According to Hugh Edwards-Neil, Channel Development Manager at IRI Australia, total liquor in the off-premise has grown by more than 1.5 per cent in the last twelve months, compared to -0.5 per cent this time last year. "And that's from growth across all categories, not just one or two," Edwards-Neil said.
The report shows the spirits category grew by 50 per cent in the last 12 months, representing approximately $20 million AUD, while beer grew by 29 per cent, ahead of wine (+12 per cent) and cider (+8 per cent). Most surprisingly, the RTD/RTS category is in growth for the first time in almost six years, up by 1 per cent. Edwards-Neil said the category is being driven by Canadian Club and its development of fresher and lighter SKUs, helping to move the category away from the traditional, sugary variants.
Segments driving growth include craft beer, premium international beer, low carb beer, glass Scotch and shiraz, while the top brands as listed by the report are Great Northern Brewing, Somersby, Johnnie Walker, Canadian Club, Corona, Coopers, Asahi, Matilda Bay, Captain Morgan and Jacob's Creek.
Importance of beer category
Edwards-Neil said the growth in beer is extremely positive for the industry, representing 1/3 of total alcohol.
"Beer really helps to illustrate some of the dynamics we're seeing across the industry," Edwards-Neil explained. "Craft and Australian premium, international and low-carb are very dominant. We're also seeing mid-strength really contributing to growth and that's all at the expense of full-strength, which we see at the other end of that spectrum."
The mid-strength category is in growth in both value (+3.7 per cent) and volume (+1.7 per cent) according to the report, while full-strength beer compared to last year is in decline by more than 105 per cent.
Edwards-Neil said that beer and other categories are particularly being driven by health trends, explaining why categories like craft and mid-strength are outperforming heavier, higher-alcohol beers.
Changing consumer needs
According to the report, it is the brands that are managing to evolve and meet the changing needs of consumers that are growing most.
"We're seeing growth where brands are listening to their consumers," Edwards-Neil said.
The report suggests today's consumers are willing to pay a premium price for better quality (63 per cent), want to try new things (58 per cent) and say nutritional information is important (64 per cent).
"Consumers are seeking better quality, they're seeking better experience - that's a sense of adventure or trying new things - and health is becoming more and more important in terms of determining what consumers purchase.
"Interestingly, when we marry this up against the categories and segments that are performing really well, we see these factors start to align."
Edwards-Neil said that the brands that are able to offer all three - better quality, innovation and nutritional information and/or a healthier alternative - are the brands that are most likely to continue to grow.
Share the content
