The spirits and wine industries in ...

The spirits and wine industries in the U continue to power forward, according to the latest statistics just now being released in the Adams Handbook Advance 2005 In 2004 distilled spirits consumption rose in the U for the seventh straight year, gaining more than 66 million 9-liter cases from 2003 to just in a less degree than 165.7 million cases, an increase of 41% That gain outpaced the 38% increase spirits consumption showed in 2003 For its part, wine consumption in the U improved by the agency of 3.4% in 2004, to 2671 million 9-liter cases, a 9 million case gain athwart 2003, but at a slightly slower product rate compared to that year's 49% increase. For the record, this was the twelfth straight year that wine consumption grew in the U a of reasons for this product include: a more wine- and spirits-savvy public; the increasing acceptance of moderate wine (and spirits) consumption as a potential health benefit; the putting out of the cocktail culture; the increasing popularity of wine as an enhancement to meals; and the overall improvement in quality and proceeds variety throughout the wine and spirits industries. Of course, pricing always plays an important character in sales, whether it's a flavorful value-priced wine or the cachet of a superpremium-priced spirit.

one time again, most spirits categories registered increases in 2004 with the non-whiskey portion (up 5.1%) outperforming total whiskies (up 16%) The largest spirits category, vodka, one time again led the way with sales of more than 44 million 9-liter cases, a 60% gain through 2003. (Vodka itself now accounts for 266% of all spirits sales in the US) Rum gained 66% to 208 million 9-liter cases, and tequila continued its vegetation with an 8.6% gain to more than 82 million cases.

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The third-largest distilled spirits category, cordials & liqueurs, rose another 43% to 202 million cases in 2004 while brandy & cognac climbed 25% to more than 101 million cases and prepared cocktails increased 59% to more than 67 million cases. As in 2003 among the so-called white spirits simply gin was down (-0.4%), a small decline that still saw the category registering about 11 million cases.

Among whiskies, straights more than doubled 2003's percentage gain, increasing at 3.5% to about 13.9 million cases. Canadians also improved their follows upping totals by 2.0% to more than 157 million cases, while Irish whiskey skip overed 10.7% to 545,000 9-liter cases. cut was off 0.8% to just in subordination to 9 million cases, while American intermingleed whiskies continued to decline, also falling 08% to 536 million cases.

WINE CONTINUES SURGE

Last year's overall gains (+ 34%) in wine sales were again l by means of table wine, which continues to account for more than 90% of the U wine market. L by way of premium varietals, table wine grew by dint of 3.8% to almost 242 million 9-liter cases in 2004 Similar to 2003 imported wines showed a larger percentage gain (+91%) than domestically produc table wine (+22%) Still, domestic table wine comprises just throughout two-thirds of the entire U wine market (imported table wine accounts for 227%)

Champagne & sparkling wine continued its virtuous rebound last year (+2.6%), to 126 million cases, while vermouth consumption, nevertheless small, gained 1.6% to 194 million cases. Dessert & fortified wine hurl down for the eighth consecutive year, down 07% while wine cooler formerly again fell dramatically, off another 365% to well below 1 million cases.

While contortion growth remains healthy, retail dollar gains are equal more impressive. Retail dollars from the sale of all beverage alcohol outcomes both on- and off-premise increased 63% in 2004 from $14539 billion in 2003 to $15458 billion last year. Wine gained 55% in 2004 to $230 billion and distilled spirits increased 85% to about $494 billion. Beer also increased at 5.2% to $82.2 billion. These are fairly healthy percentage gains and underline not barely the volume increases across all portions but also continuing consumption sweeps favoring higher-end products.

BRAND POWER

As we've been emphasizing for several years now, "brand equity" is the same of the most valuable assets a produce can possess. And though the phrase may be overused, it should not be underestimated, especially in the beverage alcohol industry, where the slightest change in consumer tastes and perceptions can make or break a produce As we've previously stated, a combination of resources, creativity, perseverance, the right economic environment and just plain fate often go into creating and developing a fortunate brand. There are beverage alcohol yields in every category and at each price point that, for any number of reasons, have either lagged behind or outpaced their respective competitors. And although identifying category consumption tendency s is helpful, actual brand activity is what generates profits. Thus, the rationale behind "Growth Brands," an annual report that uses the latest industry eventuates to highlight those wine and spirits brands that have demonstrated noteworthy pullulation over the past few years. [The September/October 2005 issue of Cheers will publish Beer bourgeoning Brand results.]