Spirits in the United Kingdom

PROSPECTS

Spirits continues to benefit from growth of the cocktail culture

Spirits was the only category to see positive volume growth in 2017, with other alcoholic drinks categories either flat or declining. Lifestyle trends, notably the cocktail culture, continue to be a major factor as consumers search for the latest cocktail to drink and, importantly, to be seen drinking, when out or at home, via social media.

Growth in micro-distilleries helps shift the focus from age to provenance

English gin was the growth driver for new micro-distilleries in the UK in 2017, with a range of craft gin brands being launched. Given gin’s relatively fast distillation time, the focus is shifting away from age definitions towards provenance.

Development of new consumption occasions allows bitters to grow

Although the single-serve shot occasion is declining, growth is being driven for bitters by the aperitif occasion. Campari and Aperol are enjoying growing interest and new competitors have emerged to rival them, such as French brand, Pampelle, which was launched in the UK in early 2018.

COMPETITIVE LANDSCAPE

Diageo Plc remains the leading spirits producer in the UK

Diageo Plc’s total volume share rose slightly in 2017. Its key growth brands during the review period were Gordon’s (gin), Tanqueray (gin) and Captain Morgan Spiced Rum (dark rum).

Micro-distilleries to become an increasing focus for large manufacturers

As with craft beer brands being bought by larger beer manufacturers, smaller-scale spirits producers in the UK are also likely to seek further direct involvement from larger companies which can help them to expand. An example of this is the partnership of LoneWolf Spirits with Global Brands Ltd.

The healthy lifestyle trend will lead to increased competition from non-alcoholic drinks

The launch of Seedlip in 2015 signalled the start of a growing category of non-alcoholic drinks designed and marketed as a substitute for spirits. There has been a rise in non-alcoholic spirits products available in the UK, including brands such as TeeTotal G’n’T and Borrago.

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