Marie Brizard faces uphill struggle
consumer demand for cocktails with an agreement which will target
supermarkets and off-licences in the UK. But are British consumers
ready for 'do-it-yourself' cocktails, asks Chris Jones?
Marie Brizard's liqueur brands are already widely available through the UK on-trade via an agreement with Waverley Vintners, the wholesale division of brewer Scottish & Newcastle, but until now they have had a relatively low level of penetration in the off-trade.
The deal with Blavod Drinks, the UK trading subsidiary of Blavod Extreme Spirits (BES), will see 11 core liqueur products, including Blue Curacao and Creme de Cassis, increase their profile on supermarket and off-licence shelves, helped by the increasing off-trade penetration of Blavod Black Vodka, the main brand marketed by BES in the UK.
BES said it had already reached an outline agreement with one of the major UK supermarket groups to list Marie Brizard (Blavod is already sold in Asda, Sainsbury and Tesco stores) and added that other distribution opportunities were also being discussed.
"Alcoholic liqueurs are a growth area of the spirits business as a result of the increasing consumption of cocktails, and therefore complement Blavod Black vodka extremely well," the company said in a statement.
But is this really true for the off-trade? Data from market analysts Mintel shows that the off-trade has indeed been the main driver of sales in the liqueur market in recent years, accounting for nearly 14 million litres in 2001 compared to just 5.4 million litres for the on-trade. But while on-trade sales have grown steadily, rising 4.8 per cent between 1997 and 2001, according to Mintel, off-trade sales have fallen, with only the major multiple retailers seeing any growth and that just 1.7 per cent.
The cocktail market is certainly becoming more popular, with the proliferation of cocktail bars throughout the UK the principal reason for the increase in on-trade sales over the last few years. But a major part of the appeal of cocktails is watching an expert barman mix them - and as such there is decidedly less appeal when these products are drunk at home.
Mintel's data also shows that it is cream liqueurs such as Baileys or coffee flavours like Tia Maria which remain the most popular in the UK. "Fruit-based liqueurs are not as popular as they once were, and others are growing in popularity, notably absinthe and cassis," Mintel said.
Furthermore, what growth there is coming from just a handful of brands, and almost entirely in the on-trade. Just four companies account for over 80 per cent of the UK market by volume, dominated by top brands Baileys, Kahlua, Disaronno, Grand Marnier, Amarula, Drambuie and Cointreau.
Baileys has a 38 per cent share of the UK market by volume, more than twice that of nearest rival Tia Maria, which has just under 14 per cent. Bols, the biggest traditional liqueur maker in the UK market according to Mintel's data, has just 3.5 per cent.
The problem with traditional liqueurs is that so many companies make them - Marie Brizard can undoubtedly argue that its Blue Curacao is distinct from that of Bols or De Kuyper, but they are essentially the same product - and have no brand image or loyalty to speak of, a key factor in a market dominated by strong brands.
Image is everything in this market, and while many traditional brands have been repackaged in an attempt to appeal to younger consumers, providing them with a more contemporary feel and a sexier, classy image, according to Mintel, their growth is being hamstrung by their relatively high price.
"An insufficient number of suppliers have produced their brands in 'economic sizes', i.e. 50cl or under, thereby reducing the retail price to less than £10 in many instances and encouraging trial. Liqueurs are not generally consumed on a regular basis so some consumers, who might think liqueurs 'go off', may perceive the purchase of larger bottles as a risk."
While there are undoubtedly opportunities for traditional 'mixer' liqueurs in the on-trade - for example, the liberalisation of opening hours is expected to lead to an increase in the number of cocktail bars, according to Mintel - the possibilities for growth in the off-trade are far less clear.
Competition for shelf space in the supermarket is becoming increasingly fierce, and with all the growth coming from brands such as Baileys and Tia Maria - helped by brand extensions such as Baileys Minis and Tia Lusso, a cream version of the coffee liqueur - Blavod will have its work cut out to match the potential gains in the on-trade.
