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Distilled spirits: flavors and premiums dominate.(INDUSTRY REVIEW: 2005 IN REVIEW)

Publication: Wine & Spirit Industry Marketing
Publication Date: 01-JAN-06
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Distilled Spirits consumption rose again in 2005, reaching 170.0 million cases on a growth rate of 2.7%. This is a pullback in the market trend from the 4.1% growth posted by the spirits industry in 2004. The continued success of high-end spirits, coupled with an ever-widening array of flavor...

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...variations, drove much of the growth. As seen in 2004, almost every category benefited from increased consumption with the exception of American blended whiskey, Scotch whisky and gin, each of which declined.

Straight Whiskey again posted positive results last year, the fourth consecutive year of gains for the category. The 1.4% growth rate in 2005 led the category to eclipse the 14 million case mark for the first time since 1994. Category leader Jack Daniel's generated the lion's share of the category growth, gaining 5.6% last year. Mixed results among the other leading brands included Maker's Mark continuing its upward trend and Jim Beam's ongoing decline, although Beam's Small Batch offering sustained its growth trend.

The trend in distilled spirits towards more premium offerings, coupled with the aging demographic of the typical blend consumer has had an adverse affect on the Blended Whiskey. The category declined again in 2005 to 5.2 million cases, a 2.5% drop. The...

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