IRI UK BEERS, WINES AND SPIRITS REPORT

This IRI report provides an insight to the potential obstacles that may further prevent growth in the Beers, Wines and Spirits (BWS) sector in 2015.

Key Findings

Christmas

• There was a small amount of growth over the 6 weeks ending 3rd January 2015.
• Sparkling white wine (excluding champagne) recorded the biggest rate of growth.
• Spirits also managed significant growth during the period.
• Between the Sparkling white wine and the Spirts categories total sales grew over £70m, while the whole of BWS only grew by £65m, so total sales across all other categories were down £5m.

FMCG Context

• Food Prices remain under immense pressure so any growth achieved has been hard fought.
• The latest retailer results add further evidence to the concept of the ‘squeezed middle’ within grocery.

Obstacles to Growth

• Duty could go up by 2.1% as forecasted in the March 2015 Budget.
• Election uncertainty could lead to much uncertainty throughout the rest of the year with consumers nervous to increase their spending on food & drink.
• Possibility to additional restrictions on alcohol e.g. minimum unit pricing or further limits on sports sponsorship.

Potential for Growth

• Strong volume and value growth for Prosecco, as long as quality is not compromised, Prosecco will have another good year in 2015.
• British consumers are switching away from more traditional standard lagers, and craft ales have done well from this. And the continued use of the ‘3 for £5’ promotions should lead to success in 2015.
• Growth in fruit… whether in lagers, ales, ciders or wine, we expect to see lots more varieties hitting the shelves in 2015.
• Online and the advancement of ‘Click & Collect’ can be greatly suited to BWS, especially wines, where the story of each wine can be told.

To learn more about BWS market trends in the UK, Download and read our report