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Issue link: http://read.dmtmag.com/i/114508
In fact, the latest statistics from The Distilled Spirits Council of the U.S. (DISCUS) point out a notable trend toward upscale purchases: From 2003 to 2012, supplier sales of value products rose 24.5%, while using the same metric, supplier sales of superpremium spirits products gained 163.0%. This movement is clearly indicated by the higher percentage revenue gains vs. sales volume gains, as impressive as they may be. The same holds true in the wine segment. Total U.S. wine sales volume increased by 2.7% in 2012, to approximately 320.8 million 9-liter cases (compared to an overall 2.5% wine volume increase in 2011). That's the 19th consecutive year of wine sales volume increases, according to Beverage Information Group research. Similar to spirits, the move toward high-end purchases continued in the wine segment, evidenced by the segment's 3.9% revenue increase in 2012 to $28.9 billion. SPIRITS OVERVIEW The vodka category continues to dominate the spirits landscape in the U.S. The huge segment rose another 6.0% in 2012, following a 6.0% increase in 2011. Overall, the vodka segment added almost 4 million 9-liter cases to its 2012 total of about 70.43 million 9-liter cases. Vodka now represents just about one-third of all spirits consumed in the U.S., with new expressions, flavors and brands from around the world continually testing the U.S. marketplace. Even with the deluge of unusual flavor introductions, vodka also maintains a vibrant superpremium segment, which according to DISCUS rose by another 10% in 2012. Rum, the second-largest spirits category, also saw growth in 2012, up 2.1% to 26.87 million 9-liter cases (compared to a 1.3% gain in 2011). The continuing popularity of the Mojito is still helping to drive rum sales, along with other fashionable rum-based cocktails. What's more, the category is benefiting from newer spiced and flavored rum launches, as well a higherend offerings. Straight American whiskey is another category that saw sales volume rise significantly in 2012, gaining 4.9% to 16.5 million 9-liter cases. The segment has been energized by growth in the superpremium segment (up 12.4%, according to DISCUS), while at the same time benefiting from flavored bourbon debuts. Once again, the smaller American blends segment decreased by 1.1% to just over 4.93 million cases. For its part, overall Scotch whisky reversed declining sales volume from 2011 (down 1.4%) to eke out a slight 0.2% gain in 2012, to 8.57 million cases. A notable segment is single malt Scotch, which gained more than 9% in 2012. Canadian whisky also reversed a downward trend, with a 0.5% sales increase to 15.4 million cases. Good news continues to come from the smallest imported whiskey category: Irish and other whiskies. They jumped ahead by 17.8% in 2011, to a relatively modest total of 2.08 million 9-liter cases, once again driven primarily by the ongoing success of Jameson Irish Whiskey. www.cheersonline.com Tequila also increased last year, with consumption up a notable 5.7% to just under 13 million 9-liter cases. Still largely driven by the Margarita, the category's consumption trends also take into account the various levels—from premium to superpremium to ultra-premium—of a brand's portfolio. The third-largest spirits category, cordials & liqueurs, saw total consumption gain 4.6% in 2012, turning around a slight decline in 2011. Also gaining was the brandy & cognac category, which was essentially flat in 2011 but saw sales rise by 1.6% in 2012, with the largest increases attributable to the high-end cognac segment (up 5.2%). The gin category continued its slight decline from last year, down 0.8% in 2012, while prepared cocktails likewise saw a modest decline, off 2.5%. WINE REVIEW Table wine now comprises about 92.0% of all wine consumed in the U.S., and it continued growing in 2012, rising 2.8% in 2012 to reach 295.1 million 9-liter cases. Once again, domestic brands outperformed imports, gaining 4.3%, while imported table wines declined 2.1% overall. Identifying the Growth Brands The four Growth Brand categories are designed to organize the wine and spirits brands that have demonstrated notable growth so that operators and the industry at large can discern the existing and emerging trends and tap the opportunities available. Our Growth Brand criteria remain the same as last year for distilled spirits and wine. Fast Track Brands The brand must have exceeded 100,000 9-liter cases in 2012, with double-digit growth in each of the past four years. All brands must be at least five years old. Rising Stars The brand must be less than five full years old, and must have exhibited notable growth in the past few years. Established Growth Brands The brand must be a top seller, moving a minimum of 400,000 9-liter cases annually. It must also have grown moderately or substantially in each of the past four years. Comeback Growth Brands Brands that have rebounded in sales to at least the previous level after a recent decline. MARCH 2013 | 27