UK: Diageo identifies 12% growth opportunity in the UK

Diageo has identified a 12% growth opportunity, translating to £5.2 billion, for the UK alcohol industry over the next three years, the Harpers Wine & Spirit Trade Review reported.

The expected growth opportunity for the combined on and off-trade was revealed on April 23 in a new report released by Diageo GB looking at the key changes in the market over the last 10 years and future trends.

Outlining opportunities, the Diageo Drinks Report identifies four key growth platforms - Balanced Choices (drinks choices to fit with all lifestyles including low and no alcohol), Make the moment (capturing moments of socialising in and out of the home), Exploration (tapping the increasing consumer thirst for trying new drinks) and Celebration (premium drinks to celebrate special times).

Focusing on those would help the category grow to £46.7 billion by 2022 from £41.5 billion in 2017, according to the report, which is based on historic and predictive IWSR data to identify the growth opportunity for the future.

“As categories grow, decline – and in some cases fuse – it becomes clear that we can no longer take an isolated sub-category view. This is now out of step with the way our consumers see the world,” said Dayalan Nayager, managing director, Diageo GB, Ireland & France.

To drive sustainable value, there was a need to look across total alcoholic beverages, to identify how (and where) consumers want to experience drinks, and ensure there is always an “exciting and relevant offer available”, he added.

22 April, 2019