MARKETING/DESIGN/CONSUMER TRENDS/INSPIRATIONS Cognac & Brandy News for Consumers & Industry Experts
The Distilled Spirits Council of the U.S. (DISCUS) says strong momentum from the whisk(e)y category drove spirits supplier sales up 4.1% last year to $24.1 billion, with volume rising 2.3% to 215 million cases.
What are the Drivers for this momentum?
1) Spirits’ ongoing premiumization trend is evident this past year
. The high end (spirits retailing from $20-$30) advanced 7.1% to nearly 3 million cases, creating $509 million in supplier revenue.
. Super-premium spirits (priced above $30) were up 6.5% to 1.2 million cases, generating $395 million.
. Combined, the high-end and super-premium segments comprised 95% of the $950-million increase in supplier revenue last year.
2) The whisky boom
In 2015, all whisky segments collectively reached more than 59 million cases with 12.3 million cases added since 2010, while generating $8.1 billion in supplier revenue.
. Whisky including Bourbon, rye, Tennessee and white/corn whiskey grew a combined 5.2% last year to 20.4 million cases (Scotch Whisky has regulatory body, Scotch Whisky Association, others have some regulatory council too).
But not just Whisky!
. Tequila made +7.4% by volume, and +9.4% by value (Consejo Regulator de Tequila),
. Cognac made the largest percentage growth with +14% by volume, and +16.2% by value (Bureau National Interprofessionel du Cognac), DID ANYONE NOTICED THIS?
. Vodka made +1.8% by volume, and +0.5% by value (no regulatory body, probably will never have one),
. Rum was down -1.5% by volume and -2% by value (no regulatory body besides AOC Martinique Rhum Agricole).
3) Focus on craft-style, artisanal products benefiting both large and small producers;
4) Consumer fascination with provenance dovetailing with spirits’ authentic heritage;
5) Growth of micro-distilleries generating excitement in the spirits sector; and
6) Cocktail culture continuing to define nightlife in cities across the country.
7) Millennials of legal drinking age interest in discovery driving innovation and premiumization.