Euromonitor Results Predict Brexit Will Negatively Affect European Alcohol Sales
Euromonitor International results have revealed that, although Britain will be predominantly affected by Brexit, Western Europe will also feel an impact in terms of alcohol sales.
As the UK is a main trading partner for European drinks manufacturers, it would appear that with growing uncertainty in the export market, Europe may have to form trading alliances elsewhere.
Spiros Malandrakis, Senior Analyst - Alcoholic Drinks comments: “Spirits appear to be the only major category projected to - narrowly - escape contraction in this case, while all others will be pushed ever further into negative territory.
“The category’s relative insulation could partly be down to the rise of a multitude of domestic distilleries - many of them on the micro side of the spectrum - that are set to gain a competitive advantage against the inflated pricing of imported products priced in hugely devalued pounds and/or facing additional tariffs and trade barriers.
“RTDs/high-strength premixes, on the other hand, appears to be the most severely impacted category as their impulse and high energy positioning, high price elasticity and lack of brand loyalty will put them first in line for cutbacks”.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Aoife Lawless. To subscribe to ESM: The European Supermarket Magazine, click here.