NIQ Global Intelligence plc · NYSE:NIQ
NIQ Global Intelligence — Conference Presentation (May 2023)
47 slides from NIQ Global Intelligence's conference presentation, May 2023
Slide 1: Uncorking How Ready-to-Drink Alcohol Beverages are Changing Consumption
Uncorking How Ready-to-Drink Alcohol Beverages are Changing Consumption May 2023 © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Slide 2: Your presenters today
Jon Berg VP, NIQ Alcohol Industry Thought Leadership Your presenters Janey today Yu VP, NIQ Consumer Insights Leyna Carlson Associate Manager, NIQ Consumer Insights © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 2
Slide 3: The Alcohol industry is constantly evolving
The Alcohol industry is constantly evolving. Over the past few years, particularly in a post-COVID world, what consumers drink and how they’re drinking has changed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 3
Slide 4: 2023 Outlook & Predictions for Beverage Alcohol
2023 Outlook & Predictions for Beverage Alcohol Big themes we are watching for development this year Premiumization Gen Z LDA Recruitment Channel Mix – Friction Free Retail Consumers are seeking better quality products Watch Gen Z's interactions with BevAl closely and be “Friction Free” retail exper
Slide 5: Off premise beverage alcohol dollar sales exceeded expectations in 2022
Off premise beverage alcohol dollar sales exceeded expectations in 2022 $89.9 B +1.7% Total off premise alcohol dollar Dollar growth of off premise sales in the L52 weeks alcohol in the L52 weeks vs YA $21.4 B Spirits $48.6 B Beer/FMB/Cider $19.8 B Wine Source: NIQ Discover Integrated BWS Database;
Slide 6: RTD is driving changes in Spirits and all BevAl
RTD is driving changes in Spirits and all BevAl Value vs volume growth Beverage Alcohol by Category– Value vs Volume differential NIQ off-premise channels Value ($) Volume (EQ) Price is driving a lot of the 3.4% 3.6% growth. 1.6% While beer experiences the largest differential between value and volu
Slide 7: RTDs are more likely to be an impulse purchase
RTDs are more likely to be an impulse purchase vs beer, wine, or spirits due to evolving mix Category Planning - % of purchases Extensive fragmented distribution can cause shopper decisions to be more of Beer RTD Spirits Wine a factor at the shelf for RTD 81 80 73 Implication – ATL spending is more
Slide 8: Purchase timing continues to align with consumption
Purchase timing continues to align with consumption Consumption is taking place very close to time of purchase. Setting up consumers for subsidized purchase can be useful, but the timing near consumption occasion is pivotal. Consumption - % of purchases Beer RTD Spirits Wine 19% Same day consumption
Slide 9: The RTD space has undergone a lot of innovation
The RTD space in particular has undergone a lot of innovation over the past several years. Beer and Spirits are still king in the industry, but RTD consumption has grown +104% in the past 2 years*. Hard Seltzers accounted for 43% of RTD dollar sales in 2022, with Premixed cocktails and spirits growi
Slide 10: Research on Ready-to-Drink Alcohol Beverages consumption occasions
With these market insights in mind, the team behind Consumption Moments at NIQ recently conducted research on Alcoholic Beverage consumption occasions – with a focus on Ready-to-Drink Alcohol Beverages © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv
Slide 11: Research Approach
Research Approach Methodology Consumption Moments In-moment consumption recording via user- friendly mobile application Project scope Markets: United States Field dates: November 1-21, 2022 Sample size: 2539 occasions, 328 qualified respondents Key respondent qualifications Legal Drinking Age (21+),
Slide 12: What did we do?
What did we do? With Consumption Moments, we understand consumption occasions - anywhere, anytime - and the motivations behind those moments to influence strategic product or category planning. Who What Demographic reach Products and SKU level detail verified Why When Motivations, mood & energy when
Slide 13: A seamless, intuitive data collection experience
A seamless, intuitive data collection experience Easy and intuitive interface that Short, to-the-point questions to Barcode scan automatically Location identifies panelists' makes tracking a breeze capture consumption and keep identifies and populates UPC for location at time of consumption panelist
Slide 14: Summary of Consumption Behavior
Summary of Consumption Behavior © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 14
Slide 15: Alcoholic Beverages 6W Breakout
Alcoholic Beverages 6W Breakout Primary consumers are Beer and Spirits have a higher Males and Females share of occasions than Ready to aged 21 to 50 Drink – but RTD is catching up! 1. 2. Who What Market Insights*: This aligns with market performance, where Beer and Spirits have the highest share of
Slide 16: So how are consumers drinking RTD today?
Across RTD beverages, Seltzers represent most occasions at 65% White Claw and Truly have the highest incidence, while Jack Daniels RTD is rising in share of occasions So how are consumers RTD beverages have the highest share of occasions consumed with a spouse or significant other drinking RTD today
Slide 17: Within RTD, what's unique to Prepared & Pre-mixed Cocktails?
Prepared/Pre-Mixed Cocktails represent 35% of RTD occasions, peaking on Saturday’s while other categories peak on Friday’s Within RTD… what’s unique Prepared/Pre-Mixed Cocktails are largely consumed in the Late Afternoon/Evening, to Prepared while other RTDs see an earlier start time & Pre-mixed Coc
Slide 18: Diving deeper into Alcohol Beverages & RTDs
Diving deeper into Alcohol Beverages & RTDs © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 18
Slide 19: Who: Our Consumption Universe
Our Consumption Universe 1 who 328 total sample, primarily 2,539 unique 2,806 different products aged 21-50 consumption moments consumed Actual photos from the research NielsenIQ Consumption Moments Alcoholic Beverages Pilot November 2022 © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 19
Slide 20: Respondents are generally female between the ages of 21-50
Respondents are generally female between the ages of 21-50 1 who Respondents’ profile % of respondents | Base: 328 respondents Gender Age Area Consumption Frequency 11% Heavy 44% 50% 39% Medium 39% 27% 33% 14% 15% 11% Light 17% Male: 43% Female:56% Rural area (countryside, remote area, farmland) Non
Slide 21: RTD and Wine respondents lean more heavily Female
RTD and Wine respondents lean more heavily Female compared to other categories 1 who The RTD category sees fewer Heavy users than the other categories, averaging 3 occasions per RTD drinker (compared to 5 occasions in the other categories) Respondents’ profile % of respondents | Base: 165 Beer respo
Slide 22: RTD beverages have room for growth but show promising trends
RTD beverages have room for growth but show promising trends Beer and spirits make up over 60% of occasions, but RTD is catching up, accounting for around 20% 2 what Within RTD, Seltzer, Cider, or other flavored Malt Beverage are most popular for RTD occasions Mark Anthony Brands has the highest RTD
Slide 23: Majority of consumers don't switch between alcohol categories
Majority of consumers don’t switch between alcohol categories in a single consumption occasion. Spirits and Beer have the highest share of occasions, followed by RTD No. of categories consumed per occasion % of occasions with more than 1 category consumed | Base: 227 occasions Categories Base: 328 r
Slide 24: Within RTD, most occasions are driven by seltzer, cider, or malt beverages
Within RTD, most consumption occasions are driven by seltzer, cider, or other flavored malt beverages RTD subcategories Base: 142 respondents, 471 occasions, 493 products 2 what % of respondents % of occasions % of products 46% PREPARED/PRE-MIXED COCKTAIL 35% 35% 72% SELTZER, CIDER, OR OTHER FLAVORE
Slide 25: Ready to Drink competitive highlights
Ready to Drink competitive highlights Mark Anthony Brands – maker of White Claw – sees the highest RTD incidence and share of occasions Participation Incidence among total RTD consumers MARK ANTHONY INTERNATIONAL SRL BOSTON BEER COMPANY LTD 13% 12% Share of Occasions % of RTD occasions by brand 7% 1
Slide 26: TGIF! Alcohol drinkers kick off their weekends with a celebratory beverage
3 when TGIF! Alcohol drinkers kick off their weekends with a celebratory beverage Across alcohol categories, Friday Prepared/pre-mixed cocktails While late afternoon/evening is the sees the highest number of occasions pick up on Saturdays most common time for Alcohol occasions occasions, RTD beverag
Slide 27: Across categories, consumption occasions are most common on Fridays
3 when when Across categories, consumption occasions are most common on Fridays Occasions for Spirits drinkers are the most consistent throughout the week. Meanwhile, Beer drinkers see upticks on Sunday and Monday, possibly linked to Football watching Daily consumption Number of occasions beer rtd s
Slide 28: Within RTD, seltzer/cider drives the highest number of occasions
3 Within RTD, seltzer/cider drives the highest number of occasions throughout the week, when except for Saturdays when prepared/pre-mixed cocktails are more likely to be consumed Daily consumption – RTD category Number of occasions prepared/pre-mixed cocktail seltzer, cider, or other flavored malt b
Slide 29: Alcohol consumption generally occurs in the late afternoon/evenings
3 when Alcohol consumption generally occurs in the late afternoon/evenings However, over 1/3 of Spirits, Beer, and RTD consumption happens in the mornings or early afternoon Consumers are more likely to be Eating during early in the day vs. other dayparts. In the late morning specifically, Cooking i
Slide 30: Seltzers/ciders/malt beverages are consumed earlier than pre-mixed cocktails
3 when Seltzers/ciders/malt beverages are consumed a little earlier in the day than prepared/pre-mixed cocktails Daypart consumption – RTD category % of occasions Early morning Late morning Early afternoon Late afternoon Evening Night Occasion base 04:00-08:00 08:00-12:00 12:00-15:00 15:00-19:00 19:
Slide 31: Consumption skews earlier in the day on weekends
3 when when Across categories, consumption occasions tend to skew earlier in the day on the weekends than on weekdays, when the bulk is during late afternoons/evenings Daypart consumption Compared to other categories, early morning RTD consumption is largely while watching TV/playing video games, wh
Slide 32: Our panelists are opting to drink from the comfort of their own home
Our panelists are opting to drink from the comfort of their own home 4 where 82% of RTD beverages The next most popular location is While only 18% of RTD occasions occasions are at home someone else’s home at 9% of occurred away from home, Jack occasions Daniel’s, Mike’s Harder, and Truly are common
Slide 33: Across categories, most alcohol consumption occurs at home
Across categories, most alcohol consumption occasions occur at home Place of consumption % of occasions On Premise Survey Insights*: 25% of US consumers drink out in the On Premise at least once a week, with Spirits as the most popular category 4 where 100% 5% 4% Entertainment venue (e.g., sport ven
Slide 34: Most RTD beverage consumption occurs at home
Most RTD beverage consumption occurs at home… Place of consumption – RTD category % of occasions 100% …though when consumed on-premise, drink-led venues are most popular RTD Consumption in On-Premise Venues* % of consumption 4 where Casual dining restaurant 36% 7% 5% Other 8% Neighborhood bar 29% 8%
Slide 35: Alcohol consumption is largely solitary, though that changes on weekends
with 5 whom Alcohol consumption is largely a solitary venture, though that changes on the weekends Weekends are a time to gather with friends and family… …while weekdays are more solitary drinking occasions 41% of RTD drinkers consume with their spouse/significant other – more so than other Alcohol
Slide 36: Alcohol is primarily consumed in the company of others
with 5 whom Overall, alcohol is primarily consumed in the company of others. However, consumption during the week tends to be a more solitary occasion Category Shopping Fundamentals Insights*: Drinking with friends is up since COVID through “renewed social occasions” as there are no longer Companion
Slide 37: RTD consumption is more solitary on Wednesday/Thursday
with 5 whom RTD consumption is more solitary on Wednesday/Thursday, but more social on Friday- Tuesday Companionship during consumption – RTD category % of occasions ALONE WITH COMPANY Monday Tuesday Wednesday Thursday Friday Saturday Sunday Base: 55 59 63 79 98 54 49 50% 45% 40% 35% 34% 30% 25% 20%
Slide 38: Beer is the most social category
with 5 whom Beer is the most social category, with 72% of consumption occasions occurring with a companion. RTD sees the highest consumption among spouses Companionship during consumption % of occasions spouse/significant other % alone % friend(s) % other family % parent(s)/guardian % coworker(s) %
Slide 39: Prepared/pre-mixed cocktails occur more with a spouse or significant other
with 5 whom Prepared/pre-mixed cocktails see more consumption occasions occur with a spouse or significant other Companionship during consumption – RTD category % of occasions spouse/significant other % alone % friend(s) % other family % parent(s)/guardian % coworker(s) % Occasion base SELTZER, CIDE
Slide 40: Relaxation is key to Alcohol consumption
6 Relaxation is key to Alcohol consumption, though RTD beverages have an opportunity to promote stronger feelings of refreshment why Consumers of RTD beverages Across categories, Alcohol is RTD under-indexes on being stand out by primarily drinking them mainly consumed to relieve stress, consumed in
Slide 41: Beer and Wine are most commonly consumed while eating
Beer and Wine are most commonly consumed while eating, particularly on Fridays, while RTD beverages are more common accompaniments to watching TV/playing video games 6 why Activity during consumption % of occasions 100% AT AN EVENT (SPORTING EVENT, FESTIVAL) 90% 7% 11% 7% 9% AT AN ENTERTAINMENT ACTI
Slide 42: Seltzers/ciders see highest consumption while watching TV/playing video games
Seltzers/ciders see the highest consumption while watching TV/playing video games. RTD occasions shift on Saturdays, when they become more social 6 why Activity during consumption – RTD category % of occasions 100% AT AN EVENT (SPORTING EVENT, FESTIVAL) 90% 11% 12% AT AN ENTERTAINMENT ACTIVITY (CINE
Slide 43: Occasions are largely motivated by a desire to relieve stress
Alcohol consumption occasions are largely motivated by a desire to relieve stress, loosen up, and unwind 6 why Compared to other categories, Beer is more commonly intended to drive feelings of freshness and energy, while Wine is seen as a compliment to a meal 25-34-year-olds are more likely to use B
Slide 44: RTD Occasion Snapshot
RTD Occasion Snapshot How can you target a certain occasion? 1 Primarily more females than other categories, aged 21-50 More suburban than urban 4 RTDs are mostly consumed in one’s own home, followed by a friend’s home who where Spouses are the main consumption partner, with 2 5 whom seltzers are co
Slide 45: What does this mean for RTDs?
So, wrapping this up, what does this mean for RTDs? 1 2 3 Consider targeting messaging Consider marketing and Opportunity to expand RTD around the benefit of “feeling innovations that can more consumption occasions – refreshed and energized”, organically tie RTD beverages consider messaging around e
Slide 46: Q&A
Q&A Jon Berg Janey Yu Leyna Carlson VP, NIQ Alcohol Industry Thought Leadership VP, NIQ Consumer Insights Associate Manager, NIQ Consumer Insights Jon.Berg@nielseniq.com Janey.Yu@nielseniq.com Leyna.Chovan@nielseniq.com © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC.
Slide 47: Thank you!
Thank you! © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 48
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