Alcohol industry worth £16bn in UK

Alcohol has retained its position as the top-selling category in the UK, worth £16 billion in value sales, with gin experiencing double-digit growth across Western Europe.

According to data analyst IRI’s Top Categories Special Report, the alcohol growth has been attributed to innovation in the drinks industry and a reduced amount of trade promotions.

The report, which analysed the top FMGC categories across six European countries – UK, France, Germany, Italy, Spain and the Netherlands ­– found that total alcohol values across all countries grew by 2.6% to €62 billion.

In the UK and Germany spirits “outperformed”, with the latter experiencing a +2.3% increase year-on-year to €46m.

While beer was leading the sub-category in terms of value in the UK, spirits saw a +5.7% increase with gin witnessing a +24% growth, compared with the previous year.

Meanwhile spirits performed well in France, up +2.7%, with rum up by double-digits to +18%. In Spain, spirits increased by +4.1% and in the Netherlands, spirits grew by +2.7%.

Gin was the leading spirit category across Western Europe, with double-digit growth in Germany (+39%), Italy (+10%) and France (+17%).

“It’s no surprise that the likes of gin are proving very popular in many countries driven by an increasing number of small and niche batch distillers, celebrity culture and enhanced in-store exposure via displays during key seasonal events,” said IRI’s Olly Abotorabi. “Spirits in general are seeing good growth across most markets.”

Total UK spirits sales in both the on- and off-trade grew by 2% in 2016/17, bolstered by double-digit gains from the gin category, according to figures from the Wine and Spirit Trade Association.