Assessing the Value of Alcoholic Drinks: Part 2 – Spirits & RTDs/High Strength Premixes

Distillers get a look in among leading alcoholic drinks companies by value

While the top 10 ranking of alcoholic drinks companies by volume is dominated by brewers, this not the case in value terms, with the leading international spirits companies Diageo and Pernod Ricard within the top five.

Spirits and RTDs possibly offer better returns than other alcoholic drinks

As can be seen when examining the value sales split of alcoholic drinks companies which are present in different alcoholic drink categories, most notably Diageo, RTDs/high-strength premixes and spirits potentially offer better returns.

International distillers dominate the global rankings in value terms

Unlike in volume terms, in value, international distillers dominate the top 10 rankings at both company and brand level due to their brands being in more premium categories and being focused on the premium and above segments. The major exception to this are super-premium Chinese baijiu brands, one of which, Moutai, is the world’s third biggest brand by value.

Premium positioning within spirits categories vital

Within international spirits categories, positioning within the category is vital for value performance. This is apparent not just in international spirits categories, such as bourbon/other US whiskies, but also in local products, such as “other” whiskies in India.

Where RTDs/High-strength premixes are sold has an impact on rankings

In RTDs/high-strength premixes, where a company’s volumes are sold makes a difference to the rankings. Those companies, such as Diageo, which have volumes in markets with high excise duties for the category, perform better.

Private label is less relevant in value terms

Private label sales only occur in the off-trade, and only in certain categories. In addition, private label is strongly focused on the economy segment, thus its value share of alcoholic drinks is smaller than its volume share.