Analysis - US spirits to march on as beer volumes drop
US spirits are benefiting from beer's struggles
US spirits are set to steal volumes from a struggling beer category this year, an analyst has predicted.
Spirits can expect volumes to increase by 1.5% over 2013 compared to 3% growth last year, Bernstein's Trevor Stirling said in a note this week. Beer, which last year posted volumes growth in the US for the first time since 2008, will decline again in 2013, this time by 1.7%, Stirling said.
“We expect spirits to continue to benefit from increased share of throat at the expense of beer,” Stirling said.
However, the analyst added that US spirits volumes are weakening, with rolling three-month volumes to July remaining flat. But strong pricing and mix will lead to a 4.5% growth in value at the end of the year.
Beer in the US has been hit by rising unemployment among its core demographic of young males, as well as high fuel prices and weak consumer confidence.
Stirling also said a slowdown in Nigeria's alcohol market appears to be easing. A government cut of oil subsidies had hit spending but the effect “finally appears to be wearing off”, Stirling said.
- Six key trends for alcoholic drinks in 2016
- Carlsberg's Q4 & full-year results - Preview
- Aus wine industry pays price for past failures
- What's in store for Super Bowl 50 - Focus
- Key trends for beer in 2016 - Focus
- William Grant & Sons restructures US team
- Diageo completes wine category exit in US
- Beam Suntory targets Kenya with Edrington/FIX
- Diageo's Oban Little Bay single malt Scotch - NPD
- Diageo nears wine exit with Acacia sale to Peju
- Global travel retail insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research