THE SHAKE UP
The Spirits and mixers category, including ready to drink, alcohol free and letterbox cocktail kits, have seen quite a shake up as producers have responded to changes in customer behaviour learnt throughout lockdown. As reported in the Speciality Food magazine, Nick Gillett, MD of Mangrove UK, confirmed ‘consumers displayed an insatiable thirst for drinks education and information during the lockdown period, emerging with an appetite for more premium spirits, exciting mixers and a willingness to mix drinks at home’. Sam Jeveons, co-founder of Indonesian rum brand Nusa Cana, further underlines this ‘the very nature of at home drinking has evolved over the past couple of years …. evolving from learning and preparing at home for the household to hosting and sharing those drinks etc’. Hence it is not only knowledge around how to serve drinks that shoppers are thirsty for in 2022 – it’s the story behind the product themselves too as they look to explore new and exciting offerings.
RESEARCH – MINTEL
Gin and RTDs (Ready to Drink)
Mintel has reported that whilst gin has enjoyed a meteoric rise in recent years, 2021 saw volume sales slip; this was mainly due to the steep fall in on-trade sales due to hospitality lockdown closures in the first half of the year and, also, as with Ready to Drink products (see below), the poor weather in Spring/Summer 2021 reduced drinking occasions for gin.
Rum, mezcal and tequila
It is not all negative however as customers are clearly switching to and exploring alternative categories such as rum, mezcal and tequila – sales of all variants of tequila are through the roof and it is thought the flavoured tequila market may be poised to explode. As observed by Dawn Davies, head buyer at the Whisky Exchange, ‘rum, Mezcal and whisky are the hot tickets at the moment’. This is further endorsed by our clients, SIXTOWNS, whose Strategic Partnerships Director, Laura Howley says ‘with SIXTOWNS Gin and Vodka capturing the hearts of many, the demand from our customers to produce a rum next was overwhelming and therefore we set out on a mission to create our SIXTOWNS Spiced Rum. A delicious blend of mixed spices, caramel and vanilla, with just the right amount of sweet and spice. Since the release we have seen an increased demand for rum, a trend which seems to be continuing to grow with many gin festivals we attend now including rum too!’
The rise of ready to drink products (RTDs)
RTDs continued their strong growth in 2021, outperforming all other segments in terms of percentage growth with the exception of tequila/mezcal. Nick Gillett of Mangrove comments
‘the rise of the RTD sector is fast and furious and as one of the fastest growing alcohol categories this is not going to stop – the original RTD experience was one of mass production of cheap and cheerful products , but with the rapid expansion in the category there is now a polarising effect, with some pre-batch high quality cocktails being created at one end and at the other a more fun approach’. Overall, Mintel summarises that with the lower unit price and alcohol levels, increased sales of RTD products are facilitated – consumers are economising during the ongoing period of inflation and income squeeze, and there is also a consumer trend towards alcohol moderation, hence the RTD category’s future market share is expected to increase in the coming years.
The future for spirits and mixers generally
Quality will be king when it comes to consumers’ thirst for spirits and mixers going forward, with one in three (33%) consumers regarding high quality ingredients as a key attribute for white spirits, and 79% of RTD drinkers/buyers choosing a pre-mixed alcoholic drink made with a high quality mixer over a low quality one according to Mintel.
BRAND E MARKETING
AUGUST 2022
