Power brands
Across the board it's the big hitting names that win the votes, according to our reader surveys, says ROSIE DAVENPORT
Smirnoff, which is undoubtedly the daddy of the booze brands, is singled out as the top-selling spirit among freehouses, tenanted and leasehold pubs. And despite being named overwhelmingly as the biggest seller, for freetraders it also represents the fastest growing spirit, suggesting it still has a lot more room to grow. In the tenancy and leasehold sectors, it's Smirnoff's stablemate, Gordon's, that takes the prize for fastest growing spirit testimony, perhaps, to the focus the drinks giant has given the brand in the past year, which has included the rollout of a new, more premium extension, Distillers' Cut. Jack Daniel's is also making good strides in the pub market, alongside fellow Bacardi-Brown Forman line, Bacardi Carta Blanca. The stalwart white rum is considered by both sectors to be growing steadily winning a place inside freetraders' and tenants'/lessees' lists of the top five fastest-growing spirits. But our polls show it is slightly less popular in independent pubs, where it is the fourth best-selling spirit overall, compared to the second in tenancy/leasehold pubs.
Our research also points to a few worrying trends for the older, more traditional drinks such as dark rums and pastis, which are considered by both groups of licensees to be among the slowest selling spirits.
For Diageo, there are also signs that it needs to do more in the freetrade market to buoy Archers and that Bell's could do with a lift in tenancy/leasehold outlets.
Spirits to watch:
Predictably, Smirnoff will continue to be a major force on the top shelf with readers pointing to sales well above its rivals and indicating that it still has further to go. If Diageo remains committed to its investment behind Gordon's, this could also be a big winner next year.
RTDs falling out of favour
Interest in the RTD market is clearly on the wane among the readers we polled. There's a general feeling that products from the category are only making it into the fridge because some customers expect to see them. This also explains why there is so little variation across the board over the brands stocked. In keeping with the national picture, 80% of sales come from the top five brands, which don't tend to differ across styles of pub.
Licensees appear to be playing it safe and understandably so, given that consumers appear to be moving onto other drinks.
Smirnoff Ice is still seen as the must-stock brand with WKD following. Bacardi Breezer has slipped back, although some licensees recognise its efforts to rejuvenate the sector with its new half-sugar variants. Opinion is fairly divided on whether this extension will be a hit, but, in a year when there have been few examples of product innovation, it's encouraging that a large number of those polled were prepared to stock the new Breezers, if only to give them a try.
RTDs to watch:
Licensees who are switched on to new products and, in the case of tenants/lessees, who are encouraged by their BDMs to revamp their range regularly, are willing to try a new line. So, the message to suppliers is to rejuvenate with fresh innovation and to offer a point of difference. Of the brands currently on the market, Smirnoff Ice looks set to continue to be the strongest of the pack, but Diageo's bourbon-based newcomer, Slate 20, and Budweiser's recently launched beer and energy-drink hybrid, BE, could shake things up in the next 12 months.
'Extra colds' turn heat on lager
There's a dogfight taking place in the lager market that has lead many manufacturers to increase their sales force as competition for new accounts intensifies like never before. The dynamics of the market have changed significantly in the past year, with licensees and drinkers becoming much more aware of what's on offer. While familiar names such as Stella Artois, Kronenbourg and Carlsberg Export are still top of the heap, it's the extra cold beers that are driving growth. The fact that some of the premium-strength lagers have been slow to catch on to the innovation means that brands such as Foster's, Carling and Carlsberg are consistently seen as the biggest areas of growth.
On the one hand there's a situation where this technology is driving sales and causing customers to switch between standard-strength, extra-cold lagers and premium-strength lagers served at the usual temperature, but there's also an openness towards new beers, fuelled by the debate around the role of speciality and imported beers.
In the freetrade sector, it's interesting to see that Budvar has crept inside the list of the top five best-selling draught, premium beers, suggesting that where licensees are seeking to add in or replace a lager in their portfolio, they are willing to look beyond the mainstream choices.
In ales, there's also a hint that pubs are straying from the norm. Tenants and lessees mention Adnams, London Pride and Pedigree as some of their top selling beers after the ubiquitous John Smith's and Worthington's. However, Boddingtons is forced to settle for fourth place in both the freetrade and tenancy and leasehold markets.
Draught beers to watch:
Anything extra cold or super chilled. Consumers seem to be buying into the proposition, galvanising the popularity of core pub brands such as Carling and Foster's. But don't overlook the rise of the emerging lager brands. Lesser-known names are cropping up on the horizon as licensees and their customers get more adventurous.
Budweiser leads bottled beers
There's really only one king in bottled beers and that's Budweiser. Like Smirnoff, Budweiser scores both in terms of selling more than any other brand and also in licensees' perception of it being the fastest growing beer.
The level of support invested in the American lager makes it a hard act to beat, although it could face some challenges in the year ahead. Beck's is already nipping at Bud's heels and InBev's decision to take back control of it from Scottish & Newcastle earlier than agreed, signals that the brewer has some big plans up its sleeve. Given that traditionally InBev has placed a lot of weight in marketing and advertising, Bud could find that the neglected beer gives it a run for its money.
Corona Extra is also making huge progress, taking the title of the fastest growing bottled beer across the total trade in AC Nielsen's recent figures. Charles Wells is clearly ambitious to drive it forward and the level of distribution it has already gained means it is well placed to grow its position.
The future for Holsten Pils seems less clear-cut. Although many licensees in our poll stock the brand, there are signs that it needs attention if it is going to continue to compete. As new-owner Carlsberg prepares to reveal what it has in store for the lager, the stakes have never been higher.
Bottled beers to watch:
Under-invested and neglected, Beck's already has good distribution and strong awareness among consumers, so a fresh start with InBev could pose a threat to Budweiser. Otherwise, keep your eyes peeled for more imported beers the bourgeoning market is already big in supermarkets and, in turn, customers will be more demanding in pubs.
