Brand News: Market Report
WM Grant Publish Annual Report
Wm Grant & Sons published their 2017 Annual Report last month and revealed it to members of the trade at a special event at the Blythswood Hotel. The report which highlights consumer and trade trends and takes account of current economic and political impacts on the drinks industry and the licensed trade, revealed trends which included the fact that consumers are changing how they choose to interact with brands. With health and well-being continuing to dominate consumer consciousness, and on-demand, authentic experiences taking priority over products. It appears that trends such as ‘Hyper Personalisation’, ‘Collective Escapism’ and ‘Kidult Experiences’ have emerged and in the on-trade, venues are responding to consumers’ shift in taste, moving towards a greater range of more natural flavours; as well as the industry rallying together to champion a zero-waste policy.
The report revealed that in the on-trade and off-trade the second largest sector is spirits, worth £10.0bn, up +2.5%, which is seeing strong value growth across both channels. The on-trade is driving the majority of the spirits sector’s performance, up +3.1%. Total premium spirits are now worth over £1.2bn, up +9.9% accounting for 11.7% of the spirits market. Premiumisation remains a key driver for the spirits market with premium brands accounting for £105m of incremental and growth in the spirits sector is being driven by gin, flavoured/spiced rum, non-cream liqueurs, and malt whisky.
Gary Keogh, Marketing Director of William Grant & Sons UK, comments, “Consumer behaviour and habits have continued to evolve in this time of uncertainty, but still there remains an element of consistency with the trends identified in our previous Reports, as the consumer trends and resulting behaviours have adapted to this new normal.
More than ever, brands need to have a point of view, share their values, and reach heightening expectations to meet consumer needs. The brands that succeed will be those that can balance these often conflicting needs and offer inclusive, collective experiences, a playful sense of purpose, and meet on-demand consumer expectations without compromising on quality.”
Rita Greenwood, Managing Director of William Grant & Sons UK and Ireland, adds, “William Grant and Sons is a family owned business and has been for 130 years. This report is our objective view of what is happening in the UK drinks industry. Every word is written internally by our colleagues and it demonstrates our commitment to ensuring that all of our business partners are informed about what is happening now, and how we expect consumers and categories to evolve in the future.
The report shows that it is more essential, now than ever before, for businesses and brands to adapt if they are to remain relevant with today’s consumers.