Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Spirits and cocktails come second to beer and wine
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- Figure 1: Alcohol consumption, most often and also drink, August 2017
- Lack of female drinkers hinders total market growth
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- Figure 2: Dark spirit consumption, by gender, August 2017
- Seasonality shifts limit year-round consumption
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- Figure 3: Seasonality of spirits, August 2017
- The opportunities
- Tap into female drinkers through cocktails
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- Figure 4: Attitudes toward spirits, by gender, August 2017
- Increased occasion association
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- Figure 5: Spirit decision making, August 2017
- Dark/spiced rum to grow in quality appeal
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- Figure 6: Spirit associations, August 2017
- What it means
The Market – What You Need to Know
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- Premium and craft offerings drive strong dark spirit growth
- Off-premise dominates consumption, on-premise sees growth
- Dark spirits aren’t first to mind
- Consumers are drinking less as the US population ages
Market Size and Forecast
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- Dollar sales of spirits continue strong growth
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- Figure 7: Total US sales and fan chart forecast of distilled spirits, at current prices, 2012-22
- Figure 8: Total US sales and forecast of distilled spirits, at current prices, 2012-22
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- Figure 9: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2012-22
- Dark spirits volume growth expected to be strong through 2022
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- Figure 10: US volume sales of dark spirits, 2012-22
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- Figure 11: US volume sales of dark spirits, by segment 2012-22
Market Breakdown
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- Consumers interested in all things dark spirits
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- Figure 12: US volume sales of dark spirits, by segment 2012-22
- Irish/imported whiskey, straight whiskies take off
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- Figure 13: US volume sales of whiskey/whisky, by type, percentage change 2012-17
- Brandy’s premium appeal resonates with consumers
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- Figure 14: US volume sales of brandy, cognac, and Armagnac, percentage change 2012-17
- Off-premise dominates in spirits…
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- Figure 15: US volume sales of dark and white distilled spirits, market share by channel, 2012-16
- …on-premise consumption looking up
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- Figure 16: US volume sales of dark and white distilled spirits, percentage change by channel, 2012-16
Market Perspective
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- NFL befriends liquor advertisers
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- Figure 17: “Hydrate Generously | Drink in Moderation | Crown Royal Water B.O.Y.S.” September 2017
- White spirits continue to grow
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- Figure 18: US volume sales and forecast of white spirits, by segment, 2011-21
- Beer and wine are staples
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- Figure 19: Alcohol consumption, most often and also drink, August 2017
- Cocktails with white spirits are the standard
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- Figure 20: Products used – Alcohol, June 2017
Market Factors
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- Consumers are drinking less, but spending more on-premise
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- Figure 21: Total on-premise market volume consumption per capita, total alcohol, 2011-20
- Younger adults limiting dark spirit intake
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- Figure 22: Shifts in consumption of dark spirits, by age, August 2017
- The US gets older
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- Figure 23: Median age of the population, 1940-2050
Key Players – What You Need to Know
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- Dark spirit brands thrive across the board
- Premium and craft offerings elevate the category
- US-bottled international types lose their way
- Flavors and brand stories appeal to whiskey consumers of all genders
Company and Brand Sales of Dark Spirits
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- Jack Daniel’s and Jim Beam bourbons lead the pack
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- Figure 24: Bourbon, blended, rye whiskies consumed in the past 30 days, top five, by brand, trended 2012-17
- Jameson drives growth in Irish whiskey
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- Figure 25: Canadian, Irish whiskey, Scotch whisky consumed in the past 30 days, by brand, trended 2012-17
- Premium brandy and cognacs thrive with focus on Millennials
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- Figure 26: Brandy/cognac consumed in the past 30 days, by brand, trended 2012-17
- Dark rum brands remain relatively stable
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- Figure 27: Dark/spiced/gold rum consumed in the past 30 days, by brand, trended 2012-17
What’s Working?
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- Craft-style dark spirits
- Premium offerings
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- Figure 28: Jim Beam Black | World’s Highest Rated Bourbon | Mila Kunis Voiceover, July 2017
- Irish whiskey continues its boom, led by Jameson
What’s Struggling?
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- US-bottled international whiskies struggling to ring authentic
What’s Next?
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- Blends and flavors
- Brand stories
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- Figure 29: Tullamore D.E.W. “No Irish Need Apply (Extended Version),” October 2017
- The inclusive whiskey drinker
The Consumer – What You Need to Know
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- Men lead the dark spirit category with whiskey consumption
- Consumers report stalling or decreased drinking habits compared to last year
- Relaxation is the goal
- Cocktails inspire spirit exploration, type of spirit says more than brand
- Why consumers are drinking determines what spirit consumers are drinking
- Spirit consumption shifts with the seasons
- Dark spirits highly associated with quality
- Liquor stores drive spirit purchases
Dark Spirit Consumption
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- Whiskies lead dark spirit consumption
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- Figure 30: Dark spirit consumption, August 2017
- Men lead dark spirit consumption
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- Figure 31: Dark spirit consumption, by gender, August 2017
- Dark spirit consumption peaks at an early age
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- Figure 32: Dark spirit consumption, by age, August 2017
- Black consumers imbibe brandy
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- Figure 33: Dark spirit consumption, by race, August 2017
Shifts in Dark Spirit Consumption
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- Majority of consumers are stalling consumption or drinking less
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- Figure 34: Shifts in consumption of dark spirits, August 2017
- Young women limit consumption
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- Figure 35: Shifts in consumption of dark spirits, by age and gender, August 2017
- Cutting back on drinking alcohol hurting dark spirits
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- Figure 36: Shifts in consumption of dark spirits – Reasons for drinking less, August 2017
Motivations for Drinking Alcohol
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- Relaxation and taste preference drive alcohol consumption
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- Figure 37: Motivations for drinking alcohol, August 2017
- Relaxation is the goal, rum drinkers want to have fun
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- Figure 38: Motivations for drinking alcohol, by dark spirit consumption, August 2017
- Younger consumers drink to explore
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- Figure 39: Motivations for drinking alcohol, by age, August 2017
- Parents also want to have fun
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- Figure 40: Motivations for drinking alcohol, by parental status, August 2017
- Taste becomes a driving motivator if budget allows
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- Figure 41: Motivations for drinking alcohol, by household income, August 2017
Attitudes toward Spirits
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- Cocktails encourage trial of new spirits
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- Figure 42: Attitudes toward spirits, August 2017
- Men feel more knowledgeable about spirits
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- Figure 43: Attitudes toward spirits, by gender, August 2017
- Younger men express identity through type and brand of spirit they drink
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- Figure 44: Attitudes toward spirits, by age and gender, August 2017
- Hispanics eager to make cocktails at home
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- Figure 45: Attitudes toward spirits, by Hispanic origin, August 2017
Deciding Which Spirit to Drink
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- Why they’re drinking determines what they’re drinking
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- Figure 46: Spirit decision making, August 2017
- On-hand ingredients sway decision for dark spirit drinkers
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- Figure 47: Spirit decision making, dark spirit drinkers, August 2017
- Younger consumers open to persuasion from many sources
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- Figure 48: Spirit decision making, any rank, by age, August 2017
- Older Millennials less swayed by occasion, open to social media inspiration
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- Figure 49: Spirit decision making, by Younger and Older Millennials, August 2017
Seasonality of Spirits
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- Dark spirits peak in colder times of the year
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- Figure 50: Seasonality of spirits, August 2017
- Flavored whiskey, rum good opportunities for year-round consumption
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- Figure 51: Seasonality of spirits, August 2017
Dark Spirit Associations
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- Whiskies, brandy promote quality, dark rum appeals to taste and fun
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- Figure 52: Spirit associations, August 2017
- Women don’t think whiskey/whisky is for them
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- Figure 53: Spirit associations, whiskey/whisky, by gender, August 2017
- Black and Hispanic consumers are strong target for brandy
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- Figure 54: Spirit associations, brandy, by race and Hispanic origin, August 2017
- Young men associate rum with fun
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- Figure 55: Spirit associations, dark/spiced rum, by age and gender, August 2017
Purchase Location of Spirits
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- Regardless of spirit value, consumers buy at liquor
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- Figure 56: Purchase location, August 2017
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- Figure 57: Purchase location – Do not purchase, August 2017
- Western consumers purchase spirits in club stores, local supermarkets
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- Figure 58: Purchase location, by region, August 2017
- Older Millennials purchase value spirits wherever they shop
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- Figure 59: Purchase location, value spirits, by Older and Younger Millennials, August 2017
- Hispanic consumers purchase spirits in a wider range of channels
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- Figure 60: Purchase location, by Hispanic origin, August 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 61: Total US sales and forecast of distilled spirits, at current prices, 2012-22
- Figure 62: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2012-22
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- Figure 63: US volume sales of dark spirits, 2012-22
- Figure 64: US volume sales of dark spirits, by segment 2012-22
- Figure 65: US volume sales of whiskey/whisky, by type, 2012-17
- Figure 66: US volume sales of dark and white distilled spirits, market share by channel, 2012-16
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- Figure 67: US volume sales of dark and white distilled spirits, percentage change by channel, 2012-16
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