Alcoholic Drinks in Canada
Euromonitor International's Alcoholic Drinks in Canada market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 155 | Publication date: Jan 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Most alcohol sectors achieve solid gains, but growth hides differences in sustainability
Aside from cider, every one of the alcohol sectors posted volume gains in 2007, ranging from close to the population growth rate of 1% to a fairly rapid 4%. Nevertheless, these gains masked several weaknesses. Beer, for instance, has been growing fairly strongly in the last three year due to the rise of economy priced lager; however, the standard priced lager subsector, the backbone of the industry, declined sharply in those three years. Spirits grew, but part of that sector’s growth comes from the unsustainable fad for cocktails.
The only major sector to see strong, unambiguous growth is wine. Wine has been benefiting from medical reports suggesting it has heart-healthy effects, and an influx of standard priced wine into the country. Furthermore, growth has been continuously strong since the 1990s, and the sector’s momentum is such that it will remain strong throughout the forecast period.
Premium and exotic products lead the market
With good economic conditions making consumers more expansive in their tastes and increasing their willingness to spend, premium and super-premium products generally grew fastest during the review period. Even formerly sluggish premium subsectors, like cognac, champagne and port, grew in 2007. Also driving growth were “exotic” products like green tea liqueurs, ultra-premium Caribbean rum and Polish vodka.
Buyouts “hollow out” Canada’s domestic alcohol industry
During the 2005-2007 period, several major Canadian companies were purchased by (or merged with) foreign multinationals, including Molson Breweries Ltd, Sleeman Breweries Ltd, Lakeport Beverage Corp and Vincor International Inc. The most startlingly change was in beer: roughly 90% of beer sales are now in the hands of foreign companies, down from 50% of sales a few years ago. The buyouts and mergers have upsides and downsides. The upside is that they make foreign products more easily accessible to Canadian consumers. Many of Constellation Brands’ products, for example, are finding distribution easier through Vincor’s extensive distribution system than they did previously. The downside is that domestic development is being stifled. This is most obvious in the beer industry.
On-trade sees higher sales of spirits, but beer drags due to higher prices
Consumers in the on-trade are switching from beer to spirits. The main force behind this changeover is price: due to taxes and a regulated distribution system, most alcoholic products cost twice as much, or more, in the on-trade. With the recent rise of the economy lager subsector, consumers have a much cheaper option for beer consumption, and it is driving them out of the on-trade. Conversely, although spirits can reach exorbitant prices in the on-trade, this actually enhances their appeal due to the allure of sophistication and status they impart. Bottle service in bars is rising, and many premium spirits are being sold at mark-ups of over 200%. This also benefits the off-trade for spirits, as many consumers first try out many spirits in the on-trade.
Consumption will see steady per capita rates in forecast period
Despite a small surge in consumption in the next few years, the forecast period as a whole is predicted to see volume sales of alcohol grow at just 1% a year. Nevertheless, this hides an expected increase in consumption of pure alcohol, as consumers continue gradually to phase out beer consumption in favour of wine and spirits. Without any significant change in tax policy, alcohol consumption will continue to be held stable, and no tax changes are expected in the forecast period.
Table of contents
ALCOHOLIC DRINKS IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Most alcohol sectors achieve solid gains, but growth hides differences in sustainability
Premium and exotic products lead the market
Buyouts “hollow out” Canada’s domestic alcohol industry
On-trade sees higher sales of spirits, but beer drags due to higher prices
Consumption will see steady per capita rates in forecast period
KEY TRENDS AND DEVELOPMENTS
Changing attitudes regarding alcohol’s healthiness help boost consumption, particularly in wine
The mass market shifts its consumption from beer to wine
Canada’s tastes continue to erode their distinctiveness in the face of globalisation
Premiumisation continues to push sales growth
Flavour trends: lighter, simpler flavours dominate
Specialist Retailers
Summary 1 Leading Specialist Retailers 2006
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2006-2007
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Selling Margin of a Typical Beer Brand 2007 – Labatt Blue
Table 2 Selling Margin of a Typical Imported Wine Brand 2007 – Wolf Blass Yellow Label 2006 Pinot Noir
Table 3 Selling Margin of a Typical Domestic Wine Brand 2007 – Jackson-Triggs 2003 Cabernet Franc
Table 4 Selling Margin of a Typical Imported Spirits Brand 2007 – Stolichnaya
Table 5 Selling Margin of a Typical Domestic Spirits Brand 2007 – Banff Ice
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 8 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 9 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 17 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - CANADA
ANDREW PELLER LTD - ALCOHOLIC DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Andrew Peller Ltd: Key Facts
Summary 5 Andrew Peller Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUTION
COMPETITIVE POSITIONING
Summary 6 Andrew Peller Ltd: Competitive Position 2006
CORBY DISTILLERIES LTD - ALCOHOLIC DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Corby Distilleries Ltd: Key Facts
Summary 8 Corby Distilleries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Corby Distilleries Ltd: Competitive Position 2006
MAGNOTTA WINERY CORP - ALCOHOLIC DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Magnotta Winery Corp: Key Facts
Summary 11 Magnotta Winery Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Magnotta Winery Corp: Competitive Position 2006
MIELZYNSKI AGENCIES LTD, PETER - ALCOHOLIC DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Peter Mielzynski Agencies Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Peter Mielzynski Agencies Ltd: Competitive Position 2006
BEER IN CANADA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price band methodology
Summary 15 Lager by Price Band 2007
Published data comparisons
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2002-2007
Table 23 Sales of Beer by Subsector: Total Value 2002-2007
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 25 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 26 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 27 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 30 Beer: Production, Imports and Exports: Total Volume 2001-2006
Table 31 Beer Exports by Country of Destination: Total Volume 2001-2006
Table 32 Beer Exports by Country of Destination: Total Value 2001-2006
Table 33 Beer Imports by Country of Origin: Total Volume 2001-2006
Table 34 Beer Imports by Country of Origin: Total Value 2001-2006
Table 35 Company Shares of Beer by National Brand Owner 2002-2006
Table 36 Company Shares of Beer by Global Brand Owner 2002-2006
Table 37 Brand Shares of Beer 2003-2006
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 39 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY IN CANADA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 42 Sales of Cider/Perry: Total Volume 2002-2007
Table 43 Sales of Cider/Perry: Total Value 2002-2007
Table 44 Sales of Cider/Perry: % Total Volume Growth 2002-2007
Table 45 Sales of Cider/Perry: % Total Value Growth 2002-2007
Table 46 On-trade vs Off-trade Sales of Cider/Perry: Volume 2002-2007
Table 47 On-trade vs Off-trade Sales of Cider/Perry: Value 2002-2007
Table 48 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2002-2007
Table 49 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2002-2007
Table 50 Cider/Perry Production, Imports and Exports: Total Volume 2001-2006
Table 51 Company Shares of Cider/Perry by National Brand Owner 2002-2006
Table 52 Company Shares of Cider/Perry by Global Brand Owner 2002-2006
Table 53 Brand Shares of Cider/Perry 2003-2006
Table 54 Forecast Sales of Cider/Perry: Total Volume 2007-2012
Table 55 Forecast Sales of Cider/Perry: Total Value 2007-2012
Table 56 Forecast Sales of Cider/Perry: % Total Volume Growth 2007-2012
Table 57 Forecast Sales of Cider/Perry: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES IN CANADA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 58 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 59 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 60 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 61 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 62 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 66 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2001-2006
Table 67 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 68 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 69 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 70 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 71 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 72 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 73 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
WINE IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 74 Sales of Wine by Subsector: Total Volume 2002-2007
Table 75 Sales of Wine by Subsector: Total Value 2002-2007
Table 76 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 77 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 78 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 79 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 80 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 81 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 82 Volume Sales of Still Red Wine by Price Segment 2004-2007
Table 83 Volume Sales of Still White Wine by Price Segment 2004-2007
Table 84 Volume Sales of Still Rosé Wine by Price Segment 2004-2007
Table 85 Volume Sales of Other Sparkling Wine by Price Segment 2004-2007
Table 86 Sales of Still Red Wine by Grape/Varietal Type 2004-2007
Table 87 Sales of Still White Wine by Grape/Varietal Type 2004-2007
Table 88 Sales of Still Rosé Wine by Grape/Varietal Type 2004-2007
Table 89 Sales of Still Red Wine by Quality Classification 2002-2007
Table 90 Sales of Still White Wine by Quality Classification 2002-2007
Table 91 Sales of Still Rosé Wine by Quality Classification 2002-2007
Table 92 Wine Production, Imports and Exports: Total Volume 2001-2006
Table 93 Wine Exports by Country of Destination: Total Volume 2001-2006
Table 94 Wine Exports by Country of Destination: Total Value 2001-2006
Table 95 Wine Imports by Country of Origin: Total Volume 2001-2006
Table 96 Wine Imports by Country of Origin: Total Value 2001-2006
Table 97 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2006
Table 98 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2006
Table 99 Brand Shares of Still Light Grape Wine 2003-2006
Table 100 Company Shares of Champagne by National Brand Owner 2003-2006
Table 101 Company Shares of Champagne by Global Brand Owner 2003-2006
Table 102 Brand Shares of Champagne 2003-2006
Table 103 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2006
Table 104 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2006
Table 105 Brand Shares of Other Sparkling Wine 2003-2006
Table 106 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2006
Table 107 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2006
Table 108 Brand Shares of Fortified Wine and Vermouth 2003-2006
Table 109 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 110 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 111 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 112 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN CANADA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky Price band methodology
Summary 16 Benchmark brands – Canada
Published data comparisons
SECTOR DATA
Table 113 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 114 Sales of Spirits by Subsector: Total Value 2002-2007
Table 115 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 116 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 117 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 118 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 119 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 120 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 121 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2007
Table 122 Sales of Gin by Premium/Super-premium Split 2004-2007
Table 123 Sales of Vodka by Premium/Super-premium Split 2004-2007
Table 124 Sales of Flavoured vs Non-flavoured Vodka 2004-2007
Table 125 Spirits Production, Imports and Exports: Total Volume 2001-2006
Table 126 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2006
Table 127 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2006
Table 128 Vodka Production, Imports and Exports: Total Volume 2001-2006
Table 129 Gin Production, Imports and Exports: Total Volume 2001-2006
Table 130 Rum Production, Imports and Exports: Total Volume 2001-2006
Table 131 Tequila Production, Imports and Exports: Total Volume 2001-2006
Table 132 Liqueurs Production: Total Volume 2001-2006
Table 133 Company Shares of Spirits by National Brand Owner 2002-2006
Table 134 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 135 Brand Shares of Spirits 2003-2006
Table 136 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 137 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 138 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 139 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012