Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/116557
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). Continuing a recent trend, the popularity of the Mojito is still helping to drive rum sales, along with other popular rum-based cocktails. In addition, the category is also benefiting from newer spiced and flavored rum launches, as well a higher-end 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 small 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. IDENTIFYING THE GROWTH BRANDS The categories of Growth Brands are designed to organize the wine and spirits brands demonstrating notable growth in a meaningful way, so as to help retailers, restaurateurs and the industry at large to discern the existing and emerging trends and tap into the opportunities. The criteria remain the same for distilled spirits and wine. FAST TRACK BRANDS Criteria: The brand must have exceeded 100,000 9-liter cases in 2012, with double-digit growth over each of the past four years. All brands must be at least five years of age. RISING STARS Criteria: The brand must be less than five full years of age, and exhibited notable growth over the past few years, with a minimum of 20,000 9-liter cases. ESTABLISHED GROWTH BRANDS Criteria: The brand must be a top seller, moving a minimum of 400,000 9-liter cases annually, and must have grown moderately or substantially over each of the past four years. COMEBACK BRANDS Criteria: Recognizes brands of significant volume that saw a sales decline in 2011, but which rebounded in 2012. This increase, however, must have resulted in total sales that are at least equal to or greater than the 2010 sales total. 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. 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 thirdlargest 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, essentially flat in 2011 but which 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 T able 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. Domestic table wines now represent 71.7% of the overall U.S. wine market, and while a majority of the sales volume is comprised of wines selling for under $10 per bottle, the greatest percentage growth is in the higher-end price segments. And industry observers say that as the economy continues to recover, premium and superpremium wine sales should pick up. Champagne & sparkling wine kept pace with 2011's gains, increasing by 3.6% in 2012, to more than 15.8 million 9-liter cases. This is the eleventh straight year of gains for this segment, and it is approaching the highpoint of sparkling sales of more than 17 million cases regularly seen in the 1980s. The recent popularity of prosecco is playing a significant role in this growth. Even smaller in size is the dessert & fortified wine category, which declined another 0.7% in 2012, while vermouth dropped 4.9%. BRANDS MAINTAINING GROWTH S o, what is the rationale for publishing our Growth Brands lists? To quote what we've said here before, "There are beverage alcohol products in every category and at every price point that, for any number of reasons, have either lagged behind or outpaced their respective competitors. Often, a combination of elements – among 26 • Beverage Dynamics • www.beveragedynamics.com • March/April 2013