Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beverage NewsWine & Spirits

Brown spirits dominate growth of US spirits market

Growth slowing in flavored vodkas, overall spirits category, Rabobank reports

Beverage News graphic
June 3, 2014

Brown spirits are leading much of the growth in the U.S. spirits market, with the segment growing 3 percent in the first four months of 2014, according to New York-based Rabobank’s latest global spirits report. More specifically, sales of Tennessee whiskey and bourbon expanded their already large shares, while flavored whiskey, rye, small-batch whiskey, and Irish whiskey and single-malt Scotch whisky maintained their impressive growth rates, it reports.

In the overall spirits market, bank analysts point to trends of softening sales, particularly among vodkas, which grew 2.6 percent year-to-date, Rabobank says. The recent softness in the vodka category appears to be driven by slowing growth in the flavored vodka segment, which suggests the flavor trend might be reaching its peak, it explains.

However, using flavor is an avenue for category growth that many whiskey industry players are pursuing — especially American whiskeys. The whiskey segment grew 6.2 percent in the United States last year, and an estimated 45 percent of that growth was driven by flavored whiskies, Rabobank reports. Brand extensions such as Brown-Forman Corp.’s Jack Daniel’s Tennessee Honey, Beam Suntory Inc.’s Jim Beam Red Stag and Campari America’s Wild Turkey American Honey have enjoyed solid growth in recent years, but Sazerac Co.’s Fireball Cinnamon Whiskey continues to grab headlines by becoming a top-selling brand in just a few years.

However, not all spirits companies are eager to follow the flavor trend, Rabobank notes. The Scotch industry, in particular, has been reticent about experimenting with flavors, fearing flavor variations might undermine the prestige of their brands and the category as a whole, it says.

“Flavored line extensions present a dilemma for whiskey brand owners,” said Stephen Rannekleiv, senior wine and spirits analyst for Rabobank, in a statement. “American whiskey brands are having great success attracting new consumers by using sweeter, more approachable flavor variations; however, if not managed correctly, they could risk deteriorating the prestige of their brand in the long run, similar to what happened with the Blue Nun wine brand in the 1970s. Scotch players are currently avoiding that danger by not venturing into flavor variations, but the lack of innovation, which might draw new consumers, carries its own risks.”

Looking forward, the U.S. spirits market appears poised to continue growing at a moderate pace, though Rabobank predicts that the super-premium segment will outpace the industry as a whole. Among super-premium spirits, one segment to watch will be pot-stilled Irish whiskey, it says. Irish whiskey has shown impressive growth in recent years, and influential figures such as Jack McGarry of the Dead Rabbit Grocery and Grog in New York are promoting the virtues of traditional pot-still production, it notes.
 

KEYWORDS: flavored vodka Irish whiskey Scotch whisky Whiskey

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Wine & Spirits
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Sting Energy

PepsiCo, Sting Energy unveil global partnership with Formula 1

top 100 beverage companies

Top 100 Beverage Companies of 2024

people drinking Wynk

Mindful drinking prompts growth for THC beverages

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

June 26, 2025

FAST. FOCUSED. FUELED: Delivering Energy Consumers Can Feel

Learn how to formulate products that deliver the energy experiences that people want, and keep them coming back for more.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Beam Suntory

    Beam Suntory to add Suntory whiskey brands in US, Germany

    See More
  • news

    SWA responds to Scottish independence referendum

    See More
  • Black Feather Whiskey - Beverage Industry

    Whiskey, premiumization fueling growth for spirits market

    See More

Related Products

See More Products
  • bigfood.jpg

    Big Food: Critical perspectives on the global growth of the food and beverage industry

  • nanoinbev.jpg

    Nanoengineering in the Beverage Industry 1st Edition

  • nonmilk.jpg

    Milk-Based Beverages 1st Edition

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing