Table of Contents
Alcoholic Drinks in Belgium - Industry Overview
EXECUTIVE SUMMARY
Positive growth but ambivalent performance for alcoholic drinks in 2011
Consumption is becoming increasingly bipolar
Some local players dynamic, yet multinationals still lead the pack
Supermarkets benefit from the homing trend
Modest performance anticipated
KEY TRENDS AND DEVELOPMENTS
Fragile economic recovery to result in a temporary improvement
Polarisation between health and wellness and indulgent products
Home consumption continues to impact on-trade sales
Key new product launches
Summary 1 Key New Product Developments 2010-2011
Specialist retailer
Summary 2 Leading Specialist Retailers 2011
Market merger and acquisition activity
Summary 3 Merger and Acquisition Activity 2010-2011
MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2006-2011
TAXATION AND DUTY LEVIES
Summary 4 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 3 Selling Margin of a Typical Beer Brand 2011 - Jupiler
Table 4 Selling Margin of a Typical Wine Brand 2011 – Jacob’s Creek
Table 5 Selling Margin of a Typical Spirits Brand 2011 - Bacardi
OPERATING ENVIRONMENT
Contraband/parallel trade
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 8 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 18 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016
DEFINITIONS
Published data comparisons
Summary 5 Research Sources
Alcoholic Drinks in Belgium - Company Profiles
Alken Maes NV SA, Brouwerijen in Alcoholic Drinks (Belgium)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 8 Alken Maes NV SA, Brouwerijen: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 9 Alken Maes NV SA, Brouwerijen: Competitive Position 2011
Bruggeman NV in Alcoholic Drinks (Belgium)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND & PRODUCTION
Summary 12 Bruggeman NV: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 13 Bruggeman NV: Competitive Position 2011
Duvel Moortgat NV in Alcoholic Drinks (Belgium)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 16 Duvel Moortgat NV: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 17 Duvel Moortgat NV: Competitive Position 2011
Haacht NV SA, Brouwerij in Alcoholic Drinks (Belgium)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 20 Haacht NV SA, Brouwerij: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 21 Haacht NV SA, Brouwerij: Competitive Position 2011
Prik & Tik CVBA in Alcoholic Drinks (Belgium)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 24 Prik & Tik CVBA: Private Label Portfolio
COMPETITIVE POSITIONING
Beer in Belgium - Category Analysis
HEADLINES
TRENDS
More than ever, the return of Belgians to their traditions, including authentic gastronomy, contributed to the success of abbey-style beers, local strong lagers and regional beers, often associated with local authentic food – for instance the Maredsous beer consumed with the Maredsous cheese. Instead of consuming high quantities of lager like two decades ago, consumers increasingly want a quality experience with beer. This was encouraged by numerous TV broadcast about cooking and notably the local culture of beer – for instance Tournée Générale (Drinks All Round) that was sponsored by CBB, the Belgian Confederation of Brewers, which is awakening the nostalgia or the curiosity of Belgians for their regional beers.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
With 55% of category value sales, the world leader Anheuser-Busch InBev NV was also the absolute leader in its country of origin. Whole generations of Belgian males grew up with its flagship brands Stella Artois and Jupiler. Hence the slogans: “My home is where my Stella is” and “Men know why” (Jupiler). With the merger with Anheuser-Busch it can profit from enormous economies of scale, which enables it to put sufficient marketing efforts in place when needed in order to maintain its leading position. Anheuser-Bush InBev is trying to stabilise the lager category, but faces tough competition from its local competitors.
PROSPECTS
Marketers became more confident in the potential of beer in 2011. For the first time, they have the feeling that the decline of beer consumption in the country was not a fatality. Thanks to the renewed interest for local traditional dark beers and premium lagers, there is a hope that per capita consumption could recover or at least stabilise. However, whatever the performance of all other products, pils (standard lager) still accounts for 70% of off-trade volume sales and thus the overall performance of beer still relies on the consumption of pils. This product has reached saturation point in Belgium and its performance is itself linked with weather.
CATEGORY BACKGROUND
Lager price band methodology
Summary 25 Lager by Price Band 2011
Table 22 Number of Breweries 2006-2010
CATEGORY DATA
Table 23 Sales of Beer by Category: Total Volume 2006-2011
Table 24 Sales of Beer by Category: Total Value 2006-2011
Table 25 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 26 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 27 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 31 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 32 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Value 2005-2010
Table 34 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 35 Beer Exports by Country of Destination: Total Value 2005-2010
Table 36 Company Shares of Beer by National Brand Owner 2007-2011
Table 37 Company Shares of Beer by Global Brand Owner 2007-2011
Table 38 Brand Shares of Beer 2008-2011
Table 39 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 40 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 41 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016
Cider/Perry in Belgium - Category Analysis
HEADLINES
TRENDS
During the last couple of years, one of the only way for manufacturers and more particularly the absolute leader Stassen to limit the decline in cider was to enhance new opportunities of consumption by benchmarking other categories, such as other sparkling wines or RTDs. Another way was to capitalise on small formats such as Stassen Cider 33cl from Stassen NV SA like Somersby by Carlsberg A/S both in off- and on-trade. Lastly, there was another path, the return toward tradition, as illustrated by the launch of Stassen Tradition 1865 or the introduction by Colruyt of Duché de Longueville, a Normand cider, in 2011.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
With 57% of volume sales and a much higher share in value, more particularly in the off-trade, Stassen is the only significant player in cider. Many years ago, its only contender was Ruwet but this small player is less and less active in cider. The success of Stassen can be explained by its recognition among consumers, its high level of innovation, as well as the relatively low levels of competitiveness due to the limited consumer base. Its main brands are Stassen Aromatisé, Degré Zero and Stassen Tradition. Stassen NV SA also produces Strongbow under licence as well as distributing the Strongbow brand in Belgium.
PROSPECTS
In the short term, Stassen should use all affordable mean to rejuvenate the image of cider in Belgium. It should notably bank on new flavours, non-alcoholic varieties, cans and more convenient formats and me-too’s of the trendiest cavas or premixes to attract a younger, trendy audience and women and really boost sales. There is also another path instead of new ways of consuming cider, namely the return toward tradition. However, the concept of region of origin (local, Normand, Breton or Anglo-saxon) is not really pertinent or important for Belgian consumers. In fact, Belgians prefer sweet cider with a low level of alcohol unlike traditional Normand, Breton or Anglo-Saxon ciders for instance.
CATEGORY DATA
Table 43 Sales of Cider/Perry: Total Volume 2006-2011
Table 44 Sales of Cider/Perry: Total Value 2006-2011
Table 45 Sales of Cider/Perry: % Total Volume Growth 2006-2011
Table 46 Sales of Cider/Perry: % Total Value Growth 2006-2011
Table 47 On-trade vs Off-trade Sales of Cider/Perry: Volume 2006-2011
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Value 2006-2011
Table 49 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2006-2011
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2006-2011
Table 51 Cider/Perry Production, Imports and Exports: Total Volume 2005-2010
Table 52 Cider/Perry Imports by Country of Origin: Total Volume 2005-2010
Table 53 Cider/Perry Imports by Country of Origin: Total Value 2005-2010
Table 54 Cider/Perry Exports by Country of Destination: Total Volume 2005-2010
Table 55 Cider/Perry Exports by Country of Destination: Total Value 2005-2010
Table 56 Company Shares of Cider/Perry by National Brand Owner 2007-2011
Table 57 Company Shares of Cider/Perry by Global Brand Owner 2007-2011
Table 58 Brand Shares of Cider/Perry 2008-2011
Table 59 Forecast Sales of Cider/Perry: Total Volume 2011-2016
Table 60 Forecast Sales of Cider/Perry: Total Value 2011-2016
Table 61 Forecast Sales of Cider/Perry: % Total Volume Growth 2011-2016
Table 62 Forecast Sales of Cider/Perry: % Total Value Growth 2011-2016
RTDs/High-Strength Premixes in Belgium - Category Analysis
HEADLINES
TRENDS
While this category was only a shadow of its former self in the middle of the review period, RTDs/high-strength premixes enjoyed impressive growth during the last couple of years. In fact, there was already a growing fad for Caribbean cocktails like Mojitos in the on-trade by the middle of the review period. The recovery of RTDs/high-strength premixes logically stems from the explosion of RTS (Ready to Serve) variants of such cocktails and to a lesser extent, canned long drinks during the second half of the review period.
COMPETITIVE LANDSCAPE
In the most fragmented concentrated environment of overall spirits sales, Bacardi Martini was by far the absolute leader with a 48% volume share in 2011. This player has always had a prominent share in RTDs/high-strength premixes thanks to its forerunner role in the category. The story started at the beginning of the past decade with the launch of Bacardi Breezer, which initiated a hype for spirit-based RTDs in long-neck bottles prior to the review period.
PROSPECTS
The revival of cocktails should continue for a while because these are considered as young, trendy and sexy. Cocktails are not always that easy to make and/or the new target audience is very busy and active and want their drink quickly when taking a break at home. So ready-to-serve cocktails should to continue to boom according to trade experts. In order to offer enough novelties to try and in order to benefit from this major trend, many other exotic and classic cocktail recipes should be launched. Ready-to-serve cocktails (mostly rum, gin, vodka and even now whiskey-based) will further boom.
CATEGORY DATA
Table 63 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 64 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 65 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 66 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 67 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 68 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 69 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 70 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 71 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 72 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 73 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 74 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 75 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 76 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 77 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016
Spirits in Belgium - Category Analysis
HEADLINES
TRENDS
During the last couple of years of the review period, sales of spirits were marked by a rather strong trend reversal. While sales were governed by vodka and white rum during the bulk of the review period, such white spirits became less trendy in 2010/2011and mainly suffered from the cannibalisation from RTD/high-strength premixes. Indeed, this category strongly recovered in the middle of the review period, mainly in the area of high-strength premixes that are mainly consumed at home. Meanwhile, the big category of whiskies, which was said to be mature and thus was apathetic until 2009, suddenly woke up in 2010 and forged ahead in 2011.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
In a rather concentrated competitive landscape, Diageo Belgium NV SA led spirits with a share of 19% in 2011. It was the leader in blended malt Scotch whisky, English gin, vodka and liqueurs in 2011, as well as having a significant presence in single malt Scotch whisky. It enjoys high brand awareness among Belgian consumers with its most recognised brands of Smirnoff vodka, Johnnie Walker whiskies, Bailey’s Irish Cream liqueur, J&B whisky, Captain Morgan rum and Gordon's gin.
PROSPECTS
During the summer 2011, most players were rather optimistic about the scope for development in spirits. First, the trend towards at-home entertainment should continue to boost off-trade sales, the main channel for the category. Then, even if they do not all agree on the real impact of the bipolarization movement or the premiumisation trend, the widening of the offering should mechanically boost sales. Lastly, if the steady growth of other blend Scotch whisky persists, it should also contribute to an on-going positive increase in overall spirits sales due to the dominant share of this spirit in category sales.
CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Summary 26 Benchmark Brands 2011
CATEGORY DATA
Table 78 Sales of Spirits by Category: Total Volume 2006-2011
Table 79 Sales of Spirits by Category: Total Value 2006-2011
Table 80 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 81 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 82 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 83 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 84 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 85 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 86 Sales of Gin by Price Platform 2006-2011
Table 87 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 88 Sales of Vodka by Price Platform 2006-2011
Table 89 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 90 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 91 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 92 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 93 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 94 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 95 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 96 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 97 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 98 Tequila Production, Imports and Exports: Total Volume 2005-2010
Table 99 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 100 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 101 Company Shares of Spirits by National Brand Owner 2007-2011
Table 102 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 103 Brand Shares of Spirits 2008-2011
Table 104 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 105 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 106 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 107 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016
Wine in Belgium - Category Analysis
HEADLINES
TRENDS
Sales of wine benefited from a favourable context in recent and more particularly in 2011 with the on-going breakthrough of still rosé wine and other sparkling wine. Both brought to the category new opportunities of consumption and new consumers within young and/or female Belgians. In the still uncertain current economic climate, the latter was considered increasingly popular at the expense of higher-priced champagne. The variety of other sparkling wines becoming available continued to increase, leading to more consumers seeing such products as an acceptable alternative to champagne.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
The competitive environment remained extremely fragmented in wine in 2011. This was evidenced by the modest share held by Bacardi Martini Belgium SA in overall total volume sales of wine in 2011. Its major presence is in the area of vermouth, where its iconic range of Martini vermouths account for more than half of total volume sales. Although it is well known and favoured by the Belgian consumer, Martini was logically the brand most affected by the decline in vermouth sales in recent years, and continued to drop in 2011.
PROSPECTS
The recent good growth levels for still rosé wines are expected to continue, reflecting the growing popularity of lighter table wines among younger consumers, who view them as a healthier alternative to beer. Also continuing to drive growth will be sales of other sparkling wines, as these offer the consumer a cheaper alternative to champagne, while being of good quality and, in today’s uncertain economic climate, this will prove an important factor.
CATEGORY DATA
Table 108 Sales of Wine by Category: Total Volume 2006-2011
Table 109 Sales of Wine by Category: Total Value 2006-2011
Table 110 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 111 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 112 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 113 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 114 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 115 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 116 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 117 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 118 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 119 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 120 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 121 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 122 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 123 Sales of Still Red Wine by Quality Classification 2006-2011
Table 124 Sales of Still White Wine by Quality Classification 2006-2011
Table 125 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 126 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 127 Wine Imports by Country of Origin: Total Volume 2005-2010
Table 128 Wine Imports by Country of Origin: Total Value 2005-2010
Table 129 Wine Exports by Country of Destination: Total Volume 2005-2010
Table 130 Wine Exports by Country of Destination: Total Value 2005-2010
Table 131 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 132 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 133 Brand Shares of Still Light Grape Wine 2008-2011
Table 134 Company Shares of Champagne by National Brand Owner 2007-2011
Table 135 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 136 Brand Shares of Champagne 2008-2011
Table 137 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 138 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 139 Brand Shares of Other Sparkling Wine 2008-2011
Table 140 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011
Table 141 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011
Table 142 Brand Shares of Fortified Wine and Vermouth 2008-2011
Table 143 Company Shares of Non-grape Wine by National Brand Owner 2007-2011
Table 144 Company Shares of Non-grape Wine by Global Brand Owner 2007-2011
Table 145 Brand Shares of Non-grape Wine 2008-2011
Table 146 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 147 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 148 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 149 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016