TRAVEL RETAIL: Wine, spirits FY volumes up despite Brazil slowdown
Sales volumes increased by 4%
A stuttering Brazil pulled back global travel retail wines & spirits sales last year but the category continued to find strong growth as Africa and the Middle East surged, a new survey has shown.
Wines & spirits volumes rose by 4% year-on-year, hitting 29.1m cases, according to the IWSR Duty Free/Travel Retail Summary Report 2013. In 2012, spirits again outperformed wine, growing volume by 5.2% compared to a 1% increase for wine.
A year prior spirits grew by 10% as wine stayed flat.
The strongest growth last year was in Africa and the Middle East, where volumes jumped by 13.7% because of a rebound in North Africa's tourism market after 2011's civil unrest, IWSR said.
Meanwhile, Brazil, the Americas’ biggest duty free market, posted a decline in volumes. The country last year saw decreases in consumer spending that has affected most multinational beverage firms in the country.
However, after Anheuser-Busch InBev's H1 results last month, analysts suggested Brazil's market is back on track, while in June, Brown-Forman posted a 23% FY increase in net sales in the country.
Europe posted the biggest jump in volumes - 431,000 cases - for travel retail wines & spirits as Central and Eastern Europe propped up Western Europe, IWSR said. Volumes declined in the Nordic countries, the region’s biggest market.
Diageo appointed a new head of travel retail last month, Doug Bagley, after Roland Abella quit.
The IWSR Duty Free/Travel Retail Summary Report 2013
The IWSR Duty Free/Travel Retail Summary Report 2013 summarises the data and trends in the annual IWSR Duty Free/Travel Retail Database. In a series of tables and charts, it provides analysis on the o...read more
Through much of the review period, Brown-Forman has struggled for growth. However, in 2012 its rate of growth picked up as the early results of its 10-year plan, announced in 2010, started to show as ...
Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrat...
Anheuser-Busch InBev Germany’s strategic direction is mainly in line with the international parent company and the company does not have a lot of room for self-governance. Partial autonomy is granted,...
The world’s leading spirits producer, Diageo also ranks 23rd in the global wine market. This profile analyses the role of wine in the company’s wide-ranging alcoholic drinks operations, considering op...
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- Focus - Remy Cointreau's H1 Performance by Brand
- Three Questions for the Drinks Industry
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"