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Spirits in Australia

Australia spirits market: Premiumisation the key trend forecast between 2012-17

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2014-04-21 09:27:02 - Spirits in Australia - a new market research report on

Diageo Australia Ltd continued to lead the spirits category in 2012 with a 35% volume share. The company was first placed in cream-based liqueurs, rum, tequila (and mezcal), blended Scotch whisky, gin and vodka with at least half the market volume in each category except vodka at an NBO level.

Throughout spirits, premiumisation is evident across many of the product categories, with the growth of premium blends and flavour innovations for the most part outpacing that of major mainstream brands. Brand extensions have proved key for many dark spirits brands, such as Jim Beam, Bundaberg and Wild Turkey, which might otherwise have been at risk of stagnating. These three brands have recently been successful at targeting new demographics and encouraging loyalty



within their core market of drinkers, through measures such as branching out across categories, such as Bundaberg´s foray into white and spiced rum or Wild Turkey and Jim Beam´s venture into the realm of honey bourbon liqueurs, or through limited-edition premium distilled craft batches.

Within white spirits such as gin and vodka, premium and super-premium tiers continued to see growth in 2012 at the expense of standard and economy tiers. Unlike in dark spirits, this growth has not come through brand extension innovation but through emerging niche brands that have the backing of the major players within the spirits category. These include Hendrick´s and Tanqueray in gin, and Cîroc, Ketel One, Grey Goose and Belvedere in vodka.

Premiumisation is likely to prevail as the key trend in spirits over the forecast period, as higher-quality blends and flavour innovations are set to continue to characterise the offerings of major established brands and emerging niche players irrespective of market position. On-trade is likely to remain the primary platform for sampling such spirits, with off-trade distribution contributing to consumer brand education to a greater degree over the short- to mid-term.

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