Strategy Briefing

Finding Value in Alcoholic Drinks in Key Markets

Aug 2017

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

The new alcoholic drinks value shares model now available on Passport offers a new perspective on how companies are performing as well as positioned. This briefing looks at six key markets – the US, China, India, Russia, Brazil and Germany – and examines how the volume and value picture differs for leading companies and which of them are best positioned and have performed best in value terms.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Viewing company performance in value terms offers a completely new perspective

Viewing alcoholic drinks companies through the prism of their RSP value sales offers a completely new perspective on their performance and the shape of their respective markets. This can most clearly be seen in the US spirits market, where companies and brands that do not appear in the top 10 in volume terms are leading players in value terms offering greater profitability.

Losing volumes can be mitigated by value gains

In a number of declining or struggling categories, notably beer in Russia and Brazil, gaining volume sales or share is not always possible. However, as a number of leading companies have done – Carlsberg in Russia and A-B InBev in Brazil – these companies have managed mitigate their losses through value gain.

China offers the largest luxury spirits market and also some of the companies

Despite the crackdown on opulence, Chinese spirits is still the largest place in the world for consumption of high-end spirits, primarily baijiu, but also cognac, and shows that despite the massive volume advantage of beer in China, spirits producers are major value contributors.

Pernod Ricard more premium than Diageo in many key markets

In many of the key spirits markets, such as the US, India, China, Russia and Germany, while Diageo is larger in volume terms, in value Pernod Ricard gets a better value return with a higher rsp unit price per litre sold.

Beer has the volume, spirits the value

The lower unit prices of beer compared with other categories means that at alcoholic drinks levels their volume share far exceeds their value share. In contrast, spirits is the opposite, and means spirits companies are amongst the leading players by value in most markets.

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Introduction

Scope

Key findings

Sluggish volumes increase the importance of value sales

Key markets – big and varied

US

Brewers have the volumes but not the values in the US

Premium focus key in US beer

Big volume and value ranking differences in US spirits

Premium and more on-trade brands dominate the US

Why the future is premium in tequila

China

Lack of value in beer hurts in China

Economy focus hurts local Chinese Brewers

Chinese spirits

China is where the value is for cognac

India

Spirits dominate in India

Price differentiating even in emerging markets

Contrasting problems for big two distillers in India

Russia

Spirits vies with beer for value sales

Carlsberg suffers in value terms in Russia despite improvement

Local producers dominate Russian spirits

Pernod Ricard biggest producer of whiskies by value in Russia

Russia other blended Scotch

Brazil

Beer dominate in Brazil

Contrasting performances of Brazilian brewers

International players lead Brazilian spirits

Premiumisation in Brazilian vodka

Germany

Private label leads in Germany

Premium focus crucial in German beer

International companies have value if not volume power in Germany

English gin shows premium shift in Germany

Conclusion

Struggling volumes, healthier values

Appendix

Methodology: Basics of the Euromonitor value shares model

Methodology: building value shares for beer and cider/ perry

Building value shares for spirits & RTDs/high-strength premixes

Spirits-specific methodology explained

Why buy this report?

Want to find out more about this report?

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Megatrends

Strategy Briefing

Finding Value in Alcoholic Drinks in Key Markets

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Viewing company performance in value terms offers a completely new perspective

Losing volumes can be mitigated by value gains

China offers the largest luxury spirits market and also some of the companies

Pernod Ricard more premium than Diageo in many key markets

Beer has the volume, spirits the value

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Sluggish volumes increase the importance of value sales

Key markets – big and varied

US

Brewers have the volumes but not the values in the US

Premium focus key in US beer

Big volume and value ranking differences in US spirits

Premium and more on-trade brands dominate the US

Why the future is premium in tequila

China

Lack of value in beer hurts in China

Economy focus hurts local Chinese Brewers

Chinese spirits

China is where the value is for cognac

India

Spirits dominate in India

Price differentiating even in emerging markets

Contrasting problems for big two distillers in India

Russia

Spirits vies with beer for value sales

Carlsberg suffers in value terms in Russia despite improvement

Local producers dominate Russian spirits

Pernod Ricard biggest producer of whiskies by value in Russia

Pernod Ricard biggest producer of whiskies by value in Russia

Russia other blended Scotch

Brazil

Beer dominate in Brazil

Contrasting performances of Brazilian brewers

International players lead Brazilian spirits

Premiumisation in Brazilian vodka

Germany

Private label leads in Germany

Premium focus crucial in German beer

International companies have value if not volume power in Germany

English gin shows premium shift in Germany

Conclusion

Struggling volumes, healthier values

Appendix

Methodology: Basics of the Euromonitor value shares model

Methodology: building value shares for beer and cider/ perry

Building value shares for spirits & RTDs/high-strength premixes

Spirits-specific methodology explained

Why buy this report?

Want to find out more about this report?

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