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2017 saw slow retail spending, mainly due to weak consumer confidence and changing consumer values. The effect was especially strong for RTDs/high-strength premixes, which rely more heavily on off-trade than on-trade channels.
In 2017, spirit-based RTDs continued to dominate RTDs/high-strength premixes, thanks to higher product awareness from consumers compared with wine-based RTDs. A wide range of such products used to be widely available in channels such as convenience stores and traditional small retail channels before the 2015 ban.
In the forecast period, it is expected that players in RTDs/high-strength premixes will switch their focus to on-trade channels, which are less strictly regulated than off-trade channels. For example, new product launches in 2016 within this category, such as Smirnoff Cola, were discontinued due to a lack of demand and the move towards on-trade channels.
In 2016, Smirnoff Midnight 100 and Smirnoff Cola were launched, and mainly distributed in off-trade channels such as hypermarkets and supermarkets in Indonesia. In November 2017, Diageo decided to discontinue these products, due to the slowdown in the off-trade channel, and its strategy of focusing more on the on-trade channel.
Perindustrian Bapak Djenggot continued to lead RTDs/high-strength premixes in total volume terms with its signature brand Mix Max in 2017. Mix Max is a well-established domestic spirit-based RTD, especially for consumers in the middle- to lower-income segments, thanks to its affordable price compared with other products within the same category, such as Smirnoff Ice.
In the forecast period, it is expected that fewer Diageo products in RTDs/high-strength premixes will be present in off-trade channels, due to the switch in the company’s focus towards the on-trade channel. In the on-trade setting, increasing marketing activities such as using social media, in-store promotion and sponsorship are likely to be seen in order to maintain its share in such a competitive environment.
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Discover the latest market trends and uncover sources of future market growth for the RTDs/High-Strength Premixes industry in Indonesia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the RTDs/High-Strength Premixes industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.
The RTDs/High-Strength Premixes in Indonesia market research report includes:
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This industry report originates from Passport, our Alcoholic Drinks market research database.
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.