Spirits in Canada

PRE-COVID-19 PERFORMANCE

Slower growth due to the health trend and the popularity of wine

Spirits maintained solid total volume growth in 2019. Although the off-trade channel accounted for far higher sales than the on-trade channel, the latter saw slightly higher growth.

Developments in craft spirits, with the possibility of a seal of authenticity

Craft spirits is in the early stages of development, but continued to see rapid growth in 2019, similar to craft beer in the early days, as consumers are gravitating towards small-batch production, unique styles/tastes/flavours or craftsmanship. There has been explosive growth in the number of craft distillers offering unique and interesting products, with BC leading the trend.

Diageo extends its lead thanks to strong performances by several brands

The spirits category in Canada is relatively mature and consolidated. Diageo Canada and Corby Spirit & Wine remained the top two players in 2019, claiming nearly half of total volume sales between them due to their wide product ranges.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 49% in 2020 in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted in May 2019, before the spread of COVID-19.

Affected products within spirits

In a complete change from 2019, tequila (and mezcal) is expected to see the strongest total volume decline in 2020. Despite the fact that it is set to see a better growth rate than many other categories off-trade, the strong on-trade decline, and the higher share of sales via this channel than other spirits categories, means it is expected to see the strongest total volume decline.

Recovery and opportunities

After the expectation of strong decline in 2020, total volume sales of spirits are expected to return to marginal growth in 2021. In a reversal of the trend the previous year, on-trade sales are expected to see significant growth, as entertainment venues reopen and consumers start to return.

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