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U.S. Spirits Consumption Grows for 10th Straight Year; Luxury Brands and New Flavored Products Spur Gain

Source: Beverage Information Group
14/07/2008

Norwalk, Conn., July 14 - According to the Beverage Information Group's recently released 2008 Liquor Handbook, total distilled spirits consumption rose 2.8 percent in 2007 to 181.7 million 9-liter cases.

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This gain marks the tenth consecutive year of volume growth for the distilled spirits industry and is forecasted to continue throughout 2008. Total distilled spirits consumption is expected to reach 184.5 million cases by the end of 2008, which is up 1.6 percent from 2007.

The 2008 Liquor Handbook is one of the most comprehensive sources of information on U.S. spirits and sales trends. It includes consumption and projection information by category and by market; tracks leading brands; and reports historical data. Two important historical trends cited in the 2008 Liquor Handbook are the more than 10 years of rapid expansion by above-premium tier spirits, and imported spirits continuing to outpace gains posted by their domestic counterparts. Another more recent trend noted is that the majority of 2007 market launches involved either fruit flavors or high-quality or reserve line extensions across almost every spirits category. New flavors are not only stimulating growth in categories like vodka and rum, but are also impacting other categories.

"Despite economic pressures and declining consumer confidence, the trend toward spirits as an 'affordable luxury' doesn't show any signs of slowing, and a large number of product introductions continue to arrive at the higher price tiers," says Eric Schmidt, manager of information services for the Beverage Information Group, Norwalk, Conn. "To fuel growth, marketers will undoubtedly continue to expand brand exposure via the Internet, which is exploding as a means for spirit marketers to connect with key customers such as the millennial generation and surging Hispanic population."



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