The distilled-spirits market grew for the eighth straight year, with 2007 sales up 5.6%, totaling $18.2 billion, as consumer interest in cocktails and high-end products remained high, according to the Distilled Spirits Council of the US (DISCUS).
Moreover, in 2007, distilled spirits volume increased 2.4%, to 181.5 million cases, DISCUS said (via MediaPost).
The Council also forecast that despite a weakening economy the growth would continue for a ninth year in 2008, projecting sales growth of 4.6%, to $19 billion, and a volume increase of 1.9%, to 185 million cases.
Among other key findings:
- Spirits TV advertising, per TNS Media Intelligence, totaled $120.4 million (measured national media), up from $118.7 million in 2006 and $102.2 million in 2005, DISCUS said.
- Spirits and wine increased market share in 2007, while beer lost share for the sixth year in a row due to continued premiumization; more consumers switching to spirits over beer; price increases; and population growth.
- 2007 growth, by type of spirit:
- Vodka, accounting for 24% of industry sales, saw a 7.65% revenue growth to $4.3 billion.
- Rum, accounting for 18% of industry sales, saw 8.9% revenue growth to $2.1 billion.
- Tequila, accounting for 15% of industry sales, saw 10.5% growth to $1.6 billion.
- Whiskey (Bourbon, Blends, Canadian, Scotch and Irish), accounting for 29% of industry sales, saw 3.8% growth to $5.2 billion.
- 2007 was yet another record year for US exports, primarily American Whiskeys, according to DISCUS preliminary estimates: Exports grew approximately 15% in volume in 2007 compared with 2006, hitting a record $1.01 billion.
“American Whiskeys have achieved remarkable global acceptance in a very short period of time and can now be found in more than 100 markets worldwide,” said DISCUS SVP for international trade Debbie Lamb.
She noted that DISCUS is beginning its 4th year of export promotion in emerging markets, including China, Vietnam, Brazil, Chile, Romania and Bulgaria. Top countries for US spirits exports include the United Kingdom, Canada, Germany, Australia and Japan.
A PDF presentation on the data is available from the DISCUS website.