Taking the temperature of Western Europe

Cheers to resilience: Spain‘s Spirited Recovery After The Pandemic

Spain’s nightlife scene is roaring back to life after the pandemic, demonstrating remarkable resilience. As the nation embraced a return to normalcy, bars and clubs pulsated with energy once again, showcasing the enduring Spanish spirit.

Nightlife Bouncing Back

However, the celebratory mood wasn’t entirely without a hitch. Inflation cast a shadow over the festivities, impacting both consumers and businesses alike. Despite the economic headwinds, spain’s nightlife persevered, proving its vital role in the nation’s social and economic fabric.

Spain’s Nightlife Shines On

The resurgence of nightlife highlighted a broader trend: spain’s growing appetite for diverse spirits. While Scotch whisky remained a popular choice, Spaniards were increasingly embracing homegrown gins and rums. This trend wasn’t confined to Spain; France also witnessed a surge in gratitude for Scotch whisky, with Suntory, a japanese drinks giant, setting its sights on becoming a leading premium whisky brand in the country.

The Shifting Sands of Scotch Whisky: Spain and France in Focus

Suntory’s ambitions reflected the evolving dynamics of the whisky market, where brands were actively tailoring their offerings to cater to a wider range of palates. Suntory’s portfolio encompassed a variety of whisky styles, ensuring there was something to satisfy every taste preference.

A Portfolio for Every Taste

Meanwhile, Aperol, synonymous with the refreshing Aperol Spritz, cleverly capitalized on the summer season. The brand’s strategic marketing campaigns extended beyond the traditional aperitivo hour, finding creative ways to integrate into sporting events and other social gatherings.

Aperol Seizes the Summer Spotlight: From Spritz to Stadiums

This approach tapped into the growing trend of aperitifs, which were gaining popularity across Europe as consumers sought lighter, more refreshing drinking experiences. Aperol’s success story underscored the evolution of drinking habits and the increasing demand for beverages that complemented a variety of social occasions.

The rise of Aperitifs and the Evolution of Drinking Habits in Europe

As the spirits industry continued to evolve, tequila emerged as a rising star. Regional success stories emerged, showcasing the global appeal of tequila’s unique flavors and versatility.

From Spain’s vibrant nightlife to France’s appreciation for fine whiskies, the world of spirits continued to captivate and inspire.

Spain’s Nightlife: Enduring Appeal amidst Challenges

Spain’s love affair with spirits is undeniable. With a staggering 240,000 bars, clubs, and restaurants, it boasts one of the world’s largest “on-trade” sectors – the lifeblood of the spirits market. While the pandemic dealt a blow to this vibrant nightlife scene, Spain’s recovery has been extraordinary.

Nightlife Bouncing Back

According to Sébastien Mouquet, CEO of Pernod Ricard Iberia, the on-trade is making a comeback, though not yet at pre-pandemic levels. “Our last fiscal year was a record for Pernod Ricard Iberia,but this year the on-trade has been suffering a little bit more with the same issues as everywhere affecting consumer confidence,” he explains.

Mouquet estimates that Spain has around 10,000 fewer on-trade outlets than in 2019, citing two primary reasons: pandemic-related closures and difficulties attracting staff. He notes, “Many people have discovered a new life after covid, and they’re not looking to work at night or during the weekends.”

Inflation: A Sour Note in the Festivity

Inflation has inevitably dampened demand. Mouquet observes, “For example, the price of a ‘copa’ [glass] of Ballantine’s and cola, which is a kind of reference drink in Spain, has gone up by 16% in two years, which is a lot.” Consumers are still venturing out, but budgets are tighter. “Someone who would have had three copas on a party night, may now only have two,” Mouquet adds.

Spain’s Nightlife Shines On

Despite these challenges, Spain’s legendary nightlife persists, fueled by sunny weather and a thriving tourism industry. With a remarkable 12,000 nightclubs, the night remains a cornerstone of consumption, favoring established spirit categories.

Mouquet highlights the enduring popularity of whisky, gin, and rum, stating, “whisky’s got a little bit more than 25% of the market, gin’s about two or three points below, and then you have rum. Those are the big ones, and they remain quite stable.”

Scotch whisky retains its crown as the top category, even though shipments declined by 14% in volume last year.

The Shifting Sands of Scotch Whisky: Spain and France in Focus

The global Scotch whisky landscape is in constant flux, with Spain and France emerging as key markets with distinct consumer preferences and trends.

Spain’s Thirst for Blended Whiskies

While France holds the title of Scotch whisky’s biggest export market by volume, Spain’s passion for the spirit is undeniable.In 2023, Spain imported £474 million (US$603 million) worth of Scotch, a slight dip from the previous year. But a closer look reveals a fascinating trend: bottled blends remain the dominant force, accounting for US$195 million in sales, while single malts secured US$213 million. This preference for

Suntory Eyes Premium Whisky Leadership in France

The global spirits market is undergoing a fascinating shift – a growing divide between affordable and premium options. This “polarization,” as Anne Miller,general manager for France at Suntory Global Spirits,calls it,is especially noticeable in France. miller, who assumed her role in January following the creation of Suntory’s French arm, has her sights set on making Suntory a leader in the French premium whisky market.

A Diverse Portfolio for Every palate

Suntory boasts a diverse portfolio of Japanese, American, and scotch whiskies, perfectly positioned to capitalize on this trend. Miller’s strategy focuses on showcasing the quality and craftsmanship of these brands, particularly within the prestigious “prestige” category where Japanese whisky reigns supreme.

“When you look into the ‘prestige’ category, Japanese whisky makes up almost 40% of the value, and is forecast to grow at almost 30% compound annual growth rate (CAGR) until 2027,” Miller reveals.This goal, while aspiring, is achievable.“House of Suntory aims to lead the category within three years, hopefully,” she adds.

Aperol: Riding the Wave of Summer Celebrations From Spritz to Stadiums

This summer, Aperol, the beloved Italian aperitivo, is basking in the spotlight. As Europe gears up for major sporting events like the men’s European football championships in Germany and the Paris Olympics, Aperol’s vibrant orange hue is set to become synonymous with festivity and togetherness.

The Enduring Appeal of Aperol

Aperol is already a summertime favorite, and its popularity shows no signs of slowing down. Camille Lacour, Aperol Brand Director, shares, “We’ve experienced incredible growth. People are rediscovering the joy of simple pleasures, and Aperol Spritz embodies that perfectly.”

Though, Lacour acknowledges the challenges posed by the cost-of-living crisis. “We are seeing some consumers shift to more budget-amiable options,” she notes. “The on-trade is recovering, but growth may be slower due to this.” Despite these challenges, Aperol remains adaptable, evolving to meet changing consumer preferences.

Capitalizing on the Excitement of Sport

The summer’s sporting events present a golden possibility for Aperol. The brand is strategically positioning itself as the go-to beverage for fans celebrating victories and enjoying the camaraderie of sporting events. Aperol’s vibrant color, refreshing taste, and association with convivial gatherings make it the perfect choice for these occasions.

Aperol: The Drink of the Summer and Beyond

As the world gears up for the excitement of the Olympics, Aperol, the vibrant orange aperitif, is poised to capture the spirit of the summer. Campari’s new CEO, Matteo Fantacchiotti, is optimistic about the brand’s potential during this sporting extravaganza. “It is indeed good for us,” he confirms. “We’re not sponsors, but we have plans. Our French team has been all over it to make sure that during the Olympics, Aperol will be visible and activated in every corner of the city.”

Aperol’s strategy extends beyond traditional advertising. the brand is embracing experiential marketing,creating engaging pop-up bars and interactive installations to connect with fans on a deeper level. by becoming an integral part of the sporting spectacle, Aperol aims to solidify its position as the drink of the summer.

The Rise of Aperitifs and the Evolution of Drinking Habits in Europe

The European aperitif market is experiencing a renaissance,fueled by a shift towards lighter,earlier drinking occasions. This trend has been accelerated by the Covid-19 pandemic, leading consumers to seek more balanced lifestyles that prioritize both socializing and well-being.

Aperol, owned by Campari Group, exemplifies this success. With a 24% share of Campari’s net sales, Aperol’s per capita consumption continues to rise in key markets like France and Germany.While Italy remains its largest market, Germany boasts impressive organic growth of 32.9% for the brand. However, Aperol is not alone in this competitive landscape.

Martini, owned by Bacardi, is also making significant strides. Their “Dare to Be” campaign, recently launched in Spain and the Benelux countries (and soon to expand to Portugal and Italy), capitalizes on Martini’s strong brand awareness within the aperitif category.

“The European aperitif market is very healthy,” states Tine Van Nevel, Martini’s European brand director. “It has been in growth for about 10 years, and Covid accelerated it.” Van Nevel explains the shift in drinking patterns, noting that people are seeking earlier, more balanced experiences: “Everybody has a very busy life…and wants to both socialize and perform well the next day.”

This trend has fueled the growth of no-and-low alcohol “spirits.” Recognizing this opportunity, Martini launched its zero-ABV Floreale and Vibrante expressions in 2020. According to van Nevel, most consumers flit between alcoholic and non-alcoholic versions, indicating a significant overlap in demand.

Innovation is also evident in the ready-to-drink (RTD) sector. Bacardi has introduced canned bellini and Mimosa cocktails in Belgium, while Suntory, a popular RTD brand in Japan, has expanded its -196˚C offering into Germany and the UK.

Tequila Takes the Stage

While aperitifs steal the spotlight, tequila is making a bold entrance onto the european scene.

European Spirits Scene: A toast to Innovation and Growth

The European spirits landscape is buzzing with excitement, driven by a thirst for premium experiences and a captivation with unique flavors. From the rise of high-end Tequila to innovative cocktail bars pushing culinary boundaries, the industry is experiencing a dynamic shift.

Tequila’s Ascent in Europe

High-end Tequila is making a splash across the continent. Diageo’s new European Agave center of Excellence highlights the company’s commitment to this flourishing category. According to IWSR drinks Market Analysis, super-premium Tequila is poised for remarkable growth in southern Europe, with a projected 30% compound annual growth rate (CAGR) between 2022 and 2028.

Diageo’s Ignacio Navarro aptly captures the opportunity, stating, “The opportunity is enormous,” signaling the company’s ambition to lead the agave revolution in the region.

The Paloma cocktail has emerged as a key driver for Tequila’s success, with both Diageo and Campari, through its Espolón brand, actively promoting this refreshing drink.

Nordic Spirit: New Brands Find a Home

The Nordic region is proving to be fertile ground for new beverage brands. Bemakers, a distributor, reports strong performance for its brand partners in the Nordic on-trade market. The vibrant on-trade scene in larger Nordic cities, known for their openness to innovative products, provides a welcoming habitat for emerging brands.

Switzerland has also become a launchpad for success. 9Meadows, a Swiss start-up, strategically chose Switzerland as its initial market. Following successful expansion into Germany, fueled by the category’s growth, 9Meadows sees immense potential in the UK and Spain. The company believes that as consumer awareness grows, other european markets will follow suit.

Raising a Glass to Cocktails and Culture

The world of spirits is a captivating blend of tradition, innovation, and a touch of Hollywood glamour. From exciting new releases to classic cocktails gracing the silver screen, the industry is constantly evolving and captivating our senses.

Mataroa Gin recently took center stage at the prestigious Rome Bar Show, showcasing its unique flavor profile to an enthusiastic audience. This event underscores the growing global appreciation for artisanal spirits and the importance of platforms that connect producers with consumers.

Spirits have also made their mark on film and television,becoming iconic symbols of characters and plot lines. From the timeless elegance of a Martini, “shaken, not stirred,” to the gritty realism of a whiskey-soaked saloon scene, these beverages add depth and authenticity to storytelling.

In the realm of cocktail creation, Lyaness Bar continuously pushes boundaries by incorporating unexpected and seasonal ingredients into its menus.This dedication to innovation ensures that every sip is a unique and unforgettable experience.

Tequila’s Premium Ascent: A Toast to Quality and Authenticity

Tequila is experiencing a surge in popularity across Europe, driven by a growing appreciation for premium, artisanal expressions. This premiumization trend sees consumers seeking out high-quality Tequilas that offer a unique and authentic experience.

The rise of Tequila is not just about sheer volume; it’s about value. Spirits drinkers are willing to pay a premium for tequilas that tell a story, reflecting the spirit’s rich history and meticulous production process. from the agave fields to the distillation process, every step plays a crucial role in crafting a premium Tequila that stands out in a crowded market.

This demand for quality has led to innovation within the Tequila category. Aged expressions like Reposado and Añejo Tequilas, aged in oak barrels, are gaining traction among consumers who appreciate the complexity and depth that aging imparts. Flavored Tequilas, infused with citrus or spices, are also attracting a younger, more adventurous demographic, further diversifying the category.

To capitalize on this trend, Tequila brands are investing heavily in marketing and consumer engagement. Immersive tasting experiences and collaborations with renowned mixologists aim to educate consumers about the nuances of tequila and elevate its status as a premium spirit. Social media campaigns and influencer partnerships are proving vital in reaching a broader audience and driving brand awareness.For example, Patrón has launched a series of virtual tastings and masterclasses, allowing consumers to delve into the brand’s history and production process from the comfort of their homes. Don Julio, conversely, has focused on creating luxury experiences through exclusive events and limited-edition releases, targeting high-end consumers.

As the Tequila category continues to grow, brands are setting their sights on key European markets. Spain, the UK, and Germany are emerging as crucial hubs for premium tequila, with consumers in these countries displaying a strong interest in high-quality spirits.

The challenge for brands will be to maintain a delicate balance between growth and authenticity, ensuring that the essence of Tequila is preserved as the category evolves.

The European spirits market is undergoing a significant transformation, with premiumization and innovation driving growth across various categories. From Japanese whisky and Scotch to aperitifs and Tequila, consumers are increasingly seeking out high-quality, authentic experiences. As brands navigate this dynamic landscape, those that can effectively communicate their heritage, craftsmanship, and commitment to quality will be well-positioned to thrive in the years to come.

What are some specific examples of the unique cocktail recipes created by Re’s Nolet’s in collaboration with renowned bartenders?

Re’s Nolet’s, a brand that has been pushing the boundaries of mixology with its innovative approach to gin. Their recent collaboration with renowned bartenders has resulted in a series of unique cocktail recipes that highlight the versatility of their product. This trend of collaboration between spirits brands adn mixologists is becoming increasingly popular, as it allows for the creation of new and exciting drinking experiences that cater to evolving consumer tastes.

The Role of Sustainability in Spirits

Sustainability is becoming a key focus for many spirits brands as consumers become more environmentally conscious. Companies are adopting eco-friendly practices, from sourcing ingredients responsibly to reducing their carbon footprint. As an example, some distilleries are now using renewable energy sources and implementing water conservation measures. Additionally, there is a growing trend towards using organic and locally sourced ingredients, which not only supports local farmers but also reduces the environmental impact associated with transportation.

The Future of Spirits: A Blend of tradition and Innovation

As we look to the future, the spirits industry is poised for continued growth and innovation. The rise of craft distilleries,the increasing popularity of premium and super-premium spirits,and the growing demand for lasting products are all shaping the future of the industry. Brands that can successfully blend tradition with innovation, while also addressing the evolving needs and preferences of consumers, will be well-positioned to thrive in this dynamic market.

the spirits industry is a vibrant and ever-evolving landscape, driven by a combination of tradition, innovation, and a deep understanding of consumer preferences. From the rise of aperitifs and high-end Tequila to the growing emphasis on sustainability and experiential marketing, the industry is constantly adapting to meet the demands of a changing world. As we raise our glasses to the future, one thing is certain: the world of spirits will continue to captivate and inspire us for years to come. Cheers!