STEADY GROWTH

IN THE SPIRITS INDUSTRY

The distilled spirits industry has continued to see steady growth due to diversity, innovation, and improved quality of products.  Market share gains are tied to product innovation by creating marketing campaigns to support new product growth.

• Volume growth is up 2.3%

• Revenue growth is up 4.1%.

• 11.7B total supplier revenue in 2000 to $23.1B in 2014.

• Overall retail sales reached nearly $72 Billion in 2015.

The steady growth of the spirit industry is attributed to several factors which include:

• Growth of micro-distilleries generating excitement in the spirits sector.

• Focus on craft-style, artisanal products.

• Cocktail culture continuing to define nightlife.

• Consumer interest in premiumization and high-end products.

• State legislatures continue to show hospitality tax restraint.

VODKA

Vodka is the backbone of the spirits industry, accounting for 38% of all volume in total spirits produced.  In 2015, High-End and Super Premium vodka outsold the Value and Premium sectors in terms of number of bottles and total revenue sold in the U.S.  Vodka is also the most economic spirit in the industry as it does not require a lengthy aging process like most whiskey, tequila, rum and gin—making the vodka easiest to produce with a short turnaround.