28 november 2013 alcohol advertising tends: 1997 - 2013 alcohol advertising tends: 1997 - 2013 corne...
TRANSCRIPT
28 NOVEMBER 2013
Alcohol advertising tends: 1997 - 2013
Corne van Walbeek and Michael Daly
Data
Commercial data, “adspend’ collected by AC Nielsen
AC Nielsen personnel monitor all forms of media
Cost of each advertisement estimated as a function of media, placement, size, duration etc…
Data is available monthly from January 1997 – September 2013 (Internet: Jan 2001 - )
Oct – Dec 2013, estimated using proportional contribution of those months in previous years
All data in December 2012 Rands
Total advertising industry:
*2013 Figures include estimates for Oct – Dec 2013*All figures are constant 2012 prices
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
5000000000
10000000000
15000000000
20000000000
25000000000
30000000000
35000000000
40000000000
Print Cinema Radio Out of Home Television Internet
Media composition of alcohol advertising
*2013 Figures are estimated for Oct – Dec
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
200000000
400000000
600000000
800000000
1000000000
1200000000
1400000000
1600000000
1800000000
2000000000
CINEMA INTERNET OUT OF HOME PRINT RADIO TELEVISION
Relative importance of alcohol advertising
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%
1%
2%
3%
4%
5%
6%
Relative share of alcohol categories in total alcohol advertising expenditure
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Beer Cider Corporate Ready to Drink Spirits Wine
Relative importance of media to alcohol adspend
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CINEMA INTERNET OUT OF HOME PRINT RADIO TELEVISION
Key advertisers in 2012(based on ‘adspend’)
SAB Miller43%
DISTELL24%
Brandhouse17%
The Really Great Brand Company
4%
Pernod Ricard4%
Douglas Green Bellingham2%
Other5%
Concentration: Beer
19972012
Castle Lager 35%
Car-ling
Black Label15%
Hansa Pilsener 12%
Amstel Lager9%
Lion Lager6%
Castle Lite6%
Other17%
Castle Light19%
Carling Black Label16%
Castle Lager16%
Hansa Pilsener15%
Castle Milk Stout9%
Amstel Lager
6%
Other19%
Concentration: Wine
19972012
Nederburg 12%
Sedgewick8%
Grand Mouss
eux 5%
Graca 4%
Bernini
4%
JC Le Roux 3%
Other64%
JC Le Roux 17%
Nederburg 15%
Boschendal
9%
Drostdy- Hof 7%Namaqua
5%
Douglas Green 5%
Other42%
Key Brands: Spirits (2012)
1997
Smirnoff Vodka8.2%
Riche-lieu 5.4%
Bells 5.4%
Viceroy 4.5%
Oude Meest
er 4.1%
Martell 5
Star 3.7%
Other68.6%
Richelieu 6%
J&B 6%
Hen-nessy
5%
Three Ships
5%
Gordons London Dry Gin5%
Amarula
Cream5%
Other68%
Shares of different alcohol categories in television advertising expenditure
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
BEER CIDER CORPORATE READY TO DRINK SPIRITS WINE
Shares of different alcohol categories in radio advertising expenditure
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
BEER CIDER READY TO DRINK SPIRITS WINE
Shares of different alcohol categories in print advertising expenditure
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
1.0%
BEER CIDER READY TO DRINK SPIRITS WINE
Shares of different alcohol categories in out-of-home advertising expenditure
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%
2%
4%
6%
8%
10%
12%
BEER CIDER READY TO DRINK SPIRITS WINE
Top ten advertised brands of the three largest alcohol companies in South Africa
SABMiller brands
Average annual advertising
expenditure as percentage of total
SABMiller advertising expenditure 2009-2012 Brandhouse brands
Average annual advertising
expenditure as percentage of total
Brandhouse advertising
expenditure 2009-2012 Distell brands
Average annual advertising
expenditure as percentage of total Distell advertising
expenditure 2009-2012
Carling Black Label 21.1% Amstel Lager 13.9% Hunters Dry Cider 12.8%
Hansa Pilsener 19.2% Heineken Lager 13.8% Savannah Dry Cider 9.5%
Castle Lite 18.3% Windhoek Lager 8.9%Richelieu Brandy
7.1%
Castle Lager 17.2% Bells Whisky 8.2% Amarula Cream Liqueur 6.0%
Castle Milk Stout 7.3% J & B Whisky 8.0% Three Ships Whisky 5.4%
Redds Cider 6.8%Captain Morgan Spiced Gold Rum
5.5% Klipdrift Premium Brandy 5.0%
Castle Draught 4.6%Johnnie Walker Black Label
5.4%Flight of the Fish Eagle Brandy
4.3%
Miller Draft Beer* 2.3% Strongbow Cider 4.6% Klipdrift Export Brandy 4.3%
Brutal Fruit 0.8% Guinness Beer 3.7%JC Le Roux Sparkling Wines
4.0%
Peroni Nastro Azzurro 0.6% Smirnoff Vodka** 3.5% Oude Meester Brandy 3.8%
Other 1.8% Other 24.5% Other 37.8%
Television advertising by ‘Advertiser’ over time
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
100000000
200000000
300000000
400000000
500000000
600000000
700000000
800000000
Other Brandhouse DISTELL SAB Miller
Radio advertising by ‘Advertiser’ over time
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Other BrandHouse DISTELL SAB Miller
Share of total television advertising by category
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%
BEER CIDER READY TO DRINKSPIRITS WINE
Sponsorship
Deals with the advertisement of sponsorship activities
Carling Cup, J&B Met etc…
Total expenditure on sponsorship advertising by all industries
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
100000000
200000000
300000000
400000000
500000000
600000000
700000000
ALCOHOLIC BEVERAGES BANKING / INSURANCE / FINANCE NON ALCOHOLIC BEVERAGES & FOODOTHER TELECOMMUNICATIONS TOBACCO RELATED
Sponsorship advertising by the alcohol industry, by media
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
Internet Out of Home Print Radio Television
MARKET CONCENTRATION ANALYSIS
Advertiser
Advertising expenditure (R
000's) Market Share Market Share Squared
SABMiller 622033.40 79.270% 0.628371
Brandhouse 151931.76 19.362% 0.037487
Bavaria Brau 7054.55 0.899% 0.000081
United National Breweries 3506.50 0.447% 0.000020
Brauerei Beck & Co 61.49 0.008% 0.000000
Awethu Breweries 59.01 0.008% 0.000000
Cockpit Brewery 24.49 0.003% 0.000000
Central TLV Dev Board 24.10 0.003% 0.000000
Coopers SA Ltd 8.30 0.001% 0.000000
Total advertising expenditure 784703.59
Herfindahl-Hirschman index 0.666
Herfindahl-Hirschman indices by alcohol type
1997 2012
Beer 0.89 0.67
Brandy 0.34 0.61
Cider 0.36 0.50
Wine 0.36 0.36
Ready to Drink 0.32 0.27
Liqueur 0.16 0.33
Whisky 0.13 0.26
Herfindahl-Hirschman indices for beer at the “house” and brand level, 1997-2012
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Beer (House) Linear (Beer (House)) Beer (Brand) Linear (Beer (Brand))
Herfindahl-Hirschman indices for wine at the “house” and brand level, 1997-2012
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Wine (House) Linear (Wine (House)) Wine (Brand) Linear (Wine (Brand))
Comparison to Tobacco: share of tobacco advertising in aggregate advertising expenditure,
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
0
10
20
30
40
50
60
Print Radio Cinema Television Outdoor Total
Pe
r ce
nt o
f re
leva
nt m
ed
ia's
tota
l ad
spe
nd
Main Findings
Alcohol makes a modest contribution to total advertising Television: 7-8% Cinema 8-16% Internet 1.6–2% Out of Home 4-7% Print 0.7-1% Radio 2-3%
Television is increasingly important media to alcohol industry
Very sharp increase in television advertising in late 2009 (especially for beer)
Seasonality & pulsing: Alcohol advertising peaks in November
Main Findings
Large increase in advertising of sponsorships since 2010
Sponsorship advertising is primarily on television
The alcohol advertising industry is highly concentrated (Particularly for beer and brandy)