The research gathered views on current and future performance, market trends and industry issues from 273 primarily small-sized members of The Duppy Share’s Kindred Spirits network, including producers, brand owners, distributors and agencies.
Here are six of the top insights.
1 Growing confidence about trading
Trading conditions have been challenging for many drinks business lately, but well over half (57%) say they have been performing in line with, or ahead of, expectations over the last six months. Two thirds (67%) say their first-half sales were up year-on-year, and nearly half (46%) are optimistic about prospects for the industry over the next 12 months—nearly the double the 24% who feel pessimistic.
2 Concern about the economy, listings and costs
While optimism is moving in the right direction, there are still some concerns about future trading. Around half (52%) say they are facing economic uncertainty, and sizeable numbers are concerned about lack of opportunities for On Premise listings (42%) and increased supply costs (42%). Suppliers of spirits—a category where CGA by NIQ’s data has shown a sustained downward trend in sales—are notably less optimistic than those in other segments.
3 Exports among the top priorities
Asked about their main priorities for the rest of 2024, 60% mentioned access to funding, while 53% said they would be focused on exports. With so many headwinds in the UK, exports represent a sizeable opportunity, and well over half (58%) of survey respondents say these are growing at the moment. However, Brexit continues to impact overseas trade, and 70% say it has negatively impacted their operations over the past five years. The majority would like to see the UK re-enter the EU customs union and single market.
4 Teams are small but growing
Nearly two thirds (63%) of Kindred Spirits members have four or fewer full-time employees. However, 64% expect to grow their team over the next 12 months—by an average of 4.5 people. Commercially-focused employees are a hiring priority, but expansion and change in organisational structures will need to be handled carefully.
5 RTD, tequila and rum among the growth hotspots
Some parts of the market are likely to grow much faster than others in 2025. Around half (52%) think tequila is well positioned for growth, while 43% and 28% say the same about Ready to Drink (RTD) products and rum respectively. By sharp contrast half (50%) think gin—which is the top category in suppliers’ portfolios, but which has struggled for growth in recent years—is poorly positioned. In response to consumers’ shifting preferences, many suppliers are diversifying their range to avoid the risk of dependency on a single category.
6 Marketing spend to increase
Suppliers understand the importance of brand awareness, and nearly three quarters (73%) say they will increase their spending on advertising and promotions over the next 12 months. Traditional activities like consumer events, email and price-led promotions remain most popular, but there is room for more innovative marketing and a deeper understanding of consumers.
To learn more about The Duppy Share and to become a member of Kindred Spirits and access the report, email Jack Orr-Ewing.
CGA by NIQ provides deep insights into market trends and consumers’ latest behaviour, creating a holistic view of the On Premise that helps drinks suppliers respond to change, optimise brand positioning and grow sales. To discuss the capabilities and opportunities for expert tailored analysis, contact the CGA by NIQ team.
