The bubble has burst for the once-fashionable flavoured alcoholic beverage (FAB). After a value increase of as much as 70 per cent between 2000 and 2002, sales have plunged by 22 per cent from£1.6 billion in 2002 to just£1.2 billion this year.
Mintel senior market analyst James McCoy said: 'These once-trendy beverages are clearly no longer seen as cool by the fickle target market of 18-to 34-year-olds, who have now ditched FABs for more fashionable and sophisticated alternatives, such as cocktails. Clearly, manufacturers have just not been quick enough to keep ahead of the decline.'
The report predicts that the market for FABs will continue to decline as the heavy discounting price war continues among supermarkets. Other factors contributing to the decline could be increased legislation and greater controls on advertising.