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nature of lockdown, more time for meal prepa- HOW WILL PREMIUMISATION
ration, digital meet-ups and a propensity to treat STRATEGIES EVOLVE?
oneself more often sparked a rediscovery of the Brand owners will need to take a more nuan-
category,” says Daniel Mettyear, Research Di- ced approach to premiumisation.
rector (Africa & Wine). The pandemic has had a nuanced impact on
With its glamorous lifestyle associations and premiumisation trends, and going into 2021,
refreshing taste profile, the booming rosé ca- brand owners will need to apply a more consi-
tegory works across a number of social situa- dered approach to premiumisation strategies,
tions. More generally, lighter style wines are dependent on country, channel, category, and
attracting new consumers with their accessi- demographic combinations. We will likely see
bility and versatility. three price trends moving forward:
z Premiumisation continues: Despite the
CHANGES IN CONSUMER ATTITUDES impact of Covid-19, some consumers, especi-
2020 cemented the no- and low-alcohol ca- ally those in developed markets, would have
tegory as a mainstay in consumers’ drinking benefited financially from lockdowns, where
repertoires, with Covid-19 prompting key spend on commuting, social activities or ho-
changes in consumer attitudes, driven by the lidays would have decreased. Premiumisation
at-home occasion and an increased awareness trends will continue in some categories and
of health and wellness. markets, such as for agave-based spirits in the
IWSR research shows that across key no- and US and blended Scotch in the UK.
low-alcohol markets, relaxing at home repre- z Return to tried and trusted: Some con-
sents the category’s key drinking occasion. sumers will return to well-known brands and
These consumer attitudes are set to con- avoid experimentation or high-level spending.
tinue into 2021. Where no- and low-alcohol In some cases, this may be a result of changes
offerings were once almost stigmatised, the in the bricks-and-mortar experience, where
category has now become aspirational, with social distancing restrictions or personal pre-
consumers increasingly willing to pay a premi- ferences may make consumers less inclined to
um for no- and low-alcohol products. browse in shop aisles. This pricing trend will
Throughout the pandemic, no- and low-al- likely be apparent in categories such as rum in
cohol products have performed strongly, and France and still wine in Japan.
there is an untapped opportunity for wine to z Democratisation or downtrading: Coun-
participate in the movement to a greater ex- tries hard-hit by the economic impact of Co-
tent in the future. No- and low- alcohol wines vid-19 will likely see more consumers opting
currently represent a tiny fraction of global still to down-trade as they focus on value-for-
and sparkling wine consumption – however, -money options. Limited furlough schemes or
they are experiencing double-digit growth ra- a higher level of personal taxation may create
tes globally. longer-term income pressures for consumers
IWSR data shows that while most markets in both less developed as well as developed
are expecting to see elements of growth wi- countries.
thin the no/low alcohol segment, key growth
markets include the US, Germany, and Spain, RELEVANCE WITH
largely driven by the expansion of no- and CONTEMPORARY CONSUMERS
low-alcohol beer and both wine, spakling as In 2019, still wine volume consumption in
well still. Within the no/low spirits category, the US decreased for the first time in 25 years.
the US and UK will see some of the most rapid The downward trend is likely to continue, with
growth. IWSR forecasting a -1.2% volume CAGR (2019
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