Alcoholic Drinks in the US
Euromonitor International's Alcoholic Drinks in the US market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 177 | Publication date: Jan 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Beer’s continued recovery drives alcohol sales higher
Beer volume sales were up again in 2008 for the third straight year, after dipping slightly in 2005. A steady stream of hit product launches, from Heineken Premium Light to Miller Chill to 2008’s Bud Light Lime, have helped re-ignite consumer interest in beer. Premium imported lager and domestic craft beers still represent the fastest growing beer types, although leading imports Corona Extra and Heineken are beginning to see share declines as their brand images become diluted. Established economy and mid-priced brands that have seen flat growth since 2003 could be poised for greater gains if consumers begin to trade down in response to a faltering economy.
Wine and spirits become accessible to Generation Y consumers
Wine and spirits volume sales also increased in 2008, and both alcohol types have found success by explicitly targeting an emerging demographic of Generation Y consumers, many of whom are just reaching the age at which they will form their drinking habits. Wine manufacturers continue to use irreverent labels, more convenient single-serve packaging, and a greater emphasis on innovations like premium bag-in-box wines and screwcap closures to break with wine’s old traditions. Spirits manufacturers continue to launch product extensions with new and exotic flavours, as well as premixed cocktails, making it easier to replicate popular mixed drinks like the margarita and mojito at home. RTDs and spirits infused with caffeine for energy also have a unique appeal among younger consumers.
Consolidation reshapes marketplace
The Big Three brewers – Anheuser-Busch, Miller Brewing Co and Coors Brewing Co – became two in July 2008, when MillerCoors was created as a joint venture between the US operations of the second and third ranked brewers. From new corporate headquarters in Chicago, the new number two MillerCoors is expected eventually to be better equipped to challenge the market dominance of Anheuser-Busch. Busch itself was the official target of a long rumoured purchase by Belgian giant InBev in June 2008, and that deal will create a new global leader in brewing when it is completed between 2008 and 2009. Sweden’s long awaited auction of the distiller V&S Vin & Sprit was also completed in 2008, with Pernod Ricard emerging as the winner. As a follow-up to that deal, Pernod sold Cruzan Rum to Fortune Brands, in return for Fortune Brands relinquishing control of Absolut Vodka early. Wine, too, saw several brands change hands, as Beam Wine Estates was sold to Constellation Brands, and Constellation then sold several of its mid-priced brands to The Wine Group. In a mature marketplace, brand acquisition and consolidation remains the preferred method of growth for most of the top companies.
Three tier distribution remains
A key 2006 Washington court case was overturned in January 2008, with the appeals court ruling that Costco must still use wholesalers for out-of-state wine purchases. The ruling was a blow to what had been a steady erosion of barriers to direct shipping since a 2005 Supreme Court ruling. Over the last three years, several states have passed more permissive regulations for direct shipping, but there remains no national standard. The persistent differences from state to state and the recent court ruling in the Costco case seem to indicate that the industry’s three-tiered distribution system will remain in place in the near future, at least.
Alcohol resists the ongoing recession
Sales of alcoholic drinks are expected to slow overall in the 2008-2013 period, but growth should remain positive even as consumers cut back on overall spending in response to the current economic downturn. Market maturity and trading down are expected to depress the double digit growth rates seen during the review period for premium wines, domestic premium lagers and some popular spirits, like rum, but consumers are also predicted to return to mid-priced wine, spirits and beer from brands they know and trust.
Table of contents
ALCOHOLIC DRINKS IN THE US : MARKET INSIGHT
EXECUTIVE SUMMARY
Beer’s continued recovery drives alcohol sales higher
Wine and spirits become accessible to Generation Y consumers
Consolidation reshapes marketplace
Three tier distribution remains
Alcohol resists the ongoing recession
KEY TRENDS AND DEVELOPMENTS
Generation Y grows up
Food and fuel inflation impacts US alcoholic drinks
Economic slowdown threatens US alcohol industry
Three tiered distributions prevails, for now
Specialist Retailers
Market Merger and Acquisition Activity
Summary 1 Speculated Merger and Acquisition Activity 2007-2008
MARKET BACKGROUND
Legislation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 5 Selling Margin of a Typical Imported Wine Brand 2008
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
Contraband/Parallel Trade
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - USA
ANHEUSER-BUSCH COS INC - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Anheuser-Busch Cos Inc: Key Facts
Summary 4 Anheuser-Busch Cos Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Anheuser-Busch: Competitive Position 2007
BOSTON BEER CO INC, THE - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Boston Beer Co Inc: Key Facts
Summary 7 Boston Beer Co Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Boston Beer Co Inc: Competitive Position 2007
COORS BREWING CO - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Coors Brewing Co: Key Facts
Summary 10 Coors Brewing Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Coors Brewing Co: Competitive Position 2007
CROWN IMPORTS LLC - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Crown Imports LLC: Key Facts
Summary 13 Crown Imports LLC: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Crown Imports LLC: Competitive Position 2007
HEINEKEN USA INC - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Heineken USA Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Heineken USA Inc: Competitive Position 2007
MILLER BREWING CO - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Miller Brewing Co: Key Facts
Summary 18 Miller Brewing Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 19 Miller Brewing Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 20 Miller Brewing Co: Competitive Position 2007
PABST BREWING CO - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Pabst Brewing Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Pabst Brewing Co: Competitive Position 2007
WINE GROUP INC, THE - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 23 The Wine Group Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 24 The Wine Group Inc: Competitive Position 2007
WJ DEUTSCH & SONS - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 25 WJ Deutsch & Sons Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 26 WJ Deutsch & Sons Ltd: Competitive Position 2007
YUENGLING BREWERY - ALCOHOLIC DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 27 Yuengling Brewery: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 28 Yuengling Brewery: Competitive Position 2007
BEER IN THE US
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 29 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN THE US
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cider/Perry: Total Volume 2003-2008
Table 45 Sales of Cider/Perry: Total Value 2003-2008
Table 46 Sales of Cider/Perry: % Total Volume Growth 2003-2008
Table 47 Sales of Cider/Perry: % Total Value Growth 2003-2008
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Volume 2003-2008
Table 49 On-trade vs Off-trade Sales of Cider/Perry: Value 2003-2008
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2003-2008
Table 51 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2003-2008
Table 52 Cider/Perry Production, Imports and Exports: Total Volume 2002-2007
Table 53 Cider/Perry Exports by Country of Destination: Total Volume 2002-2007
Table 54 Cider/Perry Exports by Country of Destination: Total Value 2002-2007
Table 55 Cider/Perry Imports by Country of Origin: Total Volume 2002-2007
Table 56 Cider/Perry Imports by Country of Origin: Total Value 2002-2007
Table 57 Company Shares of Cider/Perry by National Brand Owner 2003-2007
Table 58 Company Shares of Cider/Perry by Global Brand Owner 2003-2007
Table 59 Brand Shares of Cider/Perry 2004-2007
Table 60 Forecast Sales of Cider/Perry: Total Volume 2008-2013
Table 61 Forecast Sales of Cider/Perry: Total Value 2008-2013
Table 62 Forecast Sales of Cider/Perry: % Total Volume Growth 2008-2013
Table 63 Forecast Sales of Cider/Perry: % Total Value Growth 2008-2013
RTDS/HIGH-STRENGTH PREMIXES IN THE US
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 64 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 65 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 66 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 67 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 68 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 69 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 70 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 71 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 72 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 73 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 74 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 75 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
Table 76 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 77 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 78 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
WINE IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 79 Sales of Wine by Subsector: Total Volume 2003-2008
Table 80 Sales of Wine by Subsector: Total Value 2003-2008
Table 81 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 82 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 83 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 84 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 85 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 86 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 87 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 88 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 89 Volume Sales of Still Rosé Wine by Price Segment 2003-2008
Table 90 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 91 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 92 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 93 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008
Table 94 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 95 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 96 Wine Exports by Country of Destination: Total Value 2002-2007
Table 97 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 98 Wine Imports by Country of Origin: Total Value 2002-2007
Table 99 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 100 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 101 Brand Shares of Still Light Grape Wine 2004-2007
Table 102 Company Shares of Champagne by National Brand Owner 2004-2007
Table 103 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 104 Brand Shares of Champagne 2004-2007
Table 105 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007
Table 106 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007
Table 107 Brand Shares of Other Sparkling Wine 2004-2007
Table 108 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007
Table 109 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007
Table 110 Brand Shares of Fortified Wine and Vermouth 2004-2007
Table 111 Company Shares of Non-grape Wine by National Brand Owner 2004-2007
Table 112 Company Shares of Non-grape Wine by Global Brand Owner 2004-2007
Table 113 Brand Shares of Non-grape Wine 2004-2007
Table 114 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 115 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 116 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 117 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
SPIRITS IN THE US
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky Price band methodology
SECTOR DATA
Table 118 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 119 Sales of Spirits by Subsector: Total Value 2003-2008
Table 120 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 121 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 122 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 123 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 124 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 125 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 126 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 127 Sales of Gin by Premium/Super-premium Split 2003-2008
Table 128 Sales of Vodka by Premium/Super-premium Split 2003-2008
Table 129 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 130 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 131 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 132 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 133 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 134 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 135 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 136 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 137 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 138 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 139 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 140 Tequila Production, Imports and Exports: Total Volume 2002-2007
Table 141 Liqueurs Production: Total Volume 2002-2007
Table 142 Company Shares of Spirits by National Brand Owner 2003-2007
Table 143 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 144 Brand Shares of Spirits 2004-2007
Table 145 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 146 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 147 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 148 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013