Arcus AS : Linie Aquavit : examine the English spirit market

Abstract

Arcus AS, a Norwegian subsidiary of Arcus Gruppen AS have shown their interest in the English spirit market. Arcus AS offers different products of wine and spirits, and is the only company in Norway who officially has an approved laboratory for the analysis of wines and spirits. The product Arcus are interested in launching in England is Linie Aquavit. They have previously tried to launch their aquavit, but without success. A group of five students at Leeds Metropolitan University has worked with this report regarding the spirit market in England. The aim and objectives was to examine the English spirit market with focus on market trends, identifying possible external influences, and the positioning of Linie Aquavit in England. The report consists of primary and secondary data, where primary data was conducted through in-depth interviews with bartenders and bar owners and questionnaires handed out to the consumers at pubs, bars and restaurants. The data was collected in Leeds, Liverpool, Newcastle and Birmingham. In addition, an e-mail was sent to different distributors in England, to find different options regarding entering the English spirit market. The secondary data consists of web pages, articles, reports, journals and appropriate literature. The primary and secondary data has been analysed, and the authors have developed strategic options and recommendations that Arcus can find useful if entering the market. The findings of the analysis show that the English spirit market is one of the largest in the world. The on-trade market has decreased the recent years, while the off-trade market has been slightly increasing. The overall spirit market has decreased, and some of the reasons are the economic recession and public health campaigns. Political, economic, social, technological, environmental and legal factors could influence a possible entry to the English spirit market. The authors have found that England has a well-established drinking culture, and that there is a market for Linie Aquavit. They would advise Arcus to enter the on and off trade market, and position themselves as a luxury brand to maintain their reputation as exclusive. Linie Aquavit should be sold in high-end bars and restaurant and exclusive stores.