Fine Wines/Champagne and Spirits in Spain

PROSPECTS

Changing consumption patterns affect fine wines/champagne and spirits

Despite declining alcohol consumption in Spain, fine wines/champagne and spirits continued to see strong current value growth in 2019. Spaniards are showing a growing interest in following an active and healthy lifestyle, which is especially the case amongst those aged 40+, who are increasingly interested in postponing the signs of ageing.

Consumers look for new experiences

As seen in other luxury goods categories, Spaniards are increasingly looking for experiences in their leisure time, and fine wines/champagne and spirits is no different. Premium beverages which allow consumers to enjoy a full experience are gaining traction, with consumers enjoying the whole process of creating a cocktail.

Players will need to encourage a switch from beer

Although consumers are increasingly looking for super premium ranges in Spain, players in fine wine/champagne and spirits will need to do a better job of fighting the leader within alcoholic drinks in Spain: beer. Companies need to push a switch from beer consumption to the consumption of fine wines/champagne and spirits if they want to record stronger growth.

COMPETITIVE LANDSCAPE

Möet Hennessy España maintains its lead thanks to well-known brands

In line with 2017, Möet Hennessy España continued to lead fine wines/champagne and spirits in the Spanish market in value terms in 2018, although it saw a decline in its share due to the increasing competition. Nevertheless, the company continued to benefit not only from local consumption, but also from consumption by tourists, as it offers brands which are well-recognised by international luxury consumers, such as Moët & Chandon, Veuve Cliquot and Dom Pérignon.

Fine wines still define the Spanish landscape

In Spain, there are more than 5,000 bodegas, with more than 15,000 brands concentrated amongst more than 72 wine-producing companies. Although it is true that some of these are very small, and not all of these bodegas produce luxury wine, most of them usually offer at least one fine wine line, especially since consumers increasingly prefer fine wines.

Pernod Ricard España set to benefit from concentrating on luxury whiskies

The fact that Pernod Ricard España focuses on its portfolio of whiskies is limiting its performance, as it is still gin which is the most dynamic spirit. According to FEBE, gin is still the trendiest spirit in the country.

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