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Published on: March 16, 2015
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Rabobank Spirits Quarterly focuses on the challenges of engaging with and adapting to a changing consumer base http://pr.co/p/0023ki
Summary
Rabobank’s Spirits Quarterly Q2 focuses on the challenge of adapting to a changing consumer. In the US, the shift in consumer behaviour is mirrored by the rapid rise of craft spirits, and is creating structural challenges for established spirits players. In Europe, the Scotch sector saw disappointing FY results, as some categories struggled to remain relevant. The Chinese liquor industry also continues its weak performance, pushing companies to find new sources of growth, while premiumisation is expected to drive growth in the Indian spirits sector for FY 2015. Imported spirits are struggling in Brazil as a result of a weakening economic environment and a strengthening US dollar.
Details

Rabobank’s Spirits Quarterly Q2 focuses on the challenge of adapting to a changing consumer. In the US, the shift in consumer behaviour is mirrored by the rapid rise of craft spirits, and is creating structural challenges for established spirits players. In Europe, the Scotch sector saw disappointing FY results, as some categories struggled to remain relevant. The Chinese liquor industry also continues its weak performance, pushing companies to find new sources of growth, while premiumisation is expected to drive growth in the Indian spirits sector for FY 2015. Imported spirits are struggling in Brazil as a result of a weakening economic environment and a strengthening US dollar.

Quotes
“It is paramount that big-brand owners take action quickly in responding to emerging trends. However, the truly successful companies will be the ones that find ways to drive the trends, rather than limiting themselves to reactive responses,” says Rabobank beverage analyst Stephen Rannekleiv. “To ensure that new consumers are drawn into the category, producers will have to find new ways to capture their imagination. In order to stay relevant, they will have to innovate, introducing new products and brands, along with finding new ways of reaching the ever-changing consumer.”

— Rabobank beverage analyst Elena Saputo