BMI Food Bites: FABs recover lost ground

South Africa’s flavoured alcoholic beverage market recovered lost ground during 2010 following a loss in volumes in 2009. The 2009 global economic meltdown saw a decline in consumer disposable income and, with this, spending on luxury items was curtailed in favour of essentials. The FAB market was one of the casualties of this and volumes declined during 2009 (1.6%), reports BMI Research in its annual market quantification.

Overall, flavoured alcoholic beverage (FAB) volumes have seen some volatility year on year, with annual growth rates ranging between -2.7% and 14.4%.

2010 was a more positive year for FABs in that the introduction of new ciders bolstered consumer demand in the competitive market. The category saw a growth of 2.5% and thus recovered the volumes lost previously.

The FAB market is expected to be in the green for the next few years with growth anticipated for the short term. Expected restrictions on alcohol beverage advertising is expected to intensify point of purchase competition between brand owners for FABs.

The flavoured alcoholic beverage market is a second tier market within the overall alcoholic category and commands a relatively small volume share of the sector overall. Due to the pricing per litre of the product, it holds a larger value than many other beverage categories, while maintaining a relatively small volume share.

Off-consumption has grown at the expense of on-consumption. In 2009, the ratio was 36% to 64%; in 2010 this changed to 37.5% and 62.5% respectively.

Download more details on BMI’s Thirsty Thoughts – Flavoured Alcoholic Beverages here

In other related news, Distell reports that the South African RTS market, also known as the Flavoured Alcoholic Beverage (FAB) market, is steadily booming and, quoting Nielsen research, says it has enjoyed a 358%* growth over six months from October 2010.

KWV launches Ciao into South African RTS market