drinks trade issue 60 (Aug/Sep 2017)

Page 33

Shoppers and consumers want to engage with their on-premise venue or retailer, as they demand more than just a transactional experience. They want to be educated and valued for the time, effort and investment they are willing to offer. Organic wines are already here and growing, but the movement could be massive in the next one to three years. In terms of craft beer, I anticipate more brands to move into cans because it tastes better, stores better and you can dispose of it better.

distributions are being carefully limited so as not to kill off the “everything old is new again” trend. Bacardi and the entire white rum category are growing share from dark rum, and there is a growing awareness of vermouth as aperitifs and in cocktails.

DT: Like fashion, do alcohol trends move in cycles? PH: Some categories are circular, whereas brands might not be. A good example is in beer. We are not drinking the same brands our fathers did. Manufactures need to be constantly redeveloping, like craft beer. PR: There is a massive movement by shoppers and consumers to be supporting local premium products, which is a move away from the globalisation trends that started in the 80s and 90s. We see this across multiple segments such as craft brewers, regional wineries and craft distillers as consumers get much more parochial about their local area. MO: Melbourne Bitter is in vogue again and tap

DT: What other trends do you think the trade should prepare for? PH: Not so much a trend, but we need to be ready for the Container Deposit Scheme. The increase will put some products out of reach of everyday consumers, so if you’re in the beer/ cider and RTD space, you might be somewhat concerned. This could push consumers into other categories. Good for some, but not for others. (See page 19 for more information on the Scheme.) PR: Shoppers and consumers want to engage with their on-premise venue or retailer, as they demand more than just a transactional experience. They want to be educated and valued for the time, effort and investment they

are willing to offer, so as an industry we must train our staff to have better product education so they can have the ability and confidence to sell products, the venue and themselves in the best way possible. MO: Hopefully, there will be some sensible amendments to licensing restrictions so that the on-premise liquor industry can trade profitably and responsibly. I’m predicting the revival of fortified wines next year when Millennials tire of their single malts. There may be further rationalisation of brands across all categories. The current competition and discounted pricing programs are not sustainable, partly due to the proliferation of private label brands and a lack of long-term planning. This may lead to more supplier cost cutting, distribution mergers and acquisitions or, in other words, business as usual!

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