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SAMBUCA SUPPLIERS need to premiumise or prepare to pay the price – that’s the stark warning from analysts if the category wants to stem decline and burn brightly.

A few years ago flavours were, rather contentiously, driving the sambuca category. Now consumers are turning their backs on flavours and calling for classic sambuca or a more premium alternative. This is something suppliers are all too aware of.

“Sambuca competes in a busy marketplace,” says Craig Chapman, brand manager for Luxardo at Cellar Trends. “As sambuca brands, we are not only competing with each other to win listings, but we’re competing with a host of other liqueurs all vying for the same consumers at that point of purchase.”

Sambuca is under threat from tequila in its second largest market, according to research company CGA Strategy. The Mexican spirit has experienced strong growth in the UK on-trade in recent years and taken market share from the struggling Italian drink.

Tequila has premiumised and recruited new consumers via celebrity endorsement at a time when sambuca sales have declined. Premium now accounts for 21% total GB on-trade tequila volume, up from 16% a year ago and only 12% two years ago, according to CGA Strategy. On-trade sambuca volumes fell flat the end of 2014, with declines escalating throughout 2015 to a low of -7.5% at the end of November. However, 2016 has seen strong recovery in the category and declines have now softened to -2.6%.

“Sambuca hasn’t been able to capitalise on the premiumisation trend and, as such, very few premium sambucas are widely available in the GB on-trade,” says CGA Strategy account director Jonny Jones. “Unless suppliers can premiumise the category I would expect to see volume continue to decline.”

Tequila has managed to tap into key consumer drivers, such as heritage, discovery and premium ingredients and sambuca suppliers should look to do the same, Jones says. “Sambuca suppliers should look to follow suit in their marketing communications in order to target the ever more discerning millennial consumers who make up the bulk of visits to the late night trade. If they can do this successfully then there may be hope for premium products to offset the current decline seen in mainstream sambucas.”

FLAVOURS

The growth in flavoured sambucas has tailed off in recent years. In the UK, flavours are still a significant part of the category, accounting for 12% total volume compared to the 4% that flavoured vodka holds of total vodka volumes.

“However,” says Jones, “flavoured variants are declining ahead of the category and have lost two percentage points share of category in the past year alone. The reason for this relates back to the push for premium. Flavoured spirits are often seen as less premium than their non-flavoured counterparts. “So premiumisation may be having an even bigger impact on flavoured sambuca than total category,” the analyst adds.

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By definition, sambuca is a transparent, colourless, anis-based spirit and some brands are, understandably, sticklers for the rules. Molinari is one such.

Export director Giuseppe Bellotti says: “Molinari has decided to comply with this philosophy and to avoid associating its sambuca with any flavours or artificial colouring.” Molinari Caffé, with a strong component of sambuca in addition to extract of Arabica coffee and natural colouring, does not include the word sambuca on its label. “This is in line with our philosophy,” Bellotti is quick to add.

“We believe the respect of the original characteristics and the emphasising of the heritage and credibility of sambuca must be maintained while moving on in the process of globalisation and modernisation of the category,” he says.

Rossi D’Asiago falls on the other side of the fence and offers nine ‘sambuca-based flavours’, including apple, raspberry, liquorice, tropical, banana, cherry and coffee.

Asked how important flavours are, export director Nicola Dal Toso, says: “Very.” She adds: “Over the past few years there has been an increase in demand for flavoured spirits and liqueurs. People are becoming more open to trying different flavoured drinks and a cocktail culture has become dominant in Europe, especially in the UK.

“Our products not only allow a consumer to choose from a variety of interesting flavours but they also have the choice of consumption – whether it be in a cocktail or in shot form, our products offer superior taste.”

CHALLENGE

It is a challenge for suppliers and bartenders to see sambuca as more than just a shot. Luxardo’s Chapman says his company has explored long serves in the past, but admits it’s difficult as the perception of the category is very much of a shot category. “Perception has been long established and trying to break that would be very difficult. At Luxardo our focus is on having quality products and we see that shots are the main driver for consumption.”

Molinari, to an extent, agrees, with Bellotti saying: “One of the biggest challenges for the sambuca category is to widen the ways and the occasions of consumption in order to recruit new consumers. In a number of markets we co-operate with local mixologists to educate the professional bartenders, enhancing the possibilities to create cocktails with Molinari.”

The brand is present in more than 80 countries and welcomes any change in consumption – if it were to happen. “We will benefit from the expansion of consumption in markets where it is currently at niche level,” says Bellotti. If change is to come then Bellotti is keen it happens in the right way, without compromise.

“To fully seize the opportunity it is crucial that the sambuca category, while it is moving towards a more modern consumers’ perception and ways of consumption, firmly maintains its heritage, craft characteristics, credibility and premium position.”

If the likes of Molinari can premiumise and open the door for other brands there is hope that sambuca can, if not challenge tequila, then at least fan the category’s flames before it is extinguished by the competition.