White and Dark Spirits: The Markets - US - February 2007

SUMMARY

Abstract

• Understanding the influence of U.S. population shifts on the distilled spirits industry
• The increasing influence of premium spirits in the industry
• Why white spirits are becoming more popular than dark spirits
• How flavored spirits are driving cocktail culture
• Why imported spirit sales are growing faster than domestic spirits
• How on-premise consumption is driving sales growth

• White Spirits
• Vodka
• Rum
• Gin
• Tequila
• Dark Spirits
• Whiskey (Irish/American), Whisky (Scottish/Canadian)
• Cordials and Liqueurs
• Brandy and Cognac
• Prepared Cocktails-spirit-based RTD cocktails such as margaritas or flavored alcoholic beverages (FABs)

TABLE OF CONTENTS

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Market at a glance--very strong
• Premiums and imported distilled spirits drove growth in 2005
• Cocktail culture and the impact on segmentation
• Major manufacturers--several are very visible due to heavy advertising, and always acquisition or two
• Growth of upscale brands shifts ad dollars from magazine to TV
• Higher prices gives a larger boost to on-premise retailers, though volume growth also rising off-premise
• Young and Hispanic drinkers increasing
• Market Drivers
• Demographic influence on the distilled spirits market
  • Figure 1: Alcoholic beverage consumption, by age, May 2005-June 2006
  • Figure 2: Americans who drank one or more alcoholic beverages in the past year, by age, 2005
  • Figure 3: U.S. population and projections, by age, 2001-11
• Premium spirits--affordable luxuries and symbols of status
  • Figure 4: Total U.S. top 20 high-growth brands of distilled spirits, 2004 and 2005
• Flavor innovations attract younger consumers
  • Figure 5: Flavored distilled spirits consumption, by age, January 2007
• Competition from other alcoholic beverages
  • Figure 6: Volume sales and market share for beer, distilled spirits and wine, 2001-05
  • Figure 7: Dollar sales and market share for beer, distilled spirits and wine*, 2001-05
• Laws governing spirits retail restrict selling on Christmas and New Year during 2006/07
• Market Size and Trends
• Market size
  • Figure 8: Total U.S. retail sales of distilled spirits, at current and constant prices, 2001-06
  • Figure 9: Total U.S. retail volume sales of distilled spirits, 2001-06
• Market trends
• New product trends
  • Figure 10: New product releases in distilled spirits, 2001-06
• Flavor trends
  • Figure 11: New flavor trends in distilled spirits, 2006
• Trend toward premium
  • Figure 12: New distilled spirits introductions, by product claims, 2001-06
• Eye-catching packaging differentiates
• Market Segmentation
• Introduction
  • Figure 13: Total U.S. volume sales of distilled spirits, segmented by type, 2004 and 2006
• White spirits
• Vodka
  • Figure 14: Total U.S. volume sales of vodka, 2001-06
• Rum
  • Figure 15: Total U.S. volume sales of rum, 2001-06
• Gin
  • Figure 16: Total U.S. volume sales of gin, 2001-06
• Tequila
  • Figure 17: Total U.S. volume sales of tequila, 2001-06
  • Figure 18: Consumption of distilled spirits/cordials/liqueurs, by Hispanics and non-Hispanics,
• Dark spirits
• Whiskey
  • Figure 19: Total U.S. volume sales of whiskey, 2001-06
  • Figure 20: Volume sales of whiskey sub-segments, 2001-06
  • Figure 21: Sub-segment share of whiskey volume, 2001-06
• Cordials and Liqueurs
  • Figure 22: Total U.S. volume sales of cordials and liqueurs, 2001-06
• Brandy and Cognac
  • Figure 23: Total U.S. volume sales of brandy and cognac, 2001-06
  • Figure 24: Total U.S. brandy and cognac volume share and share change, 2000 and 2005
• Prepared cocktails
  • Figure 25: Total U.S. volume sales of prepared cocktails, 2001-06
• Supply Structure
• Foreign trade
  • Figure 26: U.S. imports and exports volume in proof gallons of distilled spirits, 2004 and 2005
  • Figure 27: U.S. imports and exports volume in proof gallons of distilled spirits, 2004 and 2005
• Imports
  • Figure 28: Value of distilled spirits imported to the U.S., 2001-06
• Exports
  • Figure 29: U.S. distilled spirits exports value, 2001-06
• Companies and brands
  • Figure 30: Top manufacturer volume sales of distilled spirits in the U.S., 2004 and 2005
• Brand sales of distilled spirits
• White spirits
• Vodka
  • Figure 31: Manufacturer volume sales of vodka in the U.S., 2004 and 2005
• Rum
  • Figure 32: Manufacturer volume sales of rum in the U.S., 2004 and 2005
• Gin
• Figure 33: Manufacturer volume sales of gin in the U.S., 2004 and 2005
• Tequila
  • Figure 34: Manufacturer volume sales of tequila in the U.S., 2004 and 2005
• Dark spirits
• Whiskey
  • Figure 35: Manufacturer volume sales of whiskey in the U.S., 2004 and 2005
• Cordials and Liqueurs
  • Figure 36: Manufacturer volume sales of cordials and liqueurs in the U.S., 2004 and 2005
• Brandy and Cognac
  • Figure 37: Manufacturer volume sales of brandy and cognac in the U.S., 2004 and 2005
• Prepared cocktails
  • Figure 38: Manufacturer volume sales of prepared cocktails in the U.S., 2004 and 2005
• Company profiles
• Diageo
• Future Brands
• Allied Domecq Spirits & Wine USA
• Bacardi USA
• Brown-Forman Corporation
• Constellation Brands
• Pernod Ricard USA
• Heaven Hill
• Absolut Spirits Company
• Advertising and Promotion
  • Figure 39: Total distilled spirits advertising spending, by medium, 2004 and 2005
  • Figure 40: Manufacturer advertising spending, by brands in the U.S., 2004 and 2005
• Absolut Spirits Company
  • Figure 41: Absolut Ruby Red vodka--TV ad, 2006
  • Figure 42: Absolut vodka--TV ad, 2006
• Bacardi USA
• Bacardi Rum
  • Figure 43: Bacardi Big Apple rum--TV ad, 2006
  • Figure 44: Bacardi Rum superior original--TV ad, 2006
• Bombay Sapphire Gin
  • Figure 45: Bombay Sapphire Gin--TV ad, 2006
• Dewar's White Label whiskey
  • Figure 46: Dewar's White Label whiskey--TV ad, 2006
• Grey Goose Vodka
  • Figure 47: Grey Goose L'Orange vodka--TV ad, 2006
• Brown-Forman Beverages
• Jack Daniel's whiskey
  • Figure 48: Jack Daniel's Bourbon whiskey--TV ad, 2006
• Diageo
• Johnnie Walker whiskey
  • Figure 49: Johnnie Walker Black Label--TV ad, 2006
• Captain Morgan rum
  • Figure 50: Captain Morgan Rum --TV ad, 2006
• Smirnoff vodka
  • Figure 51: Smirnoff vodka--TV ad, 2006
• Tanqueray gin
  • Figure 52: Tanqueray gin--TV ad, 2006
• Constellation Brands
• Chivas Regal whiskey
  • Figure 53: Chivas Regal whiskey--TV ad, 2006
• Crown Royal whiskey
  • Figure 54: Crown Royal whiskey--TV ad, 2006
• Pernod Ricard USA
• Stolichnaya vodka
  • Figure 55: Stolichnaya blueberi vodka--TV ad, 2006
• Retail Distribution
• Introduction
  • Figure 56: U.S. retail sales of distilled spirits, by channel, 2004 and 2006
• On-premise
  • Figure 57: U.S. on-premise dollar sales of distilled spirits, at current and constant prices, 2001-06
• Liquor/package/mass merchandiser
  • Figure 58: U.S. liquor store/package/mass dollar sales of distilled spirits, at current and constant prices, 2001-06
• Supermarkets
  • Figure 59: U.S. supermarkets dollar sales of distilled spirits, at current and constant prices, 2001-06
• Future and Forecast
• Future trends
• Demographic influence on the market
  • Figure 60: U.S. population and projections, by age, 2001-11
• Continued trend towards flavored and premium distilled spirits
• Continued trend towards cocktail culture
• Popularity of energy drinks as a mixer benefits the cocktail culture
• New mixers and distilled spirits flavors benefit the cocktail culture
• Hispanic population may become an important growth driver
  • Figure 61: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by age, May 2005-June 2006
  • Figure 62: Population, by race and Hispanic origin, 2001-11
• Market forecast
  • Figure 63: Forecast of total U.S. retail sales of distilled spirits, at current and constant prices, 2006-11
  • Figure 64: Forecast of total U.S. retail volume sales of distilled spirits, 2006-11
• Appendix: Trade Associations
• Appendix: New Product Briefs