21% of UK drinkers drank more that once a week, 19% once a week, 18% every two weeks, 14% once a month,11% once every 2 to 3 months, 4% every 4 to 5 months, 3% once every 6 months, 9% less than every 6 months, and 1% don't know.

Location Of Consumption and Purchase

  • Surveyed breweries appear to indicate that free trade pubs, owned pubs, and wholesalers are the primary channels for their sales. Around 24% of consumers would be willing to visit a pub or restaurant if it had an exceptional selection of craft beers
  • One out of four breweries generate their sales online. In the year 2017, 83% of the population made a purchase online, indicating a significant opportunity for breweries through online channels.
  • About 25% of respondents to SIBA’s annual membership survey reported that they have a taproom, which was an important revenue stream. It enables brewers to control quality while delivering the freshest beer.
  • At the UK beer festival, the craft beer scene recorded the highest number of exhibitors and record attendance. Beavertown’s Extravaganza displayed various stages of craft beer development with 8,000 drinkers enjoying beers from 71 different breweries.

Peak Consumption Times

  • Peak consumption times for craft beer are on the weekends, including Friday. Most people drink craft beers during holidays and beer festivals, which occur at specific dates of the year.

Regional difference

  • For craft beer drinkers, local is very important. According to the 2019 SIBA British Craft Beer Report, 23% of UK consumers believe that craft beer must be produced by local breweries.

Part
20
of twenty-five
Part
20

Beer Market Size: U.K.

The market size of the United Kingdom beer market is $26.89 billion. Nearly five percent of total beer sales can be attributed to craft beer. In 2018, off-trade and on-trade sales of beer amounted to 14,953,000 barrels (54.17%) and 12,651,000 barrels (45.83%), respectively.

Market Size

  • The United Kingdom beer market is valued at $26,892 million.
  • MarketLine estimated the size of the beer & cider market in the United Kingdom to be $29,853.5 million in 2017.
  • The market is projected to grow at 3.9% CAGR in the period 2019-2023.
  • In 2018, 27,605,000 barrels of beer were sold in the United Kingdom.

Share of Craft Beer

  • The share of craft beer was nearly 5% of overall beer sales in the United Kingdom; significantly lesser than that in the United States (23%).
  • However, sales of craft beer in the United Kingdom saw exponential growth (90%) in 2018.

Off-Trade Vs. On-Trade

Insights

  • Beer sales in 2018 were boosted by the Football World Cup and higher than usual summer temperatures.
  • Health-conscious consumers are driving demand for non/ low alcohol beer.
  • Pubs in the United Kingdom continued to shut down in 2018. The number of pubs had decreased from 53,800 in 2012 to 48,350 in 2017.
  • Inbev UK Ltd and Heineken UK Ltd are the largest players in the space.
Part
21
of twenty-five
Part
21

U.K. Off-Trade Beer Market

This year's UK off-trade beer sales in supermarkets and convenience stores are £219 million and £74 million respectively.

Large Grocery Stores

  • This year, the sales value of beers in UK supermarkets is worth £219 million.

Others

  • On the other hand, this year's sales value of beers in UK convenience stores is worth £74 million.

Helpful Findings

  • According to the 2018 off-trade beer report, 84% of craft beer drinkers purchase their craft beers in supermarkets, 31% buy from specialist beer shops, and 19% from convenience stores.
  • Additionally, the report further states that in the next 12 months, 50% of craft beer drinkers are likely to purchase from an online specialist craft beer retailer.
  • When comparing 2017 and 2018 beer sales in the off-trade, the beer sales increased by 4.7% in 2018.
  • According to the latest Beer Barometer sales data from the British Beer & Pub Association (BBPA), in the second quarter of 2018, supermarket beer sales were up 3.8% compared to the same quarter in 2017.
  • Moreover, the off-trade beer market performed quite well with the revenue going up by 4.7% while on-trade beer sales went up by only 0.1%.

Research Strategy

To begin the research, we first looked for sources such as the British Beer & Pub Association (BBPA) reports in hopes of finding a pre-compiled breakdown of sold beers in e-commerce retailers, large grocery stores, and food delivery/delivery services among others. However, after an exhaustive search, we were only able to find the breakdown of sold beers in the UK off-trade and on-trade beer markets. Moreover, there was no breakdown of the sales by types of retailers. We also looked for the total barrels and hectoliters of beers sold in the off-trade beer market but the data we gathered here was not useful for us to be able to triangulate and breakdown the off-trade beer sales in terms of retailers.

Our second strategy was to find U.K. off-trade beer market reports hoping to find the % breakdown of beer sales by retailers. Most of the market reports we found only focused on the market revenue of UK beers, trends, and growth rates. Nevertheless, after a thorough search, we found a detailed Marton's market report of off-trade beer. Marton, which is one of the largest beer distributors in the UK, had both 2018 and 2019 off-beer market reports that include research studies and surveys on the U.K. off-trade beer market. Here, we found the 2019 beer sales in supermarkets and convenience stores. However, the breakdown of sales by type of retailers was again not available. We, however, came across insightful information on where U.K. craft drinkers purchase their beers which we added in our key findings.

Lastly, we consulted various industry databases and local media publications such as The Drinks Business, Drinks Retailing News UK, UK Morning Adviser, The Grocer, and Statista among others to find any other published reports that might have the % sales value by type of retailer. Unfortunately, most of the published articles and reports about the U.K. off-trade beer market were only citing the details we already found in our previous research strategies thus not helpful.
Part
22
of twenty-five
Part
22

Beer Brand Performance: Asahi

In 2018, the total global revenue of all Asahi beer brands was 514.86 billion yen, whereas for the UK specifically the revenue from all Asahi beer brands was 133.86 billion yen.

Global

  • In 2018, the total global sales for all Asahi Beer brands was 2 trillion yen ($18.6 billion), with a profit margin of 10%.
  • In 2018, the total revenue of Asahi alcoholic beverages was 919.4 billion yen, of which beer accounted for 56%.
  • Thus, global revenue of all Asahi Beer brands for 2018 would be 514.86 billion yen (919.4 billion x 0.56).

UK

  • The UK was responsible for 26% of the total 2018 revenue for all Asahi Beer brands.
  • As previously calculated, the revenue from all Asahi Beer brands in 2018 was 514.86 billion yen.
  • Therefore, the total revenue from all Asahi Beer brands in the UK in 2018 would be 133.86 billion yen (514.86 x 0.26).

Research Strategy

The research team was able to calculate the total global revenue of all Asahi Beer brands for 2018, as well as the total UK revenue from all Asahi Beer brands in 2018. However, we were unable to determine the revenue specific to the "Asahi" brand. This was due to the fact that the Asahi Group does not publish revenue broken down by brand. We attempted to locate this information in the revenue documents from Asahi Group Holdings, as well as from third party media, however, no attempt was successful and there was no data to calculate the revenue by brand was found.
Part
23
of twenty-five
Part
23

Beer Brand Performance: Singha

After an extensive search, no information with reference to the total revenues/sales for Singha beer brand, both globally and in the U.K. could be found in the public domain. All the information found was apropos of the overall revenue/sales of the company (across all brands), its growth plans, overview of its operations and history and its distribution agreement in the UK. Below are useful findings compiled from our research.

Useful Findings:

  • Singha beer is a 5% alcohol by volume (ABV) and a very pale-to-golden-colored lager beer which is manufactured in Thailand by the Singha Corporation Co. Ltd., a subsidiary of the well-known Thai brewery, Boon Rawd Brewery.
  • It is a "full-bodied 100% barley malt beer that is distinctively rich in taste with strong hop characters and is brewed with three hops namely Saaz, Perle and Hallertau."
  • Singha Corporation is a closely-held family company, established in 2001 as a subsidiary of Boon Rawd Brewery, currently managing all Boon Rawd's 150-plus subsidiary companies. It's management reports directly to Boon Rawd's Board of Directors.
  • Apart from the 'Singha' beer brand, the company also manufactures other brands such as Singha Light, Leo beer, U Beer, bottled and soda water, and packaged foods.
  • As per latest estimates by Hoovers, the overall company revenue stood at $455.81 million with a net income of $2.13 million. The revenues are primarily driven by the alcohol business of the company, with 80% of them accruing from alcohol products and the remaining 20% from non-alcohol business.
  • According to PR Newswire, the company was branching out into property and other new businesses through its property affiliate, Singha Estate PCL, by utilizing the cash flows/revenues generated by its beer sales.
  • Singha Estate is growing quickly and manages an assortment of commercial, residential and hotel business, which includes 26 hotels in the UK. It is listed on the Stock Exchange of Thailand under the trading symbol 'S'.

What Information Was Not Found and Why

No information regarding the total revenues/sales for 'Singha' beer brand, both globally and in the U.K. could be found in the public domain or could be triangulated. The primary reason for the information to be missing is the fact that the company operates as a private closely-held family company with very limited financial information being disclosed in public domain. The company has no public filings or research available and does not breakout its sales numbers by geography or by brand due to which no relevant information could be garnered.

Research Strategy:

Our first strategy was to scour through the company website and its various sections including press releases and any financial filings. These are the most potential source for any revenue/sales related data for any company and hence we decided to leverage this research path prima facie. However, no relevant information could be garnered through this source. The company operates as a "private closely-held family company" and hence does not provide any financial filings in the public domain. The only annual report that we found was with regard to the real estate arm of the company which is listed under the name Singha Estate but there were no details on the beer business. In addition, the company does not feature any press release section on its website and just has a section to announce upcoming events. All the other information found was apropos of the company history, its business overview and the details of the various beer brands they sell. Hence, this strategy did not prove fruitful.
Our second strategy was to hunt through the various credible industry databases such as Hoovers, Zoominfo, Crunchbase, Craft.Io, Manta, among others. All these are again potential sources where information pertaining to sales/revenues of a company is provided especially for the privately held ones and hence we took this research route. However, again no relevant information could be found. We were able to locate the data on the overall sales and net income of the company through this database, but information specific to Singha beer brand revenues could not be found. Since the Company is into sales of multiple brands of beer, its overall revenues could not be taken as proxy for sales of Singha beer brand. All the other information found was with regard to the business overview and incorporation history of the company.
Our third strategy was to try to triangulate the data. Since we were able to garner the information on the overall sales of the company, the idea was to check if we could find any information on the percentage share of revenue of the Singha beer brand. If the overall revenues of the company stood at $X million and the share of the Singha brand was Y% of the same, its revenues or sales could have been triangulated as $(X*Y/100) million. However, a search through public sources such as Journal.beer, Bangkok Times, PR News Wire, Bangkok Post and others along with company website and blog did not reveal any brand specific percentage share in revenue due to which the triangulation could not be attempted. All the information found was around the overall market share of the company along with the data on the revenue split from alcohol and non-alcohol business of the company. Thus, this strategy also did not yield any fruitful results.
Our fourth strategy was to scour through the media articles from Forbes, Bangkok Post, Business Wire, Bloomberg, Reuters, Live Mint, PR News Wire among others, statistical databases such as Statista and blogs such as Pacsafe, Wishbeer, Issuu.com, Morning Advertiser etc. All these are again potential sources where data apropos of the revenue/sales of a company's brand is quoted and hence we decided to take this research path. However, no pertinent information could be located. All the information found was with regard to the business expansion plans of the company into real estate, its recently signed sole distribution partnership with UK based brewer and pub operator Shepherd Neame and the data on the overall beer volumes sold by the company. Thus, this strategy proved futile.
Our fifth strategy was to look for the third party broker research reports from GS, Deloitte, McKinsey, RBS, JPM, Bloomberg and others, especially the initiating coverage reports for the company as these are extremely detailed and cover various aspects of a company's financial health. Normally brokers do track the detailed revenues and their breakout by brands for the companies in their portfolio in order to be updated with the valuations and hence we decided to leverage this research path. However, no analyst coverage was found for the company due to its private and non-profit nature. Only few reports for the company's real estate business could be found in the public domain that did not furnish any details around the sales/revenues of the different beer brands of the company.
Part
24
of twenty-five
Part
24

Off-Trade Beer Trends: U.K.

The trends in the off-trade beer sales in the U.K. are premiumization, health, authenticity, convenience, and experience, as reported by British brewery, pub, and hotel operator Marston's.

PREMIUMIZATION

  • "Consumers are drinking less, but better, with over half of 18 to 34-year-olds claiming to only drink 'premium' lager," according to Carlsberg UK vice president of marketing Liam Newton.
  • Mainstream premium lager brands' share from the total lager value is the largest at 47%, while world beer and classic lager brands share only 26% and 27%, respectively.
  • Premium bottled ale brands' share from the total ale value is 60%, while canned ale and canned smooth/mild brands share only 21% and 19%, respectively.
  • Similarly, premiumization is driving extra cash in the on-trade beer market. Heineken estimated the value to be around £380 million from pub tills.
  • On May 2018, Bath Ales released its premium British lager brand, Sulis.

HEALTH

  • According to data from CGA BrandTrack, around 6 of 10 consumers pursue a healthy lifestyle.
  • When choosing alcoholic beverages, 32% of global consumers consider nutritional information, including calorie content and alcohol by volume (ABV).
  • Within the off-trade beer market, a 60% growth of no/low alcohol beer was observed from 2017 to 2019.
  • In the same period, gluten-free beer sales went up by 34%.
  • Lucky Saint is one of the newcomers in the brewing industry, developing low-alcohol products. Its recently released unfiltered lager is considered to be one of the 10 best alcohol-free beers in the U.K.

AUTHENTICITY

  • Four of ten lager drinkers consider the drink's country of origin as a factor to a brand being recognized as premium.
  • Marston's survey suggests that 6 of 10 consumers are willing to pay extra for imported beer.
  • When making a new purchase, three of ten international lager brand consumers would want to know where the beer was brewed.
  • Mediterranean beer brands, such as Philippine's San Miguel, Spain's Estrella, and Italy's Peroni, make up the fastest-growing and largest sub-category among world beer brands, amounting to £405 million, according to IRI data.

CONVENIENCE

  • Over 50% of convenience store visits in the U.K. is with the intention of "topping-up", which includes getting more drinks/beer.
  • Convenience stores are the source of 42% of total beer spend, according to market research company IRI.
  • Around 90% of beer and cider consumers would avail a meal deal containing beer and cider.
  • One of the main reasons why people choose convenience store to buy ale/lager is because "it's already chilled," with 16% and 35% of ale drinkers and lager drinkers agreeing, respectively.
  • Nine of ten beer consumers chose to watch sport at their home, according to a survey.
  • The popular English pale ale brand, Greene King, recently launched the new 4 x 335ml packing format of Old Speckled Hen, with a "cleaner and more contemporary look," targeting the U.K. refrigerated convenience market.

EXPERIENCE

  • Sales of mini-kegs are up 62% year-on-year. The top two intentions of shoppers buying mini-kegs are for party and as gifts.
  • Sales of mixed packs peak during the Christmas season, with 28% of respondents buying the items as gifts.
  • Some mix packs available in the UK are Honest Brew's box of 12, Beer Merchants' box of 10, and BeerBods' box of 12.
Part
25
of twenty-five
Part
25

Amazon Alcohol Sales: U.K.

Alcohol sales in the UK grew by 96% in 2017 and increased by 8% for beer, wine & spirits in 2018. According to Amazon U.K., popular categories for alcohol are whiskey, wine, sparkling wine and champagne, gin, rum, vodka, beer, and spirits. Below is an overview of the findings.

Sales

  • After the Big Four grocers, follows Amazon as the largest retailer in the U.K.
  • According to a research analyst of the Rabobank, alcohol sales in the U.K. grew by 96% in 2017.
  • There was an 8% increase in the sales of beer, wine & spirits in 2018. The estimated sales in 2018 were £95 million.
  • In 2018, Amazon's spirits sales increased. Its gin sales grew by 35% year-over-year and earned over £20 million. This beverage is still in transition from being purchased in physical stores to online.
  • In November 2019, Amazon was responsible for at least a third of the 21.5% e-commerce retail sales in the U.K.
  • Beverage brands consider the Amazon Effect when planning their selling strategy in the U.K. One of these brands is Pernod Ricard, the world's second-largest wine and spirits producer. The brand will increase its Amazon ad spend on its products.
  • The initial launch of Johnnie Walker's Game of Thrones was on Amazon before it became available to other retailers and Bowmore and Highland Park exclusively produced new whiskeys to sell on Amazon in the latter part of 2018.
  • In comparison to other retailers, Amazon is cheaper and more convenient and this allows the company to increase its hold on the market.
  • As alcohol such as beer, wine, and spirits are moving online, Amazon, UK's most-visited online retailer, has a lot of potential as many beverage brands are on its side. This contributes to its rising sales.

Popular on Amazon in the U.K.

Sources
Sources

From Part 04
Quotes
  • "Ailsa Bay aims to transform its whisky through experimentation, technology, precision distilling and data driven methods. The introduction of blockchain means consumers can now trace the origins of their whisky via an innovative web experience – individually tailored to each bottle. Ailsa Bay’s 70cl blockchain whisky (RRP £55) is available now."
Quotes
  • "William Grant & Sons has partnered with DFS Group and Changi Airport Group to launch the range in travel retail at Singapore Changi Airport on Thursday (5 September) followed by an evening event, ahead of releasing the range at other airports on 1 October. The Moodie Davitt Report will be the sole travel retail media at the Changi launch."
  • "After the activation at Changi, Glenfiddich Grand Cru will be accompanied by activations at airport locations across the world, including Hong Kong, Incheon, Kuala Lumpur, Taipei, Tokyo, Auckland, Melbourne, Sydney, Delhi, Dubai, London Heathrow, Paris Charles de Gaulle, Edinburgh and New York JFK airports."
Quotes
  • "The Malt Master’s Indulgence range features five rare whiskies aged between 16 and 56 years, including the brand’s oldest bottling – a “fragrant and sweet” 1962 whisky."
  • "Each set is accompanied by The Balvenie DCS Compendium book, written by Dr Samuel J Simmons, former Balvenie global ambassador. Signed by Stewart, the book features rare archive imagery of the distillery and information on each chapter in the DCS Compendium range."
Quotes
  • "William Grant & Sons joins a number of brands who have moved into the burgeoning low-alcohol sector in the past year. In June 2018, Diageo-owned Gordon’s created two “ultra-low-alcohol” pre-mixed gin and tonic sparkling beverages."
Quotes
  • "The lawsuit claims the company is violating Hawaii's postmortem publicity law. The lawsuit claims that every person has a property right to their persona, likeness and signature."
Quotes
  • "Keough-Jack, from The Whisky Shop in Dufftown, Scotland, will embark on a 12-month educational programme, which includes WSET Level 2 training, a presentation skills course and a distillery visit."
Quotes
  • "Through this multi-year partnership, the thousands of Patriots fans that visit Gillette Stadium every home game will be able to enjoy an eco-friendly rum that is produced 100% with renewable energy, naturally aged without sugar and that plants 50,000 trees annually. "
Quotes
  • "Grant's is the largest brand by volume in the William Grant & Sons portfolio. The family owned WG&S has been named 'Distiller of the Year' and 'Scotch Whisky Producer of the Year' at the International Spirits Challenge awards and International Wine and Spirits Competition, 2018. Extraordinarily the Scottish spirit maker have been awarded the highest accolade of 'Distiller of the Year' from these prestigious awards 12 times in the last 13 years."
Quotes
  • "The family-owned company's signature is visible on the cap and the brand's stag is presented in gold. While the new bottles look sleek and well-made, changing such an iconic range of bottles is a very risky move. In this more affordable whisky category, the look of a bottle plays a huge part when presented side by side with other bottles on the shelf."
From Part 09
From Part 10
From Part 11
From Part 12
Quotes
  • "William Grant & Sons distils some of the world’s leading brands of Scotch whisky, including Glenfiddich®, the world’s favourite single malt, The Balvenie® range of handcrafted single malts and, Grant’s® one of the world’s most loved blended Scotches."
Quotes
  • "William Grant & Sons has entered the low and no alcohol spirits category with an “ultra-low alcohol spirit”."
  • "Atopia is bottled at 0.5% abv and is available in two flavours: Spiced Citrus and Wild Blossom. It will be available from Sainsbury’s and Ocado from this week, priced at £25."
From Part 14
From Part 15
From Part 16
Quotes
  • "Amarula is the world's second largest cream liqueur."
  • "Amarula Vanilla Spice was launched for the 2018 festive season in South Africa. 180 000 litres sold through the retail channel in just three months. Shopper data indicated the new variant was successful in attracting new consumers with its unique bouquet of exotic African flavours including Madagascan vanilla and African ginger."
  • "Wellness-focused consumers seek premium no- and low-alcohol experiences, but still desire the same depth of flavour and sense of occasion."
  • "It is important to the board that Distell is, and is seen to be, a responsible corporate citizen and above reproach so that investors can be confident in the level of governance we maintain."
  • "We are proud to report that our efforts to align the United Nations Sustainable Development Goals (SDGs) along our extended value chain were recognised by the Global Compact Network South Africa (GCNSA). We were featured as a best-practice example in South Africa’s Voluntary National Review. This recognition acknowledges our commitment to work together internally and with other stakeholders to respond to the national and global challenges of poverty, inequality and environmental degradation."