Ready-to-drink NPD sees more premium and higher ABV options As the choice in ready-to-drink options continue to grow, these “convenient” drinks have changed to further meet the needs of consumers. RTDs are one of the fastest growing drinks categories in the drinks industry; with total volumes growing 13% in the past two years, driven by the off-trade, whilst on-trade volume growth has accelerated to +23% in the last 6 months. Recent data from IWSR suggests that over half of all new RTD launches in the latter half of 2021 came in at ABVs higher than 5%. This comes as the spirits category begins to expand away from a simple “spirit and mixer” recipe into the premium cocktail space resulting in higher ABVs and higher price offerings. One such example is Batch & Bottle who offer a range of cocktails using established spirits such as Hendrick’s and Glenfiddich to produce cocktails that sit in the 25-35% ABV range. RTD consumption is dominated by younger drinkers, with 67% of under-45s opting for them. 89% of RTD drinkers also drink cocktails, which is perhaps the key reason for the recent changes seen in the category. Companies across the RTD category have continued to appeal to their young consumer base in other ways. This has included using more environmentally sustainable packaging, as well as adding ingredients with a perceived health benefit – such as CBD. Source: Drinks Business, IWSR Innovation Tracker |
Study predicts temperature increase will boost and diversify UK wine production The UK has become 0.9C warmer in the last three decades. Longer warm spells and higher maximum temperatures like those experienced this week, continue the pattern of record-breaking British summers with the ten hottest years since records began occurring since 2002. As that trend looks likely to continue, a recent study has found higher growing season temperatures for existing UK vineyards will boost production, expand scope of grape varietals and create more land suitable for grape cultivation. The study, part of a project on Climate Resilience in the UK Wine Sector and published in the Oeno One journal, analysed climate and growth data from European wine producing regions. Researchers then modelled similar climatic conditions as likely to occur in parts of England and Wales between 2021 and 2040, predicting UK growing seasons becoming up to 1.4C warmer. The effects mean conditions such as the excellent 2018 vintage will become more common, while the temperature suitability range will enable more significant growth of varietals rarely found in the UK’s wine producing regions; Sauvignon Blanc, Riesling, Semillon and Pinot Noir in particular. The studies’ authors also state that higher temperatures mean new regions and areas in England & Wales will open up to become suitable for wine production. Despite the potential, the authors recommend the UK will have to remain ‘climate-agile’ and responsive to the variable nature of British weather which will continue to affect vintage conditions and be mindful that higher temperatures can lead to an earlier growing season, thus more vulnerable to spring frosts as recently seen in France. Source: Decanter, BBC News, Met Office |
Consumers continue to prioritise experiences while making cutbacks elsewhere The latest report from KPMG and BRC shows that retail spending has fallen for the third consecutive month in June. While the Jubilee weekend saw a boost in sales, it has not managed to offset the overall decline. As household spend on utility bills continues to rise by 39.6% year-on-year, driven by inflation and the increase in fuel prices, according to the latest Barclaycard consumer spending data, Brits are feeling the squeeze on disposable incomes. As a result, consumers are making cutbacks and are becoming more selective over where they spend their money. According to KMPG and BRC online sales of household appliances, furniture and computing have been among the hardest hit while clothes and beauty products have received a boost due to consumers preparing for summer holidays and events such as weddings. When it comes to the on-trade, Barclaycard data suggests that consumers are still choosing to go out. While spending in restaurants in June is down by -3.3% compared to June 2021, spend is up +0.8% compared to May 2022. Pubs, bars and clubs in the hospitality industry are also up +0.1% versus May. Entertainment business also saw spending increase by +5.3% as well as the holiday industry with spending on hotels, resorts and accommodations increasing by +3.3%. All in all, the data suggests that Brits still want to prioritise experiences over material possessions, when being mindful of their spending. Source: Barclaycard, FT, BBC News |
Investments, Mergers & Acquisitions:
Sources: Big Hospitality, Propel, Spirits Business, Drinks Business, Just Drinks |
New Product Launches & Campaigns:
Sources: Drinks Business, Propel, Drinks Industry News |