Diageo unveils four growth areas to drive alcohol sales

Gin and beer shoppers are increasingly looking for new flavours, according to statistics from the inaugural Diageo Drinks Report 2019.

Sixty-five per cent of shoppers “actively” search for a new gin when entering a shop, it was revealed at the report’s launch in west London.

In addition, Diageo predicts that there are 7.5 million beer consumers in the UK who are interested in drinking craft beer, but are not doing so currently. The company suggests that this is at least partly explained by an overwhelming diversity in craft beer.

“Clear flavour descriptions, merchandising, and ranging is key to making the category more accessible,” the report argues.

The report revealed a potential £5.2bn growth in alcoholic drinks, which Diageo believes could be achieved in Great Britain by 2022 by focusing on four growth areas: no and low-alcohol products, lines that provide special experiences, new and exciting flavours, and premium products for celebrations.

The report also revealed that after Christmas, the second most popular occasion for giving whisky is birthdays, and not, as might be expected, Father’s Day. According to Diageo, this means retailers should promote whisky as “an all year-round gift option”.

What you need to know from the Diageo Drinks Report 2019

• Last year, spirits grew by 7.4% in value to £11.1bn, continuing to outperform beer and wine.
• Gin is continuing its success, growing by 52.2% in value sales last year.
• Forty-three per cent of alcohol gift packs in grocery contain spirits, presenting an opportunity to convenience retailers to cash in on last-minute gifts.
• More than 6.1 million people in the UK are now teetotal and this figure is growing by 5.4% year on year.
• Diageo predicts the value of alcohol will grow from £41.5bn in 2017 to £46.7bn by 2022.

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