The off-trade grocery spirits market in total including ready-to-drink (RTD) spirits is worth £6.8bn annually, with RTD spirits accounting for just under £1bn in value sales. The performance between the two categories couldn’t be starker, with RTD sSpirits value sales up 31% on last year (LY) in the latest 12 months (L12M) and spirits excluding RTD down -1% over the L12M vs LY.
RTD spirit growth is driven by increased consumption, with volume (litres) up by 19% in the L12M vs LY. In contrast spirits excluding RTD volume is down in the L12M vs LY by -2.3%.
Spirit performance is weak across all sub-categories, with vodka the only spirit in growth year-on-year (YOY) at +0.8%. Gin is the worse performing spirit with volume down -6.8% YOY over the L12M.
The symbols and independents channel is performing exceptionally well in spirits, with sales up by 9.4% YOY over the L12M. Strong performance is driven by two factors, firstly the channel has a huge over trade in RTD spirits with nearly 30% market share and secondly, the channel is over-performing in the spirits excluding RTD market, with value sales up by 4.1% YOY over the L12M. Volume is only marginally down YOY by just -0.1% and the average price per litre is up by 4.3% YOY.
Rum is the best performing spirit category, with value sales up by 8% YOY over the L12M. The symbols and independents channel has a competitive advantage in spirits, firstly with a big over trade in the fast growing RTD sector, but also spirits excluding RTD volume is more resilient to price increases in the channel. Spirits is a market where symbol and independent retailers need to capitalise.
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