The anis-based spirituous market - France (2024)

1.2. global market overview

Moderate growth in the spirits market

According to the IWSR, the global market for alcoholic beverages (***) should regain confidence and begin to recover its former levels.

Indeed, the spirits market had been hit hard by the pandemic's restrictive barriers: the ban on going out and the absence of festive or social occasions had led to a drop in spirits sales and consumption.

According to the IWSR, although the market for alcoholic beverages is set to grow from **** onwards, its growth rates will be very low, with a trend of +*% between **** and **** in terms of both value and volume.

As for spirits, they should follow this global trend, with moderate CAGR growth of +*% in volume and +*% in value between **** and ****.

The global market for aniseed-flavored spirits, which represents a specific segment, is being boosted by new consumption hubs such as the United States and Japan.the global aniseed market, which represents a specific segment, is being boosted by new consumption centres such as the United States and Japan, thanks in particular to favourable legislation concerning absinthe, but also by the prospect of a premiumization of the market, enabling them to reach more consumers.

Consumers of aniseed-flavoured spirits

Thanks to the map below, ...

1.3 . National market summary

The French spirits market

In ****, spirits consumption in France is up overall on ****, at ***.* million liters in supermarkets (***). This increase is due in particular to the recovery from the health crisis, and particularly to the complete reopening of restaurants/hotels. Nevertheless, the market has not returned to pre-crisis levels, with the CHR sector still posting a **.*% drop in volume. In ****, total sales of spirits in supermarkets represented *.* billion euros, up *% on ****.

The French aniseed-flavored spirits market in supermarkets

In ****, France is considered the largest aniseed market in terms of volume consumed. In terms of value, it also represents a major market, with almost *** million euros worth of aniseed-flavored spirits sold in supermarkets, not including sales to cafés, hotels and restaurants, according to the FFS (***).

The graphs below show the share of aniseed-flavored spirits in total spirits sales. We can see that aniseed-flavored spirits are one of the top-selling spirits in supermarkets (***) in terms of both value and volume.

Aniseed-flavored spirits represent a specific segment of the spirits market, with a **.*% market share by value in ****. The aniseed-flavored spirits market is estimated at nearly *** million euros. In terms of volume, aniseed-flavored spirits will account for **.*% of the *** million liters of spirits ...

1.4 Focus on the Pernod Ricard Group: market leader

Comparing the three main pastis brands, Ricard, Pastis ** and Pastis Duval, we can already confirm the hegemony of the Pernod Ricard group in the aniseed-flavored spirits sector, with two brands represented (***), as shown in the graph below.

France's favorite aniseed-flavored spirits brand France, ****, in OpinionWay for MPF Conseil - Brand Observatory **** - February ****

In ****, if we look at the number of *-liter cases sold by Pernod-Ricard for all its strategic brands, we can count nearly **.* million liters of Ricard sold worldwide (***).

Number of *L cases sold of Pernod-Ricard's strategic brands World, ****-****, in millions Pernod Ricard Financial Report

1.5

2.1. French alcohol consumption

Consumption of spirits has fallen sharply in recent years. In ** years, per capita consumption of pure alcohol has fallen from *.** liters per person in **** to *.** liters per person in ****, under the influence of public policies to raise awareness of the dangers of alcohol. Consumers of spirits are becoming increasingly reasonable, and are increasingly choosing quality over quantity.

Spirits consumption per person France, ****-****, liters per person aged ** or over Source: ****

In terms of frequency of consumption, older people and men drink the most. Men over ** have the highest proportion of daily drinkers (***). Similarly, over half of men aged ** to ** claim to drink at least one glass a week, ** points more than women in the same age category. Conversely, women are more likely not to drink spirits: **.*% of them say they don't drink alcohol, compared with **.*% of men. [***]

The graph below also shows the different types of alcoholic beverage consumed by the French, and their trends between **** and ****.

Individual consumption of different types of alcoholic beverage France, ****-****, in liters of pure alcohol per person per year Source: ****

We can see that cocktails are more popular than pure spirits. Proof that the turn towards mixology is an important trend for producers of ...

2.2. Consumption of aniseed-flavored spirits in France

In France, according to IPSOS, aniseed-flavored spirits are the third most purchased and consumed spirits overall, behind rum and whisky.

Synonymous withaccessibility and ease of choice, aniseed-flavored spirits are easy to consume, appreciated and associated with moments of sharing and conviviality.

**% of French people in **** say they have already bought and consumed an aniseed-flavored spirit. according to IPSOS , **% of them plan to buy one in the next ** months, and **% have consumed one in the last ** months.

Historically, anise-based drinks, often reduced to pastis, have been consumed in south-eastern France, the region where aniseed is grown.

From the ****s onwards, the consumption of aniseed-flavored drinks with water (***).

Today, this geographical consumption, although tending to spread to the whole of France, remains partially true.

In fact, a closer look at the frequency of searches for the word "Ricard" on Google Trends reveals that the towns most frequently searched for are : The results on the map are relative values ranging from * to ***, where *** corresponds to the region with the highest percentage of use of this keyword in relation to the total number of local searches. A value of ** means that the keyword was used half as often in the region concerned, and a ...

2.3. Aniseed-flavored food consumption habits

As mentioned above, aniseed drinks are often synonymous with conviviality and summer. Aniseed-flavored drinks are ideal for aperitifs, and can even be enjoyed during meals. They are easily and frequently consumed at home.

The graph above represents the proportion of searches for a given keyword in a given region and for a specific period, in relation to the time when the rate of use of this keyword was highest (***). Thus, a value of ** means that the keyword was less commonly used in France, and a value of zero means that the data for this word was insufficient.

For Ricard, there is a seasonal pattern to this search, with a peak observed during the summer season over the last five years .

Analysis of the frequency of appearance of the term "Ricard" in Google searches over * yearsFrance, ****-****, in number of times Source: ****

While aniseed-flavored beverages have a very specific consumption timeframe, they also have a very specific consumption pattern.

Generally speaking, according to an IPSOS study, a large majority of the first drinks of spirits are consumed during a shared moment such as a meal (***). Aniseed-flavored spirits are no exception to this rule.

In fact, aniseed-flavored spirits account for **% of all spirits ...

2.4. Consumption trends for anise-based drinks

In the French spirits market, and consequently in the aniseed segment, we can identify several consumer trends.

A desire for premiumization

Consumers' desire for premiumization can be seen in the attention paid to bottle packaging, as well as to the quality of the beverage itself.

For several years now, the rise in the average budget allocated to a bottle of spirits has been indicative of consumers' growing preference for quality products. Indeed, in ****, **% of those surveyed said they would spend between €** and €** on a bottle, * points more than in ****, and *% would spend more than €**, * points more than in ****

According to an IPSOS study, consumers are increasingly sensitive to the container, a consideration that is even more marked for **-** year-olds.

In terms of packaging and bottle design for the aniseed market, this trend can be seen in the creation of the Verallia Design Awards, which reward the design of certain alcohol bottles. In ****, the winners were aniseed producers who had tried to recreate a modernized, Provence-inspired Anisette bottle, offering a new sensory experience while preserving the associated traditional roots.

Organic appeal

In France in general, organic farming, which is more respectful of the environment and climate protection, is increasingly in vogue ...

3.1. industry value chain

The French aniseed-flavored spirits industry brings together several different players involved in one or more stages of the value chain.

The value chain comprises * main phases:

Extraction of agricultural raw materials, such as absinthe and aniseed. Processing of raw materials to obtain the desired alcohol, notably by distillation. Packaging: bottling and packaging of spirit drinks. Distribution of finished products through various channels (***)

Aniseed-flavored spirits value chain Source: ****

It's difficult to fully isolate the jobs created by the anise sector in France from the spirits market in general.

However, the number of jobs supported by the spirits industry in general is estimated at around ***,***.in ****, including **,*** in the supply of raw materials, *,*** in spirits production and **,*** in product distribution. Finally, the spin-offs from the industry's wages and taxes would create **,*** jobs in the rest of the economy.

3.2. Anise production

Aniseed is an aromatic plant used mainly for the production of aniseed-flavored spirits such as pastis, as well as for culinary and medicinal applications. In France, anise production is relatively limited compared with other producing countries, but is important for the spirits industry.

Production worldwide

Main producing countries :

Turkey: Turkey is one of the world's largest anise producers. Anise cultivation is common in the Anatolia region. Raki, an aniseed-flavored spirit, is a key product in the region. The region produces around **,*** tons of aniseed a year, making it one of the world's largest producers. Greece: Greece is also a major producer of anise, especially for ouzo, a popular spirit. Approximately *,*** to *,*** tons of aniseed are produced annually. Spain: Spain grows anise primarily for the production of liqueurs such as anisette. The regions of Murcia and Andalusia are particularly notable for anise cultivation. Italy: Italy is a producer of sambuca, an anise-based spirit. Anise cultivation is concentrated in the south of the country.

Production in France

Anise is grown mainly in the south of France, particularly in Provence, where climatic conditions are favorable. The rich soil and Mediterranean climate are ideal for anise cultivation. The area under aniseed cultivation in France is ...

3.3. Key industry players

Distilleries specializing in aniseed-flavored spirits

In France, there are an estimated ten distilleries specializing in aniseed-flavored spirits. This may seem a small number, but in reality it reflects the concentration of the market around the "big industrial distilleries" and the importance of certain very established brands such as "Ricard" and "Pastis".

Let's take a look at the two types of anise distilleries in existence:

Large industrial distilleries

These correspond to the major French industrial groups. They include :

Pernod Ricard: This group is the largest producer of aniseed-flavored spirits in France, with emblematic brands such as Ricard and Pastis **. These distilleries are located in Marseille, where the pastis tradition is deeply rooted. Distilleries Paul Ricard: Founded in Marseille, this distillery is one of the oldest and most famous pastis producers. It is now part of the Pernod Ricard group. Henri Bardouin: Produced by the Lure distillery, this is another major player in aniseed-flavored spirits. It is located in Provence.

Artisanal distilleries

Distillerie Janot: produces traditional pastis in Aubagne en Provence. Distillerie Cristal Limiñana: Founded in **** in Marseille, this distillery produces aniseed-flavored spirits such as Anisette de Marseille. Distilleries Manguin: located in Avignon, this distillery is renowned for its aniseed-flavored liqueurs Distillerie ...

3.4. Aniseed-flavored spirits distribution

Where to buy

Aniseed-flavored spirits are sold in a variety of places, but supermarkets are still the most popular. According to IPSOS:

Supermarkets / Hypermarkets / Supérettes : Carrefour, Auchan, Leclerc... Specialized wine shops : Nicolas... Directly from spirits producers On the Internet (***) In bars and restaurants At events / fairs / exhibitions In clubs/nightclubs

Where to buy spirits in France France, ****, as % of total Source: ****

A sector in which digital technology plays an increasingly important role

The digitization of the sector accelerated in **** and has become a major trend in the industry.

The sector's behemoths are seeking to strengthen their position in this niche, as evidenced by Pernod Ricard's acquisition of Whisky Exchange, an online spirits sales platform. [***]

By ****, the use of Instagram and TikTok is growing in the wine and spirits sectors. TikTok and Instagram remain the most engaging platforms. As a result, both producers and consumers are placing increasing importance on them.

In theworld of mixology, which particularly affects aniseed drinks, digital is also playing an increasingly important role. According to a **** survey by Sowine, **% of consumers draw their cocktail-making inspiration from websites, **% from online videos and **% from social networks.

What's more, according to IPSOS, consumers are increasingly open to this environment: ...

3.5. Spiritourism

More than two million visitors a year pass through the doors ofspirit drink production companies, reflecting a profound trend: today, family vacations, couples' getaways and outings with friends are all opportunities to reconnect with authenticity and naturalness, and to rediscover our heritage in a different way.

This phenomenon has not escaped aniseed-flavored shops.In Marseille, for example , on the Docks, the Musée de l'Anis et de la Provence or Maison Yellowoffer aniseed lovers a new way of discovering aniseed. The museum retraces the history of anise, including its manufacture, uses and customs, in a dynamic and unique experience for lovers of yellow.

The museum helps to raise the profile of aniseed as a cultural phenomenon.

4.1. Aniseed products

Aniseed-flavored spirits in France can be broken down into three main categories:

Pastis: Pastis is an aniseed and licorice-based spirit, often diluted with water before consumption. It is particularly popular in Provence and France in general. Absinthe: Absinthe is an alcoholic drink made from anise, fennel and wormwood (***) and its historical association with **th-century artists and writers, it was banned in many countries for much of the **th century. Anisette: Anisette is a sweet anise-based liqueur, frequently consumed as an aperitif or in cocktails. Unlike pastis, it does not usually contain licorice.

Zoom on pastis

There are different types of pastis, depending on the alcohol content. Some pastis can be certified as"Pastis de Marseille", which means they contain exactly **% alcohol and *g/L concentration. Their particularity lies in the fact that their high alcohol content is more sensitive to cold than normal pastis.

In order to adapt to their consumers, distilleries try toinnovate by offering new products to their customers.

Indeed, some consumers, particularly young people, prefer other spirits than pastis on its own with water and ice cubes. To keep up with the times, for example, Ricard has created "Piscine". This new product is a blend with lots of ...

4.2. Price analysis

To find out a little more about the prices of aniseed-flavored spirits, let's take a look at the aniseed-flavored products sold by Pernod Ricard.

The group offers a diverse range of aniseed products, from classic pastis like Ricard and Pastis **, to modern versions of absinthe.

Prices range from €** to €**, depending on the product and format.

Aniseed drinks, like spirits in general, have been hit hard by inflation, with bottle prices rising by almost **% between **** and ****. This price inflation is due to a number of factors, including :

the cost of raw materials energy costs logistics and transport taxes

analysis of aniseed-flavored spirits bottle inflation France, ****-****, in euros Source : Pernod Ricard bottle prices have risen significantly: +**% for Ricard bottles, +**.*% for Pastis bottles and almost **% for Pernod bottles.

4.3. Emerging trends in the aniseed-flavoured spirits market

According to an IPSOS study, nearly **% of buyers say they attach greater importance than in the past (***) and environmental aspects. These changes in consumer attitudes are directly reflected in emerging trends in aniseed-flavoured spirits.

A desire for authenticity and local products

For several years now, certain players have been tending towards a return to local products, wanting to share their history and know-how with their consumers. They include their French origins in their recipes: blends of French herbs and plants. This is particularly true of the micro-distilleries mentioned above, which are emerging not only in sunny Provence, the bastion of pastis, but all over France.

For example, Ty-jaune, a pastis from Finistère launched by Sylvaine Le Meur from Brittany : "Consuming local products makes sense to me, but I couldn't find any local pastis, so I started testing lots of formulas in my garage. Her pastis differs from traditional pastis in taste. She adds sea sugar from seaweed: "We wanted a less sweet pastis. We use one gram of sugar per bottle, compared with two for conventional pastis". "Her drink is distributed in stores throughout Western France.

A desire to move upmarket

In ****, Henri Bardouin launched his second "Prestige" recipe. Enriched ...

5.1. Aniseed tax rules

Aniseed-flavored spirits, like all alcoholic products, are subject to a number of taxes.

The chart above illustrates the breakdown of taxes on spirits. The total tax on a spirit sold for €**.* is €**.**. Taxes on spirits are revalued each year in line with inflation. With **% of tax receipts for just **% of the volume of pure alcohol released for consumption in France, the industry is subject to significant taxation, to which must be added the inflationary effect of the **% increase in the resale-at-loss threshold (***) introduced by the Egalim law.

Breakdown of taxes on a spirit sold for €**.* France, ****, in € Source: ****

5.2. Current regulations

France is concerned by European regulations. In particular, the following regulations are central:

Regulation (***) No ***/**** of the European Parliament and of the European Council of January **, **** on the definition, description, presentation, labeling and the protection of geographical indications of spirit drinks related regulations ****/***and ***/**** update the aforementioned framework

In addition, there is a comprehensive national legislative framework. Given that spirits are alcohols of at least **º and that the majority of products have an alcohol content well above the average, spirit drinks are highly regulated.

Below is a non-exhaustive list of laws and regulations relating to alcohol (***) in France:

Production

Bottles of alcohol must be strictly labeled with thefollowinginformation: type of beverage, ingredients, alcohol content, capacity, allergens, "Zero alcohol during pregnancy" pictogram. Regulation of certain products to obtain the AOC (***) label, as is the case with cognac, armagnac and Martinique rum. In all, there are** productswith the acronym AOC in France. [***]

Distribution

Retailers need a License IVin order to sell spirits on the CHR (***) circuit. Anyone operating a drinking establishment must undergo training to obtain a "permis d'exploitation". There are often restrictions on the hours during which an establishment can be open or during which alcoholic beverages can be sold. For example, ...

6.1. Player segmentation

• Pernod Ricard Groupe