Global market review of speciality spirits
Global market review of speciality spirits – forecasts to 2013 While the broad perception today is that the global spirits market is rapidly approaching hegemony under the leadership of a number of multinational companies, the reality is somewhat different. It may surprise, but the top ten multinationals in volume terms only have around a 15% market share of the global spirits industry. (http://www.bharatbook.com/detail.asp?id=136299&rt=Global-market-review-of-speciality-spirits-% E2%80%93-forecasts-to-2013.html) National and local producers continue to meet most of the demand, particularly in large Asian and Eastern European markets. Many of the leading spirits products fall outside of the mainstream categories that Western producers specialise in. This report reviews all of the non-mainstream, but major speciality spirits categories, covering the key brands and products in: Aniseed-, Cane-, Grape-, Fruit-, Coconut-, Juniper-, Root-, Rice-, Potato- or corn- and Cactus/agave-based spirits. The report provides extensive market data from The IWSR and its aim is to examine each of these speciality categories and consider their potential for premium and international development. This report is the first publication to compile all of these categories into one study - offering the reader an essential reference point, analysing and reviewing the markets for all key speciality spirits categories. Chapter 1 Market overview Multinationals naturally focus on the major drinks categories, as these provide the greatest volumes and the highest profits. But they are not always the fastest-growth or most dynamic categories. Between 2003 and 2007 some of the largest-growing categories were what might be termed non-mainstream. After vodka, shochu/soju was the second-largest growing category, rising by 27m cases, while Indian whisky was the third, rising by 22.4m cases. Tequila’s transition from being principally a national category into one of the hottest international categories shows what is possible. Volume sales of cachaça may not be high enough to register on the strategic radars of most multinationals in Europe, but the current situation is similar to that of Tequila in the mid- to late ’80s. Rum is another category that has made a similar transition from local/regional commodity product into one of the hottest international categories; it is another good example of a category that is rapidly premiumising. There will be other categories that will follow this path. The more forward-thinking multinationals are now looking for the next hot category. Some of these specialty categories are displaying strong growth, albeit often from low bases. The top 15 growth categories in Europe between 2003 and 2007 include: dry arrack (ranked 1st), cachaça (2nd), absinthe (4th), sambuca (8th), grappa (10th), sweet aniseed (11th) and mezcal (12th). Two other categories, Tequila and Irish whiskey, that until recently would have been considered specialty, are also file:///C|/Documents and Settings/user29/Desktop/Global market review of speciality spirits – forecasts to 2013.htm (1 of 3)7/22/2010 2:56:23 PM