Abstract
The premium distilled alcohol market (products costing at least $60) continues to increase steadily. This report guides readers through this thriving market by analyzing key topics and providing insight into the market' s future:
Mintel reveals what manufacturers are doing to maintain and capture consumer interest, such as creative packaging, celebrity endorsements, niche luxury brands, exclusive speakeasy bars, new flavors, and culinary influences. Other topics include:
- Competitive threats facing the market
- Performance of individual segments-vodka, whiskey (whisky), rum, cordials/liqueurs, tequila, brandy/cognac, and gin
- Activity of leading manufacturers (including innovative branding and advertising), and retail channels driving growth
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations
- Terms
- Executive Summary
- The bottom line
- Distilled spirits face competition
- Segment performance, positive gains for all
- Major manufacturers
- Advertising spending increases and shifts to broadcast media, lifestyle and product attributes are common advertising messages
- The consumer
- Market Size and Forecast
- Key points
- U.S. distilled spirits market grows steadily
- Figure 1: Total U.S. sales and forecast of distilled spirits at current and constant prices, 2002-10
- Figure 2: U.S. volume sales of premium and total distilled spirits, 2004-06
- On-premise sales drive growth
- Liquor stores fuel off-premise sales growth
- Competitive Context
- Key points
- Competition from other alcoholic beverages
- Figure 3: Dollar sales and market share for beer, distilled spirits and wine, 2002-06
- Figure 4: Trends in Preferred Drinks, among those aged 21-29, 1992-2005
- Shortage of malted barley and hops
- Major suppliers vs. small batch distilleries
- Industry consolidation
- Private label
- Segment Performance
- Key points
- All spirits experience growth
- Consumers trade up driving growth of premium products
- Figure 5: U.S. sales of distilled spirits, segmented by type, 2006
- Segment Performance--Whiskey
- Figure 6: U.S. volume sales of Whiskey, 2002-06
- Figure 7: U.S. volume sales of Whiskey, sub-segments, 2002-06
- Figure 8: U.S. volume Whiskey sales, premium vs other, 2005 and 2006
- Segment Performance--Vodka
- Figure 9: U.S. volume sales of Vodka, 2002-06
- Figure 10: U.S. volume Vodka sales, premium vs other, 2005 and 2006
- Segment Performance--Cordials and Liqueurs
- Figure 11: U.S. volume sales of Cordials and Liqueurs, 2002-06
- Figure 12: U.S. volume Cordials and Liqueurs sales, Premium vs other, 2005 and 2006
- Segment Performance--Rum
- Figure 13: U.S. volume sales of Rum, 2002-06
- Figure 14: U.S. volume Rum sales, Premium vs other, 2005 and 2006
- Segment Performance--Tequila
- Figure 15: U.S. volume sales of Tequila, 2002-06
- Figure 16: U.S. volume Tequila sales, Premium vs other, 2005 and 2006
- Segment Performance--Brandy and Cognac
- Figure 17: U.S. volume sales of Brandy and Cognac, 2002-06
- Figure 18: U.S. volume Cognac and Brandy sales, Premium vs other, 2005 and 2006
- Segment Performance--Gin
- Figure 19: U.S. sales of Gin, 2002-06
- Figure 20: U.S. volume Gin sales, Premium vs other, 2005 and 2006
- Retail Channels
- Key points
- Liquor and package stores dominant channel
- Figure 21: U.S. retail sales of distilled spirits, by channel, 2004 and 2006
- Retail Channels--On-premise
- Figure 22: U.S. on-premise dollar sales of Distilled Spirits, 2002-06
- Retail Channels--Liquor/Package/Mass Merchandisers
- Figure 23: U.S. sales and forecast of at liquor store/package/mass, 2002-06
- Retail Channels--Supermarkets
- Figure 24: U.S. sales and forecast of supermarket at retail channel, 2002-06
- Market Drivers
- Echo Boomers have market power
- Figure 25: Population aged 21 or older, 2003-13
- High income drives consumption of spirits
- Figure 26: Distribution of households, by income, 1999 and 2006
- Figure 27: Income distribution of consumers by Distilled Spirits category, 2006
- Leading Companies
- Key points
- Boutique brands fuel premium growth
- Diageo gets heat from Bacardi and Patron Spirits
- Bacardi USA stealing market share from Diageo
- Beam Global Wine & Spirits posts positive gains
- Brown-Forman Beverages holds its own
- Pernod Ricard loses market share
- Distilled spirits
- Figure 28: Top manufacturer volume sales of distilled spirits in the U.S., 2005 and 2006
- Figure 29: Top manufacturer volume sales of premium distilled spirits in the U.S., 2005 and 2006
- Figure 30: Volume sales of Premium Distilled Spirits in the U.S., 2005 and 2006
- Brand Share--Vodka
- Key points
- Market fueled by niche brands
- Flood of flavored vodkas and special ingredients
- Vodka
- Figure 31: Manufacturer volume sales of Premium Vodka in the U.S., 2005 and 2006
- Brand Share--Whiskey*
- Key points
- American whiskey leads category
- Irish whiskey contributes to growth
- Slight growth from Scotch whiskey
- Whiskey*
- Figure 32: Manufacturer volume sales of Premium Whiskey in the U.S., 2005 and 2006
- Brand Share--Rum
- Key points
- Bacardi losing market share to Captain Morgan
- Market activity
- Rum
- Figure 33: Manufacturer volume sales of Premium Rum in the U.S., 2005 and 2006
- Brand Share--Cordials and Liqueurs
- Key points
- Jägermeister drives growth in segment
- Godiva experiences growth due to America' s sweet tooth
- New cordials and liqueurs with exotic flavor profiles emerge
- Cordials and Liqueurs
- Figure 34: Manufacturer volume sales of Premium Cordials and Liqueurs in the U.S., 2005 and 2006
- Brand Share--Tequila
- Key points
- Patron Spirits experiences phenomenal growth
- Influx of high-end tequila with focus on Mexican crafts incorporated into packaging
- Tequila
- Figure 35: Manufacturer volume sales of Premium Tequila in the U.S., 2005 and 2006
- Brand Share--Brandy and Cognac
- Key points
- Hennessy and Remy Martin post positive results
- Remy Martin and Hennessey launch new products
- Brandy and Cognac
- Figure 36: Manufacturer volume sales of Premium Cognac and Brandy in the U.S., 2005 and 2006
- Brand Share--Gin
- Key points
- Bombay fuels growth
- Gin instead of vodka
- Gin
- Figure 37: Manufacturer volume sales of Premium Gin in the U.S., 2005 and 2006
- Brand Qualities
- Absolut reinvents itself and remains an iconic brand
- Figure 38: Television ad Absolut Vodka, 2007
- Beam Global Spirits & Wine reach out to male consumers
- Innovation and Innovators
- Key points
- Image conscious
- Figure 39: New distilled spirits introductions, by product claims, 1/26/07-1/25/08
- Creative packaging
- Distinctive Designs that echo brands image
- Chic Black Bottles
- 24 Karat Gold
- Over the top
- Other unique features
- Celebrity brands and endorsements
- Niche luxury brands
- Vodka
- Tequila
- Cocktail culture
- Lounge life
- Speakeasy style bars
- New flavor introductions
- Berry wild
- Tropical fruits
- Sparkling citrus
- Gin the alternative vodka
- Tequila gets some flavor
- Absinthe the emerging distilled spirit
- Culinary influences
- Mixologists experiment
- Figure 40: Top 15 preparations of Distilled Spirits, Q3 2007
- Dessert and cocktails
- The flavor and fragrance connection
- Multi-sensorial experience
- Cocktails inspire fragranced products
- Sensory samples
- Green and organic
- Figure 41: Attitudes about Organic/Natural Food by Premium Spirits Consumers, May-June 2007
- Green awareness
- Organic and natural products
- Locavore influence
- Advertising and Promotion
- Overview
- Figure 42: Total Distilled Spirits advertising spending, by medium, 2004 and 2006Figure 43: Distilled Spirits TV advertising spending, 2000 and 2007
- Common advertising themes
- Lifestyle and social activity
- Figure 44: Television ad Grey Goose Vodka, 2007
- Figure 45: Television ad Tanqueray Gin, 2007
- Figure 46: Television ad Hennessy Cognac, 2007
- Action and adventure
- Figure 47: Television ad Bacardi Limon Rum, 2007
- Figure 48: Television ad Bacardi Rum Superior Original, 2007
- Product focused
- Figure 49: Television ad Absolut Pears Vodka, 2007
- Figure 50: Television ad Baileys Irish Cream Hint of Mint Chocolate and Hint of Caramel, 2007
- Figure 51: Television ad Chivas Regal whiskey, 2007
- Figure 52: Television ad Jack Daniel' s Old N0 7 Bourbon Whiskey, 2007
- Frequency of Use
- Key points
- Preference for drinking premium and super premium spirits
- Figure 53: Super Premium and premium Spirits drinking, by gender, February 2008
- Change in consumption of premium and super premium spirits
- Figure 54: Amount of premium spirits drink relative to last year, by gender, February 2008
- Incidence of drinking spirits
- Figure 55: Distilled Spirits drinking, by type of spirit, by gender, May-June 2007
- Figure 56: Distilled Spirits drinking, by type of spirit, by age, May-June 2007
- Figure 57: Distilled spirits drinking, by type of spirit, by household income, May-June 2007
- Ways of drinking spirits/use of mixers
- Figure 58: Preparation of distilled spirits most often consumed, by gender, February 2008
- Brand Usage and Loyalty
- Key point
- Frequency of ordering named spirits
- Figure 59: Frequency of ordering distilled spirits by brand name, by age, February 2008
- Measures of brand loyalty
- Figure 60: Measures of brand loyalty, by age, February 2008
- Attitudes and Motivations
- Key point
- Motivation for purchasing a new distilled spirit
- Figure 61: Motivation for purchasing a new distilled spirit, by gender, February 2008
- Figure 62: Motivation for purchasing a new distilled spirit, by age, February 2008
- Attitudes towards distilled spirits
- Figure 63: Attitudes towards distilled spirits, by age, February 2008
- Race and Ethnicity
- Key points
- Change in super premium spirits drinking
- Figure 64: Super Premium Spirits drinking, by race/ethnicity, February 2008
- Type of distilled spirits most often consumed
- Figure 65: Type of distilled spirits most often consumed, by race/ethnicity, May-June 2007
- Ways of drinking spirits/use of mixers
- Figure 66: Preparation of distilled spirits most often consumed, by race/ethnicity, February 2008
- Simmons Cohort Analysis
- Figure 67: Consumption of premium spirits, by cohort, May 2006 -- June 2007
- Appendix: Other Useful Consumer Tables
- Spirits drink most often
- Figure 77: Type of distilled spirits most often consumed, by gender, February 2008
- Figure 78: Type of distilled spirits most often consumed, by age, February 2008
- Figure 79: Type of distilled spirits most often consumed, by race/ethnicity, February 2008
- Preference for drinking premium and super premium spirits
- Figure 80: Super premium and premium spirits usage, by age, February 2008
- Figure 81: Super premium and premium spirits usage, by household income, February 2008
- Ways of drinking spirits/use of mixers
- Figure 82: Preparation of distilled spirits most often consumed, by age, February 2008
- Figure 83: Preparation of distilled spirits most often consumed, by household income, February 2008
- Change in consumption of premium and super premium spirits
- Figure 84: Amount of premium spirits drink relative to last year, by age, February 2008
- Figure 85: Amount of premium spirits drink relative to last year, by household income, February 2008
- Frequency of ordering named spirits
- Figure 86: Frequency of ordering distilled spirits by brand name, by gender, February 2008
- Figure 87: Frequency of ordering distilled spirits by brand name, by household income, February 2008
- Measures of brand loyalty
- Figure 88: Brand loyalty, by gender, February 2008
- Figure 89: Brand loyalty, by household income, February 2008
- Attitudes towards distilled spirits
- Figure 90: Attitudes towards distilled spirits by gender, February 2008
- Figure 91: Attitudes towards distilled spirits, by household income, February 2008
- Appendix: Trade Associations
Mintel' s unique consumer research and analysis reveals the usage patterns, attitudes, and opinions of distilled spirits drinkers, including brand loyalty and the motivations for buying or not buying alcohol.
Table of Contents
