In 2005, UK consumers spent an estimated £14bn on alcoholic drinks to take home. This was equivalent to just over a third of the total UK market for alcohol in that year. The on-trade (pubs, restaurants, etc.) therefore continues to dominate the sale of alcohol in the UK, despite the fact that alcohol is now included in the regular shopping basket of the typical household.

In fact, it is the high prices in the on-trade — and the low prices for take-home drinks — that maintain this ratio. Take-home sales have increased substantially by volume, owing to price competition between the multiple grocers (the dominant force in the take-home market) and off-licences. Average prices for take-home alcohol have actually declined since 2002.

The main grocers, led by Tesco, now account for around two-thirds of the take-home market for alcohol, leaving minor shares for off-licences, whether multiples or independents. The demise of Unwins, which once had more than 450 stores in the South East, has removed another traditional off-licence brand, leaving the UK with a single major force in multiple off-licences: Thresher Group, which has around 2,150 outlets.

Thresher is currently taking the franchising route, which has been successful for discounters such as Bargain Booze and Booze Buster. At the more sophisticated end of the market are specialist wine chains such as Oddbins and Majestic Wine, but both of these are under constant pressure from the grocery superstores. Wine is the leading drink in the take-home market, whereas beer, cider and spirits are biased towards on-trade sales.

The emphasis on discounting means that the prospects for the take-home market are muted at present. One possible bonus on the horizon is a nationwide ban on smoking in enclosed public places, which could persuade smokers to drink at home. Otherwise, the alcohol market as a whole is mature and will probably show only moderate growth in value between 2007 and 2011. Within the categories, however, there can be opportunities to profit from swings in fashion, such as the current boom in cider drinking that has been inspired by the Magners brand.

Executive Summary
1. Market Definition
REPORT COVERAGE
MARKET SECTORS
By Type of Drink
By Type of Outlet
MARKET TRENDS
Growth in Sales by Multiple Grocers
Legislation and Taxation Remain Key Factors
Defensive Mergers Among Off-Licences
National and Global Consolidation Among Manufacturers
ECONOMIC TRENDS
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Gross Domestic Product
Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Inflation
Table 3: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
Household Disposable Income
Table 5: Household Disposable Income per Capita (£), 2001-2005
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Table 6: The UK Market for Take-Home Drinks at Current and Constant 2002 Prices (£m at rsp), 2002-2006
Figure 1: The UK Market for Take-Home Drinks at Current and Constant 2002 Prices (£m at rsp), 2002-2006
MARKET SEGMENTATION
By Type of Drink
Table 7: The UK Market for Take-Home Drinks by Type of Drink at Current Prices (£m at rsp), 2002-2006
Table 8: The UK Market for Take-Home Drinks by Type of Drink by Market Share by Value (%), 2002 and 2006
Wine
Spirits and Liqueurs
Beer
Other Alcohol
By Type of Outlet
Table 9: The UK Market for Take-Home Drinks by Type of Outlet by Market Share by Value (%), 1990-2006

3. Industry Background
RECENT HISTORY
INDUSTRY SYNOPSIS
Table 10: Key Financial Ratios for UK Retailers of Alcoholic and Other Beverages (£000, % and £), 2004/2005
NUMBER OF COMPANIES
Table 11: Number of UK VAT-Based Enterprises Engaged in the Retail Sale of Alcoholic and Other Beverages by Turnover Sizeband (£000, number and %), 1999-2005
EMPLOYMENT
Table 12: Number of UK VAT-Based Local Units Engaged in the Retail Sale of Alcoholic and Other Beverages by Employment Sizeband (number and %), 2005
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
Licensing Act
Harmonisation of Duty
KEY TRADE ASSOCIATIONS
British Beer and Pub Association
Wine and Spirit Trade Association
General Retail Associations

4. Competitor Analysis
THE MARKETPLACE
Grocers and Convenience Stores
Off-Licences
Mail Order and Internet
MARKET LEADERS
Table 13: The UK's Leading Take-Home Retailers by Number of Outlets, 2006
Thresher Group (First Quench Retailing Ltd)
Company Structure
Current and Future Developments
Financial Results
Bargain Booze Ltd
Company Structure
Current and Future Developments
Financial Results
Oddbins Ltd
Company Structure
Current and Future Developments
Financial Results
Wine Cellar Ltd
Company Structure
Current and Future Developments
Financial Results
Majestic Wine PLC
Company Structure
Current and Future Developments
Financial Results
Multiple Grocers
Other Companies
OUTSIDE SUPPLIERS
Table 14: The Leading Suppliers of Drinks to the Take-Home Trade and Their Main Products, 2006
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 15: Main Media Advertising Expenditure by Alcohol Retailers (£000), 2000 and 2006
Other Marketing Activity

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
INTRODUCTION
POPULAR OCCASIONS FOR HAVING A DRINK
Table 16: Popular Occasions for Enjoying an Alcoholic Drink (% of adults aged 16+), 2000, 2004 and 2006
Drinking at Home
Table 17: Popular Occasions for Drinking at Home by Sex, Age, Social Grade, Working Status and Region (% of adults aged 16+), 2006
LEADING DRINKS BRANDS
Table 18: Drinks Brands Consumed At Least Once a Month (% of adults aged 16+), 2000, 2004 and 2006

7. Current Issues
RECOVERY FOR SPECIALIST RETAILERS
DEMISE OF UNWINS
THRESHER GROUP DEVELOPMENTS
OTHER CORPORATE DEVELOPMENTS
SMOKING BANS
LICENSING CHANGES
DRINKS IN GROWTH AND DECLINE

8. The Global Market
THE UK'S POSITION
THE SUPPLY OF DRINKS

9. Forecasts
INTRODUCTION
Population
Table 19: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010
Gross Domestic Product
Table 20: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2006-2010
Inflation
Table 21: Forecast UK Rate of Inflation (%), 2006-2010
Unemployment
Table 22: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010
FORECASTS 2007 TO 2011
Table 23: The Forecast UK Market for Take-Home Drinks at Current Prices (£m at rsp), 2007-2011
MARKET GROWTH
Figure 2: The UK Market for Take-Home Drinks at Current Prices (£m at rsp), 2002-2011
FUTURE TRENDS
Mature Market with a Fashion Influence
Simplification of Consumer Choice
Effects of Concentration in Brand Share
Drinks Categories in the Take-Home Market
Stabilisation in Market Share by Type of Outlet

10. Company Profiles
Bargain Booze Ltd
First Quench Retailing Ltd
Majestic Wine Plc
Oddbins Ltd
WINE CELLAR LTD

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Rebounds
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
Fewer Adults Wish to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), August 2005-2006
SPENDING FROM SAVINGS
Strong Recovery in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
Savings Grow in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), August 2005-2006

12. Further Sources
Associations
Publications
General Sources
Government Sources
Bisnode Sources