The Spirit Industry report is out and a huge surprise for me is the fact that Rum is #2 in a strong whiskey driven spirits year. The strong sales of all of the spirit categories is impressive.
1.
Vodka
Volume
sales: 71.34m cases
Percentage change: +2.2%
Value
sales: US$6.22bn
Percentage change: +3%
The unmoved – and seemingly immovable – spirits
leader in the US market is vodka. Growth remained subdued in 2017, but almost
50m cases separate it and its closest volume rival: rum. It’s growth is also
all-the-more impressive considering the category continues to face creeping
challenges from ‘trendy’ up-and-coming spirits.
2.
Rum
Volume
sales: 24.64m cases
Percentage change: -0.4%
Value
sales: US$2.32bn
Percentage change: -0.3%
Rum may be the second largest spirits category in
the US, but it failed to record volume or value growth in 2017. Some of the
largest rum players have struggled to keep up with other spirit types in a move
upmarket, and it could be argued that the category has failed to achieve the
same boost from the cocktail renaissance as that experience by gin and Bourbon.
With American whiskey hot on its heels, might rum slide down the leaderboard in
2018? It remains to be seen.
3.
American Whiskey
Volume
sales: 23.15m cases
Percentage change: +6.4%
Value
sales: US$3.36bn
Percentage change: +8.1%
Americans’ enthusiasm for their domestic whiskeys –
including Bourbon – continued unabated in 2017. The Distilled Spirits Council
notes that there was strength across all price points in American whiskey –
quite an achievement in this age of pervasive premiumization. The category also
added 300,000 cases to sales of its flavored expressions, while rye whiskey
proved to be the fastest growing spirit sub-category of 2017, with growth of
+16.2% to US$175m, and 900,000 cases.
4. Canadian Whiskey
Volume
sales: 17.54m cases
Percentage change: +2.4%
Value
sales: US$1.99bn
Percentage change: +2%
Canadian whisky may not quite be a household name
internationally, but it has a dedicated consumer base in the US. The category
is tantalizingly close to hitting sales of US$2bn, which it is sure to surpass
this year if the current growth trajectory continues.
5.
Tequila and Mezcal
Volume
sales: 17.2m cases
Percentage change: +8.5%
Value
sales: US$2.7bn
Percentage change: +9.9%
Tequila
is one of the hottest categories in the spirits world right now, and the US is
its biggest market. The Distilled Spirits Council notes that the fastest rate
of growth can be seen at the higher end of the spectrum – which is also
evidenced by rampant acquisition activity in recent years. Just last
month, Bacardi bought pioneering super-premium Patrón in a deal that values the company at US$5.1bn.
6.
Cognac and Brandy
Volume
sales: 13.72m cases
Percentage change: +5.4%
Value
sales: US$2.28bn
Percentage change: +7.5%
Cognac
and brandy producers hailed solid gains in 2017, though the rate of growth in
the states was slightly slower than the global picture. Last month, trade body
the BNIC revealed that Cognac exports reached their ‘highest levels’ in 2017, growing by 11% in volume and 14% in value, largely
thanks to rebounds in the emerging markets.
7.
Gin
Volume
sales: 9.87m cases
Percentage change: -0.6%
Value
sales: US$895m
Percentage change: +2.2%
Talk of the ‘gin boom’ is rife in the international
spirits industry, but, surprisingly, the category’s volumes struggled in 2017 –
could consumer thirst for the juniper spirit be waning? Super-premium craft
players are the most likely cause of a 2.2% value gain, edging gin sales in the
States close to the US$1bn mark.
8.
Blended Scotch
Volume
sales: 7.17m cases
Percentage change: -3.3%
Value
sales: US$1.39bn
Percentage change: +0.4%
Volume sales of blended Scotch whisky took a hit in
2017 – perhaps due to the challenge for consumer mindshare posed by its
American and Irish cousins. However, value sales marginally increased,
indicating premiumization continues to run through the category.
9.
Irish Whiskey
Volume
sales: 4.25m cases
Percentage
change: +11.3%
Value
sales: US$897m
Percentage change: +12.8%
Irish
whiskey is one of the US drinks market’s biggest success story and experienced
the fastest rate of growth in terms of both value and volume sales of any
spirit category in 2017. Of course, the success of Irish whiskey is
inextricably linked to the soaring sales of category leader Jameson, but the sector is also receiving a boost from
innovative new super-premium players that are piquing consumer interest.
10.
Single Malt Scotch
Volume
sales: 2.11m cases
Percentage change: -1.2%
Value
sales: US$771m
Percentage ch ange:
+1.1%
It was a mixed picture for single malt Scotch in
2017 – while volumes declined, values increased, indicating consumers are
drinking slightly less single malt expressions, but choosing more expensive
varieties when they do.
