Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

White and Dark Spirits - Ireland - May 2009

The impact of the euro and consequent rise in cross-border trade has had mixed consequences for the spirits market. RoI consumers are thirsty for bargains and have helped boost the NI market in both the on- and off-trade. Competition on both sides of the border has intensified, with spirits sales struggling compared to beer and wine. Meanwhile brands have been placed under increasing pressure to retain their premium positioning. Although within this market own-label brands are still outsiders, with the recession lowering consumer spending, will Irish consumers be tempted to buy own-brand spirits?

This report reviews the fortunes of the white and dark spirit market in Ireland, against the context of

an ailing on-trade and change in consumer behaviour during the recession.

Key themes in the report

  • Growing the on-trade for white and dark spirits – wine is growing in the on-trade, beer is showing high levels of NPD and brand launches, but what are spirits doing to grow on-trade?

  • Can the premiumisation trend be sustained during the credit crunch – with consumers trading down/across during the recession in an attempt to save money, will premiumisation remain the driving force behind product development in spirits? Are premium-placed products finding it harder to attract increasingly cash-strapped consumers?

  • Growing threat of own-brand spirits – with Irish consumers having less to spend on spirits and alcohol in general, are own-brand spirits ideally positioned to grow their market share?

  • Importance of national identity to spirits – Does being seen as an Irish brand help a brand to compete at home and abroad?

  • Attracting younger consumers to spirits –With an aging population, will the importance of the youth market diminish?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key themes in the report
        • Definition
          • Market size rationale
            • Abbreviations
            • Insights and Opportunities

              • A health dimension
                • Trimming the brand fat
                  • Convenient formats a possible opportunity
                  • Market in Brief

                    • Alcohol penetration stable, but volumes drunk and frequency fall
                      • Fashion dictates the fortune of spirits
                        • International sophistication
                          • Economy fails to raise consumer spirits
                            • Strong euro aids NI retailers
                              • Foreign nationals leave a gap in sales
                                • On-trade continues to fall while off-trade increases
                                  • NI prefer white spirits, while RoI prefer dark
                                    • Beer and wine major competition
                                      • Premium becomes humdrum
                                        • Call for pubs to innovate
                                          • Benefits of an older market segment
                                            • Can spirit companies discount the discounters?
                                            • Fast Forward Trends

                                                • Trend 1: Water conservation
                                                  • What's it about?
                                                    • What we've seen
                                                      • What next?
                                                        • Trend 2: Never say die
                                                          • What's it about?
                                                            • What we've seen
                                                              • What next?
                                                              • Internal Market Environment

                                                                • Key points
                                                                  • Alcohol consumption rates remain steady in 2008
                                                                    • Figure 1: Alcohol consumption – all adults, NI and RoI, 2003-08
                                                                  • … but spirits suffer from recession
                                                                    • Fashion icon
                                                                      • White more fashionable than dark?
                                                                        • Figure 2: Vodka and Irish whiskey consumption in the last 12 months, by women, NI and RoI, 2008
                                                                      • Sponsorship vs. product placement
                                                                        • All mixed up
                                                                          • National vs. international spirit brands
                                                                            • National pride
                                                                              • Identity crisis
                                                                                • Duty free: An increasingly lucrative channel for spirits?
                                                                                  • Figure 3: Air passenger traffic (millions of passengers), IoI, RoI and NI, 2003-06
                                                                                • Mature spirits for mature consumers
                                                                                  • Old money
                                                                                    • Premium problems in the credit crunch
                                                                                      • Quality, but value too
                                                                                        • Figure 4: Most important factors when grocery shopping (incl. alcohol), RoI and NI, January 2009
                                                                                      • Limited (edition) damage
                                                                                        • Chilly response to price freeze
                                                                                          • Own-label spirits a bigger threat to NI market
                                                                                            • Looming threat
                                                                                            • Broader Market Environment

                                                                                              • Key points
                                                                                                • Economy fails to raise consumer spirits
                                                                                                  • Figure 5: Economic outlook, NI and RoI, 2008-10
                                                                                                • Strong euro a boon to NI retailers
                                                                                                  • Figure 6: Pound to euro exchange rate, 2003-09*
                                                                                                • Unemployment set to increase
                                                                                                  • An aging population helps boost spirits sales
                                                                                                    • Figure 7: Population estimate and projection, by age, NI, 2000 and 2020
                                                                                                    • Figure 8: Population estimate and projection, by age, RoI, 2000 and 2020
                                                                                                  • Less demand for white spirits and regional brands with foreign national exodus
                                                                                                  • Strengths and Weaknesses

                                                                                                    • Strengths
                                                                                                      • Weaknesses
                                                                                                      • Market Value and Forecast

                                                                                                        • Key points
                                                                                                          • Recession hits spirits hard
                                                                                                            • Figure 9: White and dark spirits sales, by value and volume, on- and off-trade split, all-Ireland, 2004-13
                                                                                                          • Gap set to increase
                                                                                                            • Figure 10: White and dark spirits sales, by indexed value on- and off-trade, all Ireland, 2004-13
                                                                                                          • Cross-border shopping stings RoI spirits market
                                                                                                            • Figure 11: White and dark spirits sales, by value and volume, on- and off-trade split, RoI, 2004-13
                                                                                                          • RoI off-trade expected to turn around in 2009
                                                                                                            • NI retailers saved from recession
                                                                                                              • Figure 12: White and dark spirits sales, by value and volume, on- and off-trade split, NI, 2004-13
                                                                                                            • NI spirits retailers have a merry Christmas
                                                                                                            • Market Segmentation

                                                                                                              • Key points
                                                                                                                • Whiskey in the jar
                                                                                                                  • Figure 13: RoI white and dark spirit segments, by value, on- and off-trade split, 2005, 2007 and 2008
                                                                                                                • Off-trade drinkers trade up
                                                                                                                  • Figure 14: RoI white and dark spirit segments, by volume, on- and off-trade split, 2005, 2007 and 2008
                                                                                                                • Own-brands generate higher volume sales in NI
                                                                                                                  • Figure 15: NI white and dark spirit segments, by value, on- and off-trade split, 2005, 2007 and 2008*
                                                                                                                  • Figure 16: NI white and dark spirit segments, by volume, on- and off-trade split, 2005, 2007 and 2008
                                                                                                                • Vodka maintains absolute control
                                                                                                                  • Rum sees growth – how to attract the young
                                                                                                                  • Competitive Context

                                                                                                                    • Key points
                                                                                                                      • Competing with other types of alcohol
                                                                                                                        • Figure 17: Alcohol sales, by segment, combined on-trade and off-trade, RoI, 2005-08
                                                                                                                      • Is wine a bigger threat in NI?
                                                                                                                        • Figure 18: Alcohol sales, by segment, combined on-trade and off-trade, NI, 2005-08
                                                                                                                      • FABs a fad
                                                                                                                        • FABs’ decline could benefit spirits
                                                                                                                          • Figure 19: Total value sales of spirits and soft drinks, combined on-trade and off-trade, all Ireland, 2004-08
                                                                                                                      • Who’s Innovating?

                                                                                                                        • Key points
                                                                                                                          • Premiumisation skyrockets
                                                                                                                            • Figure 20: Top ten claims in spirits, UK and Ireland, 2004-09
                                                                                                                          • Back to nature
                                                                                                                            • For a limited time only
                                                                                                                              • Whiskey flows free
                                                                                                                                • Figure 21: New product launches in spirits product categories, UK and Ireland, 2004-09
                                                                                                                              • Nationality increasingly important to whiskey
                                                                                                                                • Vodka goes increasingly upmarket
                                                                                                                                  • Liqueurs feeling a little fruity
                                                                                                                                    • Brandy market sees little innovation
                                                                                                                                      • Tequila goes premium and ultra-premium
                                                                                                                                        • Gin follows the crowd
                                                                                                                                        • Companies and Products

                                                                                                                                            • Diageo
                                                                                                                                                • Figure 22: Diageo spirit brands, 2009
                                                                                                                                              • Cooley Distillery
                                                                                                                                                  • Figure 23: Cooley’s brands, 2009
                                                                                                                                                • Pernod Ricard (Dillon Bass)
                                                                                                                                                    • Figure 24: Dillon Bass brands, 2009
                                                                                                                                                  • Pernod Ricard (Irish Distillers)
                                                                                                                                                      • Figure 25: Irish Distillers brands, 2009
                                                                                                                                                    • McCabes
                                                                                                                                                        • Figure 26: McCabe brands, 2009
                                                                                                                                                      • Cantrell & Cochrane
                                                                                                                                                          • Figure 27: C&C brands, 2009
                                                                                                                                                        • Barry Fitzwilliam Maxxium
                                                                                                                                                            • Figure 28: BFM brands, 2009
                                                                                                                                                        • Channels to Market

                                                                                                                                                          • Key points
                                                                                                                                                            • Pubs beset on all sides
                                                                                                                                                              • Figure 29: Number of on- and off-trade premises with alcohol licences, NI, 2005-08
                                                                                                                                                              • Figure 30: Number of on- and off-trade premises with alcohol licences, RoI, 2005-08
                                                                                                                                                            • Not all bad
                                                                                                                                                              • Pubs need to innovate
                                                                                                                                                                • Mini(bar) opportunities
                                                                                                                                                                  • Restaurants a no-growth area for spirits
                                                                                                                                                                    • Figure 31: Drinking occasions for alcohol, all adults, NI & RoI, 2008
                                                                                                                                                                  • Recession bites into the restaurant channel
                                                                                                                                                                    • Hotels provide spirits an avenue towards tourist market
                                                                                                                                                                      • Supermarkets driving the off-trade to new heights
                                                                                                                                                                        • Independent off-licences see supermarkets as menace
                                                                                                                                                                          • Discounters a legitimate channel to market
                                                                                                                                                                            • Figure 32: Shopped at lidl/aldi, by all adults, RoI and NI, January 2009
                                                                                                                                                                          • Spirits companies reluctant to use discounters
                                                                                                                                                                          • Consumer Drink Preferences

                                                                                                                                                                            • Key points
                                                                                                                                                                              • Alcohol drinkers retreat to home
                                                                                                                                                                                • Figure 33: Alcohol consumed in home in the last 12 months vs alcohol consumed out of home in the last 12 months– all adults, NI and RoI, 2003-08
                                                                                                                                                                              • Consumers looking to save money
                                                                                                                                                                                • Older consumers key target for off-trade spirits
                                                                                                                                                                                    • Figure 34: Alcohol consumed in home vs out of home, by age, NI and RoI, 2008
                                                                                                                                                                                  • The on-trade is still an important channel for introducing brands
                                                                                                                                                                                    • A few times a week
                                                                                                                                                                                      • Figure 35: Frequency of alcohol consumption – all adults, NI and RoI, 2008
                                                                                                                                                                                    • Irish whiskey dominates among dark spirits
                                                                                                                                                                                      • Figure 36: Types of whiskey consumed in last 12 months, NI and RoI, 2008
                                                                                                                                                                                    • Youth market spurns Irish whiskeys
                                                                                                                                                                                      • Figure 37: Irish whiskey consumption in last 12 months, by age, NI and RoI, 2008
                                                                                                                                                                                    • Vodka consistently popular
                                                                                                                                                                                        • Figure 38: Vodka consumption in last 12 months, by all adults, NI and RoI, 2003-08
                                                                                                                                                                                      • An issue of taste
                                                                                                                                                                                        • Figure 39: Attitudes towards vodka, by UK alcohol drinkers, November 2008
                                                                                                                                                                                      • Youth orientation
                                                                                                                                                                                        • Figure 40: Vodka consumption in last 12 months, by age, NI and RoI, 2008
                                                                                                                                                                                      • Are spirits a sign of affluence?
                                                                                                                                                                                          • Figure 41: Vodka consumption in last 12 months, by socio-economic group, NI and RoI, 2008
                                                                                                                                                                                        • Cost of liqueurs a barrier to growth
                                                                                                                                                                                            • Figure 42: Liqueur consumption in last 12 months, by socio-economic group, NI and RoI, 2008
                                                                                                                                                                                          • Brandy fades into the background
                                                                                                                                                                                            • Figure 43: Brandy consumption in last 12 months, by all adults, NI and RoI, 2003-08
                                                                                                                                                                                          • White rum overpowers dark rum
                                                                                                                                                                                              • Figure 44: White and dark rum consumption in last 12 months, by all adults, NI and RoI, 2003-08
                                                                                                                                                                                            • One in ten drink gin
                                                                                                                                                                                            • Consumer Attitudes towards Drinking

                                                                                                                                                                                              • Key points
                                                                                                                                                                                                  • Figure 45: Agreement with statements related to drinking – all adults, NI and RoI, 2008
                                                                                                                                                                                                • Going to the pub still a popular pastime
                                                                                                                                                                                                    • Figure 46: Agreement with statement: ‘I really enjoy a night at the pub’ – all adults, NI and RoI, 2003-08
                                                                                                                                                                                                  • Targeting on-trade spirits to the young
                                                                                                                                                                                                    • Figure 47: Agreement with statement: ‘I really enjoy a night out at the pub’, by age, NI and RoI, 2008
                                                                                                                                                                                                  • RoI men key target for on-trade spirits
                                                                                                                                                                                                    • Singletons a key target for on-trade spirits?
                                                                                                                                                                                                      • Figure 48: Agreement with statement: ‘I really enjoy a night out at the pub’, by marital status, NI and RoI, 2008
                                                                                                                                                                                                    • A third of Irish consumers drink mostly at home
                                                                                                                                                                                                        • Figure 49: Agreement with statement: ‘Most of my drinking is done at home’ – all adults, NI and RoI, 2003-08
                                                                                                                                                                                                      • Raising spirits at home
                                                                                                                                                                                                        • Figure 50: Agreement with statement: ‘Most of my drinking is done at home’, by age, NI and RoI, 2008
                                                                                                                                                                                                      • Young Irish consumers key to new product launches
                                                                                                                                                                                                        • Figure 51: Agreement with statement: ‘I like to try new drinks’, by age, NI and RoI, 2008
                                                                                                                                                                                                      • Flip side of old age stubbornness
                                                                                                                                                                                                        • Hardcore drinkers will still seek spirits
                                                                                                                                                                                                            • Figure 52: Agreement with statement: ‘The point of drinking is to get drunk’, by age, NI and RoI, 2008
                                                                                                                                                                                                        • Appendix

                                                                                                                                                                                                            • Figure 53: NI and RoI population, by gender, 2006-20
                                                                                                                                                                                                            • Figure 54: NI population, by gender, 2006-20
                                                                                                                                                                                                            • Figure 55: RoI population, by gender, 2006-20
                                                                                                                                                                                                            • Figure 56: Forecast population change, by age, NI, 2000-20
                                                                                                                                                                                                            • Figure 57: Forecast population change, by age, RoI, 2000-20
                                                                                                                                                                                                            • Figure 58: Alcohol sales, by value and volume, all Ireland, 2003-13
                                                                                                                                                                                                            • Figure 59: Pound to Euro Exchange rate used, 2004-2013
                                                                                                                                                                                                          • Alcohol consumption
                                                                                                                                                                                                            • Figure 60: Alcohol consumption in the last 12 months, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 61: Alcohol consumption (frequency: Total consumption), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 62: Alcohol consumption (frequency: Once a day), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 63: Alcohol consumption (frequency: 2 or 3 times a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 64: Alcohol consumption (frequency: Once a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 65: Alcohol consumption (frequency: 2 or 3 times a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 66: Alcohol consumption (frequency: Once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 67: Alcohol consumption (frequency: Less than once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 68: Alcohol consumption (frequency in home: In-home consumption), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 69: Alcohol consumption (frequency in home: Once a day), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 70: Alcohol consumption (frequency in home: 2 or 3 times a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 71: Alcohol consumption (frequency in home: Once a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 72: Alcohol consumption (frequency in home: 2 or 3 times a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 73: Alcohol consumption (frequency in home: Once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 74: Alcohol consumption (frequency in home: Less than once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 75: Alcohol consumption (frequency elsewhere: Out-of-home consumption), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 76: Alcohol consumption (frequency elsewhere: Once a day), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 77: Alcohol consumption (frequency elsewhere: 2 or 3 times a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 78: Alcohol consumption (frequency elsewhere: Once a week), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 79: Alcohol consumption (frequency elsewhere: 2 or 3 times a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 80: Alcohol consumption (frequency elsewhere: Once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 81: Alcohol consumption (frequency elsewhere: Less than once a month), by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                          • Drinks attitudes demographics
                                                                                                                                                                                                            • Figure 82: Agreement with statement: ‘Most of my drinking is done at home’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 83: Agreement with statement: ‘I like to try new drinks’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 84: Agreement with statement: ‘I really enjoy a night out at the pub’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 85: Agreement with statement: ‘It’s worth paying extra for good quality beer’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 86: Agreement with statement: ‘I am prepared to pay more for good quality wine’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                            • Figure 87: Agreement with: ‘The point of drinking is to get drunk’, by demographic breakdown, NI and RoI, 2008

                                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                                        To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                        White and Dark Spirits - Ireland - May 2009

                                                                                                                                                                                                        US $1,417.92 (Excl.Tax)