Kantar Worldpanel have conducted their latest piece of market research for the FMCG industry and have reported that staggering increase in sales (actually up to nearly £172 million compared to this time last year.)
Although sales have increased the real rise has been seen in the influence and success of the premium market. More and more products are being streamlined and marketed to different pockets of consumer, and this is evidence to suggest they are reaping the spoils.
2017 saw the continued rise of Fever Tree, surely one of the benchmarks for premium drinks products. Can you even call it a gin and tonic without the premium tonic? With a range of flavoured tonics and new markets, and a 26% increase of Gin sales across all retailers, we don't expect the tonic juggernaut to come to a halt any time soon.
Kantar found that sparkling wine also grew by 7% over the period, surely prompting more cries from the people worried about the 'Prosecco shortage.' What we found interesting from an off-trade perspective was Waitrose trialling a range of half bottles in the summer. This further cements the premium viewpoint of retailers as they want people to 'trade up' in quality while spending a similar price.
So what does this mean for the industry?
Premiumisation is nothing new. Beer brands were quick to distinguish themselves and the premium market can be argued to have fuelled the craft beer renaissance. Consumers are typically drinking less, but want a higher quality or something different. We expect this to be no different in 2018, but brands will have to try harder to distinguish themselves from the competition through experiential events or consumer led marketing initiatives.
What do you expect businesses to do to further tap in to the premium market in 2018? We would love to hear your opinion.
Want to work for a Premium Drinks Business?
We are working with one of the first businesses to spot the premium potential in the drinks market.
They are looking to hire 'on brand' individuals into their Field Sales teams across the UK.
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