Spirits - in - The - US 2020 Proyección Al 2023 EUROMONITOR

Spirits in the US
Euromonitor International
September 2020
SPIRITS IN THE US Passport i
LIST OF CONTENTS AND TABLES

HEADLINES ................................................................................................................................. 1
PRE-COVID-19 PERFORMANCE ............................................................................................... 1
Premium spirits performing strongly ......................................................................................... 1
Whiskies led the way in volume growth .................................................................................... 1
Tito’s consolidates its position as the largest spirits brand ....................................................... 2
2020 AND BEYOND ..................................................................................................................... 3
COVID-19 impact...................................................................................................................... 3
Affected products within spirits ................................................................................................. 3
Recovery and opportunities ...................................................................................................... 3
CATEGORY BACKGROUND ....................................................................................................... 4
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology ... 4
Summary 1 Benchmark Brands 2019 .............................................................................. 4
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Spirits by Category: Total Volume 2014-2019 ................................ 4
Table 2 Sales of Spirits by Category: Total Value 2014-2019 ................................... 5
Table 3 Sales of Spirits by Category: % Total Volume Growth 2014-2019 ............... 6
Table 4 Sales of Spirits by Category: % Total Value Growth 2014-2019 .................. 6
Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2014-2019...................... 7
Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2014-2019......................... 7
Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2014-
2019 ............................................................................................................. 7
Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2014-2019 ........ 7
Table 9 Sales of Dark Rum by Price Platform: % Total Volume 2014-2019 .............. 8
Table 10 Sales of White Rum by Price Platform: % Total Volume 2014-2019 ............ 8
Table 11 Sales of Other Blended Scotch Whisky by Price Platform: % Total
Volume 2014-2019 ....................................................................................... 8
Table 12 Sales of English Gin by Price Platform: % Total Volume 2014-2019 ........... 9
Table 13 Sales of Vodka by Price Platform: % Total Volume 2014-2019 .................... 9
Table 14 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume
2014-2019 .................................................................................................... 9
Table 15 GBO Company Shares of Spirits: % Total Volume 2015-2019 .................... 9
Table 16 NBO Company Shares of Spirits: % Total Volume 2015-2019................... 10
Table 17 LBN Brand Shares of Spirits: % Total Volume 2016-2019 ......................... 11
Table 18 Forecast Sales of Spirits by Category: Total Volume 2019-2024 ............... 11
Table 19 Forecast Sales of Spirits by Category: Total Value 2019-2024 .................. 12
Table 20 Forecast Sales of Spirits by Category: % Total Volume Growth 2019-
2024 ........................................................................................................... 13
Table 21 Forecast Sales of Spirits by Category: % Total Value Growth 2019-
2024 ........................................................................................................... 13
© Euromonitor International
SPIRITS IN THE US Passport 1
SPIRITS IN THE US
HEADLINES
▪ COVID-19 results in spirits recording declining sales in 2020 as a spike in off-trade sales is
unable to compensate for collapsing on-trade demand
▪ Spirits grows by 3% in total volume terms to reach 2.1 billion litres in 2019
▪ Premiumisation is sweeping through spirits in 2019
▪ Prestige dark rum records the fastest total volume growth of 44% in 2019
▪ Unit prices rise by 4% in current value terms in 2019
▪ Diageo remains the leading player with a 16% volume share in 2019
▪ Spirits to record a total volume CAGR of 1% over the forecast period to reach 2.2 billion litres
in 2024
PRE-COVID-19 PERFORMANCE
Premium spirits performing strongly

American spirits consumers were increasingly opting for higher-end products across the
various spirits categories in 2019. All major areas of spirits were seeing attempts at
premiumisation, although the degree to which they were successful varied. Whiskies saw
particularly noticeable effects from this trend, with the premium-orientated Japanese and single
malt Scotch categories being standout performers. American, Canadian and Irish whiskies
generally remained more moderately priced categories, but all three had rapidly growing
premium segments as well. In many cases, these newer categories, like American single malts,
tried to compete directly against single malt Scotch. Outside of whiskies, tequila was in many
ways the poster child for successful premiumisation in American spirits. In volume terms, a
majority of tequila imports were for the first time 100% agave products and the higher price tiers
performed very strongly. Other spirits struggled to change consumer perceptions the way tequila
did. Rum, for example, began appearing more often in aged varieties and at price tiers designed
to appeal to wealthier spirits drinkers, but most Americans continued to struggle with the idea of
sipping a rum the way they would a Scotch or a cognac.
Whiskies led the way in volume growth

All major areas in whiskies saw growth in the US in 2019. The most consistently performing
area was bourbon/other US whiskey, which led the category in terms of actual total volume
growth. Even supply shipment issues affecting Jack Daniel’s did little to affect the category in
topline terms, with brands like Bulleit and Wild Turkey proving themselves more than able to
pick up the slack. The smaller Irish whiskey category performed even better and started to
diversify as never before. Jameson’s growth was its slowest in years but this had almost no
effect in topline terms as newer brands compensated for this, with Proper No 12 becoming
particularly important within a short time after its launch. The most rapid changes were seen in
Japanese whisky, which continues to be one of the fastest-growing areas in whiskies, albeit at
slower rates than in previous years. Supply shortages began to become quite serious and many
of the most popular aged varieties became difficult or even impossible to find. Blends like Hibiki
Harmony and Toki became increasingly important and their success will largely determine the
fortunes of Japanese whisky in the US in the coming years. Blended Scotch whisky struggled
the most of any area in whiskies, given its maturity and the intensity of the competition. The
performance of single malt Scotch was a bright spot, although the advent of new tariffs on
imports became a serious threat to category growth.
The escalating trade wars between the US and its major trading partners were affecting
numerous spirits categories and creating uncertainty for several others at the end of the review
period. Tequila narrowly managed to avoid a new set of hefty tariffs following the signing of a
trade agreement between the US and Mexico, although the Trump Administration has refused to
rule out the prospect of these tariffs being placed back on the table in the future in the event
they are unhappy with Mexico’s help in reducing the flow of illegal immigration into the US.
Scotch was less lucky and new tariffs came into effect in October 2019 as the US and EU failed
to reach an agreement over a dispute stemming from subsidies in the aircraft making industry.
Counter tariffs are also in place on US spirits products in many key overseas markets as a result
of trade disputes and many American distilleries scaled back production as international
demand for bourbon and other US spirits declined. A bright spot amidst all this for the industry
was the extension of a key tax break designed to benefit small domestic distillers, although this
was only renewed for a single year.
Tito’s consolidates its position as the largest spirits brand

After taking over from Smirnoff as the leading spirits brand in the US in 2018, Tito’s cemented
its position with strong sales and share growth in 2019. Tito’s has been successfully made into
what is essentially a mass craft vodka brand, with a reputation for quality ingredients and the
attention to detail of a small-scale producer but with the wide distribution and availability of the
larger brands. This has led to some complaints from smaller producers about Tito’s claim to be
“America’s Original Craft Vodka”, as they question whether the term “craft” can be applied to a
brand producing the enormous volumes of Tito’s, but such claims clearly resonated with
American vodka drinkers. Collectively, all vodka brands that were not Tito’s declined in 2019, a
sign that the category’s overall health is increasingly dependent on continued vitality from what
has become America’s most popular vodka brand.
A long-term shift in the portfolio of the largest spirits company in the US continued, as Diageo
sought to concentrate more on lower-volume but higher-value brands like Don Julio and Bulleit,
with the company likely to continue to try to move in this direction in the long term. Diageo shed
many smaller brands in 2018 to Sazerac, which has reduced its exposure to slow-growth lower-
price tiers somewhat, but much of its sales still come from brands like Captain Morgan and
Smirnoff, which have struggled as the US spirits category moved in a more premium direction.
Bolt-on acquisitions were joined by premium brand extensions of Diageo’s existing portfolio,
such as the recent expansion of Casamigos into mezcal and a successful line of Game of
Thrones-themed single malts. Apart from high-end spirits, non-alcoholic alternatives were also a
major interest of Diageo’s in recent times as the company dealt with the rise of mindful drinking
trends.
The dust settled after a wave of massive tequila deals in recent years, most notably Diageo’s
acquisition of Casamigos and Bacardi’s purchase of Patrón. Once all the major spirits
companies finished developing their tequila strategies, they increasingly started moving into
mezcal. Bacardi was the first to take a big jump into the category with an investment in Illegal in
early 2018, soon followed by Pernod Ricard (Del Maguey), Diageo (Mezcal Unión, Pierde
Almas), and Constellation (Mezcal El Silencio). The strong premium positioning of mezcal as
well as growth rates many times faster than those of even tequila caused this spike in interest,
even though mezcal remains much smaller than its sister agave spirit in total sales in the US.
The traditional, artisanal nature of most mezcal production has also been critical to its success
and the entrance of the global spirits companies has raised the risk of damaging what made the
category so appealing in the first place.
2020 AND BEYOND
COVID-19 impact
On-trade volume sales of spirits are expected to fall by 47% in 2020 in light of the impact of
COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted
in May 2019, ie before the spread of COVID-19. Off-trade volume sales of spirits, meanwhile,
are expected to increase by 6% in 2020 due to COVID-19’s impact. This compares to an
expected 2% rise forecast for 2020 during our research conducted in May 2019.
The early parts of 2020 saw major stockpiling take place as consumers prepared for a
lockdown. This helped drive off-trade sales in all categories, with larger pack sizes like 1.75-litre
bottles doing especially well. This was helped by the fact that in most areas alcoholic drinks
retailers remained opened and in some cases restrictions on spirits sales were even loosened
during the pandemic – Kentucky allowed consumers to purchase spirits directly from distilleries
for the first time, for example. E-commerce also exploded, with spirits deliveries through
services like Drizly up by several hundred percentage points on 2019 in most cities by late
March. This surge in off-trade sales was accompanied by the on-trade almost coming to a
complete halt. In some places small amounts of sales took place in the form of premixed
cocktails or sealed bottles, but legal restrictions meant that most bars and restaurants stopped
serving spirits as they moved to a delivery/takeout model. Worst affected by this were craft
distilleries, which are heavily reliant on tourism and partnerships with local restaurants. With
these channels shut down and retailers trying to reduce their SKU counts, many craft distillers
were in serious financial straits fairly early on in the crisis and without major government
intervention a majority will likely go out of business in 2020.
Affected products within spirits

The hardest-hit categories are those that are especially dependent on on-trade occasions,
particularly if they tend to be more expensive extravagances. The previously fast-growing
cognac and blended malt Scotch whisky categories have been among the most affected by this,
although it can be seen with higher-end products in many categories. Categories in which a
now-devastated craft segment was responsible for generating much of the excitement and
interest, like gin, are also set to struggle. The categories that will do the best are those with
stronger growth momentum behind them and which are viewed as affordable splurges for
consumers stuck at home. Bourbon and tequila will be two of the categories that this last point is
particularly true of and they have been performing better than most during the off-trade boom.
Recovery and opportunities

A return to positive growth in 2021 will still leave spirits well below the previous sales figures
as, even though the on-trade channel will see very strong growth in 2021, they will still be well
down on the 2019 sales levels, which will remain the case until the end of the forecast period.
Even if consumers largely feel safe going out again, the economic effects of the virus will remain
serious and more consumption occasions will remain in the home due to a combination of
consumers economising and bars and restaurants that may never reopen. Most likely
consumers will not feel, on the whole, safe in crowded public spaces for some time and this will
act as an additional weight on the ability of on-trade sales to recover. Some categories that have
done particularly well during the off-trade boom, notably bourbon, tequila and Irish whiskey,
should get back to their old 2019 sales levels relatively quickly once reduced on-trade sales
start to pick up again, even if they remain at a significantly reduced level. For other categories it
will take years to reach their old sales level and some categories that were struggling prior to
2020 might never do so. Opportunities will arise in areas like at-home cocktail mixing, which
grew in popularity during lockdown, and innovative uses of the internet, like online tasting
events. Premiumisation can still happen but it will need to take a very different approach,
prioritising the home as the innovation hub rather than the bar until the on-trade channel is able
to fully recover.
CATEGORY BACKGROUND
Vodka, gin, other blended Scotch whisky, dark rum and white rum price
band methodology
Classification for these spirits products is based purely on pricing, taking a typical brand,
usually the leading brand by volume, as the benchmark price, which is indexed as 100%. The
benchmark brand will be a mid-priced brand.
Summary 1 Benchmark Brands 2019

Category Brand name Positioning
Vodka Smirnoff Standard
Gin Seagram’s Standard
Other blended Scotch whisky Dewar’s Standard
Dark rum Captain Morgan Standard
White rum Bacardi Standard
Source: Euromonitor International from trade interviews, store checks
CATEGORY DATA
Table 1 Sales of Spirits by Category: Total Volume 2014-2019
'000 litres
2014 2015 2016 2017 2018 2019
Brandy and Cognac 101,156.0 108,597.0 116,225.7 123,339.2 129,603.7 136,178.9

- Brandy 63,311.9 65,034.6 66,213.0 68,505.2 70,450.8 72,155.7
- Cognac 37,844.1 43,562.4 50,012.7 54,833.9 59,152.9 64,023.2
Liqueurs 188,557.8 191,382.3 190,053.5 191,295.2 193,648.7 198,128.9
- Bitters 21,382.5 20,411.4 19,878.9 19,704.0 19,818.3 20,117.5
- Cream-based Liqueurs 27,120.1 26,586.0 26,708.3 27,302.6 27,406.3 28,102.4
- Other Liqueurs 140,055.2 144,384.9 143,466.3 144,288.6 146,424.1 149,909.0
Rum 225,443.9 222,613.0 222,255.7 221,517.6 217,227.9 213,639.8
- Dark Rum 108,285.8 108,385.2 108,791.6 108,999.1 106,993.5 105,158.2
- White Rum 117,158.1 114,227.7 113,464.1 112,518.5 110,234.4 108,481.7
Tequila (and Mezcal) 132,025.0 140,190.2 150,160.3 161,369.2 173,601.1 187,159.3
Whiskies 462,299.3 479,971.1 499,286.2 518,625.6 534,858.8 557,613.9
- Bourbon/Other US 218,040.5 227,974.8 239,511.0 250,866.9 264,112.7 278,850.2
Whiskey
- Canadian Whisky 140,733.4 144,411.2 147,328.2 151,261.9 149,900.5 153,887.9
- Irish Whiskey 24,452.1 28,138.5 32,239.8 36,028.0 39,850.9 43,927.7
- Japanese Whisky 466.8 753.0 1,232.1 1,644.6 2,122.3 2,362.9

- Blended Scotch Whisky 65,273.3 64,223.6 64,084.1 63,479.0 62,754.2 61,680.4
- Single Grain Scotch - - - - - -
Whisky
- Single Malt Scotch 13,333.2 14,470.0 14,891.0 15,345.2 16,118.3 16,904.8
Whisky
- Other Whiskies - - - - - -
White Spirits 737,531.5 746,555.4 762,576.4 775,168.9 783,142.4 794,120.1
- Gin 93,169.1 91,866.0 92,606.8 91,264.0 90,278.3 89,962.4
- Vodka 644,362.4 654,689.4 669,969.6 683,904.9 692,864.1 704,157.8
Other Spirits 19,585.2 19,137.7 19,682.3 20,489.0 19,923.9 19,933.0
- Shochu/Soju 5,348.9 5,231.8 5,633.5 6,339.3 6,118.1 6,650.4
- Other Distilled 14,236.3 13,906.0 14,048.9 14,149.7 13,805.8 13,282.6
Beverages
Spirits 1,866,59 1,908,44 1,960,24 2,011,80 2,052,00 2,106,77
8.6 6.6 0.1 4.7 6.5 4.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Spirits by Category: Total Value 2014-2019
USD million
2014 2015 2016 2017 2018 2019

- Brandy 2,108.2 2,070.6 2,127.5 2,284.9 2,412.6 2,518.4
- Cognac 4,611.6 5,380.7 6,272.9 7,157.6 8,094.1 9,120.5
Liqueurs 7,964.4 8,148.3 8,059.0 8,097.6 8,404.5 8,647.9
- Bitters 1,012.5 972.2 941.9 933.1 965.9 994.5
- Other Liqueurs 5,916.9 6,151.9 6,082.6 6,108.9 6,365.2 6,544.2
Rum 6,311.6 6,154.1 6,151.6 6,099.4 6,131.8 6,195.0
- Dark Rum 3,235.1 3,217.6 3,276.4 3,296.9 3,365.1 3,439.0
- White Rum 3,076.6 2,936.5 2,875.2 2,802.5 2,766.7 2,756.1
Whiskies 19,070.9 20,133.2 21,452.4 22,760.0 24,515.2 26,722.3
- Bourbon/Other US 8,128.6 8,740.5 9,360.2 9,964.6 10,921.1 11,996.8
Whiskey
- Canadian Whisky 4,692.8 4,745.2 4,881.6 5,026.2 5,062.0 5,297.9
- Irish Whiskey 1,722.4 1,950.2 2,224.2 2,535.5 2,931.8 3,364.7
- Japanese Whisky 62.9 99.6 182.6 246.9 364.8 491.6
Whisky
Whisky
White Spirits 20,602.3 20,636.6 21,364.5 21,964.9 22,819.9 23,634.0
- Gin 2,968.8 2,945.9 3,015.5 3,055.4 3,159.1 3,246.9
- Vodka 17,633.6 17,690.8 18,349.0 18,909.5 19,660.8 20,387.1
Other Spirits 802.2 812.1 832.8 871.9 855.4 863.5
- Shochu/Soju 170.6 183.8 188.0 212.5 204.1 225.2
- Other Distilled 631.6 628.3 644.9 659.5 651.3 638.4
Beverages
Spirits 66,886.0 69,192.8 72,832.0 76,598.4 81,567.1 87,164.1
Table 3 Sales of Spirits by Category: % Total Volume Growth 2014-2019
% total volume growth

2018/19 2014-19 CAGR 2014/19 Total
Brandy and Cognac 5.1 6.1 34.6

- Brandy 2.4 2.6 14.0
- Cognac 8.2 11.1 69.2
Liqueurs 2.3 1.0 5.1
- Bitters 1.5 -1.2 -5.9
- Cream-based Liqueurs 2.5 0.7 3.6
- Other Liqueurs 2.4 1.4 7.0
Rum -1.7 -1.1 -5.2
- Dark Rum -1.7 -0.6 -2.9
- White Rum -1.6 -1.5 -7.4
Tequila (and Mezcal) 7.8 7.2 41.8
Whiskies 4.3 3.8 20.6
- Bourbon/Other US Whiskey 5.6 5.0 27.9
- Canadian Whisky 2.7 1.8 9.3
- Irish Whiskey 10.2 12.4 79.6
- Japanese Whisky 11.3 38.3 406.2
- Blended Scotch Whisky -1.7 -1.1 -5.5
- Single Grain Scotch Whisky - - -
- Single Malt Scotch Whisky 4.9 4.9 26.8
- Other Whiskies - - -
White Spirits 1.4 1.5 7.7
- Gin -0.4 -0.7 -3.4
- Vodka 1.6 1.8 9.3
Other Spirits 0.0 0.4 1.8
- Shochu/Soju 8.7 4.5 24.3
- Other Distilled Beverages -3.8 -1.4 -6.7
Spirits 2.7 2.5 12.9
Table 4 Sales of Spirits by Category: % Total Value Growth 2014-2019
% local currency, current value growth
2018/19 2014-19 CAGR 2014/19 Total
Brandy and Cognac 10.8 11.6 73.2

- Brandy 4.4 3.6 19.5
- Cognac 12.7 14.6 97.8
Liqueurs 2.9 1.7 8.6
- Bitters 3.0 -0.4 -1.8
- Cream-based Liqueurs 3.3 1.4 7.2
- Other Liqueurs 2.8 2.0 10.6
Rum 1.0 -0.4 -1.8
- Dark Rum 2.2 1.2 6.3
- White Rum -0.4 -2.2 -10.4
Tequila (and Mezcal) 13.5 11.8 74.8
Whiskies 9.0 7.0 40.1
- Bourbon/Other US Whiskey 9.8 8.1 47.6
- Canadian Whisky 4.7 2.5 12.9
- Irish Whiskey 14.8 14.3 95.4
- Japanese Whisky 34.7 50.9 681.9
- Blended Scotch Whisky 3.1 2.1 10.7

- Single Malt Scotch Whisky 11.8 9.0 54.0
White Spirits 3.6 2.8 14.7
- Gin 2.8 1.8 9.4
- Vodka 3.7 2.9 15.6
Other Spirits 0.9 1.5 7.6
- Shochu/Soju 10.3 5.7 32.0
- Other Distilled Beverages -2.0 0.2 1.1
Spirits 6.9 5.4 30.3
Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2014-2019
'000 litres
2014 2015 2016 2017 2018 2019
Off-trade 1,439,54 1,488,06 1,531,62 1,573,63 1,603,26 1,644,33

8.7 9.7 6.6 1.7 6.5 1.2
On-trade 427,049.9 420,376.9 428,613.5 438,172.9 448,740.0 462,442.8
Total 1,866,59 1,908,44 1,960,24 2,011,80 2,052,00 2,106,77
8.6 6.6 0.1 4.7 6.5 4.0
Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2014-2019
USD million
2014 2015 2016 2017 2018 2019
Off-trade 29,355.5 30,769.8 32,164.1 33,591.4 35,410.0 37,554.2

On-trade 37,530.5 38,423.1 40,667.9 43,007.1 46,157.1 49,609.9
Total 66,886.0 69,192.8 72,832.0 76,598.4 81,567.1 87,164.1
Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2014-2019
% volume growth
2018/19 2014-19 CAGR 2014/19 Total
Off-trade 2.6 2.7 14.2

On-trade 3.1 1.6 8.3
Total 2.7 2.5 12.9
Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2014-2019
% constant value growth

2018/19 2014-19 CAGR 2014/19 Total
Off-trade 6.1 5.0 27.9

On-trade 7.5 5.7 32.2
Total 6.9 5.4 30.3
Table 9 Sales of Dark Rum by Price Platform: % Total Volume 2014-2019
% total volume
2014 2015 2016 2017 2018 2019
Prestige 0.2 0.3 0.3 0.3 0.4 0.6

Ultra Premium 0.7 0.7 0.8 0.8 0.9 1.0
Super Premium 6.9 6.7 6.8 6.8 6.8 6.9
Premium 20.5 22.4 24.7 27.2 29.9 31.2
Standard 37.7 37.3 35.9 34.7 33.9 32.8
Economy 34.0 32.7 31.6 30.1 28.0 27.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Note: ‘-’ indicates data not available
Table 10 Sales of White Rum by Price Platform: % Total Volume 2014-2019
% total volume
2014 2015 2016 2017 2018 2019
Ultra Premium 0.6 0.5 0.5 0.5 0.6 0.6

Super Premium 1.5 1.5 1.4 1.3 1.2 1.2
Premium 8.5 7.9 7.1 7.3 7.3 7.4
Standard 80.3 81.2 82.6 83.1 83.8 83.9
Economy 9.2 8.9 8.3 7.8 7.1 6.9
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 11 Sales of Other Blended Scotch Whisky by Price Platform: % Total Volume 2014-
2019
% total volume
2014 2015 2016 2017 2018 2019
Prestige 1.7 1.7 1.5 1.2 1.2 1.1

Ultra Premium 4.4 4.7 4.9 4.9 5.0 5.1
Super Premium 2.8 3.2 3.3 3.4 3.4 3.5
Premium 24.3 25.1 24.1 25.3 26.4 26.9
Standard 35.7 35.7 35.6 35.2 34.1 33.2
Economy 31.1 29.5 30.7 29.9 29.9 30.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 12 Sales of English Gin by Price Platform: % Total Volume 2014-2019
% total volume
2014 2015 2016 2017 2018 2019
Prestige 0.1 0.1 0.1 0.1 0.2 0.2

Ultra Premium 0.4 0.4 0.4 0.4 0.5 0.5
Super Premium 35.0 35.7 36.0 36.3 36.9 37.3
Premium 11.4 11.8 13.1 13.6 14.1 14.5
Standard 48.2 47.2 45.8 45.0 44.4 44.0
Economy 4.9 4.8 4.6 4.5 3.8 3.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Sales of Vodka by Price Platform: % Total Volume 2014-2019
% total volume
2014 2015 2016 2017 2018 2019
Prestige 0.1 0.1 0.1 0.1 0.1 0.1

Ultra Premium 0.1 0.1 0.1 0.2 0.2 0.2
Super Premium 8.2 7.5 7.3 6.8 6.4 6.2
Premium 20.5 22.4 24.7 27.2 29.0 31.0
Standard 37.7 37.3 35.9 34.8 34.1 33.8
Economy 33.4 32.7 31.8 30.9 30.1 28.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 14 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2014-2019
% total volume
2014 2015 2016 2017 2018 2019
Flavoured Vodka 21.8 21.3 21.2 20.8 20.5 20.9

Non-Flavoured Vodka 78.2 78.7 78.8 79.2 79.5 79.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 15 GBO Company Shares of Spirits: % Total Volume 2015-2019
% total volume
Company 2015 2016 2017 2018 2019
Diageo Plc 16.6 16.7 16.6 15.6 15.5

Sazerac Co Inc 9.5 10.1 10.1 10.7 10.7
Suntory Holdings Ltd 9.9 9.8 9.9 9.9 9.9
Pernod Ricard Groupe 7.2 6.9 6.9 6.9 6.7
Bacardi & Co Ltd 6.2 6.0 5.7 6.7 6.5
Heaven Hill 4.5 4.6 4.8 4.8 5.5
Distilleries Inc
Brown-Forman Corp 5.1 4.6 4.6 4.7 4.7
E&J Gallo Winery Inc 3.7 3.9 4.0 4.0 4.0
Fifth Generation, Inc 1.3 1.9 2.6 3.1 3.6
Becle SAB de CV - 3.2 3.0 3.0 3.0
Constellation Brands Inc 3.8 3.8 3.8 3.7 2.9
LVMH Moët Hennessy 1.7 2.0 2.0 2.0 2.1
Louis Vuitton SA
Campari Milano SpA, 2.3 2.4 2.2 2.1 2.1
Davide
William Grant & Sons Ltd 1.1 1.1 1.1 1.1 1.2
Ketel One Worldwide BV 1.0 1.0 1.0 1.0 1.1
Luxco Corp 1.0 0.9 0.9 0.9 0.9
McCormick Distilling Co 0.9 0.9 0.8 0.8 0.7
Inc
SPI Group 0.8 0.8 0.7 0.7 0.7
Rémy Cointreau Group 0.6 0.6 0.6 0.7 0.6
Mast-Jägermeister SE 0.8 0.8 0.7 0.7 0.6
Phillips Distilling Co 0.8 0.8 0.7 0.6 0.6
Edrington Group 0.4 0.4 0.3 0.3 0.3
Hite Jinro Co Ltd 0.1 0.2 0.2 0.2 0.2
Agave Loco LLC 0.2 0.2 0.2 0.2 0.2
F Korbel & Bros Inc 0.1 0.1 0.1 0.1 0.1
Jacquin et Cie, Charles 0.1 0.1 0.1 0.1 0.1
Accolade Wines Ltd 0.1 0.1 0.1 0.1 0.1
Thai Beverage PCL 0.1 0.1 0.1 0.1 0.1
Caribbean Distillers 1.0 1.1 1.2 - -
Corp Ltd (CDC)
Grupo Cuervo SA de CV 3.2 - - - -
Private Label 1.0 0.9 0.9 0.9 1.0
Others 14.7 14.1 14.1 14.2 14.3
Total 100.0 100.0 100.0 100.0 100.0
Table 16 NBO Company Shares of Spirits: % Total Volume 2015-2019
% total volume
Company 2015 2016 2017 2018 2019
Diageo North America Inc 17.3 17.3 17.2 16.3 16.3

Sazerac Co Inc 9.6 10.2 10.2 10.8 10.8
Beam Global Spirits & 10.6 10.5 10.5 10.5 10.5
Wine Inc
Bacardi USA 6.3 6.1 6.9 6.7 6.5
Pernod Ricard USA 6.6 6.3 6.3 6.3 6.2
Heaven Hill 4.6 4.6 4.8 4.8 5.5
Distilleries Inc
Brown-Forman Corp 5.3 4.7 4.7 4.8 4.8
E&J Gallo Winery Inc 3.7 3.9 4.0 4.0 4.0
Fifth Generation, Inc 1.3 1.9 2.6 3.1 3.6
Proximo Spirits Inc 3.2 3.2 3.0 3.0 3.0
Constellation Brands US 3.8 3.8 3.8 3.7 2.9
Operations Inc
Moët Hennessy USA 2.0 2.0 2.0 2.0 2.1
Campari America 2.2 2.4 2.1 2.1 2.0
William Grant & Sons Ltd 1.9 1.9 1.8 1.9 1.9
McCormick Distilling Co 0.9 0.9 0.8 0.8 0.7
Inc
Rémy Cointreau USA Inc 0.6 0.6 0.6 0.7 0.6

Phillips Distilling Co 0.8 0.8 0.7 0.6 0.6
Infinium Spirits 0.6 0.6 0.6 0.6 0.6
Luxco Corp 0.5 0.5 0.5 0.5 0.5
Edrington Americas 0.4 0.4 0.3 0.3 0.3
Hite Jinro Co Ltd 0.1 0.2 0.2 0.2 0.2
Agave Loco LLC 0.2 0.2 0.2 0.2 0.2
Jacquin et Cie, Charles 0.1 0.1 0.1 0.1 0.1
Constellation Brands Inc 0.1 0.1 0.1 0.1 0.1
Kobrand Corp 0.1 0.1 0.1 0.1 0.1
Patrón Spirits Co, The 1.0 1.1 - - -
Sidney Frank Importing 0.8 0.8 - - -
Co Inc
Skyy Spirits LLC - - - - -
White Rock Distilleries - - - - -
Inc
Eliza Spring LLC - - - - -
Private Label 1.0 0.9 0.9 0.9 1.0
Others 14.4 14.0 14.7 14.8 14.8
Total 100.0 100.0 100.0 100.0 100.0
Table 17 LBN Brand Shares of Spirits: % Total Volume 2016-2019
% total volume
Brand (Global Brand Company 2016 2017 2018 2019
Owner)
Tito's Fifth Generation, Inc 1.9 2.6 3.1 3.6

Smirnoff (Diageo Plc) Diageo North America Inc 3.3 3.1 3.1 2.9
Crown Royal (Diageo Diageo North America Inc 2.5 2.6 2.7 2.8
Plc)
Bacardi (Bacardi & Bacardi USA 3.2 3.0 2.9 2.8
Co Ltd)
Jack Daniel's Brown-Forman Corp 2.3 2.3 2.3 2.3
Fireball Sazerac Co Inc 2.0 2.1 2.1 2.3
Jim Beam (Suntory Beam Global Spirits & 1.9 2.0 2.1 2.2
Holdings Ltd) Wine Inc
New Amsterdam E&J Gallo Winery Inc 2.1 2.1 2.1 2.1
Svedka Constellation Brands US 2.0 2.0 1.9 2.0
(Constellation Operations Inc
Brands Inc)
Captain Morgan Diageo North America Inc 2.2 2.1 2.0 1.9
Spiced Rum (Diageo
Plc)
Private label Private Label 0.9 0.9 0.9 1.0
Others Others 75.8 75.1 74.8 74.1
Total Total 100.0 100.0 100.0 100.0
Table 18 Forecast Sales of Spirits by Category: Total Volume 2019-2024
'000 litres
2019 2020 2021 2022 2023 2024

- Brandy 72,155.7 69,696.3 69,476.1 70,673.0 71,514.9 72,088.0
- Cognac 64,023.2 53,435.4 59,844.1 62,848.5 65,754.1 68,321.2
Liqueurs 198,128.9 181,727.7 182,755.4 186,035.1 188,425.7 189,950.4
- Bitters 20,117.5 19,139.2 18,730.6 18,896.5 18,999.4 19,051.7
- Other Liqueurs 149,909.0 136,766.4 138,044.6 140,397.2 142,027.4 143,107.1
Rum 213,639.8 193,990.1 188,173.6 186,672.0 186,469.0 186,148.8
- Dark Rum 105,158.2 96,256.2 93,594.7 92,649.1 92,003.9 91,495.8
- White Rum 108,481.7 97,733.9 94,578.9 94,022.9 94,465.0 94,653.0
Whiskies 557,613.9 537,734.4 545,105.1 565,477.7 584,221.2 601,942.1
- Bourbon/Other US 278,850.2 272,094.9 279,442.1 294,210.6 307,674.4 320,281.7
Whiskey
- Canadian Whisky 153,887.9 148,307.4 145,766.9 147,387.2 148,693.9 149,852.4
- Irish Whiskey 43,927.7 43,404.3 46,771.7 50,012.8 53,143.1 56,375.7
- Japanese Whisky 2,362.9 2,174.5 2,404.6 2,682.5 2,991.3 3,302.9
Whisky
Whisky
White Spirits 794,120.1 757,311.8 759,877.0 792,594.6 818,573.9 838,363.3
- Gin 89,962.4 81,555.1 83,592.6 86,207.5 87,944.8 89,074.2
- Vodka 704,157.8 675,756.7 676,284.4 706,387.0 730,629.1 749,289.1
Other Spirits 19,933.0 16,616.8 17,490.2 18,484.7 19,262.0 19,655.4
- Shochu/Soju 6,650.4 4,959.5 5,914.2 6,910.0 7,653.9 8,008.2
- Other Distilled 13,282.6 11,657.3 11,576.0 11,574.8 11,608.1 11,647.1
Beverages
Spirits 2,106,77 1,994,86 2,015,00 2,086,74 2,150,25 2,204,37
4.0 4.2 5.9 0.6 0.1 4.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 19 Forecast Sales of Spirits by Category: Total Value 2019-2024
USD million
2019 2020 2021 2022 2023 2024

- Brandy 2,518.4 1,933.7 2,148.0 2,214.4 2,250.1 2,268.3
- Cognac 9,120.5 6,268.4 7,774.2 8,233.5 8,673.6 9,049.8
Liqueurs 8,647.9 6,247.7 6,892.4 7,062.1 7,116.7 7,138.0
- Bitters 994.5 752.1 813.4 821.2 823.8 825.0
- Cream-based Liqueurs 1,109.3 849.8 932.8 967.3 988.7 999.8
- Other Liqueurs 6,544.2 4,645.8 5,146.3 5,273.6 5,304.2 5,313.2
Rum 6,195.0 4,693.9 4,985.5 4,967.9 4,987.7 5,004.5
- Dark Rum 3,439.0 2,623.8 2,829.5 2,839.7 2,848.5 2,856.1
- White Rum 2,756.1 2,070.1 2,156.0 2,128.1 2,139.1 2,148.4
Whiskies 26,722.3 21,269.0 23,787.8 25,415.9 26,684.0 27,776.8
- Bourbon/Other US 11,996.8 9,346.3 10,686.4 11,596.0 12,254.1 12,777.1
Whiskey
- Canadian Whisky 5,297.9 4,311.0 4,521.5 4,595.6 4,648.1 4,691.3
- Irish Whiskey 3,364.7 2,813.6 3,288.3 3,628.3 3,890.3 4,144.4
- Japanese Whisky 491.6 426.7 550.6 660.2 774.5 886.6
Whisky
Whisky
White Spirits 23,634.0 18,235.7 19,932.9 20,930.4 21,725.7 22,318.9
- Gin 3,246.9 2,402.6 2,703.0 2,846.0 2,958.0 3,041.5
- Vodka 20,387.1 15,833.1 17,229.9 18,084.3 18,767.6 19,277.3
Other Spirits 863.5 613.2 744.5 763.7 783.2 801.3
- Shochu/Soju 225.2 149.9 242.7 256.9 270.9 284.7
- Other Distilled 638.4 463.4 501.8 506.8 512.3 516.5
Beverages
Spirits 87,164.1 67,121.0 75,317.5 79,391.1 82,800.8 85,702.0
trade sources
Table 20 Forecast Sales of Spirits by Category: % Total Volume Growth 2019-2024
% total volume growth

2019/20 2019-24 CAGR 2019/24 Total
Brandy and Cognac -9.6 0.6 3.1

- Brandy -3.4 0.0 -0.1
- Cognac -16.5 1.3 6.7
Liqueurs -8.3 -0.8 -4.1
- Bitters -4.9 -1.1 -5.3
- Cream-based Liqueurs -8.1 -0.2 -1.1
- Other Liqueurs -8.8 -0.9 -4.5
Rum -9.2 -2.7 -12.9
- Dark Rum -8.5 -2.7 -13.0
- White Rum -9.9 -2.7 -12.7
Tequila (and Mezcal) -1.5 4.0 21.8
Whiskies -3.6 1.5 7.9
- Bourbon/Other US Whiskey -2.4 2.8 14.9
- Canadian Whisky -3.6 -0.5 -2.6
- Irish Whiskey -1.2 5.1 28.3
- Japanese Whisky -8.0 6.9 39.8
- Single Malt Scotch Whisky -6.7 0.1 0.3
White Spirits -4.6 1.1 5.6
- Gin -9.3 -0.2 -1.0
- Vodka -4.0 1.3 6.4
Other Spirits -16.6 -0.3 -1.4
- Shochu/Soju -25.4 3.8 20.4
Spirits -5.3 0.9 4.6
trade sources
Table 21 Forecast Sales of Spirits by Category: % Total Value Growth 2019-2024
% local currency, constant value growth
2019/2020 2019-24 CAGR 2019/24 Total
Brandy and Cognac -29.5 -0.6 -2.8
- Brandy -23.2 -2.1 -9.9

- Cognac -31.3 -0.2 -0.8
Liqueurs -27.8 -3.8 -17.5
- Bitters -24.4 -3.7 -17.0
- Cream-based Liqueurs -23.4 -2.1 -9.9
- Other Liqueurs -29.0 -4.1 -18.8
Rum -24.2 -4.2 -19.2
- Dark Rum -23.7 -3.6 -16.9
- White Rum -24.9 -4.9 -22.0
Tequila (and Mezcal) -16.9 3.7 19.9
Whiskies -20.4 0.8 3.9
- Bourbon/Other US Whiskey -22.1 1.3 6.5
- Canadian Whisky -18.6 -2.4 -11.4
- Irish Whiskey -16.4 4.3 23.2
- Japanese Whisky -13.2 12.5 80.3
- Single Malt Scotch Whisky -19.1 1.3 6.7
White Spirits -22.8 -1.1 -5.6
- Gin -26.0 -1.3 -6.3
- Vodka -22.3 -1.1 -5.4
Other Spirits -29.0 -1.5 -7.2
- Shochu/Soju -33.4 4.8 26.4
Spirits -23.0 -0.3 -1.7
trade sources

Spirits - in - The - US 2020 Proyección Al 2023 EUROMONITOR

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Spirits - in - The - US 2020 Proyección Al 2023 EUROMONITOR

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Spirits in the US

LIST OF CONTENTS AND TABLES

Premium spirits performing strongly

Whiskies led the way in volume growth

Tito’s consolidates its position as the largest spirits brand

2020 AND BEYOND

Affected products within spirits

Recovery and opportunities

Summary 1 Benchmark Brands 2019

Vodka Smirnoff Standard

Gin Seagram’s Standard

Other blended Scotch whisky Dewar’s Standard

Dark rum Captain Morgan Standard

White rum Bacardi Standard

Source: Euromonitor International from trade interviews, store checks

Brandy and Cognac 101,156.0 108,597.0 116,225.7 123,339.2 129,603.7 136,178.9

- Japanese Whisky 466.8 753.0 1,232.1 1,644.6 2,122.3 2,362.9

Table 2 Sales of Spirits by Category: Total Value 2014-2019

Brandy and Cognac 6,719.8 7,451.3 8,400.4 9,442.5 10,506.6 11,638.9

Table 3 Sales of Spirits by Category: % Total Volume Growth 2014-2019

% total volume growth

Brandy and Cognac 5.1 6.1 34.6

Table 4 Sales of Spirits by Category: % Total Value Growth 2014-2019

% local currency, current value growth

2018/19 2014-19 CAGR 2014/19 Total

Brandy and Cognac 10.8 11.6 73.2

- Blended Scotch Whisky 3.1 2.1 10.7

Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2014-2019

Off-trade 1,439,54 1,488,06 1,531,62 1,573,63 1,603,26 1,644,33

Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2014-2019

Off-trade 29,355.5 30,769.8 32,164.1 33,591.4 35,410.0 37,554.2

Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2014-2019

Off-trade 2.6 2.7 14.2

Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2014-2019

% constant value growth

Off-trade 6.1 5.0 27.9

Table 9 Sales of Dark Rum by Price Platform: % Total Volume 2014-2019

Prestige 0.2 0.3 0.3 0.3 0.4 0.6

Table 10 Sales of White Rum by Price Platform: % Total Volume 2014-2019

Ultra Premium 0.6 0.5 0.5 0.5 0.6 0.6

Prestige 1.7 1.7 1.5 1.2 1.2 1.1

Table 12 Sales of English Gin by Price Platform: % Total Volume 2014-2019

Prestige 0.1 0.1 0.1 0.1 0.2 0.2

Table 13 Sales of Vodka by Price Platform: % Total Volume 2014-2019

Prestige 0.1 0.1 0.1 0.1 0.1 0.1

Table 14 Sales of Vodka by Flavoured vs Non-flavoured: % Total Volume 2014-2019

Flavoured Vodka 21.8 21.3 21.2 20.8 20.5 20.9

Table 15 GBO Company Shares of Spirits: % Total Volume 2015-2019

Diageo Plc 16.6 16.7 16.6 15.6 15.5

Table 16 NBO Company Shares of Spirits: % Total Volume 2015-2019

Diageo North America Inc 17.3 17.3 17.2 16.3 16.3

Rémy Cointreau USA Inc 0.6 0.6 0.6 0.7 0.6

Table 17 LBN Brand Shares of Spirits: % Total Volume 2016-2019

Tito's Fifth Generation, Inc 1.9 2.6 3.1 3.6

Table 18 Forecast Sales of Spirits by Category: Total Volume 2019-2024

Brandy and Cognac 136,178.9 123,131.7 129,320.2 133,521.5 137,268.9 140,409.2

Table 19 Forecast Sales of Spirits by Category: Total Value 2019-2024

Brandy and Cognac 11,638.9 8,202.1 9,922.2 10,447.9 10,923.7 11,318.0

Table 20 Forecast Sales of Spirits by Category: % Total Volume Growth 2019-2024

% total volume growth

Brandy and Cognac -9.6 0.6 3.1

Table 21 Forecast Sales of Spirits by Category: % Total Value Growth 2019-2024

% local currency, constant value growth