Diving
into the world of Craft Spirits, strong growth likely to continue
Source:
GuestMetrics
Jul
11th
According
to GuestMetrics, while craft spirits brands account for a relatively small
portion of the overall spirits category on-premise, they are growing at a rapid
pace.
"In
analyzing the nearly 600 craft spirits suppliers we track in our system, our
data indicates they have been growing at a double digit clip thus far in 2013
in the on-premise channel, and are gaining momentum. Craft spirits volumes grew about +26% in 1Q13
compared to the same period in the prior year, and looking at 2Q13 through June
16th, volume growth accelerated further to about +29%. This is a strong out-performance versus
mainstream spirits brands, which saw on-premise volumes down -2.0% during 1Q13,
though there was a slight improvement to -1.1% in 2Q13 to-date. The net result of this is that craft spirits
brands' volume share of the overall on-premise spirits category has expanded
fairly rapidly, from 2.4% in 2012 to 2.6% in 1Q13, and is about 3.0% in 2Q13
to-date," said Bill Pecoriello, CEO of GuestMetrics LLC. "Furthermore, in analyzing the growth in
the actual number of craft spirits brands sold in our on-premise universe for
the first half of 2013 versus the same period in 2012, we see the number has
expanded by 7.6%. Given volumes are up
about 27% during that time, we see this as a healthy sign for the underlying
demand for craft spirits, given the growth is not just being driven by brand
proliferation, and is likely a sign there is a lot of runway left for
growth."
"Additionally,
we also analyzed which specific categories the craft brands are strongest
in," said Peter Reidhead, VP of Strategy and Insights at
GuestMetrics. "In terms of volume
share of overall spirits, craft's share is highest at 4.9% in Tequila, then
3.8% in Cordials, 3.5% in Vodka, 3.5% in Brandy/Cognac, 2.0% in
Bourbons/Blends, 1.6% in Rum, 1.3% in Gin, and had a negligible volume share in
Scotch, Irish, and Canadian."
"While
craft spirits are a relatively small portion of the overall spirits category
with about a 3-share of total volumes in on-premise, given the competitive
nature of the alcohol industry and the generally sluggish growth being
experienced in overall on-premise, the strong trends for craft spirits could be
a source for incremental growth for both suppliers and operators as we head
further into the summer season," said Brian Barrett, President of
GuestMetrics.
No comments:
Post a Comment