DISCUS reports liquor sales are up 3.1% this year

Modern Brewery Age, Dec 20, 2004

The Distilled Spirits Council of the United States (DISCUS) has reported that overall supplier level U.S. spirits sales for 2004 grew 3.1 percent in volume and 5.8 percent in dollars. That translated into 164.2 million 9-liter cases and $14.7 billion in revenue.

The distiller's organization stated that "the growth was solid across the various spirits categories and price points, and was driven by expanding market access opportunities and the continuing adult interest in premium beverages and cocktails."

The Council predicted an increase to 29.7 percent of the beverage alcohol market by volume, up from 29.3 percent in 2003 and projected a record $655 million of exports of U.S. spirits products.

DISCUS CEO Peter H. Cressy, reporting the results to reporters and analysts, stated that increasing market access opportunities for spirits products, with eleven more states permitting Sunday sales (for a total of 32) in the past several years, had contributed significantly to spirits growth in the beverage alcohol market. He also pointed to the industry's success in defending the hospitality industry from tax increases as well as "more equal opportunities in the marketplace."

DISCUS chief economist David Ozgo, who developed the data, stated that the industry had posted the second straight year of 3 percent plus gains for the first time in many years.

Ozgo noted the steady growth across the price points but said the high end and super premium products were the fastest growing segments.

Ozgo reported that the "Brown Spirits" (whiskies) are growing again with Irish Whiskey up 11.7 percent, Single Malt Scotch up 5.4 percent, Bourbon up 3.5 percent and Canadian up 1.7 percent. Among all the Brown Spirits, High End Premium products were up 5.9 percent and Super Premium were up 7.1 percent.

Ozgo said that Vodka continued to lead all categories with 25 percent of the spirits market with volume up 4 percent to 43.5 million cases and revenue up 7.5 percent to $3.2 billion. Other categories showing steady growth include Rum and Tequila, Ozgo said.

Looking forward, Ozgo projected continued steady growth for 2005 based on the "strength of the economy, favorable adult demographics, and the variety of brands for every taste, budget and occasion."