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Global market review of functional soft drinks ... - Just-Drinks

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Page 67<br />

Chapter 5 Fruit-based spirits<br />

Chapter 5 Fruit-based spirits<br />

Limoncello<br />

Definition<br />

Limoncello is a lemon liqueur produced from lemon rinds, alcohol, water and<br />

sugar. Limoncello is produced in various areas <strong>of</strong> southern Italy, but the<br />

original and most prestigious production area is around Sorrento, just south <strong>of</strong><br />

Naples. Despite being a relatively new product, limoncello is Italy’s thirdlargest<br />

spirits category, following grappa and bitters.<br />

It is difficult to estimate the total size <strong>of</strong> the <strong>market</strong> given the large amount <strong>of</strong><br />

local production by small manufacturers, especially in the south. However, a<br />

rough estim ate for total production in Italy is xxxm nine -litre cases, <strong>of</strong> which<br />

around xxxxxxx is Lim oncello di Sorrento IGP [source: Consorzio di Tutela<br />

Limoncello di Sorrento].<br />

Industry structure<br />

Overall, limoncello is not a particularly branded <strong>market</strong>. There is a lot <strong>of</strong> home<br />

production, which is unbranded and sells mostly to the on-trade and to<br />

neighbours.<br />

The leading brand, Lim oncé, has a xxxx% m ark et share and is produced and<br />

distributed by Stock (owned by investment managers Oak Tree Capital<br />

Management), according to The IWSR’s estimates. The number two brand is<br />

Villa Massa, an IGP brand, with a m ark et sh are <strong>of</strong> xxx%. I Siciliani, owned b y<br />

Illva, has rapidly become the number three brand on the <strong>market</strong> despite only<br />

being launched in 2005. Limoncello di Capri, also an IGP brand, is part-owned<br />

and distributed by Molinari.<br />

Over xx% <strong>of</strong> the m ark et consists <strong>of</strong> sm aller fam ily owned producers.<br />

Averna export manager Michel Jordens says that the proliferation <strong>of</strong> limoncello<br />

products by a multitude <strong>of</strong> producers is problematic. “When we entered the<br />

category about ten years ago, it was just a fad. It really consolidated and<br />

became bigger. Unfortunately every Italian liqueurs producer has tapped into<br />

it. The consumer is getting confused by the array <strong>of</strong> products on <strong>of</strong>fer. Not<br />

© 2009 All content copyright Aroq Ltd and The IWSR. All rights reserved.

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