Discus: liquor sales see a boost in 2003

Food & Drink Weekly, Dec 15, 2003

Liquor sales are growing, according to an industry trade group. With less than a month left in the year, the Distilled Spirits Council (Discus) is forecasting 2003 sales to rise 5.9% to $13.95 billion from $13.17 billion last year. While some of the increase speaks to the popularity of pricey super-premium brands, the volume of liquor sold also is expected to grow, up 3% from last year. The preliminary data suggest both spirits and wine are grabbing market share from beer. Discus estimates the market share for spirits will rise to 30.4% in 2003 from 29.7% last year, while beer's market share falls to 53.3% from 54.4%. Wine also gained market share, edging up to 16.3% of the market from 15.9% last year, according to Discus.

The passage of laws lifting restrictions on Sunday sales of spirits has helped to improve the industry's access to the market, said Discus. In 2003, five states passed legislation to allow Sunday sales of spirits, increasing the total allowing such sales to 27 states overall.

Separately, five states passed laws allowing consumers to sample spirits, boosting the number of states with this type of law to 39. An increase in advertising also contributed to growth, and helped spirits companies to narrow the gap with beer. According to Discus, spirits advertising is now shown on most major cable networks and on more than 500 local stations, most of which are network affiliates in major markets across the country. The increase represents a tenfold increase in the last three to four years.

Vodka, with forecast sales of $2.97 billion in 2003, continued to be the best-selling type of spirit. Vodka sales are projected to be up 8.4%. Cognac sales are expected to post the largest percentage gain, rising 15.3% to a projected $781 million. Sales of blended whiskey and brandy are expected to slip, with blended whiskey sales projected to fall 3% to $317 million and brandy sales expected to drop 1.3% to $453 million.