PRICE INCREASE IMPACT REVIEW
MARKET CONDITIONS
Inflation is increasing around the globe, putting inflationary pressures on the wine & spirits industry. Double digit cost increase YOY in production process and transport. Brands across many categories & markets have already had to pass on price increases to consumers.
+7% 5% GLOBAL INFLATION RATE
COST OF PRODUCTION
+8.5%
+70% FREIGHT
+7.5%
+51% ENERGY
+5.1%
+25% GLASS
+2.1%
+1.9%
+5% LABOUR
+1.2%
Mar 2022
Feb 2022
JAPAN
HK CHINA AUS UK EU USA
2021
FEB 2022 2021
JAN 2022
CONSUMER BEHAVIOUR
Consumers continue to show a willingness to spend with brands and experiences they trust. Consumers have accelerated their use of online channels for retail purchases. The W&S category will continue to premiumise to 2025 across all markets. (SOURCE: IWSR)
FOR SUPERIOR QUALITY 84%
OF CONSUMERS ARE WILLING TO PAY MORE
COMPETITOR REACTIONS
ALL W&S SPIRITS COMPANIES ARE INCREASING PRICES
MULTIPLE PRICE INCREASES
Martell +15% +12% Perrier-Jouët
+12% The Macallan +13% Highland Park
+12% Remy Martin
MOËT HENNESSY DIAGEO SPECIFIC ACTIONS
Use RSP and elasticity studies comforting retailers to protect their margin and increase prices
Focus price increases on hero skus
Support sales team with strong story to trade and key account coaching
Invest in brand awareness and desirability
Review promotions
Start selectivity journey
PRICE INCREASE IMPACT REVIEW
MARKET CONDITIONS
Inflation is increasing around the globe, putting inflationary pressures on the wine & spirits industry. Double digit cost increase YOY in production process and transport. Brands across many categories & markets have already had to pass on price increases to consumers.
+7% 5% GLOBAL INFLATION RATE
COST OF PRODUCTION
+8.5%
+70% FREIGHT
+7.5%
+51% ENERGY
+5.1%
+25% GLASS
+2.1%
+1.2%
+5% LABOUR
+1.13%
Mar 2022
Feb 2022
MACAU
JAPAN CHINA AUS UK EU USA
2021
FEB 2022 2021
JAN 2022
CONSUMER BEHAVIOUR
Consumers continue to show a willingness to spend with brands and experiences they trust. Consumers have accelerated their use of online channels for retail purchases. The W&S category will continue to premiumise to 2025 across all markets. (SOURCE: IWSR)
FOR SUPERIOR QUALITY 84%
OF CONSUMERS ARE WILLING TO PAY MORE
COMPETITOR REACTIONS
ALL W&S SPIRITS COMPANIES ARE INCREASING PRICES
MULTIPLE PRICE INCREASES
Martell +15% +12% Perrier-Jouët
+12% The Macallan +13% Highland Park
+12% Remy Martin
MOËT HENNESSY DIAGEO SPECIFIC ACTIONS
Use RSP and elasticity studies comforting retailers to protect their margin and increase prices
Focus price increases on hero skus
Support sales team with strong story to trade and key account coaching
Invest in brand awareness and desirability
Review promotions
Start selectivity journey
OPPORTUNITIES IN Rosé sti wine
GERENAL
A wider range of categories are trying to compete in the thriving aperitif occasion, along with Rosé still wine.
PROVENCE ROSÈ PORTFOLIOS
SUSTAINABILITY AND GIVING BACK
NATURAL WINE MOVEMENT
LIGHTNESS AND MODERATION
HONG KONG
ROSÉ VOLUME FOUR KEY MARKETS
ROSÉ STILL WINE PRICE BAND 11.3% in Super Premium
3.8%
Prestige
Ultra Premium
Singapore
Super Premium
South Korea
Premium
Hong Kong
Standard
Australia
Value
2022
2023
2024
2025
2026
2021
2022
2023
2024
2025
2026
2021
The Hong Kong market continues to develop, with significant price promotion and education by retailers and trade organisations increasing awareness of the category.
TARGETING FOOD OCCASIONS Pairing with seadfood or Japanese food.
ORIGIN
France and Spain are the main origins of Rosé found in Hong Kong.
PRICE SEGMENTATION Most Rosé sits in the premium price segment, expected to give way to Super premium and above
French varieties are the choice for on-premise. CHANNEL
REGIONAL TREND
* Australian consumer study
Compared with white wine, motivations to drink rosé are significantly more weather-related, or reflective of need for novelty and aesthetics.
It’s a great drink to have in warm weather
AGE
PORTRAITS
5%
30%
21%
24%
To try something di erent
44%
25%
15%
The bottles look great on a table
19%
12%
53%
Engaged Explorers
32%
I like the way it looks
Social Newbies
18%
55+ Boomers
Mainstream Matures
10%
9% 3% 8% 4%
40-54 Gen X
Contented Treaters
Because it is trendy
25-39 Millennials
Senior Bargain Hunters
15%
18%
10%
18-24 Gen Z
Kitchen Casuals
Rosé wine
White wine
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