William Grant & Sons’ top UK spirits trends

Premium spirits sales grew 18.6% in the UK last year despite the decline of overall alcohol consumption, William Grant & Sons’ 2016 Market Report has found. Here are some trends that are driving growth in the industry.

These are the top trends William Grant & Sons believes are driving the UK spirits market

The report states that the premium spirits market in the UK is now worth £1.1 billion, equating 39% of total spirits growth, showing that “quality is winning over quantity”.

Volume performance has also started to “stabilise” in the on-trade, but value sales continue to grow well ahead of volume, the report claims.

“Consumers are continuously filtering through the noise and uncertainty of everyday life, and with more brands and experiences available to them ‘on demand’, it is no surprise that consumers are appraising their choices with more scrutiny than ever before,” said Gary Keogh, marketing director of William Grant & Sons.

“From the war on sugar, to the rise of abstinence or monitored intake as a lifestyle choice, we are also seeing the health rhetoric dial up in 2016 and brands are responding in force.

“As the expectation of brands reaches a new level, it is those who are able to communicate with real authenticity and involve the consumer in a unique, personalised brand experience that will win in the category.”

Described as a comprehensive appraisal of consumer behaviour and trends affecting the drinks industry, the report identifies a number of factors impacting the performance of spirits.

Click through to the following pages to discover which trends are now leading consumers’ spirit choices.

A noisier and more uncertain world

Consumers are increasingly “sifting through noise” to find that is relevant to them in a world with “more brands, more products, more media and more ways to experience them”. At the same time as having greater access to information than ever before, consumer trust in corporations and brands is eroding.

Less is better

Alcohol volumes have declined 19% since 2004, but “quality is winning over quantity”, says William Grant. Nearly one third of Londoners do not drink alcohol, with millennials leading the abstinence trend among the generations. However, the premium spirits sector is in growth, driven by “premium experiences, craft, authenticity and satisfying the consumer need of discernment, treats and social status.”

More than just millennials

Millennials are widely coveted by spirits brands, but William Grant & Sons points out that “their beliefs, desires and expectations” are not dissimilar to ‘young consumers’ (of legal purchase age) a generation ago”. However, millennials are “more connected and savvy” and therefore more vocal.

Consumer confidence is increasing

The report states that “despite the noise and uncertainty” surrounding us, we do live in exciting times and consumer confidence is increasing. However, due to the “power of technology and media”, brands need to be transparent with their communications in order to avoid future trust issues.

Experience

People are opting for “experiences over tangible products or items” and millennials in particular are seeking “even more immersive and niche experiences”. The report identifies virtual and augmented reality as adding a new dimension to consumer experience. “Much like the disruptive technologies that came before it – from electricity to TV, computers to smartphones – there’s no longer any doubt that these innovations will significantly impact the way we live, and how we experience brand worlds too.”

Expectation

“Consumers now site convenience over price as an important driver to purchase decisions,” the report states. While millennials expectations of convenience and instantaneous service and interaction are set by the brands they have been brought up with (Amazon, Uber, Netflix), Generation X look for value added elements and Baby Boomers emphasise face-to-face customer service.

Health conscious

The health trend in drinks has gained momentum since 2015, driven by the UK Government’s war on sugar. In order to create a healthier lifestyle, some consumers abstain from alcohol altogether, while some seek lower abv drinks, lower calorie alternatives, sugar-free cocktails and gluten-free drinks.

Identity and social currency

Following on from William Grant’s primary conclusion in its report last year, the group has once again emphasises a loss of loyalty among modern day spirits consumers. “Promiscuous consumer tendencies mean that brands must continue to evolve and innovate in order to remain relevant,” the report claims. Furthermore, a consumer’s choice of brand impacts their identity and how they are perceived by society. In particular, “the lure of new and what is ‘trendy’ have seen repertoires grow substantially, particularly among millennials”.

Treat: a reaction to downsides

As a reaction to austerity, consumers are increasingly treating themselves. “Recession fatigue and improved consumer confidence have seen treating and reward become a key influencer for consumer to brand interaction,” claims the report. “With drinking out becoming less of an everyday occasion, trading up and premiumisation have become increasingly important across all aspects of the consumer spirits journey.”