U.S. Beverage Alcohol Trends

8/20/2019 U.S. Beverage Alcohol Trends

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U.S. Beverage Alcohol Trends

Mike Ginley – Next Level Marketing



Overview

This session will start with a fast paced and information pa

of the trends in total beverage alcohol consumption and th

category specific trends across beer, wine and spirits.

After the short trend review, world renowned mixologist To

Ganim will moderate a panel of leading mixologists to prov

unique perspectives on the major trends impacting the ind



Data Source

For consistency and objectivity, allof the trend information in this

presentation is sourced from theBeverage Information Group.

The Beverage Information Group isthe industry’s most comprehensiveinformation source.

The information you will see todaycomes from the BeverageInformation Group Handbook

Advance that is published annuallyin March of each year.



Total Beverage Alcohol Tren



Total U.S. Beverage Shares

Beverage Alcohol is the second largest beverage cthe U.S. at 9.4 Billion Gallons consumed in 2



Total Beverage Alcohol Market

The U.S. market size is 9.4B gallons and $197.8B in retail sale

Beer dominates on a volume share basis at 87% of consumpti Spirits and Wine are much more important on dollar share bas



5 Year Beverage Category Growth Ra

Over the last five years, Spirits and Wine consumgrown significantly while Beer consumption has d

2007 – 2012 Five Year Category Growth



2012 Beverage Category Growth Rat

In 2012, Spirits grew by 3.6%, Wine grew by 1.9%

returned to growth with 0.5% consumption gro



2012 On and Off-premise Trends

U.S. beverage alcohol volume splits 76% off-premise and 24%premise. Off-premise is growing by 1.2% while on-premise is f

U.S. beverage alcohol dollar sales are more evenly split with oaccounting for 53% and on-premise for 47%. Both channels g



2012 Domestic Vs. Imported Trends

Domestic vs. imported volume shares vary greatly by categimports accounting for only 13% of total, wine 23% and sp



New Brand Introductions

The number of new brand introductions has grown dover the past three years across Beer, Wine and S

total of 812 in 2012 led by 331 new Spirit bra



The Local Artisanal Craft Movement

There are now 434 craft distilleries, 2,075 craft brew7,345 local wineries in the U.S. that are driving co

interest and excitement with their innovative new



Beer Category Trends



In 2012, beer sales volume increased by 0.5% tobillion 2.25-gallon cases after three years of 1-2%

U.S. Total Beer Sales Volume Trend



Light beer dominates at 52% of volume, followed by13%, premiums at 11%, super-premium/craft at 10%

grew by 9.8% with imports up 1.2% and declines in

2012 Beer Category Shares By Type



2012 Top 25 Domestic Beer Brands

Bud Light dom21.9% share

bigger than #

The leading gYuengling up

The top 25 brfor 83% of cabut most are

Category growdriven by the

brands.



2012 Top 25 Imported Beer Brands

Corona domin27.1% share

bigger than #

Mexican speTecate Light, Dos Equis as

Artois are thegrowth brand

The top 25 brfor 91% of caand are drivin

category grow

T 10 B C ti St t



The top 10 states account for 53% of U.S. Beer volume anslightly slower than the total U.S. in 2012.

Top 10 Beer Consumption States



Wine Category Trends

U S T t l Wi S l V l T d



In 2012, wine sales volume increased by 1.9% to reach aof 318.4 million 9-liter cases marking 10 consecutive yea

U.S. Total Wine Sales Volume Trend

2012 Wi C t Sh B T



Domestic table wine dominates at 72% of consumption, imported table wines at 21% and champagne/sparkling a

growth driven by domestic table wine and champagne at

2012 Wine Category Shares By Type

2012 T 25 D ti T bl Wi B



2012 Top 25 Domestic Table Wine B

The top selling as Franzia, Ba

and Carlo Rosall economy prselling betweemillion cases.

Premium pricedKendall-JacksoChateau Ste MMénage a Troithe 25 and aregrowth drivers.

2012 Top 25 Imported Table Wine Br



2012 Top 25 Imported Table Wine Br

Yellow Tail dom11.7% and mo

the size of the brands.

With total impo1.7%, most madeclining or fla

The strong growexceptions werKim Crawford, Trapiche.

Top 10 Wine Consumption States



The top 10 states account for 61% of U.S. Wine volthey grew slightly faster than the total U.S. in 2

Top 10 Wine Consumption States

Wine Imports By Country



Wine Imports By Country

The top imports were from Italy, Australia, ArgentinaFrance with strong growth from Spain, Chili and Ar



Spirit Category Trends

U S Total Spirits Sales Volume Tre



In 2012, spirit sales volume increased by 3.6% to reach aof 205.8 million 9-liter cases marking 10 consecutive yea

U.S. Total Spirits Sales Volume Tre

2012 Spirits Category Shares By Ty



Vodka dominates at 34% of consumption, followed by rum a American whiskey at 10%. Vodka, Tequila and Irish whiskey a

growing categories but the growth story is Bourbon in America

2012 Spirits Category Shares By Ty

2012 Spirit Trends By Price Segmen



2012 Spirit Trends By Price Segmen

The Super-premium and Ultra-premium segments account fspirits volume and continue to be the fastest growing segm

consumers look to trade-up across total spirits.

Source: 2013 Beverage Information Group Handbook Advance for volume share and Nielsen: XAOC+Liq+Conv+Mil – ex WA; through 01/05/13

Flavored Spirits Driving Category G



Flavored Spirits Driving Category G

Flavored spirits are grtimes faster than total

Vodka and Whiskey mmajority of flavored spbut also Rum and Teq

Flavors ranging from cflavors like cotton cansophisticated flavors l

2012 Top 25 Spirit Brand Trends



2012 Top 25 Spirit Brand Trends

Smirnoff is the topat almost 10 millioBacardi a close semillion cases.

Ciroc and Pinnaclgrowth brands drivdriven by their flav

The top 25 brands43% of category v

Category growth i

by the smaller cra

2012 Top Vodka Brands



2012 Top Vodka Brands

Total of 70.2

34.1% of to

Growth of 5

Top 10 branfor 51% of c

Pinnacle is

growing bradriven by th

All other braccount forcategory an

2012 Top Rum Brands



2012 Top Rum Brands

Total of 26.8 m

13.1% of tota

Growth of 2.1

Top 10 brandfor 80% of ca

Calico Jack, S

Admiral Nelsogrowing top

All other branaccount for 2category and

2012 Top Cordial / Liqueur Brands



2012 Top Cordial / Liqueur Brands

Total of 20.9

10.2% of tota

Growth of 4.

Top 10 brandfor 55% of c

Jack Daniel’

Honey and Ffastest grow

All other braaccount for 4category and

2012 Top Straight American Whiske



2012 Top Straight American Whiske

Total of 16.5

8.0% of tota

Growth of 4.

Top 10 brandfor 81% of c

Maker ’s Ma

Stag are fasgrowing top

All other braaccount for category an

2012 Top Tequila Brands



2012 Top Tequila Brands

Total of 13.0

6.3% of total

Growth of 5.6

Top 10 brandfor 82% of ca

Fastest grow

are Camereand El Jimad

All other branaccount for jcategory and

Top 10 Spirits Consumption States



The top 10 states account for 53% of U.S. Spirits volumgrew slightly faster than the total U.S. in 2012

Top 10 Spirits Consumption States

Mixology Trends Shaping The Indus



Mixology Trends Shaping The Indus

Continued growth of the Vodka Category

Resurgence of the Bourbon category

Premiumization across all categories

The explosion of flavor across all categories

Micro distilleries, breweries and wineries

Dramatic increase in new product innovation

Mixology Panel



Mixology Panel

Tony Abou-GanimModerator

Zane LampreyPanelist

Dan DunnPanelist

U.S. Beverage Alcohol Trends

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