|By PR Newswire||
|February 4, 2014 06:38 PM EST||
Market Opening Agreements, Cocktails, Quality and Heritage Drive "Global Whiskey Renaissance"
NEW YORK, Feb. 4, 2014 /PRNewswire-USNewswire/ -- American distilled spirits exports broke new records in 2013 crossing the $1.5 billion threshold, driven by premium Bourbon and Tennessee Whiskey which exceeded the $1 billion mark for the first time, the Distilled Spirits Council (DISCUS) reported today at its annual briefing for Wall Street analysts.
"Eighty years after Prohibition Repeal, this global whiskey Renaissance is a trend that is benefiting producers, large and small, in the U.S. and around the world," Council CEO Peter H. Cressy said. "These export records are driven by industry innovation, a very positive perception of American distilled spirits quality and heritage, and market-opening trade agreements."
Whiskeys Also Pace Steady Industry Sales Growth in U.S. Market
In the important U.S. home market, the Council reported steady supplier sales growth in 2013 of 4.4% to $22.2 billion, paced by whiskeys of all varieties; total U.S. volume growth was up 1.9% to approximately 206 million cases. The Council estimated overall retail sales of distilled spirits in the U.S. market at upwards of $66 billion.
In addition, the group estimated overall market share versus Beer grew for the fourth straight year, rising by four-tenths of a point for a total of 34.7% share of the beverage alcohol market.
Total market share gain since 2000, has been 6.0 points. Each point of market share equals approximately $630 million in supplier sales.
Key factors cited as contributing to the U.S. market growth included industry product innovations; consumer fascination with premiumization, heritage and cocktail culture; expanded access through state market modernizations; and effective hospitality tax restraint by legislatures.
"The wide product selection spirits suppliers offer consumers again paid off with solid revenue growth," DISCUS Chief Economist David Ozgo told the gathering. "For the first time in decades, all Whiskey categories saw some growth. Whiskey was once the dominant spirit of choice for most Americans. While growth had been picking up over the last few years, 2013 was a banner year."
Ozgo reported that Whiskeys of all varieties in the domestic market grew 6.2% to 52.7 million cases, worth just over $7 billion in supplier sales, up 10.1% or $643 million in 2013. Highlights within the Whiskey category include Irish up 17.5% in volume to 2.5 million cases worth $500 million, up 20.5% in revenue; Single Malt Scotch up 11.6% in volume to 1.8 million cases worth $590 million, up 14.7% in revenue; and Bourbon and Tennessee Whiskey up 6.8% in volume to 18 million cases worth $2.4 billion, up 10.2% in revenue.
He also reported solid U.S. growth in several other categories including Tequila, which showed volumes rising by 6.6% and revenue up by 7.9%, with strongest growth particularly in the more expensive price segments and $148 million in new supplier revenue; steady growth in Cognac with volumes up 3.7%; and Vodka volumes up 1.1%, which given the enormous size of the category at 66 million cases, drove $122 million in new supplier revenue.
Another important development in 2013 cited by the Council was the continuing progress on key social responsibility indices. According to the latest U.S. government data, underage drinking has declined to historic lows, and binge drinking rates by teens also continued their long-term decline.
"All tiers of the industry have committed themselves to fighting against underage drinking," Cressy noted. "Public-private partnerships such as 'We Don't Serve Teens' and Century Council programs have contributed to the progress."
Key Factors Contributing to Record American Spirits Exports in 2013
According to Council Senior Vice President for International Trade Christine LoCascio, projected Bourbon and Tennessee Whiskey exports overall grew 5.0% from $956.8 million in 2012 to $1.005 billion in 2013, an increase of approximately $50 million.
The projected top six 2013 growth markets for all American distilled spirits by dollar value were Japan (up $22.7 million to $120.8 million), Germany (up $19.6 million to $140.1 million), France (up $14.5 million to $130.5 million), U.K. (up $8.8 million to $159.6 million), Spain (up $6.5 million to $69.8 million) and Panama (up $5.8 million to $11.6 million). The projected top 2013 markets by growth percentage were Nigeria (up 475.5% to $5.0 million), Panama (up 99.0% to $11.6 million), Greece (up 72.5% to $9.2 million), Georgia (up 47.6% to $6.0 million), China (up 40.4% to $11.8 million) and Belgium (up 33.6% to $18.3 million).
"There is a genuine affection for 'Brand America' as a symbol of quality and taste," said LoCascio. She also pointed to "the strong heritage backstory for American whiskey brands dating to George Washington, whose reconstructed distillery has received international media coverage."
Other factors LoCascio cited for strong American distilled spirits export growth were market opening and other trade agreements in recent years that have seen tariffs significantly reduced or eliminated in key countries and regions including Panama, China, Australia, Colombia, Korea and Chile, among others.
LoCascio also pointed to the Council's own export promotion program—Cheers from the USA—which, in partnership with USDA since 2005, has conducted American spirits promotions in 15 key targeted countries, and that currently has American Whiskey Ambassadors in China and India.
Other important contributing factors included a globally resurgent cocktail culture, into which U.S. Whiskeys fit well; rising middle classes with disposable income around the globe; and industry innovation in bringing new products to market, coupled with general premiumization trends around the globe, LoCascio concluded.
Here is the link to the slide deck: 2013 Industry Briefing
Here is the link to the supporting distilled spirits category data tables: 2013 Industry Review Supplemental Tables and Charts
The Distilled Spirits Council is the trade association representing producers and marketers of distilled spirits sold in the United States.
SOURCE Distilled Spirits Council of the United States (DISCUS)
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 28, 2015 12:00 PM EST Reads: 324
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 28, 2015 12:00 PM EST Reads: 543
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 28, 2015 12:00 PM EST Reads: 221
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 28, 2015 11:45 AM EST Reads: 394
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 28, 2015 11:15 AM EST Reads: 408
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 28, 2015 11:00 AM EST Reads: 504
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 28, 2015 10:30 AM EST Reads: 306
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 28, 2015 10:15 AM EST Reads: 236
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 28, 2015 10:00 AM EST Reads: 388
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 28, 2015 10:00 AM EST Reads: 184
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 28, 2015 09:00 AM EST Reads: 175
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Nov. 28, 2015 08:45 AM EST Reads: 431
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Nov. 28, 2015 08:45 AM EST Reads: 329
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 28, 2015 07:45 AM EST Reads: 207
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 28, 2015 06:00 AM EST Reads: 240