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Thirsty Thoughts Flavoured Alcoholic Beverages

Thirsty Thoughts Flavoured Alcoholic Beverages. Annual Market Quantification April 2011. Channelling. Off-consumption has grown at the expense of on-consumption. . 2. Annual Growth Rates. 3. FABs recover lost ground.

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Thirsty Thoughts Flavoured Alcoholic Beverages

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  1. Thirsty Thoughts Flavoured Alcoholic Beverages • Annual Market Quantification • April 2011

  2. Channelling Off-consumption has grown at the expense of on-consumption. 2

  3. Annual Growth Rates 3

  4. FABs recover lost ground • Overall, flavoured alcoholic beverage (FAB) volumes have seen some volatility year on year, with annual growth rates ranging between -2.7% and 14.4%. • The flavoured alcoholic beverage market recovered lost ground during 2010 following a loss in volumes in 2009. The 2009 global economic meltdown saw a decline in consumer disposable income and, with this, spending on luxury items was curtailed in favour of essentials. The FAB market was one of the casualties of this and volumes declined during 2009 (1.6%). • 2010 was a more positive year for FABs in that the introduction of new ciders bolstered consumer demand in the competitive market. The category saw a growth of 2.5% and thus recovered the volumes lost previously. • The FAB market is expected to be in the green for the next few years with growth anticipated for the short term. Expected restrictions on alcohol beverage advertising is expected to intensify point of purchase competition between brand owners for FABs. • The flavoured alcoholic beverage market is a second tier market within the overall alcoholic category and commands a relatively small volume share of the sector overall. Due to the pricing per litre of the product, it holds a larger value than many other beverage categories, while maintaining a relatively small volume share. 4

  5. Thirsty Thoughts Flavoured Alcoholic Beverages For more information, contact: Jan Wegelin Research Manager Tel: (011) 615 7000 Mobile: 082 938 0744 www.bmi.co.za

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