In 2014, spirits revenues stood at an estimated R$3.3 billion, a growth of 6% compared to the previous year, and a total growth of 49% in the last five years. Prices have been rising due to inflation, rising taxes, and increasing operating costs. The growth of higher priced segments such as vodka and whiskey has also contributed to rising average prices. Looking ahead, value sales are forecast to grow by 35% between 2014 and 2019, to reach R$4.5 billion.

Older consumers show the lowest engagement within the spirits market. They also have the lowest repertoire among other demographics. The challenge for spirit companies is to engage at earlier stages with consumers and keep a close relationship with them.

This report analyzes all spirits (distilled beverages) and liqueurs (flavored with fruit, herbs etc). It excludes fortified rice, sake, and related wines that have some form of fermentation.

The market size in this report covers all spirits (distilled beverages) and liqueurs (flavored with fruit, herbs etc) in both retail and on-trade channels, as follows:

• Anis/absinthe: includes absinthe, arak and similar spirits.

• Brandies and Brandy type: includes spirits derived from grapes/grape skins and includes Cognac, Armagnac, fruit-based and traditional brandies, and related spirits.

• Rum/sugarcane-based spirits: includes white and dark rum, and sugarcane-based spirits including cachaça.

• Tequila: includes tequila of all ages.

• Vodka-based spirits: includes premium, standard, and economy vodkas; aquavit; and Scandinavian schnapps.

• Whiskies: includes Scotch (whiskey), Irish whiskey, bourbon, and other (local) whiskies.

Cachaça is a distilled spirit made from sugarcane juice and it is the most popular distilled alcoholic beverage in Brazil. Caipirinha is Brazil's national cocktail, made with cachaça, sugar, and fruit, most commonly lime. The most popular variations are caipiroska (with vodka) and sakeirinha (with sake).