Spirits: The Consumer - US - August 2010

SCOPE AND THEMES
What you need to know
Definition
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Distilled spirits consumption remains steady during the recession
Vodka is the most popular white spirit; tequila and gin show growth in drinkers
Whiskey tops the dark spirits choices
Men are the key consumer; women offer opportunities for fruit-flavored spirits
Adults aged 25-34 are the most profitable consumers; 21-24 age group also offers growth potential
Blacks and Hispanics can stimulate growth for some spirit types—Cognac, tequila, gin
INSIGHTS AND OPPORTUNITIES—A CONSUMER-CENTRIC VIEW
Tea-flavored spirits present growth potential
Caffeinated spirits—will the trend survive the FDA scrutiny?
... but the FDA is concerned about caffeine-infused alcohol
INSPIRE TRENDS
Trend: Sell an experience in the bottle
What’s it about
What we’ve seen
Implications for the spirits market
MARKET DRIVERS
Key points
Per capita consumption increases slightly in 2009
Figure 1: Number of gallons of distilled spirits consumed annually, 1978-2009
Recession continues to impede consumer spending
Figure 2: Employment status of the civilian non-institutional population 16 years and over, 2000-10
At-home consumption on the rise due to the recession; on-premise consumption declines
Figure 3: Influence of the recession on drinking behavior, by age, March 2010
Figure 4: Alcoholic beverage consumption at bars/restaurants compared to last year, by age, January 2010
… but net at-home consumption lower than a year before; drinkers trading down to cheaper brands of spirits
Figure 5: Alcoholic beverage consumption at home compared to last year, by beverage type, March 2010
Figure 6: Alcoholic beverage consumption at bars/restaurants compared to last year, by age, January 2010
Young adults aged 21-34 continue to be the biggest consumer
Figure 7: Incidence of consumption of distilled spirits relative to a year ago, by age, March 2010
Population growth trends favor adults ages 55-74
Figure 8: Population aged 21 or older, 2005-15
Asians, blacks, and Hispanics offer growth potential
SPIRITS USAGE, TYPE AND FREQUENCY, BRANDS
Key points
Distilled spirits—the biggest consumed alcoholic beverage in 2009
Figure 9: Trends in drinking distilled spirits, prepared cocktail, and other alcoholic beverages, January 2005-December 2009
Trends in consumption of white and dark spirits
Figure 10: Trends in consumption of spirits, by white and dark spirits, January 2005-December 2009
Men continue to outpace women in drinking most types of spirits
Figure 11: Ad poster of Russian women-targeted brand Damskaya, 2007-08
Figure 12: Trends in consumption of spirits, by type and gender, January 2005-December 2009
Spirits consumption fluctuates among adults aged 21-24; rises among those aged 25-34 during 2005-09
Figure 13: Trends in consumption of spirits, by type, by age group 21-34, January 2005-December 2009
Spirit consumption remains steady among adults aged 35-54
Figure 14: Trends in consumption of spirits, by type, by age group 35-54, January 2005-December 2009
Spirits consumption increases among adults aged 55+ during 2005-09
Figure 15: Trends in consumption of spirits, by type, by age group 55+, January 2005-December 2009
Household income influences spirits consumption; incidence rises among the lowest income group
Figure 16: Consumption of spirits by type, by household income, November 2008-December 2009
Figure 17: Trends in consumption of spirits by type, by household income under $25K, January 2005-December 2009
SPIRITS: VOLUME CONSUMPTION
Volume consumption trends for white spirits
Figure 18: Trends in volume consumption of white spirits, by type, January 2005-December 2009
White spirits volume consumption highest among adults aged 21-24; those in the lowest household income group
Figure 19: Mean volume consumption of white spirits by type, by gender, age, household income, November 2008-December 2009
Volume consumption for dark spirits rises during 2007-09
Figure 20: Trends in volume consumption of dark spirits by type, January 2005-December 2009
Figure 21: Mean volume consumption of dark spirits by type, by gender and age, November 2008-December 2009
WHITE SPIRITS: BRAND PREFERENCE
Over half of vodka drinkers drink Absolut vodka
Figure 22: Incidence of drinking top vodka brands among vodka drinkers, by age, November 2008-December 2009
Light/white/clear rum is the most popular type
Figure 23: Incidence of drinking rum, by type, by gender, November 2008-December 2009
Figure 24: Incidence of drinking rum, by type, by age, November 2008-December 2009
Rum brand preference
Figure 25: Incidence of drinking top rum brands among rum drinkers, by age, November 2008-December 2009
Tequila brand preference
Figure 26: Incidence of drinking top tequila brands among tequila drinkers, by age, November 2008-December 2009
Gin brand preference
Figure 27: Incidence of drinking top gin brands among gin drinkers, by age, November 2008-December 2009
DARK SPIRITS: BRAND PREFERENCE
Whiskey consumption by type
Figure 28: Incidence of drinking whiskey, by gender, November 2008-December 2009
Figure 29: Incidence of drinking top bourbon whiskey brands, by age, November 2008-December 2009
Figure 30: Incidence of drinking top Canadian whisky brands, by age, November 2008-December 2009
Brandy/Armagnac and Cognac consumption by type
Figure 31: Incidence of drinking brandy/Armagnac and Cognac by type, by gender, November 2008-December 2009
Cognac brand consumption
Figure 32: Incidence of drinking top Cognac brands, by gender, November 2008-December 2009
DRINKING STYLE
Most spirit drinkers like to drink with soda, juice
Figure 33: Way of drinking distilled spirits, by gender, March 2010
Figure 34: Way of drinking distilled spirits, by age, March 2010
PREMIUM VS. VALUE—ROLE OF DRINKING LOCATION
Mid-priced spirits are most popular among spirit drinkers
Figure 35: Types of spirits by value consumed at various locations/occasions, March 2010
Figure 36: Types of spirits by value consumed at bars, by age, March 2010
Types of spirits consumed at home
Figure 37: Types of spirits by value consumed at home, by gender, March 2010
SPENDING ON SPIRITS BY OCCASION AND/OR LOCATION
Special occasions/holidays garner biggest spending on spirits
Figure 38: Spending on a bottle of spirit, by occasion or location of consumption, by gender, March 2010
Figure 39: Incidence of not purchasing spirits by occasion, by gender, March 2010
Women spend less than men on each of the occasions on a spirit bottle
Figure 40: Spending on a bottle of spirit by occasion or location of consumption, by gender, March 2010
Spirit drinkers aged 25-34 spend the most on spirits for various drinking occasions
Figure 41: Spending on a bottle of spirit by occasion or location of consumption, by age, March 2010
ATTRIBUTES/FACTORS FAVORABLE TO GENERATING TRIAL
Figure 42: Motivation for purchase of new distilled spirits, by age, March 2010
SHIFTS IN CONSUMPTION OF SPIRITS OVER LAST YEAR
Figure 43: Shifts in consumption of spirits in last year, by household income, March 2010
ATTITUDES TOWARD PRODUCT ATTRIBUTES, ECONOMY, COCKTAILS, AND BRAND LOYALTY
Spirit drinkers buy on promotion and drink cheaper brands due to the recession
Figure 44: Attitudes toward spirits in relation to the economy and preference for wine and beer, by age, March 2010
Functional spirits and fruit-flavored spirits offer growth potential
Figure 45: Attitudes toward pro-health, functional, and flavor attributes in spirits and brand loyalty, by gender, March 2010
Figure 46: Attitudes toward pro-health, functional, and flavor attributes in spirits and brand loyalty, by age, March 2010
Cocktail recipe on the bottle is likely to attract half the spirit drinkers
Figure 47: Attitudes toward cocktails and medium of research for alcoholic beverages, by age, March 2010
IMPACT OF RACE AND HISPANIC ORIGIN
Blacks show inclination toward gin, prepared cocktails
Figure 48: Trends in consumption of spirits by type, white vs. black respondents, January 2005-December 2009
Hispanic spirits consumption, aided by tequila, rises in 2009
Figure 49: Trends in consumption of spirits by type, by Asians and Hispanics, January 2005-December 2009
Figure 50: Mean volume consumption of white spirits by type, by race/Hispanic origin, November 2008-December 2009
Figure 51: Mean volume consumption of dark spirits by type, by race/Hispanic origin, November 2008-December 2009
White and dark spirit consumption by brand by race/Hispanic origin
Figure 52: Incidence of drinking top vodka brands among vodka drinkers, by race/Hispanic origin, November 2008-December 2009
Figure 53: Incidence of drinking top rum brands among rum drinkers, by race/Hispanic origin, November 2008-December 2009
Figure 54: Incidence of drinking top tequila brands among tequila drinkers, by race/Hispanic origin, November 2008-December 2009
Figure 55: Incidence of drinking top gin brands among gin drinkers, by race/Hispanic origin, November 2008-December 2009
Blacks are the primary Cognac/brandy consumer
Figure 56: Incidence of drinking brandy/Armagnac and Cognac by type, by race/Hispanic origin, November 2008-December 2009
Drinking style
Figure 57: Method of drinking distilled spirits, by race/Hispanic origin, March 2010
CLUSTER ANALYSIS
Loyalists
Demographics
Characteristics
Opportunity
Shifters
Demographics
Characteristics
Opportunity
Experimenters
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 58: Spirits clusters, March 2010
Figure 59: Incidence of drinking different types of alcoholic beverages, by spirits clusters, March 2010
Figure 60: Ways of drinking distilled spirits, by spirits clusters, March 2010
Figure 61: Motivation for purchase of new distilled spirits, by spirits clusters, March 2010
Figure 62: Attitudes towards spirits in relation to economy and preference for wine and beer, by spirits clusters, March 2010
Figure 63: Attitudes towards pro-health, functional, and flavor attributes in spirits and brand loyalty, by spirits clusters, March 2010
Figure 64: Attitudes towards cocktails and medium of research for alcoholic beverages, by spirits clusters, March 2010
Cluster demographics
Figure 65: Spirits clusters, by gender, March 2010
Figure 66: Spirits clusters, by age group, March 2010
Figure 67: Spirits clusters, by household income group, March 2010
Figure 68: Spirits clusters, by race, March 2010
Figure 69: Spirits clusters, by Hispanic origin, March 2010
Cluster methodology
CUSTOM CONSUMER GROUPS
Differences exist in the drinking styles for white and dark spirits
Figure 70: Ways of drinking distilled spirits, by white and dark spirits, March 2010
Adults interested in watching sports are more likely to drink spirits
Adults interested in watching NASCAR, football, soccer, and Olympics are also interested in spirits
Figure 71: Incidence of drinking various types of spirits, by NASCAR watching, November 2008-December 2009
Figure 72: Incidence of drinking various types of spirits, by Super Bowl and World Cup Soccer watching, November 2008-December 2009
Figure 73: Incidence of drinking various types of spirits, by Summer Olympics (NBC) and Fox MLB World Series watching, November 2008-December 2009
APPENDIX: ADDITIONAL CONSUMER COMPARISONS
White spirits: Brand preference
Figure 74: incidence of drinking top vodka brands among vodka drinkers, by household income, November 2008-December 2009
Figure 75: Incidence of drinking top rum brands among rum drinkers, by household income, November 2008-December 2009
Figure 76: Incidence of drinking top tequila brands among tequila drinkers, by age, November 2008-December 2009
Figure 77: Incidence of drinking top gin brands among gin drinkers, by gender, November 2008-December 2009
Figure 78: Incidence of drinking top gin brands among gin drinkers, by household income, November 2008-December 2009
Dark spirits: Brand preference
Figure 79: Incidence of drinking top brandy/Armagnac by brands, by gender, November 2008-December 2009
Drinking styles
Figure 80: Method of drinking distilled spirits, by household income, March 2010
Types of spirits consumed—at bar
Figure 81: Types of spirits consumed at bars, by household income, March 2010
Spending on spirits by occasion and/or location
Figure 82: Spending on a bottle of spirit by occasion or location of consumption, by household income, March 2010
Spirits non-purchase by occasion or location of consumption
Figure 83: Incidence of not buying spirits for certain occasion or at certain location, by gender, March 2010
Figure 84: Incidence of not buying spirits for certain occasion or at certain location, by household income, March 2010
Spirits non-purchase pattern by occasion or location of consumption
Figure 85: Incidence of not buying spirits for certain occasion or at certain location, by gender, March 2010
Figure 86: Incidence of not buying spirits for certain occasion or at certain location, by age, March 2010
Attributes/factors favorable to generating trial
Figure 87: Motivation for purchase of new distilled spirits, by gender, March 2010
Shifts in consumption of spirits over last year
Figure 88: Shifts in consumption of spirits in last year, by gender, March 2010
Figure 89: Shifts in consumption of spirits in last year, by age, March 2010
Attitudes toward product attributes, economy, cocktails, and brand loyalty
Figure 90: Attitudes toward spirits in relation to the economy and preference for wine and beer, by gender, March 2010
Figure 91: Attitudes towards spirits in relation to the economy and preference for wine and beer, by household income, March 2010
Figure 92: Attitudes towards pro-health, functional, and flavor attributes in spirits and brand loyalty, by household income, March 2010
Figure 93: Attitudes towards cocktails and medium of research for alcoholic beverages, by gender, March 2010
Figure 94: Attitudes towards cocktails and medium of research for alcoholic beverages, by household income, March 2010
APPENDIX: ADDITIONAL RACE/HISPANIC ORIGIN COMPARISONS
Figure 95: Incidence of drinking rum, by type and race/Hispanic origin, November 2008-December 2009
Figure 96: Incidence of drinking top bourbon whiskey brands, by race/Hispanic origin, November 2008-December 2009
Figure 97: Incidence of drinking top Canadian whiskey brands, by race/Hispanic origin, November 2008-December 2009
Figure 98: Types of spirits consumed at bars, by race/Hispanic origin, March 2010
Figure 99: Motivation for purchase of new distilled spirits, by race/Hispanic origin, March 2010
Attitudes towards product attributes, economy, cocktails, and brand loyalty
Figure 100: Attitudes toward spirits in relation to the economy and preference for wine and beer, by race/Hispanic origin, March 2010
Blacks and Hispanics exhibit higher than average interest in super-premium spirits at bars
Figure 101: Spending on a bottle of spirit by occasion or location of consumption, by race/Hispanic origin, March 2010
Figure 102: Attitudes toward pro-health, functional, and flavor attributes in spirits and brand loyalty, by race/Hispanic origin, March 2010
Figure 103: Attitudes toward cocktails and medium of research for alcoholic beverages, by race/Hispanic origin, March 2010
APPENDIX: TRADE ASSOCIATIONS