The decline in the market for alcopops was highlighted this week in
a report by Datamonitor, and in two disappointing sets of results for
leading alcopops brands.
The report said alcopops sales declined by 35% during July and August
this year, traditionally the best-selling months. On an annual basis
sales are growing, but at a much slower rate.
Any growth in the pounds 318m market is expected to be short term, with
sales predicted to be in decline by the year 2000.
The report blamed adverse publicity for the fall, as well as the sudden
popularity of pre-mixed spirits. It predicted that sales of pre-mixed
spirits, currently valued at pounds 111m, will grow by 23% each year
between 1998 and 2002.
The report coincides with results for Bass-owned Hooper’s Hooch. Its
sales fell by 13% in the year to September 30. Merrydown, which until
recently distributed Two Dogs, blamed a pre-tax loss of pounds 944,000
in the six months to September 30 on the collapse of the alcopops