Stateways March-April 2014

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

Issue link:

Contents of this Issue


Page 3 of 51

StateWays Q Q March/April 2014 4 StateWays ® Executive Vice President and Group Publisher Charles Forman Tel: 845-262-1041 Fax: 845-445-6674 Editor- in-Chief Richard Brandes Tel: 212-353-3832 Art Director Adam Lane Contributing Editor Melissa Niksic Senior Regional Sales Manager Bruce Kostic Tel: 203-855-6499, ext. 215 Senior Regional Sales Manager Mark Marcon Tel: 248-761-6231 Senior Regional Sales Manager Debbie Rittenberg Tel: 215-860-0306 Senior Research Analyst Adam Rogers Vice President, Beverage Amy Collins Production Manager Cherri Perschmann Tel: 763-383-4425 Interested in List Rental, contact Jim Scova Tel: 914-368-1012 Want Reprints, contact Circulation and Audience Development Manager Debra Welter StateWays is published by The Beverage Information Group, a division of Specialty Information Media E D I T O R ' S N O T E Numbers on the Brain F or those of you who like to read about actual consumption statistics, trends and what brands are outperforming their category counterparts, this is the issue for you. For nearly two decades now, StateWays has been publishing its annual Growth Brands feature that identifi es the fastest-growing wine and spirits in the beverage alcohol industry. Much credit must be given to our hardworking research staff, which provides the data. So let's talk numbers. As I note in our Growth Brands story (see page 10), "U.S. distilled spirits sales volume in 2013 rose to an estimated 210.6 million 9-liter cases, notching a 2.4% gain versus 2012. That represents a sales volume bump of nearly 5 million 9-liter cases over 2012. Importantly, overall spirits retail revenue growth (the combined dollar total of off- and on-premise sales) also increased in 2013, by 4.2% to $75.82 billion, a gain of more than $3 billion over 2012. The higher percentage gain in spirits revenue (versus spirits sales volume) underlines the ongoing trend of recent years: the dynamic sales activity among premium- priced and above-premium-priced spirits products." Our Growth Brands feature, of course, drills down to actual brand performance, which often, but not always, refl ects the overall trends in the industry. It's a similar story in the wine segment. Total U.S. wine sales volume increased by an estimated 2.2% in 2013, to approximately 326.0 million 9-liter cases. This represents a sales volume gain of more than 6.8 million 9-liter cases versus 2012 totals. And similar to spirits, the move toward high-end purchases continued in the wine segment, evidenced by the segment's 3.6% revenue increase in 2013, to just under $30 billion. Though positive, these overall returns refl ect declining increases compared to recent years. The same holds true for aggregate growth in the control states. According to data released by NABCA, 2013 control state spirits sales volume increased 1.1% versus 2012. Leading categories were Irish Whiskey (+12.0%), Cordials (+5.5%), Domestic Whiskey (+3.1%), Brandy/Cognac (+2.0%), Tequila (+1.7%) and Vodka (+1.2%). Overall, the NABCA report says, the 1.1% volume growth rate represents the lowest rate in the 14 years from 2000 through 2013. Even during the recession of 2008 and 2009, spirits sales volume growth in the control states outpaced last year's growth rate. At the same time, control state spirits "shelf dollars" grew 3.9% in 2013, the NABCA reports, with Irish Whiskey (15.6%), Domestic Whiskey (8.7%), Cordials (7.2%), Brandy/ Cognac (6.3%) and Scotch (6.1%) leading the way. This suggests that sales of premium- priced spirits in the control states continue to progress. But, as always in the control states, sales volume and revenue are only part of the story. Another, equally important, consideration for control state administrators is helping to combat the misuse and abuse of beverage alcohol products. And our story, "Social Responsibility Initiatives in the Control States (turn to page 28), covers several of the latest, successful programs that a number of states have instituted. This is an issue that won't go away, and it's worth noting that the control states are generally at the forefront of these efforts. Richard Brandes, Editor-in-Chief

Articles in this issue

Links on this page

Archives of this issue

view archives of Stateways - Stateways March-April 2014