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
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StateWays Q www.stateways.com Q March/April 2014 12 fl avored whiskies, and the consumer's newly dis- covered interest in rye. The smallest imported whiskey category, Irish and Other whiskies, jumped another 16.1% in 2013, to almost 2.5 million 9-liter cases, once again driven primarily by the ongo- ing success of Jameson Irish Whiskey. Tequila also increased last year, with consumption up a healthy 5.2% to 13.62 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 a sig- nifi cant consumption increase of 6.1% in 2013, to 22.33 mil- lion 9-liter cases. The fast growth of honey-fl avored whiskies most likely played a role in the gains. The brandy & cognac category also saw sales rise in 2013, by 2.4% to 10.75 million cases, with the largest increases, once again, seen among the high-end cognac segment. The gin category continued its slight decline from last year, down 1.2% in 2013; however, its increasingly visible high-end segment posted a 3.9% gain. For its part, Prepared Cocktails saw a decline, off 8.9%. WINE REVIEW T able wine comprises almost 92.0% of all wine con- sumed in the U.S., and it continued growing in 2013, rising 2.3% in 2013 to reach just under 299 million 9-liter cases. Domestic brands continued to outperform imports, gaining 2.5%, while imported table wines were up 1.3% overall. Domestic table wines now represent 70.8% of the overall U.S. wine market. Most industry observers point to the growth of premium- and superpremium-priced wines as an important dynamic in the marketplace, even though the majority of the overall sales volume is composed of wines selling for under $10 per bottle. Champagne & Sparkling wine posted a 2.7% increase in 2013, to almost 17.2 million 9-liter cases. Most of the growth in the cate- gory came from the more affordable domes- tic and imported sparklers. Even smaller in size is the Dessert & Fortifi ed wine category, which declined another 2.0% in 2013, to 8.14 million cases, while vermouth was off 1.4%. 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 them solid distribution and retail support, supplier resources, marketing creativity, product heritage and brand equity, the right economic environment, a solid product in the bottle, advantageous price positioning and sometimes just plain luck - help lead to product success." For example, six years ago, at the height of the Great Recession, a number of high-fl ying brands suffered, particularly several superpre- mium-priced brands. At the same time, many value-priced brands thrived; and many other brands of differing price points adjusted to new market realities. Since the economy recovered, most of those superpremium brands have regained momen- tum; simultaneously, a wide variety of additional brands have continued to make positive strides with consumers and retailers alike. Those are the brands that appear on the following pages. And, as we've said in the past, though evaluating category con- sumption trends can provide the big picture, drilling down to actual brand performance provides the details. Thus, the reason for our annual Growth Brands report, which uses the most up -to-date industry results to highlight the wine and spirits brands with noteworthy growth over the past several years. SPIRITS FAST TRACK BRANDS T he Fast Track Growth Brands category includes the top-performing brands, percentage-wise, during the past four years. The criteria are demanding: a wine or spirit must have maintained double-digit percentage growth over each of those four years while selling at least 100,000 9-liter cases this past year. Based on the Beverage Information Group's 2013 statistics, 15 spirits brands made the Fast Track list this year, six fewer than last year's total of 21. This year there are three new Fast Track spirits members, while three of the brands from last year that fell off the list moved to the Established Growth Brand category. Overall, there are fi ve vodkas numbered among the 15 Fast Track brands, with three of the top fi ve brands being vodkas. The fi rst, Burnett's Vodka, leads the Fast Track, having broken through the 2 million case mark in 2012. The brand gained another 15.3% in 2013, notching 2.35 million 9-liter cases. The value-priced vodka counts Pink Lemonade, Limeade, Orange Cream and Maple Syrup among its nearly three dozen fl avors. Tito's Handmade, the above-premium-priced vodka from Texas, returned to the Fast Track, showing another year of amazing growth, up 41.2%, breaking through the 1 million case barrier to 1.2 million 9-liter cases last year. Tito's has suc- cessfully leveraged its made in America heritage and maintains its single original vodka in a sea of vodkas that have added nu- merous fl avors onto their mother brand. Fast Track repeater, mid-priced Platinum 7X Vodka, distilled seven times, saw sales increase 12.7% last year, to 738,000 cases. Other vodkas include new Fast Track member Exclusiv, which exploded by 94.8% last year, to 565,000 cases. Priced at about $10 for a 750 ml bottle, Exclusiv, imported from Moldova, has successfully challenged the value-priced tier with its original vodka, plus