“A driver of the on-premise business was the continuation of consumers’ interest in high-end and super-premium products across the spirits segments, particularly by Millennials,” says Marina Velez, Research Director of the Beverage Information Group. The premiumization trend continued to evolve in 2021 as more guests sought higher-quality products within on-premise venues, she adds.
“Tequila continues to experience rapid growth, thanks to a premiumization trend that has consumers seeing the spirit as a top-shelf sipper or craft cocktail ingredient. Although consumers five years ago were more interested in añejo expressions, there has been a shift more towards blancos—the first tier of tequila, unaged, before reposado and añejo,” Velez notes. Mezcal is climbing in popularity both at retail and the on-premise where many consumers are first introduced to this spirit.
Beer continues to be the alcoholic beverage that U.S. drinkers say they drink most often (34%), according to a 2021 Gallup Consumption Habits survey. However, 30% of drinkers now say they drink spirits most often, which is a 3% increase versus 2020 as liquor is fast approaching a tie with wine for second place (31%).
The beer industry continues to fight intense competition from the spirits and wine categories for share of consumers’ drinking occasions. Any growth in the on-premise beer industry can be primarily attributed to positive momentum within the flavored malt beverages (FMBs), imports and craft categories, as all the other beer segments posted losses.
As for wine, total consumption for the on-premise in 2021 was on the path to recovery after significant losses posted in 2020 due to the pandemic. Wine increased 60.2% in 2021 in on-premise establishments but remained below 2019 levels. Imported wines are the bight spot, up 70.8% and surpassing 2019 totals to now represent 27.7% of the overall on-premise wine market.
While consumers will likely continue to make cocktails at home as they did during the pandemic, many have a new respect for and fresh interest in mixology. In addition to sampling craft cocktails, guests want to know about the tools, techniques, and ingredients the pros use. A few recent trends identified in the 2022 On-Premise Handbook include low-/no-ABV beverages; vegetable cocktails; nostalgic drinks and flavors such as the Dirty Shirley and Midori Sour; and the tequila-based Ranch Water libation.
About the 2022 Cheers BARometer On-Premise Handbook
The Beverage Information Group’s 2022 Cheers BARometer On-Premise Handbook is the most comprehensive source of information on U.S. on-premise trends. The publication can be purchased at www.bevinfostore.com.
]]>Over the past 10 years, volume consumption within the beer industry has been declining. The beer category remains in a precarious position. Perhaps more so than any other category, it has been changed by Covid-19. Big brands have been shrinking for years. Before the pandemic, craft enjoyed rapid growth, fueled by consumer experimentation and reliant on taprooms and the
on-premise. Then Covid closed the on-premise dealing a blow to craft, and other beer segments as well, that it’s still trying to recover from. Consumer preferences have changed and have so far not reverted to pre-Covid.
Total domestic beer ended 2021 at 2.32 billion 2.25-gallon cases which accounted for an 81.3% share of the overall category, a decrease from 2020. Growth levels within FMBs and craft were not able to offset the decline of other domestic beer categories.
Craft beer was on the verge of decline prior to the pandemic. Since 2014, the category was steadily growing, but the rate of growth was declining year after year. The pandemic accelerated this expected contraction period. Craft beer bounced back in 2021 with 4.5% growth, which puts the category near 2018 levels of consumption and the third-largest beer category.
The mature beer industry has remained relatively flat since 2014. However, the recent popularity of malt beverages, specifically hard seltzers, continues to be a driver of new growth. The FMB/Hard Seltzer category was up 11.3% in 2021 and continues to take market share from other categories of beer. In 2021, the segment took more market share than any other category at +1.2% and now controls 12.0% of the total beer category.
Imported beers experienced a 6.3% increase in growth, and were the second fastest-growing beer category of 2021 and one of two beer categories to attain volume growth over 5%. That performance was good for an 18.7% market share of the overall beer market in 2021 and is a gain of 1-share point versus 2020, keeping imports in second place behind market leader light beer.
About the 2022 Beer Handbook
The Beverage Information Group’s 2022 Beer Handbook is a comprehensive source of information on U.S. beer trends. It includes volume consumption information by category and market, tracks leading brands, and reports historical data.
Pre-order publications at www.bevinfostore.com or by contacting Sherai Falcon at sfalcon@epgmediallc.com or 763-383-4400 ext. 4423.
]]>According to the Beverage Information Group’s 2022 Wine Handbook, domestic Table Wine drove category volume losses with a -1.4% pullback in volume, which lost 3.5 million 9-liter cases. Imported Table Wine offset some of the declines by growing +0.5%. Champagne and Sparkling, at 7.6% of Wine category volume, grew +5.4%, led by the Imported segment which was up +8.0%. Domestic Sparkling Wines also grew, up +2.7% versus 2020.
The Wine category faced headwinds in 2021 that contributed to volume declines. Supply chain challenges and a shortage of employees made it more difficult to make and sell wine. Compounding the supply chain problems, wineries on the west coast continued to face the growing effects of climate change with fires and severe drought impacting grape volumes at harvest. Changing consumer preferences strained volume as Boomers, core drinkers of the wine category, drank less, and Zoomers and Millennials increasingly chose Spirit based options.
“While the total Wine category contracted in 2021, there were segments of the business that benefited as the country emerged from the COVID-19 pandemic and premium wine suppliers met consumers’ needs by capitalizing on macro-trends,” notes Marina Velez, Research Director for the Beverage Information Group. “In addition to affordable beverage alcohol luxuries, consumers wanted convenience in both smaller and larger sizes leading to many suppliers increasing their focus on 375 ml bottles that can be consumed in one evening, and larger boxed packages that can be consumed over a period of weeks. The better-for-you beverage trend shows no sign of slowing, and several winemakers have taken notice. The health and wellness trend are also a way to reach younger consumers to encourage them to choose wine over other beverage alcohol categories”.
Champagne & Sparkling Wine was the brightest segment in the Wine Category. Over the last decade, Champagne & Sparkling Wine has grown every year, with a CAGR of +5.2%. 2021’s volume growth was slightly faster than the ten-year rate at +5.4%. With growth significantly faster than total Wine, Champagne and Sparkling Wine increased share of total Wine from 5.1% in 2011 to 7.6% in 2021 and now represents 26.3 million 9-liter cases.
About the 2022 Wine Handbook
The Beverage Information Group’s 2022 Wine Handbook is a comprehensive source of information on U.S. wine and sales trends. It includes consumption and projection information by category and by market, tracks leading brands, and reports historical data.
You may order our beverage publications at www.bevinfostore.com or by contacting Sherai Falcon at sfalcon@epgmediallc.com or 763-383-4400 ext. 4423.
]]>Minneapolis, Minn., (August 4, 2022) — The year 2021 saw the U.S. looking at Covid-19 in the rear-view mirror but faced new challenges to supply chains that resulted in product shortages and price increases. Nevertheless, the industry experienced its 24th consecutive year of growth, with 10 of the 12 distilled spirit categories posting growth.
According to the Beverage Information Group’s 2022 Liquor Handbook, the consumption of distilled spirits increased by 4.5% to 263.1 million 9-liter cases, continuing its trend to take market share from the wine and beer categories.
“The premiumization trend accelerated in 2021 as interest in drinking high-end products at home and at on-premise venues benefited the spirits category”, according to Marina Velez, Research Director for the Beverage Information Group. “Several legislative victories, most notably the ending of tariff wars between the U.S. and the European Union contributed to more international movement of product including Scotches and Irish Whiskies among others.”
Vodka remains the leading category at almost 80 million 9-liter cases, however growth slowed to just 0.5% and losing -1.3% of distilled spirits share. Tito’s Handmade Vodka remains the category leader up 6.4% to 10.4 million cases but showing slower growth than in the prior year which it was up almost 18%. In contrast, the Ready-to-Drink category exploded by 35.5% growing to 14 million 9-liter cases, up from 10.6 million the prior year. RTDs is the leading growth category.
Tequila, the second leading category by growth and only 1 of 3 categories to experience double digit growth in 2021, grew 14.2% to 24.7 million 9-liter cases. Tequila has been growing for the last 5 years and now represents 9.4% share of the entire distilled spirits market, surpassing the rum category to become the 4th largest spirits category. Most of the leading brands posted volume growth with almost half at double-digit increases. The top ten leading brands grew an average of 26.2%. Notably Teremana, Casamigos, Espolòn, Don Julio and El Jimador reached growth levels over 15%. Jose Cuervo remains the brand leader with year-over growth of a modest 2.5% to 4.8 million 9-liter cases. Despite a nationwide shortage of Patrón, the #2 ranked brand managed 6.8% growth in 2021.
Irish Whiskey, with just 2.1% of the distilled spirits category showed an impressive gain of 12.3%, topping out at 5.4 million cases, with Jameson as the category leader with 4.0 million cases and exhibiting year-over growth of 13.7%.
About the 2022 Liquor Handbook
The Beverage Information Group’s 2022 Liquor Handbook is the most comprehensive source of information on U.S. spirits and sales trends. It includes consumption and projection information by category and by market, tracks leading brands, and reports historical data.
You may order this publications at www.epgspecialtyinformation.com or by contacting Sherai Falcon at sfalcon@epgmediallc.com or 763-383-4400 ext. 4423.
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EPG launches new Specialty Information Company, continuing their investment in market intelligence and analytic tools
Billions of data points. Millions of people. Thousands of potential strategies and solutions to inform your business decisions.
To better serve the Adult Beverage and Power Sports/Equipment industries, EPG creates a new company, EPG Specialty Information. It combines its Beverage Handbooks and the Market Data Books with the latest technology to deliver new actionable measurements, reports, and analysis.
“The launch of EPG Specialty Information is the logical next step in the growth of our business which has included investments in analytic tools, human capital and market intelligence,” states Andrew Esham, Vice President and Managing Director of the new company. “Development of our data products is complete, and we are in the exciting phase of scaling our consumer and trade insights to boost the data-driven decision-making abilities of our clients.”
EPG Specialty Information is also pleased to announce the development of two new services: My Voice Rewards and Beverage Excelerator.
My Voice Rewards is a consumer panel and survey service that leverages the enthusiasm of our curated audiences to provide detailed consumer insights to players across the industry, from OEMs to trade and service organization, to dealerships. My Voice Rewards offers syndicated reports and proprietary custom studies and analytic services. Visit our consumer website at MyVoiceRewards.com.
Beverage Excelerator, built on a simple, easy to maneuver platform transforms the static nature of our Beverage Handbooks into a flexible interactive tool allowing users to combine data dimensions to create charts and extracts tailored to their unique business needs. Beverage Excelerator is designed to support a wide range of customers and is the first phase of our strategy to procure and combine multi-channel industry data offering the broadest and deepest view of the adult beverage industry.
And while it’s popular to say content is king these days, information is mission critical as well. EPG Specialty Information combines deep industry expertise with proprietary demographic, psychographic, behavioral, purchase-based, and consumption data sets. You can utilize these insights to tailor your brand positioning in the marketplace with precision or combine them with your own first-party data.
The launch of EPG Specialty Information is a spin-off of the group's rebrand of its Media and Marketing Services business under a new entity - EPG Brand Acceleration - using first-party market data and targeted media content to create brand fans. The relaunch is designed to focus on helping clients experientially engage their audience across multiple channels.
]]>Boating Industry has previously written about the workforce crisis, a problem that has become familiar and stubborn. Finding skilled talent has always been difficult. Even those approaching the industry found themselves out of their depth due to a lack of robust education and support. University cast a long shadow over all trade industries, and many students had little idea of the opportunities out there.
Now, however, we’ve begun to see a trend away from the idea of needing a four-year degree to land a good job and be successful. Trade school has reappeared on the radars of many students who wish to enter the workforce immediately and avoid large amounts of debt.
A work-ready focus
Workforce development has remained top of mind across the entire economy. Recruiting new talent as the previous generation comes of retirement age and leaves the industry is proving to be a significant hurdle when visualizing the future. Manufacturers like Yamaha Marine are combating this with “work-ready” education programs. We spoke with Joe Maniscalco, Division Manager, Service about some of these programs.
“On developing technicians, our focus has been looking at institutions that have marine programs in them and providing them with industry resources, support and products that they need in order to support their students to be work-ready,” Maniscalco says. Yamaha currently has two programs available to their technical school partners. These programs provide specific education on Yamaha’s outboard and jet propulsion systems.
“From there,” Maniscalco continues, “we look at what we need in order to help a student become work-ready. It started with the maintenance certification program. This program was designed to give the student the confidence to be able to perform routine maintenance on Yamaha outboard products.”
When asked about the challenges that the company faces, Maniscalco was quick to pinpoint the problem: “Technicians have been the number one industry challenge, so that’s also been our number one area of concentration. We wanted to bring the certificate courses to a certification level. A certification shows that a student has met the standards set by the manufacturer and has the competency to perform the work. By allowing institutions to conduct this certification program, this produces work-ready technicians who can move straight into dealerships.”
All hands on deck
Dealerships face their own set of unique challenges when addressing workforce development. Unlike manufacturers or trade associations, dealers are not readily able to connect with prospective workers through extensive outreach, especially smaller, family-run operations. We spoke to Nick Doetsch, the general and operations manager of Pasadena Boatworks about challenges in the industry.
“One of our biggest challenges is longevity,” Doetsch remarks. “The main issue is that it takes a long time to learn everything.” Marine technician training is quite complicated, because there variety of different systems and motors to learn.
The existing pool of talent is quite small as well. Technicians often stay with dealerships long term. Without much movement into the industry, dealerships are trying to attract talent that has already established itself – certainly no easy feat.
Even after marine technicians receive their certification, they are still constantly learning and updating their knowledge base. Dealerships often send their technicians to classes created and taught by large manufacturers such as Yamaha and Suzuki. “The problem [about these classes],” Doetsch explains, “is that they’re only offered one or two places in the entire country. There’s only so many classes and they get filled up quickly – so there is a lot of interest in schooling and learning.”
The limited offering of classes makes planning around them difficult for dealerships. “There just isn’t a really great area for people to get taught quickly. You’ll go down there for a week; what happens is the dealer says, ‘when can I do that?’ Typically, not during the busiest time of year, but looking at when classes are offered, it may not work out for the class that the dealership needs.”
This ties back to the question of longevity as well. “How many dealerships want to send an 18 or 19-year-old for a costly week-long class in order to start a process that may take years, with no guarantee that they’ll stay in the industry?” Doetsch asks. “It’s a very difficult equation to answer. Our best bet is to always compensate early, and educate everyone – at every level.”
The trend towards trade
The trade industry has certainly suffered under the ever-present expectation of a four-year degree. High school is geared towards university. “Our society has been very pro-college,” Joe Maniscalco agrees. “High school students get college prep – they go through rigorous training to get credits before they even enter into college. Not everyone has the opportunity or desire to go through college. You can go through a trade program and learn a competency, and you can do it in a manner where you are paid as you go.”
The financial benefits of trade school are becoming more and more well-known to students as well. Overall less time spent in school (and away from the workforce), less debt, and more specification are all strong draws for trade school and certification programs.
“We are very pro-apprenticeship,” Maniscalco says. “We established the Yamaha Marine Apprenticeship program which allows a student at a dealership to connect with a mentor and go through an established program from apprenticeship to journeyman.”
Yamaha isn’t the only one ramping up efforts to reach students. The Marine Industries Association of South Florida (MIASF) has created the Salty Jobs Initiative, which targets students of all ages who may be interested in the marine industry, among other outreach and education programs. We spoke with Lori Wheeler, VP of MIASF, and Megan Piggott, director of marketing and workforce development at MIASF, about Salty Jobs.
“We started with the mission of building a talented workforce. The Salty Jobs Initiative is a brand we’ve created that’s an educational video series, along with other media, that show students what different careers in the marine industry look like. It’s about building awareness of what opportunities are out there,” explains Megan Piggott.
MIASF also spearheads the Yacht Service Technician Apprenticeship Program. “The program was started in collaboration with Atlantic Technical College and the Florida Department of Education,” says Lori Wheeler. “It’s a two-year program where there is classroom instruction as well as on-the-job training instruction and students graduate with a nationally recognized certificate. We cover topics such as shipyard safety, rigging, workplace employability, yacht painting, welding, fabricating and plumbing.”
Currently, MIASF is preparing for the annual Plywood Regatta, an event to connect middle and high school students with the marine industry. “They come out for a weekend and build a boat out of plywood, caulk and zip ties, and they’re mentored by someone in the industry who can showcase that passion and knowledge,” Piggott says.
“It’s a perfect introduction into boat building,” Wheeler adds. “It’s a fun event, but the goal is to get them excited about the marine industry. We’re trying to spread the word and get in front of as many young people as we can.”
Check out our latest Powersports Market Data Books Today!
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According to the Beverage Information Group’s just-released 2022 Industry Overview, beverage alcohol consumption levels in the U.S. improved in 2021 by an estimated 1.4% versus 2020. The overall performance of the industry was driven by strong growth in distilled spirits (+3.1%) and moderate growth in beer (+1.2%) while the wine category remained fairly flat (-0.4%).
The spirits industry achieved its 24th consecutive year of steady volume growth in 2021 ending the year up 3.1%. Ten of the 12 primary categories posted growth in the past year, with Ready-to-Drinks leading the way. The Ready-to-Drink category has been on the rise for the past few years and 2021 ended with a 20.6% growth. This category capitalized on convenience, quality, and health-minded trends. The only two spirits categories that remained flat were Rum and Gin, posting slight decreases in volume for the year.
Although COVID-19 restrictions were eased in many states as the year progressed, the emergence of variants contributed toward a sustained increase of online alcohol sales via e-commerce platforms such as Drizly and Minibar Delivery.
The wine industry faced many challenges in 2021, from on-premise sales struggling to adapt to continued pandemic disruption, labor shortages that plagued wineries, and supply chain issues that impacted the entire industry. On top of these woes, the wine industry also faced another monumental obstacle: attracting millennial consumers. The culmination of these challenges resulted in a 0.4% decrease in total wine consumption.
Champagne and Sparkling Wine, which saw its highest growth in 2021, benefited from shifts in consumer tastes and trends. The key driver of growth in the sparkling wine category was the rising popularity of prosecco and the ex-plosive growth of rosé.
In 2021, the total Beer category experienced its best year in over a decade, as consumption in-creased by 1.2%. Hard seltzers continued to lead growth, despite a category slowdown as dozens of seltzer brands launched throughout the year oversaturated the market. Craft beer regained some of its lost volume as brewery openings outpaced brewery closures, but the segment remained below 2019 consumption.
About the Industry Overview
The 2022 Industry Overview provides the earliest and most complete data, statistics and analysis in the industry, reporting on preliminary projections of 2021 beverage alcohol sales and consumption.
]]>What’s more, food service research firm Datassential reported in March 2021 that 10.2% of U.S. restaurants, or nearly 80,000 eateries, have closed permanently since the pandemic began. How did this affect on-premise beverage alcohol consumption? It fell about 40% overall.
According to the Beverage Information Group’s 2021 Cheers BARometer On-Premise Handbook, distilled spirits fell 39.0% in 2020 due to the on-premise closures of the COVID-19 pandemic. The categories that fared the best were American Whiskey, Tequila and Irish Whiskey. These segments continued to promote heritage themes, high-end quality, value, innovation and variety. Categories experiencing challenges in the on-premise included gin, Scotch and prepared cocktails.
While consumers have discovered the joys of home mixology, it’s also made them appreciate the skills of a seasoned bartender. A Kantar Profiles/Mintel survey conducted in July 2021 found that respondents were most interested in ordering high-alcohol cocktails when they visit a bar or full-service restaurant. They also want cocktails made with healthy ingredients.
Trend watchers predict that the whiskey and sparkling wine categories will continue to do well. The popularity of tequila and mezcal shows little sign of slowing anytime soon, while interest in other agave-based spirits has been heating up.
Total wine consumption for on-premise establishments decreased 39.2% in 2020 after a few years of steady growth. Marina Velez, Research Director, Beverage Information Group, said that ‘a key challenge for the wine industry is reaching new demographic groups to maintain or increase potential growth. It has helped that wine has been progressively stealing the spotlight at traditionally beer-dominated events/venues such as sporting events, concerts, outdoor activities and festivals’.
Velez continues that ‘while the US wine market is slowly regaining steam, the landscape of the industry has changed so much that a full recovery will not mean business as usual. The on-premise market is much smaller than it was in 2019, while e-commerce is exponentially more important, and the fight for market share is more intense than it ever has been. The wine category is facing significant challenges to market share from spirits and beer. Many on-premise operators have pared down wine lists and are offering fewer by-the-glass options’.
Overall volume consumption within the beer industry has either remained flat or decreased for the on-premise segment over the course of the last decade. In 2020, the on-premise beer consumption dropped 41.3% as bars and restaurants closed their doors nationwide. The industry continues to fight intense competition from the spirits and wine categories for share of consumers’ drinking occasions.
One challenge for the beer industry is how to appeal to new demographic groups, such as women and Millennials, to maintain or increase potential growth. Although the meteoric rise of hard seltzers has led the beer industry in terms of growth, the boom seems to be waning both in on-premise and off-premise.
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On-premise closures due to the COVID-19 Pandemic especially affected the Craft beer industry. After a few years of mature growth, the category posted an 8.6% loss in 2020 to 305 million cases, dropping the category’s market share to 10.8%.
The imported beer category has grown 3.3% on average in the past five years, with Mexican brews largely driving consumption. Modelo, now the number one imported brand, increased 11.5% in 2020 to 143 million cases. After moving to second place in 2019, Corona fell 1.5% in 2020, however, new brand extension Corona Premier experienced impressive growth levels of 20.0% to 11 million cases.
The main story is Flavored Malt Beverages (FMBs), up an incredible 68.1% in 2020 to 306 million 2.25-gallon cases. Hard seltzer brands are paving the way in this category, increasing by 152.9% with an overall 7.2% market share. That’s the highest increase for any part of the overall-sagging beer market. The FMB category also includes coolers and hard sodas.
Barely even a category five or six years ago, hard seltzer is now one of the fastest-growing segments of the alcohol industry and for the first time the Beverage Information Group’s 2021 Beer Handbook is tracking hard seltzer as its own sub-category.
As far as other categories, light beer continues to shrink, down 2.9% in 2020, to 1.13 billion 2.25-gallon cases. Still, light beer represented 40.0% of the overall U.S. beer market in 2020. The popular beer category continues its steady decline for the last eleven years with a loss of 6.2% in 2020.
The ice beer category declined by 10.0% to 67.19 million 2.25-gallon cases in 2020, while malt liquor beer decreased by 9.4% to 43.60 million 2.25-gallon cases in 2020. Malt liquor continues to be hurt by the increasing trend of premiumization in the craft- and imported-beer categories. What’s more, the distilled spirits industry--notably brandy/Cognac, vodka and tequila brands—have been pursuing malt liquor’s main demographic.
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According to the Beverage Information Group’s 2021 Wine Handbook, the consumption of wine increased 0.8% in 2020 to 350.1 million 9-liter cases, vs. falling slightly in 2019. The top ten leading wine brands combined for a 5.5% increase in consumption volume for the overall industry.
“Domestic wines continue to dominate the industry,” notes Marina Velez, Research Director for the Beverage Information Group. Ms. Velez adds, “With a 77.5% share of the market, up from a 76.1% share in 2019. Most of the top-10 leading domestic brands increased significantly after posting a slight decline in 2019.”
At the category level, Table wine rose 0.7% to 315 million nine-liter cases, off-setting the dip in consumption in 2019. As with other segments of the wine category, imports—up 1.3%—fared slightly better in 2020 than domestic table wines, which increased only 0.6%. Franzia continues to be the #1 domestic brand, posting its highest increase since 2013 while Yellow Tail remains the #1 imported brand.
Champagne and Sparkling wine grew by an overall 1.8% in the U.S. to reach 25.2 million 9-liter cases. In the domestic segment, the top five brands represent almost 70% of the category. The top three domestic brands — Andre, Cook’s and Korbel—posted consumption growth in 2020. Imported segment leaders La Marca Prosecco, Cupcake Sparkling and Risata managed double-digit gains.
The Dessert and Fortified wine category remained in positive territory, albeit with relatively flat/weak growth in 2020, posting growth of 0.6% to 7.9 million 9-liter cases. The top three domestic brands —Richard's Wild Irish Rose, Taylor Dessert and MD 20/20—were flat or posted some consumption growth. The top 5 imported brands, which represent 42.7% of the category, managed some growth levels at an average rate of 1.7%.
The Vermouth/Aperitif category grew a minuscule 0.4% in 2020, selling more than 1.5 million 9-liter cases. E & J Gallo's, Gallo Vermouth, remains the leading domestic brand. Bacardi’s, Martini & Rossi Vermouth, realized the most gains in imported brands by growing 20.7% in volume.
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According to the Beverage Information Group’s 2021 Liquor Handbook, the consumption of overall spirits increased 4.6% in 2020 and continues to take market share away from the wine and beer categories. The top ten leading distilled spirits brands combined for a 7.7% increase in consumption volume for the overall spirits industry.
At the category level, vodka remains the market leader of consumption with Tito’s Handmade, Smirnoff, and New Amsterdam leading in volume overall. Interestingly, Tito’s grew 17.8% in 2020 compared to the overall vodka category (2.6%). “Tito's Vodka has posted average growth of 41% since 2010—more than doubling in size in the past four years and shows no sign of slowing”, notes Marina Velez, Research Director for the Beverage Information Group. Ms. Velez adds, “With significant double-digit growth in 2020, Tito’s surpasses Smirnoff to become the best-selling spirit in the U.S. The brand has consistently focused on one offering, emphasizing simplicity, authenticity and natural ingredients, which has contributed to the brand’s success”.
The tequila category experienced 9.4% of growth with Jose Cuervo leading in overall volume, advancing by 21.4%. Within the rum category, Malibu realized 24.7% of growth. Fireball continues to retain its market position in the liqueur category by realizing 11.4% of growth, and now controls 24.0% of the liqueur market.
The whiskey category grew by a total of 6.8% with the largest contribution coming from American whiskey. Straight whiskey experienced the most growth with Jim Beam leading in overall volume. However, much of the growth in this category is coming from smaller brands (Woodford Reserve, Ole Smokey, Gentleman Jack, etc.).
The wellness trend — that is penetrating the beverage alcohol industry —is continuing to fan the flames of the growing Ready-to-Drink (RTD) market. Five out of the top ten fastest growing brands of 2020 are from this category. Bacardi Ready-to-Serve experienced a 4x growth in volume and Cutwater more than doubled growth in volume. The market as a whole grew by a staggering 35.6% and now contributes to 3.7% of the total liquor category.
We are one year from the start of the pandemic and business is starting to boom once again. The on-premise has begun the slow process of recovery as more businesses re-open and people become vaccinated. The shift in consumer behavior towards our ‘new normal’ will drive new growth opportunities within the beverage alcohol space.
]]>For example, Thyme Bar in New York, which had just opened months before the Covid-19 lockdown, created Thyme 2 Go pre-chilled and pre-diluted bottled cocktails. Tiger Fork, a Hong Kong street-food-inspired eatery in Washington D.C., offered its most popular cocktails as adult juice boxes priced from $10 to $15.
Palette in San Francisco sold musically inspired cocktails for takeout and delivery. Packaged in an apothecary jar, the drinks served two and were priced at $18. Italian restaurant chain North Italia had five different cocktail kits so that guests can mix up signature drinks at home.
Mujō, scheduled to open as a pop-up sushi restaurant in Atlanta in March 2020, pivoted to a to-go only pop-up model with an omakase-level sushi and sake program that opened in late May. HomeState, a three-unit Tex-Mex chain based in Los Angeles, decided to take delivery in-house in mid April 2020 after becoming dissatisfied with the third-party delivery providers
As lockdowns lifted, many consumers were eager to get back to dining out, though many preferred to sit outside. Heated tents, igloos and greenhouses began popping up to protect guests dining outdoors from inclement weather. HalfSmoke restaurant in Washington, D.C., and the Kennedy Rooftop bar in Chicago both created "Winter Wonderlands" outdoors, complete with igloos that guests could reserve.
When asked from what type of on-premise operation they are interested in ordering alcohol from, the plurality (26%) of respondents to a Lightspeed/Mintel survey conducted in July 2020 said an outdoor bar. And of those, 19% said they would be interested in ordering alcohol for takeout from an outdoor bar; 36% would be interested in drinking alcohol while visiting the outdoor bar, and 16% would be interested in ordering alcohol from it for delivery.
About the 2020 Cheers On-Premise Barometer Handbook
The Beverage Information Group’s 2020 Cheers On-Premise Barometer Handbook is a comprehensive source of information on U.S. on-premise trends. It includes consumption and projection information by category and by market, tracks leading brands and consumer preferences and demographics. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4423.
]]>On the upside, several cities and states relaxed rules on selling alcohol for takeout and delivery during the early months of the pandemic, with some extending these policies indefinitely, according to the Beverage Information Group’s 2020 Cheers On-Premise Handbook. Beer, wine, batched cocktails and cocktail kits for at-home consumption have been popular with on-premise customers. To-go cocktails have contributed to about 20% of revenue for some restaurants.
Restaurants also became stores in some cases, with several offering grocery items as well as prepared food for takeout or delivery. As most guests preferred the safety of outdoor dining, operators got creative in carving out space on sidewalks, in parking lots and anywhere they could, erecting tents, igloos and greenhouses.
In what other ways has Covid-19 affected the on-premise industry? More than a third (33%) of respondents to a Lightspeed/Mintel survey conducted in July 2020 said that they would not feel comfortable sharing a large-format cocktail (such as punch bowl or communal drink).
Most survey respondents (82%) agree that bartenders/servers should wear masks during the pandemic, 66% feel that bar seating should have dividers to make it safer (such as plexiglass barriers), while 55% feel that canned/bottled drinks are safer than a drink served in an open glass.
More than half (52%) of respondents believe that bars/restaurants should have drink limits during the pandemic—for instance, a two-drink maximum. And 42% think that it's safer to drink at a restaurant than a bar during the pandemic.
That said, 34% of respondents said that they miss drinking in bars. Of those interested in ordering alcohol on-premise, 58% said they would order from any location, 37% said they would order from any full-service restaurant chain; 32% said from any bar, 25% said from any limited service restaurant chain.
About the 2020 Cheers On-Premise Barometer Handbook
The Beverage Information Group’s 2020 Cheers On-Premise Barometer Handbook is a comprehensive source of information on U.S. on-premise trends. It includes consumption and projection information by category and by market, tracks leading brands and consumer preferences and demographics. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4423.
]]>Distilled spirits consumption rose 1.9% in 2019, while wine was up 1.1%. The beer category showed the biggest improvement, with on-premise consumption down 0.3% in 2019 vs. falling 1.3% for 2018.
Beer may continue to pick up in the next year: A Lightspeed/Mintel survey conducted in July 2020 finds that among those consumers who ordered alcohol from a restaurant or bar in the past three months, the plurality (27%) said they ordered beer.
Wine (including Champagne/sparkling wine) was the second most-popular category with 22%, followed by cocktails or mixed drinks (19%); spirits straight or on the rocks (14%); ready-to-drink alcoholic beverages including hard seltzers, wine coolers, etc. (11%); cocktail kits (8%); and cider (8%).
While Margaritas to-go and Margarita kits were popular for homebound consumers during the pandemic, the Margarita was not the top cocktail. Vodka drinks—vodka mixed with anything, typically club soda, tonic or fruit juice—took the top spot in terms of most-popular cocktails on-premise among respondents to the Cheers/Beverage Information Group 2020 On-premise Survey.
What vodka brands are guests choosing? Titos’ domination continues, as the Texas vodka remains the leading call brand overall. Bacardi, Patron, Tanqueray and Jack Daniel’s round out the top-five call brands on-premise.
Cabernet sauvignon and rosé tied for first place for the fastest-growing varietal or style of wine in 2020. Pinot noir and chardonnay were second and third, respectively, while sauvignon blanc and red blends tied for fourth and Champagne/sparkling wine took fifth place for fastest-growing wines in 2020.
The past year was dominated by the pandemic, which devastated most full-service restaurants. But relaxed rules on selling alcohol for takeout and delivery has helped many survive. Operators also showed creativity in reconfiguring layouts for social distancing and carving out space to offer outdoor dining.
About the 2020 Cheers On-Premise Barometer Handbook
The Beverage Information Group’s 2020 Cheers On-Premise Barometer Handbook is a comprehensive source of information on U.S. on-premise trends. It includes consumption and projection information by category and by market, tracks leading brands and consumer preferences and demographics. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4423.
]]>Domestic beer fell slightly to 2.3 billion cases, while imports rose 2.2% to just under 500 million cases. Even craft beer’s growth has slowed, with the category managing a 3.3% increase to hit 333 million cases.
Light beer still commands the lion’s share of the overall U.S. beer market with a 41.7% share in 2019. But its share has been slipping; in 2018 light beer had a 42.6% share, which was down from 43.7% in 2017. Volume consumption of light beer fell 3.0%, to 1.16 billion 2.25-gallon cases.
Mexican brands continue to dominate the imports: Seven out of the top-10 leading imported brands are from Mexico. Modelo Especial in 2019 outpaced Corona Extra as the top import, thanks to a 15.1% increase to 127 million cases. Mexican beer brands resonate with U.S. consumers due to their authenticity and cross-demographic appeal.
Just one non-Mexican imported beer posted growth: Italy’s Peroni, which increased 2.5% in 2019 to hit 1.22 million cases. Many imported beers have struggled, as consumers have turned more to craft and local brews, flavored malt beverages, as well as spirits and wine.
Indeed, beer’s brightest spot is flavored malt beverages, which include hard seltzers: The FMB category jumped 37.2% in 2019. Hard seltzer is estimated to now be a $1.75 billion category and expected to double this year.
The two category leaders, Truly and White Claw, both saw growth rates exceeding 100% in 2019. White Claw sales for 2020 were up 275% as of September. Several of the big beer brands have launched hard seltzers in 2020, including Corona, Bud Light and Vizzy from MolsonCoors.
About the 2020 Beer Handbook
The Beverage Information Group’s 2020 Beer Handbook is the most comprehensive source of information on U.S. beer industry sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4400 ext. 4423.
]]>Selling wine has become more challenging as Baby Boomers are drinking less overall, and Millennials increasingly turn to spirits, cocktails, hard seltzers, non-alcoholic beer and other beverages. The drop in total wine consumption growth is evident in the table wine category, which fell 0.4% to 313 million 9-liter cases. As with other segments of the wine category, imports—down 0.2%—fared slightly better in 2019 than domestic table wines, which decreased 0.5%.
Champagne and sparkling wine consumption, which has averaged a growth rate of 55% during the past 10 years, was the key driver of growth in the overall wine category. This segment grew by 3.1% to reach 24.9 million 9-liter cases in 2019. That represents 18 consecutive years in which the total Champagne/sparkling wine category has increased.
The imported sparkling wines segment, which was up nearly 8%, fueled the growth, as domestic fell slightly. Just three brands in the top-10 domestic sparklers posted increases in consumption. Meanwhile, just two brands in the top-10 imported sparklers saw declines. The four prosecco brands in the top-10 imports—La Marca, Mionetto, Ruffino and Zonin—all enjoyed double-digit growth in 2019.
Some of the lagging categories turned positive last year. For instance, consumption in the Dessert & Fortified Wine category, which has been on a downward trajectory since 1987, stabilized in 2019 with growth of 0.2% to 7.85 million 9-liter cases. And the vermouth/apéritif category, which saw average declines of 1.3% in the past decade, in 2019 posted 1.4% growth to 1.50 million 9-liter cases. The increasing popularity of low-ABV alcoholic drinks has helped spotlight the vermouth/apéritif segment, while consumer interest in iconic cocktails such as the Negroni, Martini and the Manhattan also boosted sales.
The wine industry faces a number of headwinds today, from the coronavirus pandemic, the challenging trade and tariff environment, and the fact that Millennial consumers have not yet embraced wine as their primary beverage of choice. Opportunities exist for wine brands that can redirect their marketing and packaging to the lifestyle priorities and purchasing habits of Millennials and Generation X.
About the 2020 Wine Handbook
The Beverage Information Group’s 2020 Wine Handbook is the most comprehensive source of information on U.S. wine industry sales trends. It includes consumption data and projected sales by category and by market, as well as leading brands and historical information. Categories include table, fortified and dessert wines, sparkling and Champagne, vermouth and wine coolers. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4400 ext. 4423.
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]]>Brown spirits, especially straight whiskeys and bourbons, helped drive the growth. The straight American whiskey category increased 6.1% in 2019, reaching 24.9 million 9-liter cases. Many domestic whiskey brands have successfully expanded their core customer base while also attracting new consumers to the category via gentler flavored offerings.
Tequila, with a 6.6% increase, Cognac (which rose 4.7%) and Irish & Other whiskey (up 8.8%) were other categories that posted gains in 2019. Suppliers have had to adapt to the fast-changing nature of the beverage alcohol business and strive to position brands that resonate as authentic to succeed and win consumers’ drinking occasions. Stories and uniqueness are key elements that help brands appeal to Millennial customers in particular and stand out on today’s overcrowded shelves.
Tito's Handmade Vodka, for one, continues to attract consumers. The authentic Texas brand posted average growth of 45.3% from 2013 to 2018—more than doubling in size in the past three years and showing no sign of slowing. With a 19.1% increase in 2019, Tito’s is on track to surpass Smirnoff to become the best-selling spirit in the U.S. by the end of 2020.
The vodka category overall increased 1.2% in 2019 to reach a whopping 77.57 million 9-liter cases. Several of the major brands, including Ketel One, Absolut and Smirnoff, have launched botanical-inspired expressions highlighting natural flavors, no artificial ingredients and lower-calorie offerings to tap into the better-for-you products trend.
Rum has been decreasing for seven consecutive years, though the category’s decline slowed in 2019. But after many years ranking as the third-largest spirits category—behind vodka and cordials/liqueurs—the rum segment slipped to fourth place, now that American straight whiskey grew its share of spirits to 10.5% and advanced into the third spot.
Total gin volume in the U.S. was nearly flat in 2019, posting a scant decline of .07% to just under 9.89 million 9-liter cases. But that’s a slight improvement from 2018 when it fell 1.1%. There has been considerable interest and innovation in the gin category, with New World styles emerging in recent years that offer citrus, floral and other botanical notes that downplay the juniper flavor.
The premiumization trend continued in 2019. Interest in drinking high-end products at home and at on-premise establishments benefited the spirits, wine and even beer categories as general confidence in the U.S. economy increased last year. Premium and above offerings now make up more than 30% of the spirits category.
While interest in higher-end beverage alcohol brands is expected to keep up, the coronavirus pandemic and ensuing economic fallout may cause consumers to trade down. And if the tariff wars are not soon resolved and prices on imports rise, that will likely suppress demand as well.
About the 2020 Liquor Handbook
The Beverage Information Group’s 2020 Liquor Handbook is the most comprehensive source of information on U.S. spirits and sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data. The publications can be purchased at www.bevinfostore.com or by calling Sherai Falcon at 763-383-4400 ext. 4423.
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]]>Although the distilled spirits and wine categories continued to steal share from beer within the on-premise segment in 2018, their growth rates of 1.7% and 1.1%, respectively, did not make up the difference beer lost in volume (1.3%) due to beer's high share of the total alcohol category.
American Whiskey, Tequila, Cognac and Irish Whiskey contributed to the liquor category’s growth, as these segments promote heritage themes, quality, value, innovation and variety. Imports and the sparkling segment have been driving growth in the Wine category.
The increase in delivery and off-premise business has been putting a crimp in beverage alcohol sales for full-service restaurants. Also hurting alcohol revenue: the fact that consumers are drinking less for a variety of reasons, from financial and social to health and wellness.
A recent Lightspeed/Mintel survey found that 18% of respondents are drinking alcoholic beverage at bars or restaurants less often compared to a year ago. Of those, 48% say that they’re drinking less in general.
Consumers are also gravitating toward healthier drinking experiences as evidenced by products promoting natural ingredients, low-ABV or zero-proof “mocktails.” In fact, self-awareness and staying in control are key motivating factors for many younger consumers opting not to drink at all or limit their alcohol intake during a night out.
While many restaurant industry experts predict that delivery and other off-premises dining will continue to gain market share, the flipside is that customers will crave the social connection of the dine-in experience. As such, they’ll expect a big experiential bang for their buck.
Restaurants that offer unique experiences will likely dominate in the next decade; the experience may be the most important part of the drink or the meal.
About the 2019 Cheers On-Premise Barometer Handbook
The Beverage Information Group’s 2019 Cheers On-Premise Barometer Handbook is a comprehensive source of information on U.S. on-premise trends. It includes consumption and projection information by category and by market, tracks leading brands and consumer preferences and demographics. The 2019 Cheers On-Premise Handbook, Spirits Edition, Wine Edition and Beer Edition are available at www.bevinfostore.com or by calling Sherai Falcon at 760-905-2336.
]]>Norwalk, Conn., (October 23, 2019) – Overall beer consumption continued to slide, with total volume decreasing 1.3% to 2.77 billion 2.25-gallon cases in 2018, according to the Beverage Information Group’s 2019 Beer Handbook. This marks the sixth consecutive year of declines in total beer consumption, as U.S. consumers seek out cocktails, spirits and wine.
Craft beer growth continues to slow, but posted a 4.0% gain in 2018 to 322 million cases, boosting the category’s market share to 11.6%. But with so many craft, seasonal and local styles hitting shelves, consumers are overwhelmed with an excess of beer choices.
The imported beer category has grown 5.1% on average in the past five years, with Mexican brews largely driving consumption. Modelo in particular shot up 12.9% in 2018 to 110 million cases. And while category-leading brand Corona fell 1.9% last year, new brand extensions Corona Familiar and Corona Premier have experienced impressive growth levels.
The big story is Flavored Malt Beverages (FMBs), up a whopping 7.3% in 2018 to 128 million 2.25-gallon cases. That’s the highest increase for any part of the overall-sagging beer market, thanks to hard seltzer. The FMB category includes coolers, hard sodas, ready-to-drink beverages, but hard seltzers are where the action is
Barely even a category four or five years ago, hard seltzer is now one of the fastest-growing segments of the alcohol industry, led by Truly from Boston Beer, and White Claw from Mike’s Hard Beverage Co.
As far as other categories, light beer continues to shrink, down 3.6% in 2018, to 1.18 billion 2.25-gallon cases. Still, light beer represented 42.6% of the overall U.S. beer market in 2018. The popular beer category continues its steady decline for the last nine years with an average loss of 3.3%.
The ice beer category declined by 3.2% to 77.71 million 2.25-gallon cases in 2018, while malt liquor beer decreased by 4.2% to 50.47 million 2.25-gallon cases in 2018. Malt liquor was hurt by the increasing trend of premiumization in the craft- and imported-beer categories. What’s more, the distilled spirits industry--notably brandy/Cognac, vodka and tequila brands—have been pursuing malt liquor’s main demographic.
About the 2019 Beer Handbook
The Beverage Information Group’s 2019 Beer Handbook is the most comprehensive source of information on U.S. beer industry sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data.
The 2019 Beer Handbook is available for $975; the handbook with Excel file is $1,875. The publications can be purchased at www.bevinfostore.com.
]]>The Champagne/sparkling wine segment managed to keep up its growth rate of about 5.7% in 2019. The total sparkling wine category has increased 57% in the past decade and seen 17 consecutive years of gains. Sales of wines in the $15+ per-bottle price points also showed strength: Premium offerings now comprise more than 20% of the wine category volume.
Rosé continued to gain momentum as sales volume across every price category increased by at least 50% over the previous year. And the vermouth/aperitif category, which posed modest growth of 1.2% in 2018, has seen a resurgence since 2014, driven in part by craft cocktails and interest in lower-ABV beverage.
Imported wines—up 1.7%—fared better than domestic wines, which decreased slightly. Domestic wines still dominate, the Wine Handbook notes, with 265,592 million cases in 2018 and a 76.3% share of the market vs. 82,319 million and a 23.7% share for imports.
The wine category overall continues to struggle to compete with the red-hot spirits market and new beer offerings—including flavored malt beverages such as hard seltzer—for consumer attention. But marketing and packaging innovations, such as premium boxed wines and a wide range of wines now available in cans, may help wine tap into more beverage alcohol occasions.
About the 2019 Wine Handbook
The 2019 Wine Handbook is the most comprehensive source of information on U.S. wine industry sales trends. It includes consumption data and projected sales by category and by market, as well as leading brands and historical information. Categories include table, fortified and dessert wines, sparkling and Champagne, vermouth and wine coolers. The 2019 Wine Handbook is available at www.bevinfostore.com or by contacting Marybeth Came at mcame@epgmediallc.com or 763-383-4400 ext. 2216.
]]>Black Velvet is the second-largest selling Canadian Whisky worldwide, named for its velvety smooth taste. The Black Velvet brand fills an important gap in Heaven Hill’s broad distilled spirits portfolio by substantially expanding sales activities in the Imported Whisky category and fits perfectly with its portfolio of high volume, quality brands like Evan Williams Bourbon, Burnett’s Vodka, Deep Eddy Vodka, Admiral Nelson’s Rums, and Christian Brothers Brandies.
“We are excited to add Black Velvet to our iconic group of brands and look forward to growing this historic brand in the months and years ahead,” said Max L. Shapira, President of Heaven Hill Brands. “As we continue to build our business based on strategic acquisitions and innovation, Heaven Hill’s commitment to quality continues to steer the positive outlook for our diverse portfolio.”
In addition to acquiring Black Velvet, Heaven Hill will purchase the historic Black Velvet Distilling facility, one of the eight traditional Canadian distilleries in operation. The acquisition includes all the distilling operations, aging and bottling facilities and the remaining portfolio of Canadian Whisky brands owned by Constellation, which includes Black Velvet, MacNaughton, McMasters, and the international business of the Schenley brands – Golden Wedding and OFC. Canadian Whisky made up 7.3% of total distilled spirits volume in 2018 according to Beverage Information Group, the largest segment of all total Imported Whiskey. The Canadian Whisky category is approximately 16.8 million cases, with Black Velvet volume representing almost two million cases in the U.S. in 2018. Perella Weinberg Partners LP acted as exclusive financial advisor to Heaven Hill Brands with respect to the transaction.
Black Velvet was developed in 1946 and was first introduced to the market in 1951. Brothers Walter and Alfred Gilbey entered the spirits industry in England in 1857. After experiencing tremendous growth, the brothers expanded the business opening their first gin distillery in England in 1872, and eventually expanding to Canada in 1906. Due to high demand in Canada, the brothers built the W&A Gilbey Distillery producing the first drops of Canadian Gilbey spirits on September 11, 1933. Distillers Crosbie Hucks and John S. Napier joined the team developing a number of Canadian Whiskies, with Black Velvet rising to the top due to mass consumer interest. The 1970’s brought growth for the Canadian Whisky category and in turn, IDV, now Diageo, built Palliser Distiller in Lethbridge, Alberta. The distillery has since been re-named The Black Velvet Distilling Company where the product is still produced today.
CONTACT:
Lauren Cherry
Heaven Hill Brands
(502)-413-0217
lcherry@heavenhill.com
As with last year, consumers’ ongoing interest in high-end and superpremium products across the spirits segments—at home and within on-premise venues—has been a key factor in boosting consumption. Innovation in new product offerings and line extensions that resonate with current consumer preferences and changing tastes have also influenced spirits category growth.
The popularity of brown spirits, especially straight whiskeys and bourbons, continues to climb. Domestic whiskey brands have been successfully in expanding their core consumer base while also attracting new consumers into the category via gentler flavored offerings. The tequila, Cognac and Irish whiskey categories also posted significant gains in 2018.
As for popular liquor brands, Tito's Handmade Vodka and Jameson Irish whiskey were among those attaining notable growth levels. Tito’s rose by more than 1 million cases, surpassing Bacardi to become the U.S. market’s number-two spirits brand, behind Smirnoff. Tito’s has posted average growth of 45.3% from 2013 to 2018—more than doubling in size in the past three years and showing no sign of slowing.
Crown Royal Canadian whisky, the Jim Beam family of bourbons and Jack Daniel’s also remained in growth mode last year. Whisk(e)y brands in particular capture the interest of consumers who appreciate the heritage background and authenticity, which drives their purchasing behavior.
The way that Millennials perceive and consume beverage alcohol has significantly affected the industry. Suppliers have had to adapt to the fast-changing nature of the business and strive to position brands that resonate as authentic to succeed and win consumers’ drinking occasions.
About the 2019 Liquor Handbook
The Beverage Information Group’s 2019 Liquor Handbook is the most comprehensive source of information on U.S. spirits and sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data. The publications can be purchased at www.bevinfostore.com or by contacting Marybeth Came at mcame@epgmediallc.com or 763-383-4400 ext. 2216.
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]]>Distilled spirits continues to be the bright spot, achieving its 21th consecutive year of volume growth, up 2.0%. Irish whiskey was the big winner, increasing 9.9% to 4.5 million 9-liter cases, although the category’s growth has slowed from 17.8% in 2017 and 11.8% in 2018. American whiskey remains hot, with a 6.0% increase, driven by interest in straights and bourbons.
Tequila kept up its hot streak with a 7.3% gain to 18.6 million cases. The Brandy and Cognac category grew 6.5% in 2018 to 14.4 million cases, thanks in part to the premiumization trend, and expanded its share of the distilled spirits market slightly to 6.2%. Vodka managed a scant 1.1% increase, retaining its 33% market share, while gin and rum again posted declines.
The wine category was up 1.2%, to 348.8 million 9-liter cases, led by a 5.6% rise in consumption of sparkling wines and strong growth at the $15+ per-bottle price points. Wine may be challenged to remain relevant with consumers as it competes with the spirits and beer categories for share of beverage alcohol occasions.
Beer continues to struggle, with 2018 volumes decreasing 1.3% to 2.76 billion 2.25-gallon cases—the sixth consecutive year of declines. The craft, imported and flavored malt beverage (FMB) categories posted gains of 4% to 5%, but super-premium and premium beers fell 3.6% in 2018 to 358.0 million cases.
And while light beer still dominates the overall category, with a 42.6% share of market, it slid 3.8% in 2018 to 1.2 billion cases. The craft beer explosion in recent years has helped erode the light category, as U.S. consumers seek more flavor and variety in their brews.
About the Handbook Advance
The Handbook Advance provides the earliest and most complete data, statistics and analysis in the industry, reporting on preliminary projections of 2018 beverage alcohol sales and consumption.
The Handbook Advance 2019 hard copy or PDF edition is $1,150; Handbook/PDF with Excel file is $2,050 plus shipping. To purchase, go to www.bevinfostore.com or call Marybeth Came at 763-383-4400 ext. 2216.
]]>Spirits continues to be the bright spot, up 2.5% in 2017, although that’s down from the 4.7% increase the segment saw in 2016. Craft and classic cocktails are driving spirits sales in bars and restaurants, and consumers are also still interested in brown spirits, namely bourbon: On-premise sales of American whiskey increased 4.2% in 2017.
Although total consumption was down, retail dollar sales of beverage alcohol on-premise increased a bit in 2017, an indicator of the continuing premiumization trend. For instance, retail dollar sales of spirits grew 8%, wine rose 2.2% and beer was up 3.2% over 2016.
Wine consumption in the U.S. is driven primarily by women, who account for 52% of all on-premise wine consumers. Millennials have been an increasingly driving force in the wine category as they are an explorative group, and a generation more interested in trying new flavors than adhering to one style or one brand.
Champagnes and sparkling wines in particular are gaining share of on-premise consumption. The segment now comprises 7% of all on-premise wine. Thanks in large part to the continued prosecco boom, imported Champagne/sparkling wines grew 8% vs. domestic options, which increased 7%.
Why is beer struggling on-premise? Wine and spirits have been stealing the spotlight at traditionally beer-dominated events/venues, such as sporting events, concerts, outdoor activities and festivals. And while people are still interested in craft and imported beer, the strong economy, low unemployment and high consumer confidence is inspiring some guests to turn away from the beer category in favor of spirits and wine.
About the 2018 Cheers On Premise Barometer Handbook
The Beverage Information Group’s 2018 Cheers On Premise Barometer Handbook is the comprehensive source of information on U.S. on-premise trends. It includes consumption and projection information by category and by market, tracks leading brands and consumer preferences and demographics.
The 2018 Cheers On Premise Handbook is available for $5,250; the handbook with Excel file is $5,950. The publications can be purchased at www.bevinfostore.com or by calling Marybeth Came at 763-383-4400, ext. 2216.
]]>The Craft beer segment grew 4.9% in 2017 to 310 million cases. While craft beer’s growth has slowed from 6.0% for the past two years, the category has pushed its market share to 11.1% in 2017, up from 10.4% in 2016 and 9.8% in 2015. Still, the oversaturation of some local/regional markets has hurt craft beer. Another factor impacting craft beer: U.S. consumers have never been more experimental or less brand-loyal.
The Imported beer segment was up 3.5% to 470.7 million 2.25-gallon cases, increasing its market share a bit to 16.8% in 2017. Beers imported from Mexico continue to thrive, as consumers see these brands as a step up in flavor and quality from macro U.S. lagers, while also representing a product that’s appealingly authentic.
Flavored Malt Beverages (FMBs) were up 1.3%, reaching 112.3 million cases in 2017. The category’s growth has cooled considerably, as it was fueled largely by gains in the Bud Light Rita’s line, which has slowed in recent years.
Beer segments that have dropped include Light beer, which slipped 3.1% in 2017 to 1.22 billion cases; Popular beer, down 2.5% to 180.9 million cases; Super-premium and premium beers, which fell 3.7% in 2017 to 371.5 million cases and Malt Liquor, down 4.3% to 52.8 million cases. These segments of the beer category don’t represent the current trend of “craft” or “premium” beverages, which makes it more difficult to connect with modern consumers.
About the 2018 Beer Handbook
The Beverage Information Group’s 2018 Beer Handbook is the most comprehensive source of information on U.S. beer industry sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data.
The 2018 Beer Handbook is available for $925; the handbook with Excel file is $1,625. The publications can be purchased at www.bevinfostore.com or by calling Marybeth Came at 763-383-4400, Ext. 2216.
]]>As with the previous year, sparkling wines—up 5.8% in 2017—drove the growth. This marked the 16th consecutive year of increases for the total sparkling category. Strong sales of rosé and wines in the $15+ per-bottle price points also contributed: Consumers have discovered that sparkling wines are not just for special occasions and rosés are not just for warm weather.
Table wine saw modest growth of 0.8% to 311.8 million cases sold in 2017, led by a 1.2% increase of imported wines. This amount represents 90.5% of the total U.S. wine category, the Wine Handbook notes, although some of the major table wine brands are struggling to capture consumer attention that’s been lost to other products such as bourbon and craft beer.
Millennials are more interested in trying new flavors than adhering to one style or one brand, so they buy across different categories, countries and varietals of wine. These consumers are interested in specific wine varietals and drawn to eye-catching label art and a strong brand story.
Higher quality boxed/canned wines are changing consumers’ negative perceptions of this wine packaging. Two of the major boxed wine brands posted double-digit growth in 2017, according to the Wine Handbook.
Red wine blends have also increased in popularity. Consumers no longer look at the term “blend” as a negative but rather a sign that a wine is fine-tuned and flavorful.
]]>What’s driving the premiumization trend? Consumers today have more opportunities to expand their knowledge of all beverage alcohol categories. They can explore their increasing options with the help of brand ambassador programs, experiential events/tastings and the bartending/mixologist community. Unique cocktails and flavor pairings created by industry experts help guide consumers in their beverage selection process and encourage them to new things.
At the category level, interest in brown spirits—especially straights and bourbons—continues to grow. Brand heritage and authenticity increasingly drive purchasing behavior in the whiskey category. Domestic whiskey brands have successfully expanded their core consumer base while also attracting new customers with flavored expressions. Straight American Whiskey continued its roll, expanding 6% to 22.5 million cases. Blended American Whiskey increased 1.3% to 5.3 million cases.
The Tequila, Cognac and Irish Whiskey categories also posted significant gains in 2017. Tequila was up by 6.1% for a total of 17.3 million cases. The Brandy and Cognac category grew 6.8% in 2017, reaching 13.5 million cases. Irish and Japanese Whiskey combined increased 12.2% for a total of 4.1 million cases.
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The Imported beer segment enjoyed another year of strong volume performance, growing 6.7% to 454.4 million 2.25-gallon cases. This continued success helped push the import’s market share to 16% in 2016. The segment last peaked in 2007 when it reached 13.8% with 408.3 million 2.25-gallon cases before slipping each year until 2014, which began a string of years with positive sales gains.
The Craft beer segment grew 6.0% in 2016 to 300-million 2.25-gallon cases, the same growth rate as in the prior year. Remarkedly it surpassed the 10% market share for the first time, reaching 10.4% up from 9.8% in 2015. The craft explosion, however, is beginning to show signs that it’s losing steam. As the numbers of Millennials continues to grow so does their penchant for experimentation across brands and categories. On the upside for the craft segment is the growing number of regional and micro- breweries, topping 5,234 in 2016. With so many new offerings hitting the marketplace, Millennials may still find crafts appealing.
Flavored Malt Beverages (FMBs) leveled off in 2016 after experiencing growth of 7.5%, 8.2% and 21% the last three years, respectively. In 2016 FMBs accounted for 110 million 2.25-gallon cases, growing just 2.4%. The reason for this slow down begins at the top. Segment leader Bud Light Rita’s line had been growing at double and triple-digits since its introduction in 2012. In 2015 that momentum suddenly halted to just 0.5% growth, with growth in 2016 of only 0.1%. Still at 30.7 million 2.25-gallon cases, the brand is still a powerhouse and the segment leader.
The Super and Premium beer segments suffered in 2016 from the same problem as the Light beer segment: there’s a general malaise towards them for not being craft beer. Overall, the segment lost 13.3 million 2.25-gallon cases in 2016, shrinking to finish the year with 385.8 million 2.25-gallon cases. The super and premium segment commanded a 13.6% share of beer industry.
The Light beer segment is also under fire, slipping 2.6% in 2016, despite it being the largest segment in the industry with a whopping 44.5% market share. The light segment sold 1.26 billion 2.25-gallon case in 2016, 33 million fewer cases than in 2015. Among the 23 beers included in the 2017 Beer Handbook’s top light brands, only Michelob Ultra registered positive sales, finishing in 6th place with 70.8 million 2.25-gallon cases sold, an uptick of 18.4% over 2015.
The Popular beer segment continued its steady decline in recent years with only 6.5% of the overall beer market. The segment was down 1.7% to 185.6 million 2.25-gallon cases. The Malt Liquor and Ice segments were also down, roughly 4% verses 2015.
About the 2017 Beer Handbook
The Beverage Information Group’s 2017 Beer Handbook is the most comprehensive source of information on U.S. beer industry sales trends. It includes consumption and projection information by category and by market, tracks leading brands and reports historical data.
The 2017 Beer Handbook is available for $850; the handbook with data CD is $1,450. Shipping and handling is $15 for U.S. residents and $35 for international orders. The publications can be purchased at www.bevinfostore.com or by calling Marybeth Came at (203) 855-8499, Ext. 2251.
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