Channel Briefing in Alcoholic Drinks

Premiumisation drives value growth, despite struggling volumes

A combination of aspirational consumption and a desire for quality is driving consumers across much of the world to drink less, but drink better. While global volumes are falling, the strong performance of higher-end drinks is driving continued value growth.

Modern grocery dominates the landscape

Modern grocery retailing is the leading alcoholic drinks distribution channel, and continues to record the strongest growth. However, it is facing intensifying competition, particularly from online sales. Shifts are also occurring within modern grocery; discounters are gaining share in many developed markets.

Specialists’ significance varies hugely across markets

The food/drink/tobacco specialist channel continues to grow, although performance varies considerably across markets. In some countries, specialists benefit from strict regulations on alcohol sales, where elsewhere their strength comes from a focus on the added value they offer.

Internet retailing provides the growth story

Non-store retailing in alcoholic drinks is virtually synonymous with internet retailing. The channel witnessed impressive growth between 2011 and 2016, a result of increasing global internet access, combined with a greater availability of products online.

The on-trade struggles, but opportunities remain

At a global level, the bar/pubs category has been shrinking in recent years. However, opportunities remain. Key markets in the Middle East and Africa and Asia Pacific have been recording relatively strong growth, while consumers in developed markets are still willing to spend outside the home, if the occasion, and the offer, is right.