Australia

Canny brands should use strategic smarts to topple top tipple

20-Jul-2016 - Last updated on 21-Jul-2016 at 15:14 GMT

When it comes to Australia’s overall liqueur consumption, one brand towers over all the others: Baileys Irish Cream, which is more than three times more popular than second-placed Kahlúa, and has nearly the same number of drinkers as the seven other most popular liqueurs combined.

Liqueurs may not be as widely consumed as beer, wine or spirits, but they are an important category within the alcoholic beverages market, according to Roy Morgan Research, which found that 1.5m Australian adults— 8% of the population—drink at least one liqueur in any given month, with different consumer groups being more likely than others to opt for a particular brand.

In the last year, 574,000 Australians have enjoyed at least one Baileys, compared to the 165,000 who have drunk Kahlúa. Jägermeister, Midori and Cointreau follow in third, fourth and fifth places, respectively.

Women who drink liqueur consume an average of five glasses in an average month, just ahead of male liqueur drinkers, who drink four glasses over the same period.

Perhaps more importantly for liqueur brands, just over three-quarters of Australia’s liqueur-tipplers prefer just the one brand, suggesting that they are generally loyal to their favourite, albeit with one key exception: the 18-24 year-old age bracket, nearly 35% of which opt for two or more brands in an average month.

Liqueurs do not account for a huge slice of the overall alcohol market, and for every 100 glasses of liquor consumed by Australian adults each month, only two are liqueur.

“But they are still an important category, with the potential for growth if brands are strategic about how they market themselves,” said Norman Morris or Roy Morgan Research.

By using strategic messaging to target the 18-24 demographic, who possibly haven’t yet been drinking long enough to have settled on a preferred tipple, “savvy brands could well persuade this group to stick with them,” Morris said.

“Also noteworthy is the fact that both the 18-24 and 25-34 year-old age groups are much likelier than the average Australian adult to drink cocktails in any given four weeks—a niche area within the liqueur category that could represent a golden opportunity for many brands, assuming they can anticipate the trends driving this ever-changing market.”