Scotch on the rocks this Christmas

By Ben Bouckley

- Last updated on GMT

Related tags: Alcoholic beverage, Whisky, Brand

Scotch on the rocks this Christmas
UK consumers continue to shun Scotch whisky in favour of 'fashionable' spirits, says a new report from research firm Key Note.

The total market value of spirits and liqueurs stood at £8.4bn in 2009, said Key Note, a 2.1% decline from 2005. The market grew in 2007 and 2008, but dipped in 2006 and 2009, in line with recessionary periods.

Key Note said the biggest market alterations involved Scotch whisky and vodka, where the former has seen a “massive decrease of 23.3% over the last five years and currently accounts for 24.3% of the market, in comparison to the 31% share it held in 2005.”

Vodka Sunrise

That said, Key Note said the majority of sectors lost ground during the same period, hit by consumers “turning away from more traditional spirits and opting for more fashionable and popular alcoholic drinks such as vodka”.

Sales of vodka increased by 16.8% over the review period and currently account for 32.4% of the entire spirits and liqueurs market. The report authors said younger consumers “enjoyed the versatility of the spirit”​ in cocktails, adding that leading brands such as Smirnoff now have a global brand presence.

Presuming one even has a viable offering, the spirits and liqueurs market is a tough nut to crack, said Key Note, where it is dominated by a few leading companies, making it hard for new competitors to enter the mature and developed industry”.

Meanwhile, it added, the success of supermarket own-label spirits has hit the sector’s overall market value in the last five years, “to the dismay of private label companies”.

Related topics: Drinks

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