BMi Research has revealed that the flavoured alcoholic beverage (FAB) category (traditional alcoholic fruit beverages, such as ciders and wine-based fruit ales, as well as spirit coolers or pre-mixed products) declined in volume in 2015.

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 one-third of the volume sold due to its higher population numbers who 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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