RETAIL SPIRITS – Dark forces at work

Dark spirits are experiencing growth in total value, driven by the strong volume performance of brandy and dark rum

Growth for the three dark spirits is not driven by new buyers entering the market, as overall there has been a considerable loss in numbers. Instead, those existing dark spirits buyers are purchasing noticeably greater volumes each year. This lies in their increasing frequency of purchase. Within the category, both brandy and dark rum have fuelled value growth, with less contribution from whisky, despite its growing volume sales. Brandy has lost a large number of buyers, yet has managed to maintain heavier buyers, who are purchasing more each year. Dark rum, has also experienced a notable reduction in buyers, but those still buying are enticed by growing promotional activity.

In terms of buyer profiles, dark spirits are comparatively similar to total spirits, attracting an older consumer. When compared to spirits, all but dark rum overtrade in the 65 years and above age bracket, since this spirit tends to be more attractive to younger consumers. Whisky overtrades greatly with the oldest age bracket.

In terms of retailers, Tesco’s performance in dark spirits matches that of its total spirits, yet there has been a significant overtrade occurring in brandy.  Tesco’s brandy spend accounts for almost 40% of this spirit’s total spend in the multiples.   Meanwhile, the other key multiples all undertrade in brandy. Asda clearly overtrades in dark rum and Sainsbury’s overtrades in whisky. 

In terms of the leading brands, seven of the top 10 are whiskies,which remains a steady pattern from year to year. Although there has been a slight decline in buyers for Famous Grouse, it has still managed to retain its place at the top of the list. Deservedly, Bell’s has also managed to hold its place and provide a successful challenge to Famous Grouse.

© db October 2006