The U.S. dark spirits market, which exceeded $9 billion in 2004, has enjoyed steady if modest annual growth since 1999. The growth has not been as robust as the white spirits market, due largely to the fact that dark spirits tend to be an acquired taste. Young drinkers have turned more towards the sweeter and fruitier drinks supplied by white spirits manufacturers, and dark spirits companies have been slow to add flavored brand extensions, something difficult to do with some of the more strong-tasting whiskeys and brandies. However, a few products have been introduced (such as flavored Cognac) that show potential to help the market.

Whiskey is produced in many parts of the world, however, the only significant whiskeys in the U.S. market are those produced in Scotland, Ireland, Canada, and the United States. Whisky (no “e”) means Scottish and Canadian whisky, whereas whiskey (with an “e”) is used to denote Irish or American brands.

The 2003 update on Mintel’s Distilled Spirits 2001 report was expanded to include liqueurs/cordials and all brandy categories. The 2003 report was limited to brandy distilled from grape wine, but this report encompasses other types of brandy, such as Calvados and Eau de Vie, which are produced from apples, pears or other fruits. Grape brandy which has been flavored, such as cherry brandy, has traditionally been regarded as a liqueur and is also included in this report. This report covers the two prestigious brandies, cognac and Armagnac, both of which are produced in strictly delineated areas of France, and other grape brandies, which also come mostly from France, although brandies from Germany, Greece, Spain, and the U.S. are also available. Almost all American brandies come from California.

The liqueurs/cordials category, which is often referred to as “specialty spirits,” is included in this report because it is a significant portion of the U.S. distilled spirits market. No attempt at further classifying liqueurs and cordials by color (“white” or “dark”) has been made, yet as a general category, liqueurs and cordials are covered in the Dark Spirits volume of this report series. However, Mintel does recognize that many of the spirits in this category are light or white in color.

Rum is distilled from molasses or sugar cane residue, mainly in the Caribbean. Official statistics make no distinction as to the coloring of rum, which is often achieved by the addition of an agent such as caramel. Both the industry and consumers have, however, traditionally regarded white and dark rum as distinct drinks. In the Consumer section, distinction is made between dark and light rums; however, in market segmentation and market size data, rums have been grouped under the white spirits category and are covered in Volume II of this report.

Excluded from this report are spirit-based RTD cocktails such as margaritas or flavored alcoholic beverages (FABs) such as Jack Daniel’s Country Coolers. For market information about these products see Mintel’s U.S. Malternatives (FABs), April 2003, due to be updated in May 2005.

Trade data used: NAICS 4453/U.S. Retail Sales: beer, wine and liquor stores.