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Alcohol Innovations
Off-trade alcohol trends
In this report we explore the latest available data on alcohol consumption, investigate
the consumer trends influencing both consumer behaviour and the industry more
broadly and showcase a number of examples of innovation within the sector.
Contents
Setting the Scene
3
Alcohol : a global picture
4
Western Luxury Brands
6
The Fabergé Syndrome
8
The Assault on Pleasure
10
Moderation Goes Mainstream
11
Healthy Hedonism
13
Craft Rising
14
Flavour Fever
16
Celebrating Synaethesia
18
Packaging Innovations
20
Domestic Mixologists
21
Subscriptions
23
2
Setting the scene
The global alcohol industry continues to face pressure. Heightened healthconsciousness among consumers and increased regulation is driving a reduction
in alcohol consumption across markets, while anti-bribery laws in China introduced in November 2012 - continue to impact luxury brands that have
previously enjoyed success in the region.
Despite this, Western brands continue to capture interest in developing markets - an
interest which is now beginning to move into new categories : most notably wine.
More, we witness an emerging desire among consumers to find out more about the
drinks they consume - how they are brewed, how they should be consumed,
their provenance - as well as a desire to search out new, interesting and often
unusual brands. Within the alcohol sector, The Leisure Upgrade finds
particularly fertile ground. As we move into the mid 10s, consumers will
increasingly look to gain more out of their drinking experience than simply
a hangover.
3
Alcohol : a global picture
SPIRITS
BEER
% who have purchased these products in the last 3 months
47%
30%
18%
18%
17%
17%
40%
39%
21%
57%
59%
70%
10%
79%
18%
20%
84%
76%
16%
24%
93%
Those who drink the following several times a week*
26%
26%
22%
19%
36%
23%
20%
11%
18%
16%
14%
11%
FOREIGN
27%
90%
11%
65%
% who have purchased these brands in the last 3 months
LOCAL
6%
Right-click here and select Edit Data for more country data
Source: Credit Suisse/nVision | Base: 1,500 face-to-face respondents per country (2,500 in India and China) aged 18-65, 2013
Source: nVision Research │ Base: 1000-5000 online respondents per country aged 21-64 (Indonesia, Mexico & S. Africa 21-54), 2014
4
Global alcohol consumption
Total alcohol consumption per capita (15 years+), in litres of pure alcohol, 2010 (latest available)
<2.5
2.5 - 4.9
5.0 - 7.4
7.5 - 9.9
10.0 - 12.4
≥12.50
Data
unavailable
Source : nVision/WHO, 2014
5
Western luxury brands : enduring popularity
Western luxury brands continue to be
presented as aspirational to consumers in
emerging economies - especially to an
emergent middle class with growing
disposable incomes.
Despite President Xi Jingping’s austerity
measures in China affecting sales of
luxury brands, market analysts continue to
highlight Asia as the key region for growth
in all alcohol categories over the next 5
years.
TREND IN ACTION
“Products made abroad are usually of a better quality than
products produced in my country” | % who agree or agree
strongly | reported and adjusted data (see notes)
40% 35% 35% 32%
Right-click here and select Edit Data for country data
In November 2014, Diageo Global
Travel launched a new limited edition
Johnnie Walker bottle design
exclusively to the travel retail sector.
The recommended retail price is
US$68.
Connected Trend :
Globalisation (Driver)
Source: nVision Research | Base: 1,000-5,000 online respondents per country aged 16-64 (Mexico 16-54, Indonesia 16-44), 2013
6
Western luxury brands : enduring popularity
TREND IN ACTION
► The Glenlivet 50
yrs old Winchester
Collection which
retails at £17,995 was
named one of
Harrod’s top-10
bestselling alcoholic
beverages.
◄ In October 2014
Pernod Ricard
launched
Ballantine’s 40 year
old in Asian Travel
Retail outlets.
◄ The French Cellar is a Singapore-based start up
which imports French wines directly from vineyards
after selection by a sommelier. Each bottle is
accompanied with a tasting guide.
7
The Fabergé Syndrome
The premiumisation of packaging is an
established trend within the alcohol
industry - a trend increasingly seen
across all price points.
We witness this trend being driven
forwards by alcohol brands that position
themselves as chic lifestyle accessories,
particuarly in emerging economies.
Packaging that emphasises the premium
and exclusive nature of the product
reinforces its value and positions it as
more than simply a drink.
“Beauty is important to me. Eventually
everything in life will go out of date, become
break and become useless. If it’s beautiful,
it will be meaningful slightly longer”.
Trendspotter, India
TREND IN ACTION
Louis Roederer Golden Flacon
Cristal 2002 is available in a bottle
covered by a lattice made of 24 carat
gold. Just 200 of the 400 made are
currently on sale globally.
Connected Trend :
Affluence (Driver)
Source: nVision Qualitative Research, 2014
8
The Fabergé Syndrome
TREND IN ACTION
◄ 775 Louis XIII Black Pearl
Anniversary Edition Cognac
decanters have been released
in celebration of Rémy
Martin’s 140 year anniversary.
The decanters retail at
$16,000 each.
▲ In November 2014, the Mèdoc
estate Rollan de By launched
Collection Or, a 5 wine set in
black and gold bottles retailing at
€199.
◄ Hibiki 21-year-old
whisky was auctioned
at a Spink HK sale in
late 2014. Each
ceramic decanter
features a different
illustration.
◄ In September 2014 Korean alcohol
company Hite Jinro launched a new
brand of whisky aimed at the younger
drinker. The design aims to represent
the heritage of premium whisky, while
also remaining contemporary. The bottle
has no label, instead featuring the brand
name in gold foil lettering directly on the
bottle.
9
The Assault on Pleasure
The role played by the government in
regulating alcohol consumption continues
to be debated across the world.
From the introduction of minimum pricing
in Scotland in 2012, to conversations in
Indonesia surrounding plain packaging for
alcoholic drinks, these are issues that
occupy the political mainstream
everywhere.
The relative success of governments in
introducing such regulation is inconsistent
- minimum pricing per unit was dropped in
the UK in March 2013 for example - but
pressure on governments to regulate
persists.
“I do have the impression that people feel
guilty when having a drink because of all the
public awareness campaigns against
alcohol”.
Trendspotter, France
Connected Trends :
TREND IN ACTION
In May 2014 it was announced by the
Indonesian Deputy Trade Minister that
regulation was being drafted for enforcing
plain or de-branded packaging
requirements for beverages with 20%
ABV or higher.
Marisol Touraine, the French Minister of
Health, reportedly wants to impose fines
of €15,000 (£12,000) and a year in
prison on those who actively urge young
people to “drink to drunkenness”.
Society of Sobriety; Controlled Living (Driver)
Source: nVision Qualitative Research, 2014
10
Moderation Goes Mainstream
As consumer awareness of the dangers of
excessive alcohol consumption grow we
see increased demand for low-ABV and
no-alcohol alternatives.
Concerns surrounding sugar content and
calories also drive the popularity of low-cal
/ sugar-free options.
Awareness of the health costs will
continue to increase as consumers take
greater control of their lifestyles, aided by
the next generation of tracking devices.
TREND IN ACTION
“I have consciously made an effort to reduce the amount of
alcohol I drink each week” | % who agree or agree strongly |
reported and adjusted data
58% 50% 45% 33%
Right-click here and select Edit Data for country data
Krzepiak, a non-alcoholic malt drink
produced from hopped wort, was
launched by Ciechan Brewery into the
Polish market in November 2014.
Connected Trends :
Society of Sobriety, Perfection of the Body
Source: nVision Research | Base: 1,000-5,000 online respondents per country aged 18-64 (Mexico 18-54, Indonesia 18-44), 2013
11
Moderation Goes Mainstream
TREND IN ACTION
► In September 2014
Swedish
entrepreneur Mårten
Andersson, launched
“Sober” at the Sodra
Theatre in Stockholm a club night where
alcohol is banned.
► In mid 2014, UK based
independent wine retailer
Finest Fizz launched
Skinny Rosé, a low-calorie
pink champagne.
◄ Biryt Energy Malt
Beverage, launched
in Lebanon in 2014,
combines the flavour
of barley and hops
with vitamins and
claims to naturally
boost energy.
“I think more people are realising that too
much alcohol consumption is unhealthy so
women prefer wine or other drinks apart
from beer (although of course some people
still drink beer!). Innovative drinks include
the 0% alcohol beer - Kirin is the most
popular brand”.
Trendspotter, Japan
Source: nVision Qualitative Research, 2014
12
Healthy Hedonism
We witness a growth in the number of
brands attempting to emphasise both the
taste and the health aspects of their
products.
While of course there is a limit to this trend
within the alcohol sector - not least due
to advertising regulation - the number of
new drinks that are emphasising aspects
usually associated with healthier products
is notable.
“From what I see in my generation,
appearing healthy is more important then
actually being healthy.... After they go to
the gym they often go partying!”.
Female, 18, Belgium
Connected Trends :
Society of Sobriety, Perfection of the Body
TREND IN ACTION
WKND is a Danish alcoholic drink that
claims to be “anti-hangover” through its
incorporation of cactus plant extract. It is
due to be launched across Europe in
2015.
VO|CO claims to be the “world’s first”
vodka and coconut water, a RTD from
California.
Source: nVision Research │ Base: 1000 online respondents aged 18+, GB, 2014
13
Craft Rising
The popularity of craft continues to grow,
lead by the US and Canada and
influencing many other markets across the
globe.
Whilst this has so far been concentrated in
the beer category, there are now a
number of artisan spirits being launched.
This appetite is largely driven by the
search for a sense of authenticity and
provenance in the products one chooses
to consume - and the social capital
associated with finding (and trying) new
and interesting products.
“When I buy food, I often look
for products that have
authentic origins in a culture,
tradition or place”
TREND IN ACTION
43%
Makar is a new craft gin from Glasgow.
GLOBAL
AVERAGE
Lazy Mutt Farmhouse Ale from World
Beers, a “unique and quirky” craft beer,
is now available in the UK.
Right-click here and select Edit Data for country data
Connected Trends :
Mass Authenticity, The Leisure Upgrade
Moonzen Brewery is a craft brewery
that was launched in HK in early 2014.
Source: nVision Research │ Base: 1000-5000 online respondents per country aged 16-64 (Indonesia, Mexico & S. Africa 16-54), 2014
14
Craft Rising
TREND IN ACTION
▲ In October 2014, Canadian craft beer
pub Craft Beer Market announced that
they would be opening their first branch in
Shanghai during 2015.
▲Patrón Tequila announced the launch of
their artisanal line Roca Patrón in August
2014 in selected travel retail outlets.
15
Flavour Fever
Across all categories, new flavours create
novelty and can inject a sense of renewal
into an existing product line.
Innovation in this area is closely related to
our Everyday Exceptional trend, with
Global events and celebrations from the
Football World Cup to Christmas inspiring
new flavour combinations.
Such offerings are often presented as
limited edition, elevating the product range
through a sense of scarcity.
For brands, new flavours create
opportunities to engage and capture new
demographics; to expand their appeal to
those who favour sweeter flavours or
might not usually select a drink within that
category.
Connected Trends :
TREND IN ACTION
In October 2014, Poliakov announced
their re-vamped range of flavoured
vodkas which were revealed at TFWA
Cannes. A cocktail was created for each
of the 8 flavours in order to celebrate their
release.
Death of Risk, Everyday Exceptional
16
Flavour Fever
Sea Belt is a brew made in
Inspired by
traditional German Belfast, Maine which is made
from locally sourced seaweed.
drink Radler,
SixPoint RAD beer mixed with
fresh citrus fruit
juices - was
launched in the US
in late 2014.
◄ Twist from Angolabased beverage company
Refriango is a 5% ABV
Ready-To-Drink that
comes in mango-orange,
lemon and strawberry
flavour and was launched
into selected African
markets in late 2014.
17
Celebrating Synaesthesia
Consumer appetite for new experiences
drives expectation surrounding what a
product can and should offer.
It is no longer enough for something to
simply taste good, it must look beautiful or
have a distinctive smell or sound as well.
Whilst experimentations in such
synaesthetic engagement have previously
involved luxury brands looking to enhance
the experience of their product, we witness
a growing number of mainstream brands
focusing upon multi-sensory immersion.
On-trade, brands look to extend this
experience to encompass their
surroundings too, attempting to create a
holistic brand experience where all senses
are engaged in order to communicate the
feeling of the brand and its products.
TREND IN ACTION
Johnnie Walker’s mobile whisky tasting
box is a series of flavours, scents and
sounds that create a unique profile of the
taster’s flavour preferences based on
their current mood.
Connected Trends :
Experience Society (Driver), Luxury Experienced
18
Celebrating Synaesthesia
TREND IN ACTION
Hopsicles - beerinfused popsicles launched in the UK in
summer 2014 are the
product of a collaboration
between London Camden
Town Brewery and icelolly company Lickalix.
►Apocalypse
Postponed was
a experiential
evening hosted
by Absolut in
Hong Kong,
held in a
“cyberpunk
bunker”.
▲ Vapshot is an in-home alcohol
vaporizing machine launched in the
US. Despite controversy surrounding
its safety and apparent support of
excessive alcohol consumption, the
units are on sale at $700.
19
Packaging Innovations
Brands continue to search for new and
innovative ways to draw consumers
towards their products.
Packaging innovations include
developments such as thermochronic inks,
convenience-focused bottles and
sustainable packaging solutions.
“Which, if any, of the following have you done in the last 12
months?” │ Avoided products with lots of packaging
TREND IN ACTION
Origin’s Wine Stack is a 75cl bottle which
snaps into 4 ready-to-drink glasses.
Birell non-alcoholic beer uses thermochronic
inks which change colour when the beverage
reaches the perfect temperature to consume.
36%
33%
27%
Right-click on chart and select Edit Data for country data
Connected Trends :
Germânia 55 is now produced in 100%
recyclable aluminium bottles which can be
back on the supermarket shelves in as little
as 30 days.
War on Waste, Concierge Living
Source: nVision Research │ Base: 1000-5000 online respondents per country aged 16-64 (Indonesia, Mexico & S. Africa 16-54), 2014
20
Domestic Mixologists
We witness a growing interest in being
able to create bar-standard cocktails inhome, driven by consumers looking to
professionalise all aspects of their
domestic life.
A number of brands have released
initiatives that provide consumers with
information on how to make the perfect
cocktail, letting them become master
mixologists.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 (f)
2015 (f)
2016 (f)
2017 (f)
2018 (f)
2019 (f)
2020 (f)
In-home leisure expenditure | In millions of Euros, at current
prices (see notes) | October 2014 forecast
UK
Germany
France
Italy
Spain
€120,000
€100,000
€80,000
€60,000
€40,000
€20,000
€0
TREND IN ACTION
Project Gutenberg created by Pernod
Ricard is an at-home “liquid library” of
spirits with an accompanying app that
teaches consumers how to make perfect
cocktails.
Connected Trends :
Cult of the Home, The Domestic Professional, Cult of
Creativity
Source: Oxford Economics/nVision, October 2014
21
Domestic Mixologists
TREND IN ACTION
►In May 2014, British celebrity chef
Jamie Oliver and Bacardi announced the
launch of Drinks Tube, a YouTube
channel which focuses on teaching
viewers how to prepare their own starquality cocktails at home using Bacardi
products.
►The Connected Cocktail project has
created a device called Stem, an LED
powered bottle top that leads consumers
through the mixing process by lighting
up in order to indicate the correct spirit
as well as measuring accurate
quantities.
22
Subscriptions
Largely driven by the desire to discover
something new and unusual, we note a
variety of subscription services which
deliver to the consumer’s door a selection
of new drinks to try.
For consumers looking to learn more
about a particular drink, or develop their
tastes, such subscription models offer
significant value - providing instruction
and insight, as well as the valuable social
capital attached to discovering a new
product before friends and family.
Such services are energised by the inhome leisure proposition, with consumers
able to enjoy the choices usually only
available in a club or a bar in the comfort
of their own home.
Connected Trends :
TREND IN ACTION
Beer Days is an Australian beer
subscription service which launched in
June 2014. The service hand-selects the
“very best hard-to-find and limited edition
Australian and international craft beers
and delivers them to your door”.
The Leisure Upgrade, Concierge Living
23
Subscriptions
TREND IN ACTION
◄Julibox is a US-based subscription service
which sends its members a monthly box with the
ingredients and recipe for 2 surprise, handselected cocktails.
►Wineist is a subscription
service in Slovenia which delivers
a monthly assortment of wines
selected by professionals.
24
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