Premiumization trend drives distilled spirits dollar sales
Consumers are drinking less but better, Beverage Information & Insights Group reports
As the economy continues to expand, premium and super-premium distilled spirits are coming back stronger than ever, according to the Beverage Information & Insights Group’s “2014 Liquor Handbook.” The Norwalk, Conn.-based company reports that this premiumization trend means that consumers are drinking less but drinking “better,” which resulted in slower case sales growth of 2.2 percent, reaching 210 million 9-liter cases in 2013.
Although the category overall experienced diminished growth following this premiumization trend, most of the distilled spirits segments experienced upticks, with a few exceptions. For example, unlike straight whiskey, blended whiskey has dealt with declining sales and marketers focusing on categories with higher potential. Gin also lost volume because high-end offerings, which make up the majority of the category's growth, were not large enough to make up for the deficit overall. Finally, pressure on the prepared cocktails segment to create new products, combined with the slowing of Beam Suntory Inc.’s Skinnygirl brand, resulted in the category losing 9.1 percent, the Beverage Information & Insights Group reports.