SPIRITS GAIN SHARE FOR THE FIFTH YEAR
The Distilled Spirits Council (DISCUS) released its review of the U.S. spirits industry on Monday, containing nothing but good news. The title of the first slide in the DISCUS presentation was certainly indicative of how the spirits industry is doing right now: “2006 Another Good Year For the Spirits Industry.”
Not only did the market share gain continue for the fifth year (currently at 32.8%), but supplier revenues were up 6.3% reaching $17 billion. Why are things going so well? Factors such as the booming cocktail culture and trading up trends paired with creative marketing have had a big hand in growth, says DISCUS. Spirits are hip among consumers, which is nothing but good news for the industry.
Spirits industry volumes grew 3.8% in 2006, with exports up 21% YTD. Super-premium spirits brands are leading growth, jumping a whopping 17.5%, with premium brands up 5.1% and value brands flat at 0.2% (despite accounting for 42% of volume).
Super-premium vodka specifically had a large hand in driving growth last year with revenues up $236 million from 2005 and volume up 38.6%. Rum came after vodka as the second largest price product segment, with volume up 4.9% and revenues increasing $73 million.
Other fast-growing categories include premium vodka, cordials and high-end bourbon.
2007 is expected to report revenue growth similar to 2006 as volume growth moderates but the trend to price/mix growth accelerates. Many in the industry believe the predicted volume growth slowdown has more to do with the timing of shipments, rather than a real halt in liquor sales.
Not only did the market share gain continue for the fifth year (currently at 32.8%), but supplier revenues were up 6.3% reaching $17 billion. Why are things going so well? Factors such as the booming cocktail culture and trading up trends paired with creative marketing have had a big hand in growth, says DISCUS. Spirits are hip among consumers, which is nothing but good news for the industry.
Spirits industry volumes grew 3.8% in 2006, with exports up 21% YTD. Super-premium spirits brands are leading growth, jumping a whopping 17.5%, with premium brands up 5.1% and value brands flat at 0.2% (despite accounting for 42% of volume).
Super-premium vodka specifically had a large hand in driving growth last year with revenues up $236 million from 2005 and volume up 38.6%. Rum came after vodka as the second largest price product segment, with volume up 4.9% and revenues increasing $73 million.
Other fast-growing categories include premium vodka, cordials and high-end bourbon.
2007 is expected to report revenue growth similar to 2006 as volume growth moderates but the trend to price/mix growth accelerates. Many in the industry believe the predicted volume growth slowdown has more to do with the timing of shipments, rather than a real halt in liquor sales.
posted at 1:00 PM
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