Australian drinkers are opting for liquor brands that offer a superior taste experience rather than the lowest price, according to a new study from IRI.
The study shows this is being driven by a shift in their perception of premium liquor now as an “affordable luxury”.
“Quality conscious consumers are searching for a more diverse range of brands that exhibit provenance and craftsmanship,” said Daniel Bone, IRI’s channel insights manager and report author.
Bone said this is reflected by the double-digit growth in craft beer, premium vodka, and bottled reds priced above $16 reflect Australian drinkers slowly shifting up the price curve.
IRI has partnered with the Australian Liquor Stores Association (ALSA) for the second year in a row to publish the top retail liquor trends of 2016, in the ALSA – IRI State of The Industry Report. The report reveals that the $16.9 billion retail liquor market grew by 3.3 per cent, driven by the strong sales of high-end liquor brands and “casually refreshing” styles of alcoholic beverages.
According to the report, cider, liquor’s fastest growing category in value terms, grew 6.5 per cent in 2016. Cider’s growth contribution continually over-indexing has been influenced by its suitability as a “casually refreshing” summer beverage. Gin has seen a 17 per cent increase, Rosé 31 per cent, and Prosecco 51 per cent.
“Rosé and Prosecco are ‘on-trend’ varietals, much like Craft Beer has become a popular style of beer. It reflects surging demand for Rosé and Prosecco that we are observing in our overseas markets” Bone said.
IRI’s report revealed while beer accounted for 37 per cent of the retail liquor market by value, the main engine of growth continued to be higher priced craft offerings. IRI believes this growth reflects quality conscious drinkers embracing the greater variety, fuller flavour and contemporary branding that characterises Craft brands.
Bones said local brewers have done a great job by enticing curious beer drinkers into the Craft domain and have sustained their interest too by cultivating entry-level brands that hit the sweet-spot of being perceived as both premium and approachable.
“The growth of craft beer amounted to 17 per cent of the total retail liquor industry growth, despite only accounting for just over three percent of dollar sales. With this double-digit growth IRI believes that the there is a change of direction on the way,” he said.
“Australian Pale Ales comprise more than half of craft beer sales and I can sense a readiness in the marketplace to embrace alternative styles of Craft now.”
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