Rumpundit

PREMIUM SPIRITS
HIT THE CHRISTMAS HIGH SPOT

A review of festive trading released today by premium spirits company J Wray
& Nephew UK reveals that Christmas stocking and throughput was substantially
above the levels that were earlier thought likely in the trade.

General Manager Diane Edwards reports that sales in December were very
exciting, with the trade reporting excellent customer throughput. Those
that stocked higher value premium spirits such as Appleton Estate 12 Year
Old and Alize Cognac, have seen their confidence rewarded.

“Trade buying patterns have certainly changed over the past two years, and
the trade have been cautious, generally buying in much, much later, thus
moving more to JIT inventory and lengthening credit terms,” explains
Edwards. “That said, there was an air of confidence when it came to the
December starting gate, and all of our premium product offerings saw sales
jumps that would have been difficult to forecast even just a matter of weeks
previously.”

It appears that the independent smaller retailer or on-premise has used
their cash ‘n Carry accounts more by buying bottles rather than cases, but
making more frequent trips as trade gathered momentum. The major multiples
discounted harder at the lower end of the market – notably leading with
‘slashing’ the big brands. “Here smaller brand companies simply could not
compete,” explains Edwards, “but have proved that they can hold their own
when it comes to the quality end products – where consumers wish to maintain
quality of consumption at home and even in the on-trade, and where they will
accept a formal pricing structure for the quality product without forced
deep discounting by the multiples.”

Generally the corporate side of the on-trade was the one area Edwards
reports was seen to struggle – but again this is reported as being relative,
and was less of a problem than forecast. “Again it seems to be a matter of
last-minute-dynamism as the consumer decided that they had held back enough,
and were going to enjoy the festive period somewhat more than we in the
trade could bet on,” comments Edwards.

Sales for the rum, whisky and liqueur company are up 8% year-on-year, with
an ‘exciting’ December giving a strong return for the year following a slow
October and November. “For our aged Appleton Estate golden rums the last
quarter’s depletions were the best quarter ever and the December the best
month ever.” reports Edwards. ” All reflective of a degree of confidence
returning at the last minute. For us the real key is that golden rums, and
aged golds in particular, are still the engine of our category, and continue
to grow well and certainly ahead of expectations.”

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