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: https://read.dmtmag.com/i/705687
Category Trends 22 Beverage Dynamics • July/August 2016 www.beveragedynamics.com ket Council data, up from $8 fi ve years ago. Prosecco, Rosé, red blends and Sauvignon Blanc were all best sellers in 2015, according to Wine Market Council fi ndings. Spar- kling wines in particular enjoyed robust sales last year. Prosecco sales volume was up 34.3%, which helped lift the entire sparkling category to 11.7% growth. Of customers who purchased Prosecco last year, 31% did not buy any sparkling wine in 2014. And 72% of Prosecco purchasers who had bought it before reported buying it in greater quantities in 2015. Rosé enjoyed 31.8% growth in 2015. Even more promising, Rosés priced above $11 gained 59.9% in volume last year. The good news about the sparkling boom: more consumers consider these wines to be every-day drinks, rather than just for holiday celebrations. The bad news is for U.S. wine companies, Velez says. "Imported sparkling wines grew 6.6 percent to 7.1 million cases last year, while domestic brands were estimated to be sta- ble at 8.85 million cases," she points out. TEQUILA'S RISE It's been said that all whiskey drinkers are tequila drinkers, they just don't know it yet. Well, more consumers seem to realize it now. Premium tequila is making a play for more shelf space. Im- age-conscious brands like Patrón and Casamigos have helped change consumer attitudes toward the Mexican spirit. "They're creating awareness that tequila isn't just a party drink," Velez explains. "They want consumers to see it as a drink you can pair with a meal like a wine or beer." And brands want consumers to think of top-shelf tequila the way they would of whiskey: as a spirit that can be poured neat and enjoyed as a sipper for its smoothness and complexity of fl avors. Millennials in particular have embraced tequila as a premium product. This is helped by the generation's appreciation for all things craft. Many tequila brands (such as Patrón) have done an excellent job of highlighting the artisanal traditions and hand- made qualities behind this ancient Mexican spirit. WHAT'S NEXT FOR VODKA? Vodka remains a tricky category to defi ne. On one hand, its growth was relatively fl at in 2015. On the other, vodka still rep- resents 33.7% of all spirits sales, which is more than any other category. Vodka seems to lose the battle but win the war. The king of white spirits retains its throne in terms of sales, while smaller categories receive all the momentum and press. Which speaks to the category's main issue in recent times. Consumers tend to be less excited about premium vodka, compared to top-shelf products in other categories. After the fl avored-vodka craze died down, the category has struggled ad- justing to today's craft-driven market. Grey Goose sales declined 7.6% last year, while Absolut shrunk 2.2%. Meanwhile, mid-level brands Svedka and Skyy grew 2.9% and 2.0%, respectively. Consumers seem to prefer non-premium vodka. However, there are exceptions. The premium brand New Amsterdam increased 17.5% in sales last year. Burnett's Vodka showed that craft focus could help resuscitate fl avored vodka, as the brand grew 9.7%. Both vodkas were successful in promoting their craft and handmade qualities. A vodka brand that enjoyed a robust 2015 is perhaps the perfect combination of mid-level pricing and craft qualities. Tito's Handmade Vodka continued its meteoric rise up the sales chart with a 25.7% gain in 2015. HARD CIDER AND SODA First it was hard lemonade. Now hard cider and soda have both spiked in sales. U.S. SPIRITS CONSUMPTION BY CATEGORY (By Millions of 9-Liter Cases in 2014-2015) SPIRIT '14-'15 % CHG Whiskey 52.8 +4.6 Gin 10.2 -1.8 Vodka 72.8 +1.1 Rum 24.6 -1.5 Tequila 14.9 +4.4 Brandy and Cognac 11.6 +5.6 Cordials and Liqueurs 24.0 +1.8 Prepared Cocktails 4.7 +0.4 Source: 2016 Handbook Advance from the Beverage Information Group U.S. BEER CONSUMPTION BY CATEGORY (By Millions of 2.25-Gallon Cases in 2014-2015) CATEGORY '14-'15 % CHG Craft 278.9 +15.1 FMBs 108.1 +6.7 Super Premium and Premium 402.8 -1.5 Light 1,295.2 -3.6 Popular 188.8 -3.8 Malt Liquor 57.4 -2.0 Ice 88.5 -4.0