Transcript Slide 1

Thirsty Thoughts
Flavoured Alcoholic Beverages
Annual Market Quantification
April 2011
Channelling
Off
Consumpt
ion
36.0%
2009
On
Consumpt
ion
64.0%
Off
Consumpt
ion
37.5%
2010
On
Consumpt
ion
62.5%
Off-consumption has
grown at the expense of
on-consumption.
2
Annual Growth
Rates
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
2000
2005
2010
3
FABs recover lost
ground
• Overall, flavoured alcoholic beverage (FAB) volumes have seen some volatility year on
year, with annual growth rates ranging between -2.7% and 14.4%.
• The flavoured alcoholic beverage market recovered lost ground during 2010 following a
loss in volumes in 2009. The 2009 global economic meltdown saw a decline in consumer
disposable income and, with this, spending on luxury items was curtailed in favour of
essentials. The FAB market was one of the casualties of this and volumes declined
during 2009 (1.6%).
• 2010 was a more positive year for FABs in that the introduction of new ciders bolstered
consumer demand in the competitive market. The category saw a growth of 2.5% and
thus recovered the volumes lost previously.
• The FAB market is expected to be in the green for the next few years with growth
anticipated for the short term. Expected restrictions on alcohol beverage advertising is
expected to intensify point of purchase competition between brand owners for FABs.
• The flavoured alcoholic beverage market is a second tier market within the overall
alcoholic category and commands a relatively small volume share of the sector overall.
Due to the pricing per litre of the product, it holds a larger value than many other
beverage categories, while maintaining a relatively small volume share.
4
Thirsty
Thoughts
Flavoured
Alcoholic
Beverages
For more information,
contact:
Jan Wegelin
Research Manager
Tel: (011) 615 7000
Mobile: 082 938 0744
www.bmi.co.za