US total beverage alcohol adds 22.4 million nine-liter cases in 2016, nearly double the volume from previous year
Source: IWSR
February 8, 2017
The IWSR has released preliminary 2016 beverage alcohol category growth results as part of the 2017 US Beverage Alcohol Preview, available exclusively to IWSR clients in advance of the IWSR’s annual global data release in May. Preliminary results show that total beverage alcohol consumption in the US increased by 0.7% in 2016 to reach 3.4bn nine-liter cases. Last year’s addition of 22.4m nine-liter cases was double that of 2015 when total beverage alcohol grew by 11.2m nine-liter cases on a 0.3% growth rate.
The IWSR says overall trading up, or premiumization, and consumer thirst for US whiskey, American-made “craft” brands, sparkling wine, and Mexican beers continues to drive segments within the beverage alcohol space.
SPIRITS
In 2016, the distilled spirits industry achieved its 19th consecutive year of volume growth as it ended the year up by 2.3% at 216.4m nine-liter cases. Whisk(e)y continued to outperform the industry growing by 4.4% while the non-whisk(e)y segment under-performed slightly advancing volumes by 1.5%. The top five leading brands by volume, in order, are: Smirnoff, Bacardi, Jack Daniel’s, Crown Royal and Captain Morgan. Both Bacardi and Captain Morgan volumes continued year-over-year declines, but growth brands like Fireball and Tito’s rose rapidly.
WINE
In 2016, wine achieved its 22nd consecutive year of volume growth as it ended the year up by 1.7% at 357.4m nine-liter cases. Interest in still wine drove the addition of 4.5m nine-liter cases on a 1.4% growth rate over the previous year. The category that captured the most consumer attention was sparkling wine which increased by 8.1% adding 1.6m nine-liter cases last year. Three of the top five leading brand volumes declined (Franzia, Carlo Rossi and Sutter Home) amid the trend of consumers trading up to more premium-priced (over $10.00) products.
BEER & CIDER
The beer industry achieved its third consecutive year of volume growth in 2016 reaching 239.4m hectoliters. Imported beer, specifically from Mexico, is leading the volume growth for the industry. The craft segment has posted a single-digit increase for the first time in this decade due to the category hitting a maturation point. Other domestic offerings struggled to gain consumer interest as each of the remaining categories posted declines. Four of the top five brands are domestic beers in decline (Budweiser, Coors Light, Bud Light, Miller Light) while Corona’s growth signifies the Mexican beer trend. The cider category skyrocketed the past three years reaching an all-time high of 2.7m hectoliters in 2015 only to fall by -11.6% last year.
MIXED DRINKS
Defined by the IWSR as malt, spirit or wine-based ready-to-drink products, the mixed drinks category advanced by 7.8% to reach 10.2m hectoliters in 2016. The ‘Rita phenomenon is a thing of the past as consumers have turned their attention to hard sodas and spiked seltzers in addition to more premium spirit-based prepared cocktail offerings. Last year, Mike’s Hard Lemonade regained the top spot and continues a positive growth trend.
About the 2017 US Beverage Alcohol Preview and US Beverage Alcohol Review The IWSR 2017 US Beverage Alcohol Preview is available to clients of the US Beverage Alcohol Review (US BAR), a comprehensive database and report covering the entire US beverage alcohol universe: spirits, beer, wine, cider and mixed drinks. Available as an interactive online dashboard in addition to a full report, the US BAR includes demographic and state data, five-year forecasts by category, brand advertising spends, brand volume and value data, innovation and trend insights, the impact of the emerging e-commerce and delivery space, and much more. Although the IWSR is confident in the accuracy of the data contained in the 2017 US Beverage Alcohol Preview, the information is considered preliminary data ‘(p)’ as many suppliers have yet to finalize their 2016 figures. Preliminary figures are determined by IWSR analysts using proprietary data in addition to data collected and analyzed by the IWSR from major industry organizations such as Department of Commerce, NABCA, Brewers Association, Beer Institute, Nielsen, IRI and supplier-released financial statements, among others.
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About the IWSR
The IWSR is the leading source of analysis on the beverage alcohol market. We are the longest-running research company specializing exclusively in alcoholic drinks. The IWSR’s comprehensive database quantifies the global and local market of wine, spirits, beer, cider and prepared cocktails by volume and value, and provides insight into short- and long-term trends. Our proprietary trend-tracker database, Radius, provides insights into brand innovation and marketing activity around the world.
The IWSR’s methodology is unique. We are the only research company to annually visit distributors, importers, producers, retailers and duty-free operators in each market. This allows us to better understand market dynamics, real consumption figures, and to explain why certain trends occur. The IWSR conducts face-to-face interviews with 1,500 companies in 118 countries each year, with further input from 350 companies. We provide more detail on more brands, across more countries, than any other source. The IWSR produces several special reports each year; for more details, please visit www.theiwsr.com