ALCOHOL TRENDS IN THE UK ARE LOOKING UP

Although alcohol beverage trends have suffered somewhat in the United Kingdom, especially for beer, January saw improvement. Total Consumer Price Index rose by 1.9%, while Beer CPI, Wine CPI, and Spirits CPI increased by 1.8%, 0.8%, and 0%. According to Christine Farkas at Merrill Lynch, “The UK market is an important one for US alcoholic beverage companies, notably Molson Coors and Constellation Brands.” It appears that Brits are moving from higher-priced, on-premise channels (pubs and restaurants) to cheaper, off-premise spots and the trend will only continue. Wine CPI growth was the largest increase since September 2005 and likely stems from declines in selected brand pricing and negative channel mix. For the third consecutive month spirits were flat.