National Liquor News June 2022

Page 38

North American Drinks

A toast to America Seamus May discovers why culture, history and occasion are key to unlocking the sales potential of North American drinks.

Australia is blessed with one of the world’s

Manager, Andy Milne, reveals.

The last two decades in the Australian

finest drinks industries. Beer, wine and

“Australians are definitely upgrading

spirits business have been defined by a

spirits are now all produced in this country

their drinking choices and enjoying a

domestic distilling scene that is stronger than

in higher quality and quantity than perhaps

premium product,” Milne says.

ever. It might be suspected that this would

they have ever been.

“The total market for glass bourbon is in

eat into the market of American spirits, but

Nevertheless, there remains an enduring

decline by -5.0 per cent in 9L moving annual

popularity amongst drinkers for imported

total (IRI Data Mar-22), with value and

“I think it is helping the category rather

beverages from North America in Australia.

mainstream driving this decline, however

than hindering it. With more consumers

For retailers, the North American drinks

super premium is continuing to grow,

exploring the super premium category

sector is one that demands attention –

performing +8.0 per cent in 9L.”

of Australian whisky, we are seeing these

offering a route into a lucrative niche with a dedicated audience.

With this change in habits has come a shift in demographics too. In particular, Milne sees a market for

Milne believes the opposite is true.

same consumers learning and discovering more about the same American whiskey category as they look to expand their drinks

Bourbon – a perennial firm favourite

bourbon amongst the over-25 year old age cohort, noting: “In the 25-45 year old sector,

“Having so many great Australian whiskies

Uniquely American spirits, such as bourbon,

consumers are upgrading their bourbon

available to consumers, they are able to learn

continue to resonate with Australians. An

choices from the value or mainstream

and engage more with these products. That

IRI report released in late 2021 revealed that

choices of their youth and seeking a higher

provides them the confidence to make new

bourbon remains the number three ranked

quality option that doesn’t break the bank.”

discoveries when purchasing in-store.”

glass spirits category in Australia, a position it

Here, Milne believes there is a clear

has maintained for the preceding three years.

opportunity for some of SouthTrade’s

Nevertheless, there does appear to be

imported American spirits.

knowledge,” he said.

RTDs and liqueurs tap a younger adult market

a shift in the bourbon drinking habits of

“This is where we have significant growth

Milne also describes a growing trend

Australians that will pique the attention of

for Buffalo Trace and Eagle Rare 10 year

among younger drinkers for flavoured

retailers, as SouthTrade International Brand

old,” he said.

whiskey liqueurs.

38 | National Liquor News

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