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Dark Spirits - US - October 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Terms
EXECUTIVE SUMMARY
Flavoring innovation, continued growth in premium push total distilled spirits to new sales heights
Figure 1: Total US sales and fan chart forecast of distilled spirits, at current prices, 2009-19
Slight, but steady growth in dark spirits volume sales
Figure 2: US volume sales of dark spirits, by segment, 2009-14
Straight whiskey remains the strongest dark spirits segment, with Canadian versions a growing presence
Figure 3: US volume sales of whiskey/whisky, by type, 2009-14
Other alcoholic beverage types vie for Millennial attention
Figure 4: Alcoholic beverage purchases, by generations – Any consumption, February 2014
Value prices resonate more with young dark spirits consumers, mid-range pricing more popular overall
Figure 5: Where dark spirits are purchased, by age, July 2014
Men consume dark spirits at almost twice the level of women
Figure 6: Frequency of consuming dark spirits – Any usage, by gender, July 2014
Whiskey most often consumed with a mixer, while brandy is mostly enjoyed straight up
Figure 7: How dark spirits are consumed, July 2014
Dark spirits consumed most often with friends, family
Figure 8: Spirits and socialization – With, by spirits and socialization – When, July 2014
Favorite brands resonate most strongly with older consumers, younger drinkers appear to have yet to pick a favorite
Figure 9: Characteristics when purchasing dark spirits, by generations, July 2014
Millennials most often drink dark spirits at home
Figure 10: Spirits and socialization, by generations, July 2014
What we think
ISSUES AND INSIGHTS
Dark spirits remain a niche product, consumed by roughly half of adults
Issues
Insights
Building dark spirits brand awareness among young adults
Issues
Insights
Can brandy, cognac, and Armagnac escape the shadow of whiskey and establish a niche of loyal consumers?
Issues
Insights
TREND APPLICATION
Trend: Sense of the Intense
Trend: Why Buy
Trend: Guiding Choice
MARKET SIZE AND FORECAST
Key points
Distilled spirits capitalize on flavorings for sales growth
Figure 11: Total US sales and forecast of distilled spirits, at current prices, 2009-19
Figure 12: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2009-19
Distilled spirits’ slow growth continues
Figure 13: Total US sales and fan chart forecast of distilled spirits, at current prices, 2009-19
Forecast methodology
MARKET DRIVERS
Key points
Diverse population drinking a diversity of dark spirits
Figure 14: Dark spirits – Usage groups, by race/Hispanic origin, July 2014
Millennials regard inexpensive dark spirits as well as premium
Figure 15: US population, by generation share, 2014
Figure 16: Agreement with flavor, price, and packaging of dark spirits, by generations, July 2014
Spirits consumption highest in households with children
Figure 17: Dark spirits – Usage groups, by presence of children in household, July 2014
Figure 18: Households, by type, 1970-2012, in percent
COMPETITIVE CONTEXT
Key points
Millennials lead in alcoholic beverage consumption, versatility
Figure 19: Alcoholic beverage purchases, by generations – Any consumption, February 2014
Beer, wine top drinks to have with a meal
Figure 20: Occasions for alcoholic beverage consumption, February 2014
Wine preferred during meals
Figure 21: Occasions for alcoholic beverage consumption, February 2014
SEGMENT PERFORMANCE
Key points
Dark spirits demonstrate steady, if slight, growth
Figure 22: US volume sales of dark spirits, by segment, 2009-14
Flavors increase whiskey options
Figure 23: US volume sales of dark spirits, by segment, 2012 and 2014
Irish whiskey outpaces other dark spirits segments
Figure 24: US volume sales of whiskey/whisky, by type, 2009-14
Brandy, cognac, and Armagnac sales languish
Figure 25: US volume sales of brandy/cognac/Armagnac, 2009-14
RETAIL CHANNELS
Key points
Distilled spirits purchased mostly off-premise
Figure 26: US volume sales of dark and white distilled spirits, by channel, 2009-14
Liquor stores the destination of choice for dark spirits purchases
Figure 27: Where dark spirits are purchased, by age, July 2014
Figure 28: Where dark spirits are purchased, by gender, July 2014
Regardless of race, Hispanic origin, liquor stores are the source for dark spirits
Figure 29: Where dark spirits are purchased, by race/Hispanic origin, July 2014
Grocers nearly as popular as liquor stores in Midwest and West
Figure 30: Where dark spirits are purchased, by region, July 2014
LEADING COMPANIES AND MARKETING STRATEGIES
Key points
Premium and small-batch releases drive dark spirits innovation
Figure 31: Crown Royal, “On Point With TGT”, TV spot, April 2014
Figure 32: Jim Beam, “Mila Kunis Makes History”, TV commercial, October 2014
Figure 33: Hennessy, “Never Stop. Never Settle Volume 1”, YouTube video, October 2014
Figure 34: Jack Daniel’s, “Frank The Man,” TV commercial, February 2014
Figure 35: Laphroaig, “Laphroaig Opinions Welcome”, promotional video, May 2014
SOCIAL MEDIA – DARK SPIRITS
Key points
Market overview
Key social media metrics
Figure 36: Key social media metrics for select dark spirits brands, September 2014
Brand usage and awareness
Figure 37: Brand usage and awareness for select dark spirits brands, July 2014
Interactions with dark spirits brands
Figure 38: Interaction levels for select dark spirits brands, July 2014
Leading online campaigns
Lifestyle highlights
Content sharing
What we think
Online conversations
Figure 39: Online conversations for select dark spirits brands, by week, Sept. 8, 2013-Sept. 7, 2014
Where are people talking about dark spirits?
Figure 40: Online conversations for select dark spirits brands, by page type, Sept. 8, 2013-Sept. 7, 2014
What are people talking about?
Figure 41: Topics of conversation for select dark spirits brands, Sept. 8, 2013-Sept. 7, 2014
INNOVATIONS AND INNOVATORS
Top product claims among dark spirits boast premium, ethical positioning
Figure 42: Dark spirits launches (whiskey or brandy), by product claim, 2010-14*
Ethical/environmentally friendly
Crossover between alcoholic and non-alcoholic categories
Small batch a premium trend
THE CONSUMER – FREQUENCY OF CONSUMPTION
Key points
Dark spirits drinkers favor American Kentucky bourbon and Tennessee whiskey
Figure 43: Frequency of consuming dark spirits, July 2014
High-volume dark spirits consumers drink relatively similar amounts of the beverages
Figure 44: Frequency of consuming dark spirits – User groups, July 2014
Men vastly outnumber women in the consumption of dark spirits
Figure 45: Frequency of consuming dark spirits – Any usage, by gender, July 2014
Opportunity to reach women with flavorful dark spirits
Figure 46: Agreement with flavor, price, and packaging of dark spirits, by gender, July 2014
Figure 47: Agreement with flavor, price, and packaging of dark spirits, by dark spirits – Usage groups, July 2014
THE CONSUMER – CONSUMPTION OF DARK SPIRITS
Key points
Dark spirits consumption skews younger
Figure 48: Frequency of consuming dark spirits – Any usage, by age, July 2014
More Millennials drink dark spirits at social gatherings, away from home
Figure 49: Spirits and socialization, by generations, July 2014
Favorite dark spirits brands impact older generations
Figure 50: Characteristics when purchasing dark spirits, by generations, July 2014
THE CONSUMER – DARK SPIRITS ATTRIBUTES
Key points
Dark spirits flavors resonate with all consumers, particularly women
Figure 51: Characteristics when purchasing dark spirits, by gender, July 2014
Indulgent flavors in dark spirits mostly appeal to those aged 22-34
Figure 52: Agreement with flavor, price, and packaging of dark spirits, by age, July 2014
Women desire indulgent-flavored dark spirits; men want spiced spirits
Figure 53: Agreement with flavor, price, and packaging of dark spirits, by gender and age, July 2014
THE CONSUMER – PURCHASING DARK SPIRITS
Key points
Mid-range pricing of dark spirits garners more purchases than value pricing
Figure 54: Where dark spirits are purchased, by gender, July 2014
Value pricing impacts the choice of younger consumers, who drink the most dark spirits
Figure 55: Where dark spirits are purchased, by age, July 2014
More than a third of dark spirits consumers would like more private label options
Figure 56: Flavor, price, and packaging of dark spirits, July 2014
Millennial dark spirits drinkers most likely to respond to mid-range pricing
Figure 57: Where dark spirits are purchased, by generations, July 2014
THE CONSUMER – HOW DARK SPIRITS ARE CONSUMED
Key points
Whiskey drinkers much more likely to consume the beverage on the rocks or with a mixer
Figure 58: How dark spirits are consumed, July 2014
Figure 59: How dark spirits are consumed, July 2014
Millennials opt for whiskey straight up, though Baby Boomers more likely to drink flavored whiskey neat
Figure 60: Dark spirits neat/straight up, by gender, July 2014
Figure 61: Dark spirits neat/straight up, by generations, July 2014
Men more likely to consume dark spirits on the rocks
Figure 62: Dark spirits on the rocks/over ice, by gender, July 2014
Figure 63: Dark spirits on the rocks/over ice, by generations, July 2014
Except for brandy among older consumers, whiskey with a mixer maintains a steady degree of popularity
Figure 64: Dark spirits with a mixer, by age, July 2014
Women more likely to feature dark spirits in a cocktail
Figure 65: Dark spirits in a cocktail, by gender, July 2014
RACE AND HISPANIC ORIGIN
Key points
More Hispanics drink dark spirits than non-Hispanics
Figure 66: Frequency of consuming dark spirits – Any usage, by race/Hispanic origin, July 2014
Hispanics favor flavors but not necessarily dark spirits flavor
Figure 67: Agreement with flavor, price, and packaging of dark spirits, by race/Hispanic origin, July 2014
Figure 68: Agreement with flavor, price, and packaging of dark spirits, by race/Hispanic origin, July 2014
Figure 69: Agreement with flavor, price, and packaging of dark spirits, by race/Hispanic origin, July 2014
Figure 70: Characteristics when purchasing dark spirits, by race/Hispanic origin, July 2014
Figure 71: Characteristics when purchasing dark spirits, by race/Hispanic origin, July 2014
Figure 72: Characteristics when purchasing dark spirits, by race/Hispanic origin, July 2014
Value-priced dark spirits resonate more strongly with Hispanic consumers
Figure 73: Where dark spirits are purchased, by race/Hispanic origin, July 2014
Hispanics more likely to drink socially and as part of a meal
Figure 74: Spirits and socialization, by race/Hispanic origin, July 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Frequency of consuming dark spirits
Figure 75: Frequency of consuming dark spirits – Any usage, by household income, July 2014
Figure 76: Frequency of consuming dark spirits – Any usage, by presence of children in household, July 2014
Figure 77: Frequency of consuming dark spirits – Any usage, by generations, July 2014
Figure 78: Frequency of consuming dark spirits – Any usage, by dark spirits – Usage groups, July 2014
Figure 79: Frequency of consuming dark spirits – Any usage, by brandy – Usage groups, July 2014
Figure 80: Frequency of consuming dark spirits – Any usage, by brand usage – Past year, July 2014
Figure 81: Dark spirits – Usage groups, by generations, July 2014
Figure 82: Dark spirits – Usage groups, by brandy – Usage groups, July 2014
Figure 83: Brandy usage groups, by household income, July 2014
Figure 84: Brandy usage groups, by race/Hispanic origin, July 2014
Figure 85: Brandy usage groups, by presence of children in household, July 2014
Figure 86: Brandy usage groups, by generations, July 2014
Characteristics when purchasing dark spirits
Figure 87: Characteristics when purchasing dark spirits, by presence of children in household, July 2014
Figure 88: Characteristics when purchasing dark spirits, by dark spirits – Usage groups, July 2014
Figure 89: Characteristics when purchasing dark spirits, by brandy – Usage groups, July 2014
Where dark spirits are purchased
Figure 90: Where dark spirits are purchased, by dark spirits – Usage groups, July 2014
Figure 91: Where dark spirits are purchased, by brandy – Usage groups, July 2014
Spirits and socialization
Figure 92: Spirits and socialization, by gender, July 2014
Figure 93: Spirits and socialization, by age, July 2014
Figure 94: Spirits and socialization, by household income, July 2014
Figure 95: Spirits and socialization, by presence of children in household, July 2014
Figure 96: Spirits and socialization, by dark spirits – Usage groups, July 2014
Figure 97: Spirits and socialization, by brandy – Usage groups, July 2014
Figure 98: Spirits and socialization – With, by spirits and socialization – When, July 2014
How dark spirits are consumed
Figure 99: Dark spirits neat/straight up, by age, July 2014
Figure 100: Dark spirits on the rocks/over ice, by age, July 2014
Figure 101: Dark spirits with a mixer, by household income, July 2014
Figure 102: Dark spirits in a cocktail, by age, July 2014
Figure 103: Dark spirits in a cocktail, by household income, July 2014
Figure 104: Dark spirits in a cocktail, by presence of children in household, July 2014
Figure 105: Dark spirits in other beverage, by gender, July 2014
Figure 106: Dark spirits in other beverage, by household income, July 2014
Figure 107: Dark spirits in other beverage, by generations, July 2014
Figure 108: Spirits and socialization, by dark spirits neat/straight up, July 2014
Flavor, price, and packaging of dark spirits
Figure 109: Flavor, price, and packaging of dark spirits, July 2014
Figure 110: Agreement with flavor, price, and packaging of dark spirits, by gender, July 2014
Figure 111: Agreement with flavor, price, and packaging of dark spirits, by household income, July 2014
Figure 112: Agreement with flavor, price, and packaging of dark spirits, by presence of children in household, July 2014
Figure 113: Agreement with flavor, price, and packaging of dark spirits, by brandy – Usage groups, July 2014
APPENDIX – SOCIAL MEDIA – DARK SPIRITS
Brand usage or awareness
Figure 114: Brand usage or awareness, July 2014
Figure 115: Johnnie Walker usage or awareness, by demographics, July 2014
Figure 116: Hennessy usage or awareness, by demographics, July 2014
Figure 117: Jack Daniel’s usage or awareness, by demographics, July 2014
Figure 118: Maker’s Mark usage or awareness, by demographics, July 2014
Figure 119: Wild Turkey usage or awareness, by demographics, July 2014
Figure 120: Crown Royal usage or awareness, by demographics, July 2014
Activities done
Figure 121: Activities done, July 2014
Figure 122: Johnnie Walker – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 123: Johnnie Walker – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 124: Johnnie Walker – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 125: Johnnie Walker – Activities done – I have researched the brand on social media to, by demographics, July 2014
Figure 126: Hennessy – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 127: Hennessy – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 128: Hennessy – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 129: Hennessy – Activities done – I have researched the brand on social media to, by demographics, July 2014
Figure 130: Jack Daniel’s – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 131: Jack Daniel’s – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 132: Jack Daniel’s – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 133: Jack Daniel’s – Activities done – I have researched the brand on social media to, by demographics, July 2014
Figure 134: Maker’s Mark – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 135: Maker’s Mark – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 136: Maker’s Mark – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 137: Maker’s Mark – Activities done – I have researched the brand on social media to, by demographics, July 2014
Figure 138: Wild Turkey – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 139: Wild Turkey – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 140: Wild Turkey – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 141: Wild Turkey – Activities done – I have researched the brand on social media to, by demographics, July 2014
Figure 142: Crown Royal – Activities done – I have looked up/talked about this brand online on social media, by demographics, July 2014
Figure 143: Crown Royal – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, July 2014
Figure 144: Crown Royal – Activities done – I follow/like the brand on social media because, by demographics, July 2014
Figure 145: Crown Royal – Activities done – I have researched the brand on social media to, by demographics, July 2014
Key social media metrics
Figure 146: Key social media metrics for select dark spirits brands, September 2014
Online conversation
Figure 147: Online conversations for select dark spirits brands, by week, Sept. 8, 2013-Sept. 7, 2014
Figure 148: Online conversations for select dark spirits brands, by page type, Sept. 8, 2013-Sept. 7, 2014
Figure 149: Topics of conversation for select dark spirits brands, Sept. 8, 2013-Sept. 7, 2014
APPENDIX – TRADE ASSOCIATIONS

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