RETAIL SPIRITS – Spirit of the Summer

Despite its strong associations with summer, gin is having a drought. Whisky is going surprisingly well but it is the time for Pimm’s…

Despite its strong associations with summer, gin is having a drought. Whisky is going surprisingly well but it is the time for Pimm’s.

Summer is an important period for alcohol sales, but this affects some sectors and brands more than others. Lager traditionally relies on a strong summer for a large share of sales. Spirits are less reliant. However, fine weather can give rise to impromptu social occasions which will boost consumption – particularly through cocktails and punches at barbecues.

Of the main spirits categories, Vodka and, surprisingly, Whisky, are having the best performance compared to last year. Gin, a clear spirit with possibly the best associations with summer, has performed poorly. However, all major spirits categories are facing a significant loss of penetration – they are attracting fewer buyers than this time last year. This may in part be due to the increase in pre-mixed Spirits, which provide, for example, a ready-made Gin & Tonic.

By contrast to spirits, Pimm’s is a drink which relies heavily on summer – 76% of all sales are made between June and September. This year, penetration has increased rapidly, following a widespread marketing and advertising campaign. One key result of this has been to encourage younger buyers into the brand – although it is still very much an upmarket rather than mainstream drink.

Reflecting this, Sainsbury’s is the key retailer for Pimm’s, over-indexing significantly compared with its share of Spirits or Total Alcohol. Perhaps unsurprisingly, Waitrose also overtrades in Pimm’s. In terms of penetration, Pimm’s remains the number one summer brand, with Gordon’s Gin still holding on to second place.

The British weather remains a reckless driver of sales.

© db August 2005