New research from Mintel highlights strong demand for alcoholic drink companies to define what is meant by the term 'craft drinks'.
The study has revealed how 59 per cent of those who buy alcoholic drinks say it's important that the alcohol industry defines the term clearly.
A third of those surveyed said it is hard to tell which brands are 'craft' while 30 per cent said they don't understand what the term 'craft' means. Despite this, 38 per cent purchased a craft alcoholic drink in the three months to November 2015.
When it comes to their own definition, a unique flavour is most widely used to define an alcoholic drinks brand as 'craft' - cited by 47 per cent of those taking part in the research.
Other factors include a brand, which uses high-quality ingredients (42 per cent), takes more time or care in production (41 per cent) and a brand, which produces drinks in small volumes e.g. a microbrewer (41 per cent).
Over a third (35 per cent) of consumers who buy alcoholic drinks say that brands cannot be 'craft' if they are acquired by large companies, and 28 per cent agree that brands cannot be 'craft' if they get too large in size.
Over half - 54 per cent - of those who buy alcoholic drinks say that buying craft alcoholic drinks is a good way to support small businesses.
Commenting on the new study, Chris Wisson, senior drinks analyst at Mintel, said, “The lack of an industry-agreed definition has not hindered the growth of craft so far, but it has led to the term being misinterpreted and increasingly, misused."
He went on to say that consumers are likely to become increasingly demanding of brands which claim to be 'craft', and the onus is on these brands to ensure that they can provide "clear evidence of their craft credentials".
The uncertainty around the term dilutes its ability to differentiate brands or justify a higher price, he believes.
"This suggests the need to reference other, more tangible points of difference to capture customers' attention.”
Mintel's research finds that excessively high pricing may hinder the growth of the sector in the future. Two in five shoppers - 41 per cent - who buy alcoholic drinks say that you often get less for your money with craft alcoholic drinks e.g. smaller bottles for the same price, while only 28 per cent say that craft drinks are worth paying more for.
“Many craft beers are justifiably more expensive than mainstream brands, reflecting economies of scale, but also the ingredients used. While consumer interest in seeing a wider variety of beers in the on-trade should benefit craft variants, overpricing poses a potential barrier to the continued growth of the segment.” he added.
Over a third (38 per cent) of adults purchased a craft alcoholic drink in the three months to November 2015, while 69 per cent bought mainstream brands of alcoholic drinks.
Nearly three-quarters (70 per cent) of consumers who buy alcoholic drinks say that taste is more important than the producer of the drink.
“The importance attached to taste is likely to be driving the interest in craft-style products from larger drink producers. This suggests that the large drinks companies can tap into the craft movement either by producing their own craft products or by acquiring smaller companies, with their success ultimately likely to be determined by the actual quality of the drinks,” Wisson concluded.
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