Distillers Shipped More Spirits, Saw Revenue Rise 4% in 2014

U.S. consumers drank about 2.2% more distilled spirits — whiskey, bourbon, vodka, gin, etc. — last year than a year earlier, according to the Distilled Spirits Council of the U.S., which represents American distillers. That translates to a total of 210 million cases of product.

Frank Coleman, a DISCUS senior vp, attributed the growth picture to a continued fascination with American Whiskies in the U.S. and abroad, continued innovation in flavors, especially flavored whiskeys, premiumization, continued “restraint” on hospitality taxes by legislatures, and the growth in small distillers, which expands grassroots and consumer interest in the category.

Also helping: improved market access, including the repeal of the country’s last ban on election-day alcohol sales in South Carolina, spirits tastings expansions in five states, local alcohol elections, especially in Texas where 64 out of 81 wet-dry alcohol elections passed last year, and the continued spread of Sunday sales.

David Ozgo, DISCUS senior vp-chief economist who compiles the figures, noted that 35.7% of all spirits sales, a total of 75 million cases, are in the value category; 36.3% (76.3 million cases) are in the premium category; 19.6% (41.1 million) are in high-end spirits, and 8.4%, or 17.8 million cases, are in the super-premium category.

Value products volume slipped 1.3% last year. That wasn’t surprising, Ozgo said, given that the economy has been improving. When the economy improves, people start trading up. Indeed, last year premium spirits volume grew 3.1%, high-end products grew 5.8% and super- premium rose 5.1%.

Looked at in terms of price segments, value products sales slipped $31 million. Premium products sales grew $145 million, high-end jumped $433 million and super-premium grew $351 million.

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