US SPIRITS LOOKS BRIGHT, WITH YTD VOLUME UP 3%
Kaumil Gajrawala of UBS “remains upbeat on industry fundamentals for US spirits” although growth appears to be slowing. According to NABCA data, Volume is up 3% YTD and pricing is benefiting from mix.
“We forecast 5% sales growth in the next 5 years, driven by 1) shift in consumer preferences, 2) effective marketing, 3) premiumization, 4) product innovation, and 5) demographics,” says Kaumil.
He notes that Brown-Forman is expected to “outperform,” driven by strong international growth, consumer trading up, growth in acquired brands, and further share gains by spirits over beer in the US. The weak US dollar doesn’t hurt either.
Kaumil also points out that Diageo’s portfolio has grown faster than the industry in the US. Pernod’s top 15 brands have outperformed the industry as well.
“We forecast 5% sales growth in the next 5 years, driven by 1) shift in consumer preferences, 2) effective marketing, 3) premiumization, 4) product innovation, and 5) demographics,” says Kaumil.
He notes that Brown-Forman is expected to “outperform,” driven by strong international growth, consumer trading up, growth in acquired brands, and further share gains by spirits over beer in the US. The weak US dollar doesn’t hurt either.
Kaumil also points out that Diageo’s portfolio has grown faster than the industry in the US. Pernod’s top 15 brands have outperformed the industry as well.
posted at 1:28 PM
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