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 ■ www.stateways.com ■ March/April 2015 16 The spirits industry is certainly in fl ux, as consumers move away from vodka toward whiskies and embrace fl avored spir- its in new categories. The cinnamon whisky, moonshine and premium Bourbon trends continue to mature, increasing com- petition within the category as brands fi ght for staying power. As that battle plays out, distilled spirits are also competing for market share with beer and wine as consumers cross categories more frequently. "Last year was a transitional one for bev- erage alcohol, as changing consumer trends forced the industry to adapt," says Adam Rogers, Manager of Information Services at The Beverage Information & Insights Group. "Consumers are no longer tied to one category, as they now approach their consumption type by occasion. Beer, wine and spirits are inter- changeable to many consumers, based on how they believe one or the other will enhance their drinking occasion." Spirit brands are also benefi ting from consumers trading up to premium and super-premium brands, turning the corner on the downward trend that began during the recent recession. "What stands out to me most in the beverage alcohol in- dustry right now is the renaissance going on with regard to product quality," Rogers says. "Although consumers are often drinking less, they're also drinking better, which bodes well from a revenue perspective." Since the defi ning trends in spirits are well established, there weren't many unexpected winners on this year's Growth Brands list, with one notable exception: BuzzBallz. "Rising Star BuzzBallz isn't playing into the premium trend, but rather a convenience trend," Rogers says. "Other newcomers, like Ménage à Trois Vodka, are prime examples of targeting con- sumers through occasions. In the case of Trinchero Family Estate's vodka extension of its popular Ménage à Trois Wine (an Established Growth Brand itself), the company is seeing brand loyalty as consumers cross from wine to spirits." Looking ahead to 2015, Rogers expects an even better year for the wine and spirit categories, with more winning Growth Brands. BY JEREMY NEDELKA AND KYLE SWARTZ { RISING SPIRITS } 2015 GROWTH BRAND AWARDS – SPIRITS 2015 Growth Brands evolve with changing consumer preferences. (Thousands of 9-liter cases) '13/'14 '10/'14 Brand Supplier 2010 2011 2012 2013 2014p % Chg % ACGR Fireball Sazerac 125 350 770 1,870 3,895 ++% ++% Burnett's Vodka Heaven Hill Brands 1,520 1,850 2,039 2,350 2,608 11.0% 14.5% Tito's Handmade Vodka Fifth Generation 364 582 850 1,200 2,200 83.3% 56.8% Platinum 7X Sazerac 470 548 655 738 835 13.1% 15.5% Familia Camarena E & J Gallo Winery 75 250 420 571 725 27.0% 76.3% Bulleit Diageo 90 125 260 450 635 41.1% 63.0% Exclusiv Serge Imports 50 106 290 565 627 11.0% 88.2% RumChata Agave Loco Brands 17 64 325 460 540 17.4% ++% Deep Eddy Deep Eddy Distillery 5 15 60 190 455 ++% ++% The Kraken Proximo Spirits 75 150 225 325 424 30.5% 54.2% Buchanan Diageo 200 235 270 307 362 17.9% 16.0% Don Julio Diageo 180 197 225 270 327 21.1% 16.2% Knob Creek Beam Inc. 140 165 193 231 290 25.4% 20.0% Woodford Reserve Brown-Forman Beverages 127 147 181 221 276 24.9% 21.4% Hendrick's William Grant & Sons 101 134 174 209 246 17.4% 24.9% Evan Williams Flavored Reserves Heaven Hill Brands 55 110 142 165 195 18.2% 37.2% Tullamore Dew William Grant & Sons 68 79 95 115 142 23.5% 20.2% Buffalo Trace Sazerac 35 44 66 96 123 28.1% 36.9% Espolon Tequila Campari America 25 53 75 100 112 12.0% 45.5% (p) Preliminary. (++%) Greater than 100%. ACGR=Annual Compound Growth Rate Source: The Beverage Information Group Handbooks & Directories. To learn more go to www.bevinfostore.com. FAST TRACK BRANDS: DISTILLED SPIRITS The brand must have exceeded 100,000 9-liter cases in 2014, with double-digit growth over each of the past four years. All brands must be at least fi ve years of age.