Sales volumes increased by 4%

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.

Scotch remained the biggest spirits category in travel retail, adding 472,700 cases in 2012, with the market leader, Diageo's Johnnie Walker, adding 310,000 of them.

Diageo appointed a new head of travel retail last month, Doug Bagley, after Roland Abella quit.