The Grocery Eye study was conducted in November 2013 with 2,000 primary grocery shoppers, including 415 spirits category buyers. For further information please contact Catherine Elms, Research Director E: catherine.elms@spafuturethinking.com T: +44(0)1865 336 400

Data courtesy of SPA Future Thinking

www.spafuturethinking.com innovation intelligence inspiration

Within the spirits category we are observing a shift towards quality and premiumisation, with tastes growing ever more expensive. The Grocery Eye shows that while price is important, it’s brand and quality that we crave.

Consumers perceive the spirits category to be not particularly innovative, and while NPD is not something they desire, it presents an opportunity for known brands to capitalise on their dominance in this sector.

Getting in the Spirit

New product awareness is driven by on shelf discovery. This is however relatively low compared to other

markets and is closely followed by personal recommendation.

Seeing products online and through TV advertising to prompt purchase is

high in this category.

Winning at the shelf is key, so what entices consumers to make their current purchases?

23%

The brand

25%

On offer / promotion

38%

It’s what I usually buy

20%

Flavour, blend or strength

21%

Good value for money

22%

Premium quality

While being a ‘usual purchase’ leads the reasons for buying, a host of secondary factors are

apparent: being on offer, brand, premium quality, value for money and flavour.

The brand name is somewhat more prominent in decision making compared to other categories.

discovered recent new

product launches at the

shelf

32%

14%

Supermarket website

26%

Personal recommendation

12%

Televisionadvert

11%

Onlineadvert

30%Lookedtasty

What tempts buyers to try new products in this category?

22%Something different

24%The brand

New product trial is led by taste, brand and consumers wanting to try something new/different. Notably price is not a feature.

20%It was new

BUYERS

vs.

NON-BUYERS

Category Agreement: The key differences between buyers and non-buyers

While not being necessary and not liking the taste prove the greatest barriers for non-buyers, having suitable pack sizes also shows a

discrepancy with lower agreement levels for non-buyers.

HARD TO CHOOSE

37%

23%

SUITABLE PACK SIZE

25%

NOT NECESSARY

26%

41%

ETHICALLY SOURCED

17%

6%

59%

DON’T LIKE TASTE

16%

34%

Top things consumers looks for when arriving at the spirits aisle...

Product type and price drive initial purchase decision making; however, the primary importance of price is

lower and brand is stronger than for other categories.

Product type 58%

58%Price

Brand

Quality

Blend / strength

29%

20%

31%

Pack size 4%

What features are important to purchasers of spirits?

Price is of key importance to shoppers within the spirits category, with high quality slighter higher than seen for other categories. Being a well-known brand is also advantageous,

supported by a need for a range of traditional and new/different flavours.

70%

Price

47%

High Quality

23%

Known brand

20%

Flavour

15%

New flavour

Purchase Motivators

While pricing and offers are important, they show relatively less dominance within spirit purchasing habits.

Brand and quality are leading attributes for purchase decisions in this category, so reinforcing and building on these communications is an important consideration.

Drivers & Barriers

Despite buying into this category, buyers are most likely to agree that products are expensive. Having suitable pack sizes shows discrepancy for non-buyers - a potential opportunity to promote smaller bottles or ready to drink options perhaps?

Over the next 2 years it is anticipated that price will continue to be key so with high quality requirements not letting up justifying the cost will be essential.

Category Innovation

Discovery of new launches follows a different approach to other categories, with somewhat less reliance on shelf stand out (though still important).

Online marketing/advertising and personal recommendation are key communication channels for this category.

What are we buying?

35 28 21 18 17 16 13

Products currently purchased

Smirnoff vodka is clearly the most popular branded spirit, with Bailey’s Irish cream and Gordon’s gin also claiming to be purchased

nowadays by 1 in 5 spirits consumers