Demand of Spirits to Expected Rise: Ken Research

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The US spirits sector is led by the vodka category in both value and volume terms. Spirit is a fermented mixture and a potable alcoholic beverage. In US, many regulations are enacted towards spirits, which are; protecting federal tax revenue, licensing qualified for (importers, manufacturers, wholesaler and warehouses), banning and ensuring quality with standards etc. The sale of spirits is permitted in dedicated retail stores and licensed outlet such as bars, restaurants and night clubs. All hotels serving alcoholic beverages in their facilities are required to have a valid liquor license issued by each state and localities that have laws and regulations.

According to study, “Country Profile: Spirits In The Us” some of the major companies that are currently working in the spirits in the US are Diageo plc, Bacardi Limited, Sazerac Company Inc, Suntory Holdings Ltd, Brown-Forman Corporation, LVMH Moet Hennessy – Louis Vuitton, Constellation Brands Inc, Heaven Hill Distilleries Inc., Casa Cuervo S.A. de C.V, PernodRicard SA, Fifth Generation Inc.

Trade of spirits in country is allowed for designated distributors, hypermarkets & supermarkets, department stores, convenience stores, drugstores & pharmacies, food & drinks specialists, warehouse clubs, dollar stores, variety store & general merchandise retailers, vending machines, e-retailers, and retailers. Trade of spirits in country can be divided into two broad segments, which are; on-trade and off-trade channels.

The spirit market can be segmented on the basis of packaging material such as glass, paper & board, rigid plastics, flexible packaging and rigid metals etc. Glass is the most commonly used package material. Moreoverpack types are bottle, bag-in-box, carton-liquid, stand up pouch and can etc.There are many brands manufacturing spirits such as Grey goose, Ketel one, pinnacle, Skyy, Burnett’s, Tito’s, Svedka, Absolut, New Amsterdam and Smirnoff. Some beer brands are Heineken, Blue moon, Corona, Stella Artois, Dos equis, Fat tire, Guinness, Yuengling and Samuel Adams. Additionally, some whiskey brands are Buchanan’s scotch, Rich & Rare, Kessler, Woodford reserve bounbon, Dewar’s scotch, Club, Mist, Southern comfort, Bulleit, Wild turkey, Black velvet, Evan willians, Seagram’s 7 crown, Marker’s mark, Jameson Irish and Jim beam. Smirnoff is the leading brand in the US spirits sector.

In 2017, there are many key consumption trends for spirits. Consumption of alcohol beverages was less, due to health concerns and a prevalent wellness trend affecting all social sectors. Moreover number of domestic wineries, breweries and distilleries increased by a combined 14 %.

In 2017, spirit’s sales rise 3 percent to $6.2 billion, in US. The per capita consumption of spirits was lower in the US compared to both global and regional levels. Washington State has the highest spirits excise tax rate at $31.48 per gallon in the same year. Spirits companies sold 4 percent more liquor, hitting a record $26.2 billion, fueled by high-end brown liquor and a big thirst for Tequila and Vodka in the country, in the same year. In 2017, local consumers are prioritizing origin over brand loyalty, due to the diversity of spirits. In 2018, total category sales amounted to about US$2.35 billion in country. Jack Daniel’s Tennessee whiskey is the best selling whiskey, with about US$311.32 million. Nowadays, in US, consumers prefer craft beer because it provides more and variety than traditional beer. Tequila & Mezcal category is expected to register the fastest value and volume growth during 2017-2022.The market is projected to reach US$269.09 billion by 2012 and excise taxes will be decreased over the next five years.

To know more, click on the link below:

https://www.kenresearch.com/food-beverage-and-tobacco/alcoholic-beverages/profile-spirits-us/156604-11.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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