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.
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