Competitor Analysis Definition: Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service. (Entrepreneur, 2016). The elements of competitor analysis will include: • Competitor Profiles • Competitor positioning (Porters Generic Competitive Strategy) • KSF competitor ranking (market share, distribution, brand image, product quality, product variety and financial resources) • SWOT Analysis As Elemental concept is a new business start-up it is vital to the success of the business that it has a clear business strategy and to do that we must demonstrate an understanding and awareness of their competition. LBIB thought the best way to analyse elemental concept competitors was to find 2 smaller competitors (Hi spirit vs cellar trends) with a similar business model and 2 larger more established brands (Diageo vs William Grant and sons). Then we will do competitor profile of each company finding out what each company is about, their business model, the nature of threat they pose to elemental concept and list of brands that they distribute. Then we will look Porters generic competitive strategies to find out the competitors positioning and look to see if they seek cost leadership or differentiation. By doing this we can look at the possible reactions to Elemental Concepts business moves by having an insight into the strategic alternatives open to competitors. An important piece of analysis that we will conduct will be the Dave Allen Aker key success factor competitor ranking table, as this will give us an insight into what each competitor does well and how do they compare against each other and by doing this we are then to conduct the SWOT analysis of each firm. Competitors Profiles Competitors Name: Sazerac UK LTD t/a Hi-Spirits CEO – Guy May Head office: 174 Terrace Road, Walton-on-Thames, Surrey, KT12 2ED Incorporated on: 13th of August 2002 Years Active: 14 years Company Type: Private limited with Share Capital Employees- 100-200 people About the company: Hi-Spirits is one of the UK’s leading spirit distributors with a diverse portfolio of award winning brands. From heavyweights like Southern Comfort, Fireball and Antica Sambuca, to premium bar favourites such as Buffalo Trace, Fernet Branch and Antica Formula, along with innovative new brands such as Brooklyn Gin, Tijuana Sweet Heat and Tails Pre-Mixed Cocktails their dynamic portfolio cannot be ignored. Their climb to success began in 1999 with Ebor Absinth. They then took the risk grabbing the Sambuca market with the development of Antica Sambuca flavours. Since, our company has grown an impressive portfolio of award winning brands you see today. It was recently bought out by Sazerac, who the largest distiller in the USA who distil big brands like Southern comfort. Business model: In Great Britain, they sell and market their products through Hi Spirits LTD (spirits, beer and ready to drink). In the past, they have created and marketed products of their own but they mostly work with other brands to distribute and market them. They distribute to the on-trade and off-trade; this includes wholesalers, bars/clubs/restaurants, supermarket chains, retailers and independent shops acting as the middle man. They do offer marketing support for some brands. Some brands control their own marketing and only rely on them for distribution whereas others rely on them to produce all their UK marketing as well as distribution. Nature of threat The reason that LBIB think that Hi sprits is a competitor worth analysing is that their business model of acting as middle man between new/developing brands and on and off trade is very similar to Elemental Concepts. They are a threat because they have been established for over 14 years and have developed a strong brand image over the years, as well as that they have such a large diverse portfolio range which has a record of accomplishment of being successful. However, the biggest threat that Hi sprits brings to the market is their recent acquisition by Sazerac who are one of largest distillers in the US boasting big brands like Southern Comfort and have a portfolio of over 33 brands which shows that they are looking to expand and grow. List of brands: Apéritif & digestif • Carpano • Peychaud Aperitivo/ Peychaud Bitter • Antica formula • Brancamenta • Fernet Branca • Herbsaint • Punt E Mes • Regans Bitter Gin (8) • Scapegrace • Sloanes Gin • Brooklyn Gin • Langleys No. 8 • Blackwoods Gin • Brokers Gin • No. 209 • The King of Soho Rum(4) • Black Magic • RedLeg Rum • Ron Abuelo • Ron Cortez Shots (5) • Tijuana sweet heat • Antica Sambuca • Antica Sambuca with flavours • Fireball • Fire fly Specialties (9) • Cosmopolitan Diva • Tuca • Tails • Lazzoroni Amaretto • Café Borghetti • Hpnotiq • Pama • Senor Absinth • Volare Tequila & Mezcal (3) • Expresiones Del Corzaon • Monte Alban • Montezuma Vodka (6) • Our/London • Blackwoods • Blavod • Diva • Moskovskaya • Tito`s Whisky (16) • Southern comfort • Paddy • 1972 Ridgemont reserve • Benchmark • Buffalo Trace • Eagle Rare • Experimental collection • E.H. Taylor JR • George T Stagg • Sazerac Rye • Single Oak Project • Stagg Jr • Thomas H. Handy • White Dog • William Larue Weller • W.L Weller Competitors Name: Cellar Trends CEO: Malcolm Rigby Head Office: Stonehouse Farm/Ashby Road, Woodville, Swadlincote, Derbyshire, DE11 7BP Incorporated On: 1999 Years Active: 15-years Company Type: Private limited Company Employees: 51-100 people About the company: Cellar Trends shapes brands and by building those brands they create profitable volume for all sector of the trade, the sales growth portfolio are over 40 international spirits, liqueurs and wine brands. They work with premium brands concentrated on conveying excellent drinking experiences to observing buyers in every one of the areas worked in. Those excellent brands incorporate probably the most celebrated brands in the World. Cellar Trends is a family-possessed organization and keep running on family estimations of regard for their clients, brand owners and importantly for staff. Cellar Trends reach for the stars however their underlying foundations are with clients and staff and they attempt never to overlook it. Striving for high standards of service both from sales team, advertisers and advocates, and office support teams. Business Model: Cellar trends has a similar business model to Hi-Spirit in terms of them being a distributor as well as a providing marketing for their brands. Cellar Trends impart bits of knowledge to the exchange, running from insight into premium shots through mixed drinks to premium wines and super-premium. Building brands requires significant investment, energy, determination, and steady speculation. They look to exceed expectations in these things. They know how consumers think and act and this leads them to achieve success in coordinating the right brands to their on and off trade customers which allows them to build strong business relationships with both distiller and trade. Nature of Treat: The reason LBIB think Cellar Trends is a threat to Elemental Concepts is their wild growth of over 40 international spirits, liqueurs and wine brands with excellent drinking experience on how the business runs. Those brands are probably the most celebrated in the world, they are also excellent in helping their customers with the right kind of brand to choose. However, the biggest threat Cellar Trends brings to the market is they are the UK’s top distributor of specialist wines and spirits, with a portfolio of extensive range in international brands which can still expand and grow. List of Brands Rum (6) • Angostura • Botran • Bumbu • Mahiki Coconut Rum Liqueur • Pusser’s Rum • Ryoma Tequila (1) • Casamigos Moonshine (1) • Ole Smoky Bitters (1) • Angostura Gin (1) • London No.1 Gin Vodka (2) • Beluga • Grasovka Brandy & Armagnac (6) • Asbach • Bocchino Grappa • Calvados Boulard • Cles des Ducs • Lepanto • Soberano Whisk(e)y & Bourbon (13) • Akashi • Big Peat • Jefferson’s • Nomad • OMAR • Rebel Yell • Rock Oyster • Scallywag • The Epicurean • Timorous Beastie • Togouchi • Yamazakura • UB Irish Whiskey Finest Call Cocktail Mixes (3) • Bar Essentials • Puree Collection • Speciality Cocktail Mixes Liqueur (4) • Kwai Feh • LICOR 43 • Mandarine Napoleon • XUXU Luxardo (3) • Luxardo Cherry Range • Luxardo Liqueurs • Luxardo Sambuca Wines (8) • Condesa de Leganza • Faustino • Finca Los Trenzones • Fortius • Mar de Frades • Marques de Vitoria • Portia • Victorianas Competitors Name: Pernod Ricard, Bacardi, Brown-Forman, Constellation Brands and Fortune Brands. CEO – Ivan Menezes Head office: Lakeside Drive, Park Royal, London, NW10 7HQ Incorporated on: 28th of September 1923 Years Active: 130 years and 5 months Company Type: Public Limited company Employees- 33,000 people About the company: Diageo is a worldwide pioneer in beverage alcohol, provide customers with decision and quality across categories and price. Diageo has manufactured a solid stage for development through putting resources into brands and path to buyer. During the most recent five years they made acquisitions in brands and local distribution while multiplying the span of extravagance business. In addition, making changes of improvements to the working business model and culture adjusting Diageo behind the requirement for more agility and responsiveness, creating a business that is closer to the customer. They also produce brands from more than 200 sites in over 30 countries, which are loyal to efficient, sustainable production to the highest quality standards. Business Model: Their 21-market model has built up solid local business units, all around situated to win in progressively competition and quick paced working conditions. Their business model is very different to Hi-spirits and Cellar Trends. The group owns 29 whisky distilleries in Scotland, a Dublin based brewery, maturation and packaging facilities in Scotland, England, Ireland and Italy. The ISC ships whisky, vodka, gin, rum, beer, wine, cream liqueurs, and other spirit-based drinks to over 180 countries. Through their £1 billion investment in Scotch whisky production and inventory, announced in 2012, their distilling capacity has increased by over 25%. Raki, vodka and wine are produced at several sites in Turkey and Smirnov vodka and other local brands are produced in Russia. In Great Britain they sell and market their products through Diageo GB (spirits, beer and ready to drink) Products are distributed through independent wholesalers and directly to retailers. This shows as they have vertical integration with them being the world’s largest spirit producer and owning distribution channels. They have also grown through horizontal integration by constantly taking over brands and growing them into world known brands. Resource investment into world-class marketing to build up the brands, concentrating on associating with existing and new consumers. For a considerable length of time their brands have been at the front line of marketing development and the same remains genuine till today. Nature of Treat: The reason LBIB thinks Diageo is a competitor for Elemental Concepts, Diageo is a world- famous developer in alcohol beverage. They pose a different threat then Hi spirit and Cellar trends as they have vertical integration as well a horizontal integration. This makes them a threat because development is critical to the proceeded with growth and their motive on development is a changeless motor of growth for the business as it has the financial capacity to do so and are restless in search for new products which can cause a problem for Elemental concepts. This is because it could be harder for elemental concepts to get customers if Diageo choose to invest in smaller distillers and smaller distillers will be more inclined to work with Diageo because of the large distribution network it will have. List of Brands: Global Giants (6) • Johnnie Walker • Smirnoff • Captain Morgan • Baileys • Tanqueray • Guinness Local stars (10) • Crown Royal • Yeni Raki • J&B • Buchanan’s • Windsor • Grand old parr • Bundaberg • Black & White whisky • Ypioca • McDowell’s Reserve (11) • Johnnie Walker Blue Label • Johnnie Walker Gold Label Reserve • Johnnie Walker & Sons King George V • Johinnie Walker & Sons Private Collection • Lagavulin • The Singleton • Cîroc • Ketel One Vodka • Zacapa • Bulleit • DonJulio Tequila Competitors Name: Diageo plc, The Edrington group limited, The Glenmorangie company limited. CEO: Stella J. David Head Office: 16 Coney Road, Culmore, Londonderry, Co Londonderry, BT48 8JP Incorporated On: 24 May 1928 Years Active: 25 years and 9 months. Company Type: Private limited with Share Capital Employees: 1700 people About the company: As a family-owned business established in 1887, William Grant and Sons has constantly taken a long-term view in supporting people, communities and businesses. The organisation has long given an extensive variety of non-profit and charitable associations and projects across Scotland and stays focused on giving 1% of pre-tax benefits every year to beneficent causes. William Grant and Sons family shareholders set up the William Grant Foundation in 2014 as a non-profit organisation to supervise and coordinate donations. The William Grant Foundation is focused on a future where everybody in Scotland has the chance to flourish, a belief that is profoundly established in the core values shared by the family and the company. Business Model: William Grant and Sons have six values: Be Proud: They are proud of their brands, heritage and commitment to predominant quality products. Be Responsible: They are accountable and focused on performing with full capacity within terms and as individuals. Be Professional: They value trustworthiness, straightforwardness, professionalism and productive verbal confrontation within the team workers in the organisation. Be Entrepreneurial: They cultivate a forward thinking and spearheading culture that perceives the requirement for creative thinking and nonstop improvement. Think Long Term: Long term prosperity of the business are comprehended which gives they competitive advantage. Be Sustainable: They also wish to make a positive commitment to communities and the environment. It has very similar business model to Diageo in the fact they have vertical integration. William Grant & Sons wholly owns its distribution in a number of its key markets which includes the UK which is located in Hook. They are slightly similar to Cellar trends and High Spirit in the fact they do act as an agency for other brands like Illva Saronno’s Disaronno and Tia Maria. Nature of Treat: The reason LBIB thinks that William Grant and Sons is a competitor to Elemental Concepts, their business has been well-known for over 25 years and 9 months with lots of development and experience. They pose a similar threat to Diageo because they have vertical integration and the financial capacity for horizontal integration. However the biggest threat we can see is that they are already acting as a agency for larger brands but if they decide to target smaller growing brands it could cause problems for Elemental concepts. List of Brands: Core Brands (8) • Glenfiddich • Grant’s • The Balvenie • Hendrick’s • Sailor Jerry • Tullamore D.E.W. • Drambuie • Monkey Shoulder Lunch Brands (4) • Milagro • Reyka • Solemo • Gordon Highlanders Local Brands (6) • Clan MacGregor • Gibson’s • OVD Rum • Taboo • Three Barrels & Raynal • Wood’s 100 Porter Generic Competitive Strategy In 1985, business strategist Michael Porter developed 3 “generic strategies” in his book "Competitive Advantage: Creating and Sustaining Superior Performance", they are called generic because they can be applied to products or services in any industry. (Mind Tools, 2007 ) Porter named these strategies “Cost Leadership” (no frills), “Differentiation” (creating uniquely desirable products and services) and “Focus” (offering a specialized service in a niche market). Porter then subdivided the focus strategy into 2 parts: “Cost Focus” and “Differentiation Focus” which is shown above. (Mind Tools, 2007 ). These strategies are ways in which a company can gain a competitive advantage and understanding what your competitor’s strategy are will enable you to offer a better product or service then your competitor. Cost Leadership Strategy There are 2 main ways that a competitor can gain advantage through a cost leadership Strategy: • They Increase profits by reducing costs, while charging industry-average prices • Increase market share through charging lower prices, while still making a reasonable profit on each sale because you have reduced costs. It Is very important to note that a cost leadership strategy is all about minimizing the cost to the organisation of delivering the product or service and the cost that the customer pays is a different issue. However just being the lowest cost producer is not enough as you can be open to be undercut by your competitor and will block your chances for increased market share and can act as an opportunity to a competitor. The Differentiation Strategy To be more attractive to consumer business will try to make their product or service different to what their competitors are offering and to do that they will have to do 3 things according to Porter: • Good research, development, and innovation • The ability to deliver high- quality products or services • Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings. However, if a business who adopts this strategy doesn’t stay agile with their product development process they can be open to competitors adapting a focus differentiation strategy in different market segments. The Focus Strategy The final strategy that Porter developed was the “Focus strategy” and this strategy is where a company decides to concentrate on niche markets. They do this by developing an understanding of these dynamic markets by: • Understanding the unique needs of customers within it. • Developing uniquely low cost or well specified products for the market. • They must be able to develop strong brand loyalty amongst their customers. However, a focus strategy on its own is not enough it needs to be embedded into another strategy like a cost or differentiation. Cellar Trends vs Hi Spirit Business Strategy Cellar Trends have over 40 different types of vodka, gins, rums, whiskies, and tequilas as well being one of the largest distributor of wines in UK. It is clear to see that Cellar trends have chosen to adopt a Differentiation focus strategy to gain a larger market share. They have found a niche in the fast and ever growing alcohol market in acting as a distributor and marketer for smaller batch distillers who might not have financial capacity to have their own distribution and marketing network. Hi–Sprit has over 59 different types of vodka, gins, rums, whiskies and tequilas in their product portfolio and the only main shelf product they distribute and market is Southern Comfort. It is clear to also see that Hi-Spirit has also pursued a differentiation focus strategy to grow to gain a larger market share. However, because Sazerac an American distiller has bought them they have moved to vertical integration and this could possibly mean that to gain further market share in the UK they might also move to cost leadership as well as differentiation focus. Diageo vs William Grant and Sons Business Strategy Diageo is a global leader in the alcohol market boasting brands from Smirnoff, Johnnie Walker, Baileys, Gordons and so many more and part of their success could be down to their business strategy. LBIB believe that Diageo’s main business strategy is cost leadership down to the fact they mass produce and charge industry average prices and look to cut cost in their cost to grow. However, we do think that they also have a differentiation focus strategy in the fact they have acquired so many different types of brands in order for them to grow William Grant and sons is very similar to Diageo in that fact they are a global leader in the alcohol market. They have adopted a similar cost leadership strategy to Diageo and choose to be a mass producer of whisky, rum and Gin and charging industry average prices for the products has seen so much of their products being on the shelves in nearly every pub and bar in England. Competitor ranking by key success factors David Allen Aaker, American organisational theorist developed a model that would rank business against its main competitors based on key success factors (KSF). are areas of critical performance necessary for success in a specific industry. A firm cannot expect to be competitive in its industry without an understanding of the industry’s key success factors. Key success factors are a function of both customer needs and competitive pressures. Resources should be directed to activities that increase competitiveness on KSF and not wasted on activities that are not critical to KSFs. Once the KSFs are established they must be ranked. An importance weight should be assigned to each KSFs with the sum of the weights adding up to 1. The weighting is judgmental and so requires a good understanding of the industry. Next, a strength rating is assigned to each KSF, ranging from 1 (weak) to 5 (strong). Again, this is a subjective process, but some proxies can be used if adequate numerical information is available. For example, the number of outlets a competitor has can be used as a proxy of relative strength in distribution. Lastly, the strength rating multiplies the importance weight to produce a score for each KSF for each competitor. (Zehle, 2009). Elemental concepts If we look at Elemental concepts they have the lowest score out of their two biggest competitors but that isn’t surprising as both of their competitors have been established over 10 years and elemental concepts have only been operational for 3 months. In terms of Market share, brand image and product variety I gave them a strength rating of 1 or below because at the moment because at the moment they only have 1 customer. I gave them a score of 2 for distribution because they strengthen their distribution network by starting a partnership with LWC who are a major distributor in the UK. High Spirit Vs Cellar Trends Financial Performance If we look at Hi-Spirt we can see from 2011 they have seen their turn over grow from just over 10 million to just over 16 million in 2015 which is a percentage growth of just over 50% in just 5 years which shows that they are growing a rapid pace. If we then look at the operating profit of Hi-Spirt we can see that even though that Hi-Spirit turnover has been rapidly increasing since 2011 but their operating profit has reduced from just over 400k in 2011 to just over 150k which is not good for a growing business as it might be experiencing diseconomies of scale. However, we can see from the Director Emoluments graph that since 2011 the figure has gone from just over 350k to just under 800k. Director Emoluments are a salary paid to the company’s directors as a matter of agreement between them and the firm. This could show us that Hi Spirt directors are more willing to take a profit from the company instead of investing it into the company. As we can see from the graph above we can see that since 2011 Hi-Spirits has seen its total assets increase year on year and we can also see that since 2011 it has seen its nets asset grow from just under 90k in 2011 to just under 450k in 2015 which shows that it is a company that it is a company. If you compare Cellar Trends to Hi-Spirit, we can see that their turn over went from just over 80 million in 2011 and reached a company high of 100 million in 2012 however since 2012 it has slowly seen their turnover go all the way down to just under 40 million which is a percentage reduction of 185%. If we look at Cellar Trends we can again see that since 2011 they have seen their operating profit drop from Diageo Financial Performance If you look at the bar charts above, we can see that reported net sales declined 3.0% as organic growth in each region and acquisitions were more than offset by adverse exchange and disposals. However, it was reported operating profit grew 1.6% with organic growth, lower exceptional operating charges and acquisitions partially offset by adverse exchange and disposals Free cash flow continued to be strong at £2.1 billion, up £134 million on last year. Operating cash flow was £2.5 billion. In Great Britain net sales were up 4%. Baileys performance accelerated with net sales up 11% driven by increased off-trade visibility and on-trade activation (Diageo, 2016). Smirnoff net sales were up 1% supported by a full year of the ‘We’re Open’ platform (Diageo, 2016). Guinness net sales were up 1% benefitting from the Rugby World Cup activation, improved distribution and innovation successes from ‘The Brewers Project’ (Diageo, 2016). Tanqueray net sales grew double digit and the brand gained 2pps of share in the gin category, driven by expanding distribution with improved visibility and increased bartender advocacy. Reserve brands continued to drive profitable growth with net sales up 26% driven by Cîroc and scotch malts (Diageo, 2016). Ireland net sales were broadly flat. Guinness net sales were up 4%, driven by the continued successful innovations launched through ‘The Brewers Project’. Of these, Hop House 13 Lager has proven to be a stand out success gaining almost 3% share of lager beer in the Republic of Ireland. Other beer brands net sales declined 4% and net sales in spirits were down 1%. (Diageo, 2016) William Grant & Sons William Grant and Sons have reported an increase in their turnover increasing from £832.7m in 2014 to £882.5m in 2016 which is an increase of over 6.1%. They have said this has been down to the company choosing to reduce their dependency on third party agency brands Brand Awareness Social Media Presence Hi-Spirits Twitter Joined: September 2013 Followers – 1341 Following – 576 Tweets-713 Likes- 1028 Activity- 1/2 posts a week Type of post- Mainly retweeting their brands Hi-Spirits LinkedIn Joined: September 2013 Followers – 645 Following – 576 Activity- 1 post Type of post- Not very active account Cellar Trends Twitter Joined: April 2013 Followers – 759 Following – 381 Tweets- 612 Likes- 247 Activity- Not posted since August 2016 Type of post- Mainly retweeting their brands, Cellar Trends Instagram Joined: May 2016 Followers – 454 Following – 494 Posts - 389 Activity- Average around 9 posts a week since joining Type of post- Engaging content and celebrity’s endorsements Social Media Analysis LBIB wouldn’t say that Hi Sprit or cellar trends have a strong social media presence considering they are meant to marketing agent. Hi-Spirit have had twitter since 2013 and only have 1341 followers, this could be partly down to the fact that they only follow 576 people on twitter and research has shown the more people you follow the more followers you are likely to have. Cellar trend has a weaker social media presence on twitter as they only have 450 followers and this can be partly due to the fact that they haven’t posted since August 2016 which is surprising considering that 66% of twitter user have found new business owners (Business twitter, 2016). Hi Spirit also do not have an Instagram account and businesses that incorporate Instagram into their marketing strategy will more likely reach their target audience far easier than with Facebook or Twitter where the competition is much bigger (Social Network solutions, 2016). Cellar trends on the other hand maybe does not have a strong following on Instagram but they only joined it under a year ago, they have already posted 389 times since joining which is an average of around 9 posts a week. They also post very engaging content like cocktails recipes as well as gaining celebrity endorsements however could follow more people in order to gain more followers. Diageo Brand Awareness (Statista, 2017) You can see from the graph Diageo marketing budget from 2012 to 2017 which has actually reduced since 2012. Diageo is the world’s largest spirit producer in the world boasting brands such as Smirnoff, Johnnie walker, Guinness to name a few. In order to gain better brand recognition for its brands Diageo has realised that it must heavily invest in the customer buying process by developing their integrated physical and virtual retail experience as we are moving towards a more digital future. The advantages of developing such a system is that it should uncover more brand exposure for brands such as Smirnoff to potential buyers which can expand past physical stores. (Joseph, 2014) They are also heavily investing in online channels such as YouTube and Instagram as well as developing the company’s ecommerce learning by working with retailers such as Tesco and Amazon. We saw this in 2014 when it teamed up with Tesco promote a limited edition Johnnie Walker in a YouTube ad with the famous formula one driver Jenson Button. (Joseph, 2014) They also realised that they had to develop their search marketing in order to broaden the breadth of consumer. They developed an online European cocktail called Bar.com and the business claimed it is now responsible for 11 per cent of all spirits related searches since it launched in October 2014. Of the 300,000 plus monthly visitors, around 80 per cent use its listed recipes and 5 per cent perform a purchase action through one of the retail partners, the company has said. (Joseph, 2014) William Grant & Sons Brand Awareness Hi-Spirits SWOT Analysis Strength- Hi-Spirt has a diverse product portfolio ranging by having Gins (8), Rums (4), Shots (5), Specialties (9), Tequilas & Mezcasl (3), Vodka (6), Whiskeys (16). It has also seen strong financial growth and It has reported 9.3% turnover growth to 16.5m, 12.4% gross profit growth to £3.72m and 166% operating profit growth to £417k for the year to 31 March 2015. Also it was recently acquired by the famous American distiller Sazerac which should help them grow further as well as giving them vertical integration which can give them another competitive advantage Threats- The alcohol industry is a heavily regulated industry in the UK which can heavily affect Hi-Spirit as they might not be able to capitalise in emerging markets because of high trade tariffs. Also there are stricter laws on alcohol advertising which can lead to an increase in the marketing budget. Opportunities- There has been continual growth in the cider, beer, dark spirits and RTDS. The highest growing category is Wines what achieved sales of £11.6 billion in 2011 and estimated sales of 12.6 billion in 2016 however it has stopped growing since 2014. Cider, Beer, dark sprit and liqueurs, white spirits and RTDS have all seen steady growth. Cellar trends SWOT Analysis Strength- Cellar trends also has a diverse product portfolio which ranges from Rum (6), Tequila (1), Moonshine (1), Bitters (1), Gin (1), Vodka (2), Brandy & Armagnac (6), Whisky & Bourbon (13), Finest Call Cocktail Mixes (3), Liqueur (4), Luxardo (3), Wines (8). It is also the UK leading distributor of specialist wine and spirts. Weaknesses- Since 2012 it has slowly seen their turnover go all the way down to just under 40 million which is a percentage reduction of 185%. Opportunities- There has been continual growth in the cider, beer, dark spirits and RTDS. The highest growing category is Wines what achieved sales of £11.6 billion in 2011 and estimated sales of 12.6 billion in 2016 however it has stopped growing since 2014. Cider, Beer, dark sprit and liqueurs, white spirits and RTDS have all seen steady growth. In 2013, 40% of people said they never went to a bar or pub but in 2015, 36% of people said they went to a bar or pub which shows an increase of 4% of people going to bar and pubs. Threats- The alcohol industry is a heavily regulated industry in the UK which can heavily affect Hi-Spirit as they might not be able to capitalise in emerging markets because of high trade tariffs. Also there are stricter laws on alcohol advertising which can lead to an increase in the marketing budget. Diageo SWOT Analysis Strength- Diageo has a wide range of spirits brands ranging from Smirnoff, Captain Morgan’s and baileys to name a few. It is the world's leading producer of blended Scotch, vodka and liqueurs. It is also a leading producer in other categories, such as rum and gin (Euromonitor , 2016). They are also heavily investing in online channels such as YouTube and Instagram as well as developing the company’s ecommerce learning by working with retailers such as Tesco and Amazon. We saw this in 2014 when it teamed up with Tesco promote a limited edition Johnnie Walker in a YouTube ad with the famous formula one driver Jenson Button. (Joseph, 2014). It also has a strong global distribution network. In most markets it has its own distribution company. In some markets it has joint ventures, while in others it has well-established third party distributors. (Euromonitor , 2016) Weaknesses - Diageo is lacking in some categories. Its purchases of high-end tequila brands replace profits if not volumes following the loss of José Cuervo, and it only has a minority stake in Hennessy cognac. (Euromonitor , 2016).The vast majority of its revenues and profits derive from mature brands in mature markets. Opportunities- There has been continual growth in the cider, beer, dark spirits and RTDS. The highest growing category is Wines what achieved sales of £11.6 billion in 2011 and estimated sales of 12.6 billion in 2016 however it has stopped growing since 2014. Cider, Beer, dark sprit and liqueurs, white spirits and RTDS have all seen steady growth. In 2013, 40% of people said they never went to a bar or pub but in 2015, 36% of people said they went to a bar or pub which shows an increase of 4% of people going to bar and pubs. Threats- The alcohol industry is a heavily regulated industry in the UK which can heavily affect Hi-Spirit as they might not be able to capitalise in emerging markets because of high trade tariffs. Also there are stricter laws on alcohol advertising which can lead to an increase in the marketing budget William Grant & Sons SWOT Analysis Opportunities- There has been continual growth in the cider, beer, dark spirits and RTDS. The highest growing category is Wines what achieved sales of £11.6 billion in 2011 and estimated sales of 12.6 billion in 2016 however it has stopped growing since 2014. Cider, Beer, dark sprit and liqueurs, white spirits and RTDS have all seen steady growth. In 2013, 40% of people said they never went to a bar or pub but in 2015, 36% of people said they went to a bar or pub which shows an increase of 4% of people going to bar and pubs. Threats- The alcohol industry is a heavily regulated industry in the UK which can heavily affect Hi-Spirit as they might not be able to capitalise in emerging markets because of high trade tariffs. Also there are stricter laws on alcohol advertising which can lead to an increase in the marketing budget