This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
RETAIL CHRISTMAS: Christmas Sloth
December 2006 was characterised by slow selling traditional Christmas drinks and surging sales of cider
For the second year running, the alcohol market was slower over the eight week Christmas period than over the year as a whole. The spirits sector, which accounts for one third of total alcohol spend, has performed poorly again this year with spend down by 1.5% when compared with Christmas last year.
The major success stories this Christmas were: wine (up 5.5%), beer (up 10.9%) and cider, which continued its dramatic ascent with expenditure growth of 32% against the same period last year. Cider was the only alcohol sector to increase buyer numbers this Christmas. Although still only a small player in the overall alcohol industry with a 2.7% market share, cider has set the pace in the alcohol sector this year with innovative marketing from brands such as Magners Original and Bulmers Original revitalising what had previously seemed a moribund market.
Sparkling wine, while up slightly on Christmas last year, under- performed compared to its growth throughout the year. It was also bad news again for alcopops, which declined by over 12% this Christmas, further exacerbating the 2.8% decline witnessed in 2006. Finally, the festive season has brought worrying signs for fortified wines this year. Christmas is traditionally a strong time for the sector as fortified wines make ideal gifts and perfectly accompany rich, indulgent dinners. However this year they have declined by 8% compared to last Christmas and 6.8% over the entire year.
Growth in beer has been a factor in the success of all of the “big 4” this Christmas. Tesco performed very well, achieving 12.1% growth in alcohol by growing its wine and spirits sales. Morrisons and Sainsbury’s have grown their spirits sales while Asda has been successful in wine.
It’s “all change” in this year’s top 10 Christmas brands. Last year’s number one, Baileys, lost ground with a drop of 8.2 penetration percentage points, the equivalent of a staggering 2m households, and slipped to third place to be replaced at the top by Stella Artois. Foster’s also grew in popularity and jumped from 16th place to sixth this year. Meanwhile, Blossom Hill dropped from fourth to seventh place and was replaced by Gallo.
© db February 2007