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www.cheersonline.com 11 May 2015 • DRINK CULTURE By Jeremy Nedelka The distilled spirits industry is still struggling to build mo- mentum as it comes out of the recession, growing 1.6% in 2014, according to preliminary data from the Beverage Information & Insights Group (BIIG). The research group's recently released Handbook Advance shows that more than 213.4 million cases of distilled spirits were sold in 2014, compared to 210.1 million in 2013. "The industry shouldn't be excited about a 1.6% growth rate," says Adam Rogers, BIIG's manager of in- formation services. "But what's important to remember is that today's consumers are drinking less, but they're also drinking better, which bodes well from a revenue perspective." Looking at what's driving spirits sales growth, the big- gest winner in 2014 was American whiskey. It increased 4.9% over 2013 with more than 23.6 million cases sold vs. 22.5 million a year earlier. American whiskey also increased its share of the overall spirits category, from 10.7% in 2013 to 11.1% in 2014. "Straight whiskey's growth of 6.5% last year puts it just a year or two away from reaching its apex of 20 million cases, which it last posted two decades ago," Rogers says. "But what's really impressive are the current offerings from suppliers, which are high quality and experimental. They're truly works of art." ON THE DOWN SIDE American whiskey's increase came at the expense of Canadian whisky, Scotch, gin, vodka and rum, which all saw their share of the industry decline. Except for vodka, which increased by 1.5%, all of those categories also experienced a decline in sales during 2014. "I believe vodka's share of market will continue to erode in the short term, but the category will stabilize over the long term," Rogers says. "There was a 42% decrease in new vodka products entering the market this year compared to 2013, but there will be brands that continue to achieve success by providing differentiation in the consumers' eyes." Thanks to domestic whiskey sales, the total whiskey category was up 1.9% in 2014, slightly ahead of the 1.5% increase in all non-whiskey sales. Categories with notable growth include tequila (up 5.2%), cordials/liqueurs (up 6.2%) and brandy/Cognac (up 3.3%). The largest decline during 2014 was in prepared cocktails segment, which decreased by 7.9% to less than 5 million cases sold. What's in store for 2015? "I expect to see more small-batch and barrel-aged products across all categories, from suppliers large and small," Rogers says. "Today's consumer wants to feel special, and purchasing a product that they feel is 'crafted' for them achieves that." For more information about the Handbook Advance and additional beverage alcohol industry data from the Beverage Information & Insights Group, visit www. albevresearch.com and www.bevinfostore.com. American Whiskey Fueling Spirits Industry Growth DISTILLED SPIRITS CONSUMPTION BY CATEGORY, 2013-2014p (Thousands 9-Liter Cases) Category 2013 2014p Cases Share Cases Share % Change Straights 17,630 8.4% 18,770 8.8% 6.5% Blends 4,890 2.3% 4,850 2.3% -0.8% Total American Whiskey 22,520 10.7% 23,620 11.1% 4.9% Canadian 15,675 7.5% 15,450 7.2% -1.4% Scotch 8,835 4.2% 8,700 4.1% -1.5% Irish and Other 2,450 1.2% 2,635 1.2% 7.6% Total Imported Whiskey 26,960 12.8% 26,785 12.6% -0.6% Total Whiskey 49,480 23.6% 50,405 23.6% 1.9% Gin 10,635 5.1% 10,415 4.9% -2.1% Vodka 71,335 34.0% 72,390 33.9% 1.5% Rum 26,830 12.8% 26,430 12.4% -1.5% Tequila 13,620 6.5% 14,325 6.7% 5.2% Brandy and Cognac 10,695 5.1% 11,050 5.2% 3.3% Cordials and Liqueurs 22,180 10.6% 23,545 11.0% 6.2% Prepared Cocktails 5,275 2.5% 4,860 2.3% -7.9% Total Non-Whiskey 160,570 76.4% 163,015 76.4% 1.5% Total Distilled Spirits 210,050 100.0% 213,420 100.0% 1.6% (p) Preliminary. Source: Handbook Advance 2015.