Spirits

Knowledge and taste key to unlock £585m on-trade spirits growth opportunity, Maxxium claim

By James Evison contact

- Last updated on GMT

Knowledge and taste key to unlock £585m on-trade spirits growth opportunity, Maxxium claim

Related tags: Investment, Uk

Spirits distributor Maxxium has launched 'A Winning Mixx' category vision which it claims shows potential for growth in the on-trade.

According to the distributor and its category research project, it has identified an incremental £942 million sales growth opportunity achievable by 2020 - an increase of 10% to the category which is currently worth £9.3 billion to the on and off-trade.

In the last year Maxxium has invested more than £1m in consumer and shopper research and analysis, surveying 7,000 adults - including spirits and non-spirits alcohol drinkers.

The studies focused on purchasing behaviour in restaurants, bars and retail outlets and their attitudes towards alcohol, specifically spirits.

It identified barriers to purchase, such as taste, strength, poor knowledge on making drinks and issues with trial - all of which Maxxium believes can be removed to substantially increase sales.

The framework for growth applies across the trade with:

  • a £282 million opportunity in grocery multiples
  • a £75 million opportunity in symbols and independent retail
  • a £585 million opportunity in the on-trade

The report has six growth drivers which the firm claim will generate the extra value. These are:

  • Discovery​: recruiting non-spirits drinkers to the category;
  • Adventure​: encouraging confident drinkers to trade up and all spirits drinkers to broaden their repertoire;
  • Refreshment​: rightsizing spirits’ share of occasions where refreshment is the motivation;
  • Sharing:​ rightsizing spirits’ share of occasions where socialising is the motivation;
  • Perfect experience:​ ensuring every serve in-home or at-bar is perfect;
  • Positive spirits:​ educating and building the understanding of spirits.

Research also shows currently only 61% of UK households purchase spirits, of which 35% buy only once a year and that the UK spirits’ share of alcohol serves lags behind the US at 22% versus 34%, both of which signal room for growth.

Maxxium UK’s managing director, Mark Riley, said: “As a major UK spirits distributor, we have the responsibility to invest in and evolve this exciting category. A Winning Mixx​ presents a sustainable sales growth opportunity across the spirits industry, born out of a compilation of unrivalled insight, collaboration and passion.

"Interest in premium spirits is at an all-time high and we look forward to turning our category vision into reality as we embark on a journey with customers to unlock future spirits growth.”

Related topics: Spirits & Cocktails

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