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Why spirits?

Spirits are in a great place to grow in the GB On Trade, we just need to maximise the opportunity!

Down

SPIRIT DRINKERS ARE VALUABLE TO THE ON TRADE

of spirit drinkers

say they would rather

Go to the pub for a drink than stay in and drink

Source: Him! 2009

of wine drinkers

PREMIUM GROWTH

Premium spirits in the GB On Trade

of value
of volume

Source: CGA Strategy Mixed Drinks Report 2014

Total GB On Trade premium spirits are in double digit growth in volume.

Mat volume 1,031K 9Lc

+5.9%

Mat value £1.19bn

+11.5%
PERSONALISE AND DIFFERENTIATE

PERSONALISE & DIFFERENTIATE

Ability to personalise/differentiate for the outlet and consumer e.g. create a signature serve.

DISTINCT OFFERING

Spirits have a distinct offering within Total Beverage Alcohol
Variety: long/short, fizzy/still, hot/cold and different colours, flavours, and smells.

Standard lager
Spirit & bottled mixerStandard lager
£3.79 Average selling price £2.86
1 No. of units 2.2
6.7% ABV 3.8%
77% Gross profit 30%
     
Every 25ml spirit & 125ml bottled mixer drink sold can make on average£1.73more than standard lager
Standard lager

Prices based on a National Distributor and a Cash and Carry

Premium lager
Spirit & bottled mixerPremium lager
£3.79 Average selling price £3.57
1 No. of units 2.8
6.7% ABV 5%
77% Gross profit 31%
     
Every 25ml spirit & 125ml bottled mixer drink sold can make on average £1.53more than premium lager
Premium lager

Prices based on a National Distributor and a Cash and Carry

Wine (175ml)
Spirit & bottled mixerWine
£3.79 Average selling price £3.52
1 No. of units 2.1
6.7% ABV 12%
77% Gross profit 46%
     
Every 25ml spirit & 125ml bottled mixer drink sold can make on average£1.08more than wine
Wine (175ml)

Prices based on a National Distributor and a Cash and Carry

Bottled beer
Spirit & bottled mixerBottled beer
£3.79 Average selling price £3.20
1 No. of units 1.6
6.7% ABV 4.8%
77% Gross profit 43%
     
Every 25ml spirit & 125ml bottled mixer drink sold can make on average£1.28more than bottled beer
Bottled beer

Prices based on a National Distributor and a Cash and Carry

RTD (275ml)
Spirit & bottled mixerRTD 275ml
£3.79 Average selling price £3.02
1 No. of units 1.1
6.7% ABV 4%
77% Gross profit 61%
     
Every 25ml spirit & 125ml bottled mixer drink sold can make on average £0.91more than RTD 275ml
RTD (275ml)

Prices based on a National Distributor and a Cash and Carry

Spirit consumers spend circa 30% more per head on liquor versus drinkers of other alcohol categories

= +£4.03 MORE / TRANSACTION

Source: Alcovision, On-Trade Total Alcohol Spend Analysis - 12 M/E 30 Sept 2013

With 74% of spirits drunk with a mixer, combined spirit and mixers are usually THE MOST PROFITABLE DRINK YOU CAN SELL

Source: Kantar Alcovision Y/E June 2013 *Based on Cash & Carry pricing Jan 2014

Conclusion

41% of Spirit Drinkers would rather go to the pub for a drink than stay in and drink. Total GB On Trade premium spirits are in double digit growth. Spirits have a distinct offering; they can be long/short, fizzy/still, hot/cold, and different colours, flavours and smells. Combined Spirit and Mixers are usually the most profitable drink you can sell.