America”™s liquor consumption has grown for the 12th straight year, while the industry continues to shift toward off-premises consumption.
The Norwalk-based Beverage Information Group recently released its 2010 Liquor Handbook, saying total spirits consumption rose 1.6 percent in 2009 to 188.6 million 9-liter cases. The company is an independent aggregator and publisher of trend reports and market information for the alcohol-beverage industry.
“Due to the economic environment, we have seen a ‘trading down effect’ with more consumption in lower-priced tiers,” said Eric Schmidt, manager of information services for the Beverage Information Group. “As a result, we are seeing heavy price fighting and couponing taking place in order for suppliers to maintain growth and share.”
Schmidt said that although growth continues, the rate of expansion has slowed.
“Even though growth has pulled back slightly due to the recessionary environment, the distilled spirits business remains healthy,” said Schmidt. “The drivers for slow growth continue to be a shift to off-premises consumption, the economic dip and value-priced offerings.”
Schmidt said there has been a sustained shift in consumption patterns away from bars and restaurants toward the home.
“The on-premises segment of the market has dropped for two consecutive years with a 3.3 percent decline in 2009,” said Schmidt. He said another trend in this year”™s findings featured domestic spirits outpacing imports for the second consecutive year.
“Total imported spirits rose 1.4 percent in 2009 to 75.3 million cases compared with slightly faster growth for domestics,” said Schmidt. Domestic growth was 1.8 percent to 113.3 million cases.
In a December study, the Beverage Information Group found North American whisky was the most displayed category among off-premises retailers. Jack Daniel’s was the single most displayed brand, followed by Bacardi and Smirnoff vodka, a Norwalk-based Diageo-brand.
In the company”™s March study, vodka topped the category list with the most retail displays, with rum in second place.
“We also saw some shifts in most displayed brands, said Schmidt.
Bacardi nudged its way to the No. 1 slot with 66 percent of stores visited featuring the brand on display. Smirnoff ranked second with 55 percent of stores displaying the brand. Jack Daniel’s occupied the No. 3 spot with 49 percent of stores featuring it.
“Although imports have lost share, its contribution to the market has increased since 1999 due in part to the fact that a majority of spirits at higher price points are imported offerings,” said Schmidt.
