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Market for flavoured alcoholic beverages declines

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Recent findings released by BMi Research have revealed that the market for flavoured alcoholic beverages (FAB) declined in volume in 2015. FABs consist of traditional alcoholic fruit beverages such as ciders and wine-based fruit ales, as well as spirit coolers or pre-mixed products.

The category value continued to increase year-on-year as the average selling price increased above the rate of inflation, which could be a contributor to the low volume consumption. Smaller pack sizes also translates to a higher price in terms of rand per litre, which would cause cash-strapped consumers to shift to cheaper alcoholic beverages.

Although the on-consumption channels (bars, restaurants and hotels) continued to dominate the category in 2015, it is losing share to the off-consumption channels as consumers cut down on their social life and purchase their alcoholic beverages from retailers, wholesalers and liquor stores. Off-consumption channels tend to run promotions with competitive prices that attract more customers.

Gauteng distributed more than a third of the volume sold due to its higher population numbers that can afford to purchase the product. The category was competing with cheaper alcoholic beverages in non-metropolitan regions. Glass remained the primary pack type for FABs, but new products in cans have been showing good growth in recent years. 

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