Despite the popularity of premium spirits Maxxium believes an even more focused approach can drive further sales across the on-trade.
The on-trade holds the key to growing the spirits sector, according to a new report by premium spirits company Maxxium. It believes the value of the spirits category could be boosted by 10% in the next four years, with the on-trade having the most potential to add value to the sector.
Whilst there are still huge opportunities across all channels to grow premium spirits, it starts with the on-trade. Maxxium claims the on-trade sector could add a further £585m to the sector in the coming years, while the multiple grocers adding £282m, and the independent sector with the potential to unleash a further £75m.
This would add a total of £942m to the value of spirits sales in the UK, a 10% increase in the category currently worth £9.3m
Maxxium, whose portfolio includes Jim Beam, Famous Grouse and Courvoisier, is shaking up the sector with the launch of a strategy which it says will “unlock the full potential of spirits” and boost spirits sales over the next five years across the on and off-trades.
Over the past year more than 7,000 adults, including spirits and non-spirits drinkers, were surveyed by Maxxium, focusing on their buying behaviour in restaurants, bars and retail outlets.
Various barriers to purchase were identified, including taste, strength, poor knowledge on making drinks and issues with trial, all of which Maxxium claims need to be overcome in order to substantially boost sales.
Six factors were identified by the research as being key to further growth and generating the extra value.
These include:
- recruiting non-spirits drinkers to the category by encouraging trial
- making it easier to buy in both bars and in stores
- encouraging confident drinkers to trade up and for all spirits drinkers to broaden their repertoire
- encouraging consumers to drink spirits when both socialising and for refreshment by offering longer lasting serves
- providing the perfect experience, so that every serve in-home or in a bar is perfect
- and educating and building the understanding of spirits.
Further evidence for its growth potential lies in the findings that only 61% of UK households currently purchase spirits, of which 35% buy only once a year. In addition the UK spirits’ share of alcohol serves lags behind the US at 22% versus 34%.
Maxxium is currently developing a range of solutions to help customers overcome barriers to growth, and to achieve their share of this potential market.
“As a major UK spirits distributor, we have the responsibility to invest in and evolve this exciting category,” said Maxxium UK’s managing director, Mark Riley. “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.”
