Key Note Media Centre
According to Take-Home Trade, a new Market Report Update from market intelligence provider Key Note, the alcohol off-trade experienced year-on-year growth of 5.4% in 2011, reaching a total value of £15.21bn. Despite the troubling economic climate, consumers are choosing to continue to buy alcohol from supermarkets and off-licences, restricting their spending on alcohol purchased in pubs and restaurants due to the higher prices found in these outlets.
This move away from pubs and restaurants to take-home purchases of alcohol has been accompanied by a shift in the dynamics of the market; many off-licences have been forced to close in recent years as the large supermarket chains -- such as Tesco and Sainsbury's -- have taken significantly large shares of the market through highly competitive, low-cost deals. Equally, these supermarkets are opening convenience stores, bringing their inexpensive deals to the high street.
With the announcement of the 40p tax on a unit of alcohol, the supermarket sector is under some risk of enforced price rises that may push consumers away. Many lower-cost products will require a price rise; this may result in a uniformed rise in prices across the on- and off-trade markets to ensure continued distinction in value and quality between products. Despite this threat, Key Note predicts a positive future for the take-home trade, particularly as 40% of all alcohol purchases are currently made within the market. Between 2007 and 2016, the market is estimated to rise by 28.4%, reaching a value of £18.15bn in the latter year.
Press enquiries: Jack Sykes at Key Note at firstname.lastname@example.org or 0845 504 0452. Press/review copies of the report are available on request.