The wine and spirits industry is “at a crossroads” and in need of “reinvention”, according to a recent report from data research company Circana.
At a presentation during the Wine Paris trade show this week, Circana’s senior VP of Europe, Ananda Roy, posited that “more of the same is not a viable growth strategy for the industry” and that brand owners “must embrace disruptive innovation”. The company’s data analysis also revealed that volume sales of beverage alcohol in Europe are down 1.1%, although the time period was not specified.
Wine volumes have seen a 1.9% drop, while spirits have fallen by 4.4%.
The premiumisation trend has helped soften the reality for both wine and spirits brands of sinking volume sales, Roy added. Despite “inflation-driven value growth (in the region), organic demand remains weak”, which calls for “disruptive innovation”.
“Innovation isn’t just about new products,” Roy said during his presentation. “It’s about rethinking how we engage with these consumers, embedding sustainability into our DNA, and making wines and spirits ‘cool’ again.
“Brands that understand and respond to these needs will lead the future.”
Last March, travel retail analyst Pi Insight revealed that premium spirits brands, such as Hennessy and Dom Pérignon, hold sway over Gen Z consumers. However, the report showed that UK consumers were not as convinced by the trend as those in China and India.
