Spirits: The Consumer - US

This report covers the spirits market, specifically the consumer, building on Spirits: The Consumer-U.S., August 2010.

This report provides an up-close look at the spirits consumer, including:

Spirits consumption trends among adults
How age, gender, income and ethnicity affect spirit consumption
Types of promotional strategies that stand out to spirit drinkers (as well as ones that do not)
Where spirits are most commonly consumed

Table of contents

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising clips
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Market factors
Market drivers
Performance by category and price segment
Qualities of leading brands, by category
Advertising and marketing strategies
Spirits consumption
Spirit brand choices
Mixing preferences
Reasons for drinking spirits
Price sensitivity and purchasing motivators
Spirit drinking preferences
Where spirits are consumed
Race and Hispanic origin
Insights and Opportunities
Natural and organic spirits

Figure 1: Square One Basil Vodka

Organics carry premium pricing
“Diet” cocktails
Inspire Insights
Trend: “Guiding Choice”
Trend: “Mood to Order”
Market Factors
Key points
Spirits experiences modest growth

Figure 2: Spirits revenue, January 2011
Figure 3: Spirits volume, rates of increase, January 2011
Figure 4: Spirits market share among all alcolohic beverages, by sales,January 2011
Figure 5: Spirits market share among all alcolohic beverages, by volume, January 2011

Easing retail sales restrictions
Sunday “blue laws”
In-store tastings
Supermarket sales
Market Drivers
Key points
Economic indicators

Figure 6: ICS, January 2006-February 2011
Figure 7: Gross domestic products, Q1 2011-Q1 2009
Figure 8: personal income and outlays

Employment Outlook Remains Grim

Figure 9: Percentages of unemployed adults aged 16+, 2001-11

Population changes by ethnicity

Figure 10: Population by race and Hispanic origin, 2006-16

Competitive Context
Cooking the premium goose
North America dominates premium spirits market
Performance by Category and Price Segment
Key points
Vodka dominates

Figure 11: U.S. spirits performance, by category, 2010
Figure 12: Industry market share, by category, 2010

Premium brands resurge

Figure 13: U.S. suppliers gross revenue, by price category, 2010
Figure 14: Price categories, by brand and segment, per 9-liter case, 2010
Figure 15: Spirits performance, by category and segment, 2010

Qualities of Leading Brands, by Category
Key points
Top 10 spirits brands, in sales

Figure 16: Top 10 Spirits brands, off-premise, non-liquor store sales channels, May 2011

White spirits
Vodka

Figure 17: Absolut Wild Tea
Figure 18: Stoli Citros

Smaller imported vodkas
Rum

Figure 19: Captain Morgan’s Lime Bite

Gin

Figure 20: Seagram’s Extra Dry Gin
Figure 21: Tanqueray’s Rangpur

Tequila
Dark spirits
Whiskey
American whiskey

Figure 22: Heaven Hill’s Trybox Series

Blended American whiskey

Figure 23: Barton Distilling’s Kentucky Gentleman

Imported whiskey
Canadian
Scotch
Irish whiskey

Figure 24: U.S. Sales of Jameson Irish Whiskey, by Number of 9-Liter Cases

Japanese whiskey
Cordials and liqueurs
Cream liqueurs
Brandy and Cognac
What’s the difference?
On-premise vs. Off-premise
Key points

Figure 25: On-premise vs. off-premise sales by year

On-premise continues to decline
Specialty liquor stores
Supermarkets
Drug and convenience stores
Warehouse Clubs
Bars and restaurants cut costs
Inventory management
Beverage promotions

Figure 26: Leading chains with adult beverage sales*

Innovations and Innovators
Spirits en vogue

Figure 27: Sample of consumer spirits purchases at texas-area retailers

Beyond Texas
Cocktail couture
Bitters, tonics and other ingredients
Classic cocktails
Home consumption
Marketing Strategies
Key points
Retailers and suppliers shift strategies, focus on digital
Retailers and social media
Suppliers increase media spending

Figure 28: U.S. Top 10 Advertised distilled spirits brands

A holistic approach
Diageo on mobile

Figure 29: mobile version of thebar.com from diageo

Vodka
Absolut
Smirnoff

Figure 30: Rapper Sean “Puffy” Combs

Ciroc: Rapping about vodka

Figure 31: Ciroc Vodka, “Perfectly Smooth,” December 2010

Three Olives

Figure 32: Three Olives Vodka, “Cowboys,” June 2011

Rum
Bacardi

Figure 33: Bacardi, “Together,” May 2011

Captain Morgan

Figure 34: Captain morgan, “Spiced Rum,” June 2011

Malibu
Tequila
Patrón
José Cuervo
1800 Tequila
Gin
Tanqueray
Bacardi Bombay Sapphire
Whiskey
Jim Beam
Jack Daniel’s
Figure 35: Jack Daniel’s, “Tennessee Honey,” April 2011
A Hispanic version of Studio 7
Maker’s Mark
Johnnie Walker
Jameson
Other spirits
Kahlúa

Figure 36: Kahlúa,“More Intriguing,” November 2010

Jägermeister
Spirit Consumption
Key points
Rum and vodka trump other spirits

Figure 37: Types of spirits consumed, May 2011

Women drink whiskey

Figure 38: Types of spirits consumed, by gender, May 2011

True favorites
Tequila

Figure 39: Types of spirits consumed, by age, May 2011
Figure 40: Types of spirits consumed, by income, May 2011

Vodka consumption and frequency
Cheap alternatives

Figure 41: Vodka consumption frequency, by gender, October 2009-December 2010
Figure 42: Consumption frequency, by age, October 2009-December 2010

Rum consumption and frequency
Beginners to advanced

Figure 43: Rum consumption frequency, by gender, October 2009-December 2010
Figure 44: Rum consumption frequency, by age, October 2009-December 2010
Figure 45: Rum consumption type, by gender, October 2009-December 2010
Figure 46: Rum consumption type, by age, October 2009-December 2010

Spirit Brand Choice
Key points
Absolut is consumers’ favorite vodka
Figure 47: Brands of vodka, by gender, October 2009-December 2010
“Young adult brands” dominate rum
Older consumers

Figure 48: Brands of rum, by gender, October 2009-December 2010
Figure 49: Brands of rum, by age, October 2009-December 2010

Both sexes like Patrón and José Cuervo tequila

Figure 50: Leading brands of tequila, by gender, October 2009-December 2010
Figure 51: Brands of tequila, by age, October 2009-December 2010

Men have more expensive taste in gin
Older consumers like different brands

Figure 52: Leading brands of gin, by gender, October 2009-December 2010
Figure 53: Brands of gin, by age, October 2009-December 2010

Both genders savor whiskey
The classic cocktail movement

Figure 54: Leading brands of whiskey, by gender, October 2009-December 2010

Young males love Jägermeister

Figure 55: Leading brands of cordials and liqueurs, by gender, October 2009-December 2010
Figure 56: Brands of liqueurs/cordials by age, October 2009-December 2010

E&J and Paul Masson trump the brandy category

Figure 57: Leading brands of brandy and armagnac, by gender, October 2009-December 2010

Cognac

Figure 58: Leading brands of Cognac by gender, October 2009-December 2010
Figure 59: Brands of Cognac, by age, October 2009-December 2010

Mixing Preferences
Key points
Straight talk or creamy jargon
Age and income

Figure 60: How spirits are consumed, by gender, May 2011
Figure 61: How spirits are consumed, by age, May 2011
Figure 62: How spirits are consumed, by income, May 2011

Reasons for Drinking Spirits
Key points
Do people drink to get drunk more than they admit?
Excuses for drinking
More money, more occasions

Figure 63: Why consumers drink spirits, by gender, May 2011
Figure 64: Why consumers drink spirits, by age, May 2011
Figure 65: Why consumers drink spirits, by income, May 2011

Price Sensitivity for Spirits
Key points
The premium and mid-range dominate
Brand loyalty

Figure 66: Price sensitivity among spirit drinkers, May 2011
Figure 67: Response to discounts and promotions among spirit drinkers, May 2011

Purchasing Motivators
Key points
Young adults experiment
The aspirational class

Figure 68: Factors behind choosing a particular spirit, by age, May 2011
Figure 69: Factors behind choosing a particular spirit, by household income, May 2011

Spirit Drinking Preferences
Key points
Women like mixing cocktails

Figure 70: Spirit drinking preferences, by gender, May 2011

Preferences by age

Figure 71: Spirit drinking preferences, by age, May 2011

Middle-income groups more discriminating

Figure 72: Spirit drinking preferences, by income, May 2011

Where Spirits are Consumed
Key points
More men drink in bars

Figure 73: Where spirits are consumed, by gender, May 2011

Older consumers are a key demographic

Figure 74: Where spirits are consumed, by age, May 2011

Impact of Race and Hispanic Origin
Key points
Ciroc is like Air Jordans
Hispanics like trying new things
Rum and tequila

Figure 75: Types of spirits consumed, by race and hispanic origin, May 2011

Mixing preferences

Figure 76: How spirits are consumed, by race and hispanic origin, May 2011

Hispanics rarely drink alone

Figure 77: Why consumers drink spirits, by race and hispanic origin, May 2011

Brands vs. thrift

Figure 78: Spirit drinking preferences, by ethnicity, May 2011

Blacks drink at home

Figure 79: Where spirits are consumed, by race and hispanic origin, May 2011

Cluster Analysis
Gregarious Budgeters
Characteristics
Demographics
Opportunity
Recession-proof Drinkers
Characteristics
Demographics
Opportunity
Anti-social Home-imbibers
Characteristics
Demographics
Opportunity
Cluster characteristic tables

Figure 80: Spirits clusters, May 2011
Figure 81: Reasons why distilled spirits are consumed, by spirits clusters, May 2011
Figure 82: Important liquor/distilled spirit brand attributes by spirits clusters, May 2011
Figure 83: Attitudes toward distilled spirits by spirits clusters, May 2011
Figure 84: Where distilled spirits are consumed most often by spirits clusters, May 2011

Cluster demographic tables

Figure 85: Spirits clusters, by gender, May 2011
Figure 86: Spirits clusters, by age, May 2011
Figure 87: Spirits clusters, by household income, May 2011
Figure 88: Spirits clusters, by race, May 2011
Figure 89: Spirits clusters, by Hispanic origin, May 2011

Cluster methodology
Appendix—Other Useful Tables
Motivations behind choosing which spirit to buy

Figure 90: Factors behind choosing a particular spirit - brand always drunk, by gender, May 2011
Figure 91: Factors behind choosing a particular spirit - brand always drunk, by age, May 2011

Ingredient quality

Figure 92: Factors behind choosing a particular spirit - ingredient quality, by gender, May 2011
Figure 93: Factors behind choosing a particular spirit - ingredient quality, by age, May 2011

Low price

Figure 94: Factors behind choosing a particular spirit - low price, by gender, May 2011
Figure 95: Factors behind choosing a particular spirit - low price, by age, May 2011

Price promotions, such as buy one get one

Figure 96: Factors behind choosing a particular spirit - price promotion, by gender, May 2011
Figure 97: Factors behind choosing a particular spirit - price promotion, by age, May 2011

Free samples

Figure 98: Factors behind choosing a particular spirit - free samples, by gender, May 2011
Figure 99: Factors behind choosing a particular spirit - free samples, by age, May 2011

Recommendation from a friend or family member

Figure 100: Factors behind choosing a particular spirit - recommendation from a friend/family member, by gender, May 2011
Figure 101: Factors behind choosing a particular spirit - recommendation from a friend/family member, by age, May 2011

Distilling process

Figure 102: Factors behind choosing a particular spirit - distilling process, by gender, May 2011
Figure 103: Factors behind choosing a particular spirit - distilling process, by age, May 2011

Country of origin

Figure 104: Factors behind choosing a particular spirit - country of origin, by gender, May 2011
Figure 105: Factors behind choosing a particular spirit - country of origin, by age, May 2011

A new flavor

Figure 106: Factors behind choosing a particular spirit - a new flavor, by gender, May 2011
Figure 107: Factors behind choosing a particular spirit - a new flavor, by age, May 2011

Less important factors: Influence at the moment of purchase
Bartender recommendation

Figure 108: Factors behind choosing a particular spirit - bartender recommendation, by gender, May 2011
Figure 109: Factors behind choosing a particular spirit - bartender recommendation, by age, May 2011

A waitress/waiter recommendation

Figure 110: Factors behind choosing a particular spirit - waiter recommendation, by gender, May 2011
Figure 111: Factors behind choosing a particular spirit - sales associate recommendation, by age, May 2011

A sales associate recommendation at the store

Figure 112: Factors behind choosing a particular spirit - sales associate recommendation, by gender, May 2011
Figure 113: Factors behind choosing a particular spirit - sales associate recommendation, by age, May 2011

An interesting-looking bottle or special packaging

Figure 114: Factors behind choosing a particular spirit - interesting packaging, by gender, May 2011
Figure 115: Factors behind choosing a particular spirit - interesting packaging, by age, May 2011

A brand everybody orders at a popular bar or restaurant

Figure 116: Factors behind choosing a particular spirit - a brand everybody orders, by gender, May 2011
Figure 117: Factors behind choosing a particular spirit - a brand everybody orders, by age, May 2011

Sponsor promotion, such as a model working for a spirits company handing out drink cards or samples

Figure 118: Factors behind choosing a particular spirit - sponsor promotion, by gender, May 2011
Figure 119: Factors behind choosing a particular spirit - sponsor promotion, by age, May 2011

Advertisements I have seen in magazines, TV, or online

Figure 120: Factors behind choosing a particular spirit - tv or online advertisements, by gender, May 2011
Figure 121: Factors behind choosing a particular spirit - TV or online advertisements, by age, May 2011

Billboard advertisements

Figure 122: Factors behind choosing a particular spirit - billboard advertisements, by gender, May 2011
Figure 123: Factors behind choosing a particular spirit - billboard advertisements, by age, May 2011

Social media advertisements

Figure 124: Factors behind choosing a particular spirit - social media advertisements, by gender, May 2011
Figure 125: Factors behind choosing a particular spirit - social media advertisements, by age, May 2011

Appendix—Trade Associations

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Related research categories

By sector: Spirits, Consumer (in Trends)

By market: United States (in North America)